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    Trader Joe’s and Starbucks are helping Elon Musk undermine the US government | Steven Greenhouse

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    Elon Musk boasts that he’s a “free speech absolutist”, but that didn’t stop his rocket company, SpaceX, from firing eight workers who had criticized him for making light of reports that SpaceX had settled a sexual harassment claim against him.Not stopping there, SpaceX has moved to put the National Labor Relations Board (NLRB), the US’s top labor watchdog, out of business. Earlier this year, a day after the board accused SpaceX of illegally retaliating against those workers, SpaceX filed a first-of-its-kind lawsuit that seeks to have the labor board – which has successfully overseen relations between business and unions since the 1930s – declared unconstitutional and shut down.In so doing, Musk and SpaceX have joined a broader, rightwing effort that hopes to hobble the federal government’s ability to regulate business. Indeed, SpaceX’s lawsuit could serve as a potent wrecking ball in the right’s push to weaken and perhaps demolish the administrative state – the network of federal agencies that the US Congress created to, among other things, promote workers’ safety on the job, prevent fraud in financial markets, protect workers’ right to unionize, limit environmental hazards, make sure consumer products are safe and administer social security for seniors.With their lawsuit, SpaceX and Musk – who owns 42% of that company’s shares and controls 79% of its voting power – are seeking not just to silence the eight employees who criticized Musk, but also to shut down the agency that protects such workers’ rights to speak out at all. Musk, the $180bn man, is throwing a legal temper tantrum because the NLRB has sought to hold him and SpaceX accountable.Those employees wrote a letter saying: “Elon’s behavior in the public sphere is a frequent source of distraction and embarrassment for us.” They wrote that letter after Business Insider reported that SpaceX had paid $250,000 to silence a company flight attendant who accused Musk of exposing himself and propositioning her for sex. Musk dismissed her in a tweet, saying she was a “liar” and that the incident “never happened”.The NLRB’s complaint against SpaceX is based on a law, the National Labor Relations Act, that makes it illegal for companies to fire or otherwise retaliate against workers who join together to push to improve work conditions. In their letter, the eight employees also called on SpaceX to spell out its anti-harassment policies and enforce them more effectively.If SpaceX’s lawsuit succeeds in getting the federal courts to declare the NLRB unconstitutional, it could set a dangerous precedent that other courts seize on to weaken or even eviscerate other federal agencies, such as the Environmental Protection Agency (EPA), the Occupational Safety and Health Administration (Osha), and perhaps even the Federal Election Commission (FEC) and the Social Security Administration.SpaceX’s lawsuit seeks to build on a case in which George R Jarkesy Jr, a rightwing activist and radio talkshow host, persuaded the hard-right fifth circuit court of appeals to declare the Securities and Exchange Commission unconstitutional after it fined Jarkesy hundreds of thousands of dollars for defrauding investors.In their effort to blow up the NLRB, Musk and SpaceX are hoping to capitalize on the federal judiciary’s sharp rightward turn – a shift accelerated during Donald Trump’s presidency. It shouldn’t be a surprise that SpaceX filed its lawsuit in Texas, the state that arguably has the nation’s most extreme, most activist conservative federal judges. Following SpaceX’s lead, Amazon, Trader Joe’s and Starbucks also filed legal papers seeking to have the NLRB declared unconstitutional.Like SpaceX, those companies face NLRB charges of illegally retaliating against workers. One way to look at all this is that a band of billionaires – Elon Musk, Amazon’s Jeff Bezos, Starbucks’ Howard Schultz, and Trader Joe’s German owners, the Albrecht family – are seeking to kill the federal agency that protects typical workers when they seek to unionize or merely speak up for better conditions.Using uncharacteristically tough language, Jennifer Abruzzo, the labor board’s general counsel, slammed SpaceX, Starbucks and the other companies as “deep-pocketed, low-road employers” that seek to stop the NLRB from fulfilling its pro-worker mission “because they have the money to do so”.“Unfortunately,” Abruzzo added, it seems that SpaceX and the others “would rather spend money initiating court litigation than improving their workers’ lives”.If these “low-road employers” prevail, the whole NLRB process of holding union elections and prosecuting companies that violate labor laws could crumble. This “would leave US workers more vulnerable to exploitation”, Kate Andrias, a law professor at Columbia, wrote recently.Of course, for Starbucks and Trader Joe’s, this effort to have the NLRB declared unconstitutional could backfire – sabotaging the “progressive” image they have long sought to cultivate. Many Starbucks and Trader Joe’s customers might be outraged that the companies that furnish them with lattes and organic produce have joined this conservative legal and political assault.Many legal experts have derided one of SpaceX’s main arguments: that the labor board’s administrative law judges – who determine, for instance, whether a company violated the law by firing pro-union workers – should be deemed unconstitutional. SpaceX asserts that the NLRB’s judges exercise executive functions and therefore that the president, as the head of the executive branch, should be free to fire them. (Under federal labor law, they can be fired only for cause.) SpaceX makes this argument even though it’s crystal clear that the labor board’s judges merely do what judges do: issue judicial decisions.Moreover, what SpaceX is demanding would allow Trump, if re-elected, to do something that corporate America would hate – fire labor board judges because they upset him by ruling in favor of companies whose CEOs had criticized him or not donated to his campaign. Administrative judges – whether labor board judges, immigration judges or social security judges – have legal protections against being summarily fired so that they can make honest, independent decisions without fear of being terminated for political reasons.It is sad, if not altogether surprising, that SpaceX, Amazon, Starbucks and Trader Joe’s have joined a rightwing effort to destroy the federal agencies that set the rules that helped make the US the world’s richest nation and Musk, Bezos, Schultz and other billionaires fabulously wealthy. Now these billionaires are seeking to destroy the NLRB so that they can become even more fabulously wealthy.This is yet another unsettling example of plutocrats exercising their financial might to reshape government to their liking. It’s an effort that, if successful, will hurt millions of average Americans – consumers, workers, small investors and anyone who wants the environment protected.Here’s hoping that public interest prevails over Musk and the billionaires.
    Steven Greenhouse, a senior fellow at the Century Foundation, is an American labor and workplace journalist and writer More

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      Undertaxed and over here: why the UK welcomes US mega firms | Phillip Inman

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      Americans love Britain, and in many ways the British admire Americans, but the benefits of the relationship are becoming increasingly one-way.That’s the argument set out in a book published next month documenting how US companies have made inroads into the UK economy by exploiting a desperate need for investment, weak regulation and a public that seems oblivious to the cost to themselves and, ultimately, the economy.Clinton, Bush, Obama, Biden: whichever administration is pulling the levers, presidents pay lip service to a special relationship with the UK. Each one makes sure US companies leverage Washington’s power to gain entry, kill off local competition, secure monopoly control and run off with the profits largely tax-free.But UK companies that try to break into the US face huge legal and regulatory hurdles. It’s true that selling goods to America is a lucrative business. That’s not the same as setting up a US subsidiary in the US and going head-to-head with domestic corporations.Labour leaders fall into the trap of lauding energetic and profitable US companies as much as their cheering Tory counterparts do. Tony Blair and Gordon Brown were more ardent Americanophiles than most. And Keir Starmer shows every sign of rushing to Washington should he be elected, even if Trump is in charge – much as Theresa May did in 2017, before a humiliating return visit two years later.The new book is not an anti-American leftist call to arms of the kind published in the 1980s, when Margaret Thatcher’s admiration for Ronald Reagan generated tomes about the UK being the 51st state of America. Vassal State by Angus Hanton (Swift Press) examines for the first time the disparate data showing how much US companies have embedded themselves in the UK, capitalising on our willingness to pay them outlandish fees and subscriptions and afford them the hefty tax breaks needed to keep them in the UK.We know about the power and influence of Amazon, Apple, Meta/Facebook, Microsoft, Netflix and Alphabet/Google. Other high-profile names include online sellers eBay, Wayfair and Etsy, and streaming companies Sky, Disney and Apple TV.The internet’s cloud storage is mostly provided by American companies. All our data, bit by bit, is being collected by US firms, whether at the front end as we buy stuff using Amazon or travel using Google Maps, or at the back end, so to speak, as health data is scraped by US spy technology firm Palantir – which is run by Peter Thiel, the co-founder of another US web behemoth, PayPal.Hanton, a London-based entrepreneur who co-founded the Intergenerational Foundation charity, documents their rise, but also that of less well-known firms which have acquired the UK’s financial and physical plumbing.A classic example is WorldPay, a payments system used by tens of thousands of UK businesses to process card transactions. Once owned by NatWest, it was offloaded after the 2008 crash to US private equity firms Advent International and Bain Capital for £2bn.That was a European Commission order that the UK could have ignored but chose to obey. Advent and Bain floated the company on the London stock market for a handsome profit in 2015, but it soon went private again. Another Advent-owned firm, payments processing technology company Vantiv, paid $10.4bn for it in 2018, then Florida-based Fidelity National Information Services (FIS) paid $35bn in cash and shares for WorldPay in 2019.What ties these firms together is that they offer popular services that somehow we accept should be charged for, without any reference to the cost of production or market influence.It doesn’t happen on the continent in nearly the same way – and some would probably argue France, Germany, Spain and Italy are the poorer for it. WorldPay executives would no doubt say US companies are big investors, enhancing and expanding the UK businesses they buy, often with a long-term vision. Except that the vision includes domination and control of the economy, holding the government to ransom with threats of cutting investments if tax subsidies are not generous enough or tax rates low enough.Google’s soon-to-be-opened monster HQ in London’s King’s Cross is emblematic of the way the UK’s red-carpet treatment for investors has profited US companies and offset the threat of an exodus after Brexit. Google has found the UK, unlike the EU, willing to turn a blind eye to its monopolistic practices.That is great news for Brexiters. It’s not so good for the rest, who, wherever they turn, must pay for the services of an ever-expanding array of US mega-companies. More

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      Tech firms sign ‘reasonable precautions’ to stop AI-generated election chaos

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      Major technology companies signed a pact Friday to voluntarily adopt “reasonable precautions” to prevent artificial intelligence tools from being used to disrupt democratic elections around the world.Executives from Adobe, Amazon, Google, IBM, Meta, Microsoft, OpenAI and TikTok gathered at the Munich Security Conference to announce a new framework for how they respond to AI-generated deepfakes that deliberately trick voters. Twelve other companies – including Elon Musk’s X – are also signing on to the accord.“Everybody recognizes that no one tech company, no one government, no one civil society organization is able to deal with the advent of this technology and its possible nefarious use on their own,” said Nick Clegg, president of global affairs for Meta, the parent company of Facebook and Instagram, in an interview ahead of the summit.The accord is largely symbolic, but targets increasingly realistic AI-generated images, audio and video “that deceptively fake or alter the appearance, voice, or actions of political candidates, election officials, and other key stakeholders in a democratic election, or that provide false information to voters about when, where, and how they can lawfully vote”.The companies aren’t committing to ban or remove deepfakes. Instead, the accord outlines methods they will use to try to detect and label deceptive AI content when it is created or distributed on their platforms. It notes the companies will share best practices with each other and provide “swift and proportionate responses” when that content starts to spread.The vagueness of the commitments and lack of any binding requirements likely helped win over a diverse swath of companies, but disappointed advocates were looking for stronger assurances.“The language isn’t quite as strong as one might have expected,” said Rachel Orey, senior associate director of the Elections Project at the Bipartisan Policy Center. “I think we should give credit where credit is due, and acknowledge that the companies do have a vested interest in their tools not being used to undermine free and fair elections. That said, it is voluntary, and we’ll be keeping an eye on whether they follow through.”Clegg said each company “quite rightly has its own set of content policies”.“This is not attempting to try to impose a straitjacket on everybody,” he said. “And in any event, no one in the industry thinks that you can deal with a whole new technological paradigm by sweeping things under the rug and trying to play Whac-a-Mole and finding everything that you think may mislead someone.”Several political leaders from Europe and the US also joined Friday’s announcement. Vera Jourová, the European Commission vice-president, said while such an agreement can’t be comprehensive, “it contains very impactful and positive elements”. She also urged fellow politicians to take responsibility to not use AI tools deceptively and warned that AI-fueled disinformation could bring about “the end of democracy, not only in the EU member states”.The agreement at the German city’s annual security meeting comes as more than 50 countries are due to hold national elections in 2024. Bangladesh, Taiwan, Pakistan and most recently Indonesia have already done so.Attempts at AI-generated election interference have already begun, such as when AI robocalls that mimicked the US president Joe Biden’s voice tried to discourage people from voting in New Hampshire’s primary election last month.Just days before Slovakia’s elections in November, AI-generated audio recordings impersonated a candidate discussing plans to raise beer prices and rig the election. Fact-checkers scrambled to identify them as false as they spread across social media.Politicians also have experimented with the technology, from using AI chatbots to communicate with voters to adding AI-generated images to ads.The accord calls on platforms to “pay attention to context and in particular to safeguarding educational, documentary, artistic, satirical, and political expression”.It said the companies will focus on transparency to users about their policies and work to educate the public about how they can avoid falling for AI fakes.Most companies have previously said they’re putting safeguards on their own generative AI tools that can manipulate images and sound, while also working to identify and label AI-generated content so that social media users know if what they’re seeing is real. But most of those proposed solutions haven’t yet rolled out and the companies have faced pressure to do more.That pressure is heightened in the US, where Congress has yet to pass laws regulating AI in politics, leaving companies to largely govern themselves.The Federal Communications Commission recently confirmed AI-generated audio clips in robocalls are against the law, but that doesn’t cover audio deepfakes when they circulate on social media or in campaign advertisements.Many social media companies already have policies in place to deter deceptive posts about electoral processes – AI-generated or not. Meta says it removes misinformation about “the dates, locations, times, and methods for voting, voter registration, or census participation” as well as other false posts meant to interfere with someone’s civic participation.Jeff Allen, co-founder of the Integrity Institute and a former Facebook data scientist, said the accord seems like a “positive step” but he’d still like to see social media companies taking other actions to combat misinformation, such as building content recommendation systems that don’t prioritize engagement above all else.Lisa Gilbert, executive vice-president of the advocacy group Public Citizen, argued Friday that the accord is “not enough” and AI companies should “hold back technology” such as hyper-realistic text-to-video generators “until there are substantial and adequate safeguards in place to help us avert many potential problems”.In addition to the companies that helped broker Friday’s agreement, other signatories include chatbot developers Anthropic and Inflection AI; voice-clone startup ElevenLabs; chip designer Arm Holdings; security companies McAfee and TrendMicro; and Stability AI, known for making the image-generator Stable Diffusion.Notably absent is another popular AI image-generator, Midjourney. The San Francisco-based startup didn’t immediately respond to a request for comment Friday.The inclusion of X – not mentioned in an earlier announcement about the pending accord – was one of the surprises of Friday’s agreement. Musk sharply curtailed content-moderation teams after taking over the former Twitter and has described himself as a “free-speech absolutist”.In a statement Friday, X CEO Linda Yaccarino said “every citizen and company has a responsibility to safeguard free and fair elections”.“X is dedicated to playing its part, collaborating with peers to combat AI threats while also protecting free speech and maximizing transparency,” she said. More

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      Bernie Sanders launches investigation into working conditions at Amazon

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      Bernie Sanders has launched an investigation into Amazon that will focus on working conditions inside the warehouses of the online marketplace, which is also the nation’s second-largest employer.In a letter to Amazon CEO Andy Jassy, the 81-year-old US senator from Vermont and chair of the influential Senate committee on health, education, labor and pension (Help) demanded information about “systematically underreported” injury rates, turnover, productivity targets, and adherence to federal and state safety guidelines at the e-commerce giant.Sanders’s letter, which was obtained by the Washington Post, described conditions at Amazon’s warehouses as “uniquely dangerous” and pointed to a report that found the company’s serious injury rate in 2021 was double the warehouse industry average in 2021.“Amazon is one of the most valuable companies in the world, worth $1.3tn and its founder, Jeff Bezos, is one of the richest men in the world worth nearly $150bn,” Sanders wrote in the letter. “Amazon should be one of the safest places in America to work, not one of the most dangerous.”Amazon spokesperson Steve Kelly acknowledged that the company had “received chairman Sanders’s letter this evening and are in the early stages of reviewing it”, adding that the senator had an open invitation to tour one of the company’s warehouses.Sanders has previously hit out at working conditions and pay at Amazon. In 2018, the company said it would raise its base hourly pay rate to $15, or roughly double the national minimum wage. Then CEO Jeff Bezos said the company had “listened to our critics”.The initiation of an investigation into workplace health and safety practices at Amazon comes amid a vigorous opposition against unionization efforts by company employees and data from the Occupational Safety and Health Administration that Amazon warehouse jobs can be more dangerous than at comparable companies.Over the past year, Amazon has opposed union organizing campaigns, resisted charges of unfair labor practices filed by workers and spent over $14.2m on anti-union consultants in 2022.“It’s one of the companies that really talks about a big game about how good they treat their workers, and yet, when you actually talk to workers, it’s the total opposite,” Aliss Lugo, an organizer in Georgia with United for Respect at Amazon, told the Guardian in April.Sanders has previously written a letter to Starbucks founder and former CEO Howard Schultz in which he accused the coffee company of refusing to bargain a contract with workers who voted to unionize.“Over the past 18 months, Starbucks has waged the most aggressive and illegal union-busting campaign in the modern history of our country,” Sanders stormed at a Help committee hearing in March.In an interview with the Post, Sanders said it was “an absolute possibility” that Jassy or founder Jeff Bezos could be called to testify at a similar hearing, as Schultz had done.skip past newsletter promotionafter newsletter promotion“Amazon sets an example for the rest of the country,” Sanders said. “What Amazon does, their attitude, their lack of respect for workers permeates the American corporate world.”Sanders told the Post he was “appreciative” of Amazon’s decision to raise its starting wage but maintained he was “extremely upset by their vehement anti-union behavior” and workplace safety record.Steve Kelly, the Amazon spokesperson, said the company has recorded a 23% reduction in injuries since 2019 and had invested more than $1bn into safety initiatives, projects and programs in the last four years.“We’ll continue investing and inventing in this area because nothing is more important than our employees’ safety,” Kelly added, and he said that critics of the company had spliced the data “to suit their narrative”. More

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      Amazon and Google fund anti-abortion lawmakers through complex shell game

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      As North Carolina’s 12-week abortion ban is due to come into effect on 1 July, an analysis from the non-profit Center for Political Accountability (CPA) shows several major corporations donated large sums to a Republican political organization which in turn funded groups working to elect anti-abortion state legislators.The Republican State Leadership Committee (RSLC) received donations of tens of thousands of dollars each from corporations including Comcast, Intuit, Wells Fargo, Amazon, Bank of America and Google last year, the CPA’s analysis of IRS filings shows. The contributions were made in the months after Politico published a leaked supreme court decision indicating that the court would end the right to nationwide abortion access.Google contributed $45,000 to the RSLC after the leak of the draft decision, according to the CPA’s review of the tax filings. Others contributed even more in the months after the leak, including Amazon ($50,000), Intuit ($100,000) and Comcast ($147,000).Google, Amazon, Comcast, Wells Fargo and Bank of America did not respond to requests for comment. An Intuit spokesperson pointed out that the company also donates to Democratic political organizations, and that “our financial support does not indicate a full endorsement of every position taken by an individual policymaker or organization.“Intuit is non-partisan and works with policymakers and leaders from both sides of the aisle to advocate for our customers,” an Intuit spokesperson said in a statement. “We believe engagement with policymakers is essential to a robust democracy and political giving is just one of the many ways Intuit engages on behalf of its customers, employees, and the communities it serves.”A Bank of America spokesperson pointed to the company’s policy that donations to so-called 527 organizations such as the RSLC come with the caveat that they only be used for operational and administrative purposes, not to support any candidates or ballot initiatives. The CPA, meanwhile, argues that since the RSLC’s operations are explicitly designed to support candidates and ballot initiatives, such a policy is a distinction without a difference.Although these companies did not directly give these vast sums to North Carolina’s anti-abortion lawmakers, the CPA’s analysis is a case study in how corporate contributions to organizations such as the RSLC can end up being funneled into anti-abortion causes. When Republican state legislators successfully overturned a veto from the Democratic governor last month to pass the upcoming abortion ban, nine of lawmakers voting to overturn the veto had received campaign contributions from a group with links to the RSLC.The RSLC, which works to elect Republican lawmakers and promote rightwing policies at the state level, is at the top of a chain of spending and donations which eventually connected to rightwing candidates in North Carolina. This type of spending, which relies on channeling money through various third-party groups from larger organizations, is a common part of modern political campaign financing.skip past newsletter promotionafter newsletter promotionIn this case, the RSLC gave $5m to the Good Government Coalition political organization between June and November last year, which in turn gave $6.45m to the rightwing political group Citizens for a Better North Carolina. Finally, that organization gave $1m in independent expenditures to support nine anti-abortion state lawmakers who later voted to overturn the governor’s veto of the abortion bill.These donations are evidence that corporations are proving to be complicit in the broader movement to limit abortion rights, the CPA non-profit argues, even as many of these companies publicly tout women’s empowerment and employee access to healthcare.“Companies need to know where their money is ending up,” said Bruce Freed, the president of the CPA. “This should be a lesson – a lesson that they should have taken a while ago but that frankly is driven home right now with what has been happening in North Carolina.”Several of the companies, including Intuit and Bank of America, made statements last year offering to cover healthcare costs for employees who needed to travel out of state for medical procedures, in some cases explicitly mentioning abortion as an example. Google sent an email to employees acknowledging that Roe v Wade had been overturned and informed them about options for relocating to Google offices in different states.“Equity is extraordinarily important to us as a company, and we share concerns about the impact this ruling will have on people’s health, lives and careers,” the email stated.The companies which donated to the RSLC are also large donors to Democratic political groups, and tech giants such as Google and Amazon tend to spend millions each year more broadly on lobbying efforts.The RSLC, whose board members include former lawmakers, governors and White House advisers such as Karl Rove, boasts on its website that it spent more than $45m on supporting Republican candidates during the 2021 and 2022 election cycle.In addition to North Carolina’s abortion ban, South Carolina also passed a bill last week that would criminalize most abortions at six weeks into a pregnancy – generally a period before people know they are pregnant. A state judge issued a temporary halt on the ban within hours of Governor Henry McMaster signing it into law, and it will now be reviewed by the state supreme court.North Carolina’s 12-week abortion ban is scheduled to go into effect on 1 July, drastically curtailing abortion access as many other southern states have passed near total bans. More

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      ‘Old-school union busting’: how US corporations are quashing the new wave of organizing

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      ‘Old-school union busting’: how US corporations are quashing the new wave of organizingVictories at several companies energized organizers, but hostile corporations – and an impotent labor board – stymie negotiationsUS corporations have mounted a fierce counterattack against the union drives at Starbucks, Amazon and other companies, and in response, federal officials are working overtime to crack down on those corporations’ illegal anti-union tactics – maneuvers that labor leaders fear could significantly drain the momentum behind today’s surge of unionization.The National Labor Relations Board (NLRB), the federal agency that polices labor-management relations, has accused Starbucks and Amazon of a slew of illegal anti-union practices, among them firing many workers in retaliation for backing a union. Nonetheless, many workplace experts question whether the NLRB’s efforts, no matter how vigorous, can assure that workers have a fair shot at unionizing.Serving $66 entrees for $18 an hour: the union push at an upscale New York restaurantRead more“We’re seeing the same situation over and over – workers going up against billionaires and billion-dollar companies with an endless amount of resources while our labor laws are far too weak,” said Michelle Eisen, a barista in Buffalo who helped lead the early unionization efforts of Starbucks in that city. “We’re all fighting for the same thing against different companies. We’re all in the same boat. No one denies that there are a lot of obstacles to overcome.”“The labor board is doing its job with the limited resources it has,” she added. “But Starbucks continues to break the law flagrantly.” The union asserts that Starbucks has engaged in illegal retaliation by firing 150 pro-union baristas and closing a dozen recently unionized stores.Echoing many union leaders, Eisen says US labor laws are woefully inadequate because they don’t allow regulators to impose any fines on companies that break the law when fighting against unionization. Starbucks and Amazon deny firing anyone illegally or violating any laws in their fight against unionization.“These workers were supposed to be able to get together without fear of retaliation,” said Lynne Fox, president of Workers United, the union that workers at more than 280 Starbucks have voted to join. “But companies, including Starbucks, have determined that the penalty for retaliation is minimal – and much more appealing than allowing workers to unionize. Violating workers’ rights has simply become part of the cost of doing business.” Labor leaders complain that the penalty imposed for illegal retaliation is often just an order to post a notice on a company’s bulletin boards saying that it broke the law.Newly unionized workers are also frustrated and angry that efforts to reach a first contract are taking so long, with some unions asserting that companies are deliberately and illegally dragging out negotiations – an assertion the companies deny. Workers won breakthrough union victories at Starbucks in December 2021, and the next year saw several other organizing victories. REI workers had a successful union vote in March 2022, Amazon in April, Apple in June, Trader Joe’s in July and Chipotle in August, but none of those companies have reached a first contract.The extraordinary recent wave of unionization that corporate America has faced over the past year has been met with what union supporters say is an equally extraordinary wave of union-busting that has slowed and even stopped some unionization efforts.Shortly after workers at a Chipotle restaurant in Augusta, Maine, petitioned for a unionization vote in the hope of becoming the first Chipotle in the US to unionize, the company shut down the store. The NLRB has accused Chipotle of illegal retaliation and sought to order the fast-food chain to reopen the store. Chipotle says the closing was for legitimate business reasons.Brandi McNease, a pro-union worker at the Chipotle in Augusta, said: “They closed it down because we were going to get our vote and they were going to lose. It’s much easier for a multibillion-dollar corporation to face whatever the consequences are of that then to allow a union into one of their stores.”The NLRB has accused Apple of illegally spying on and threatening workers. The company’s anti-union efforts helped pressure Apple store workers in Atlanta to withdraw their request to hold a unionization election, although workers at Apple stores in Towson, Maryland, and Oklahoma City have voted to unionize.Trader Joe’s closed its one wine shop in New York City days before that shop’s workers were to announce plans to seek a union election. The workers have accused the company of shutting the store to quash the union drive and retaliate against the workers. Trader Joe’s says it didn’t shut the store because of the employees’ organizing efforts.On 17 February, a day after employees at a Tesla plant in Buffalo announced plans to unionize, Tesla fired dozens of workers there. Union supporters complained to the NLRB that Tesla dismissed 37 workers “in retaliation for union activity and to discourage union activity”. Tesla said the terminations had nothing to do with the union drive and were part of its regular performance-evaluation process.The NLRB has brought 75 complaints against Starbucks that accuse it of more than 1,000 illegal actions. Federal judges have ordered Starbucks to reinstate numerous pro-union baristas who they say were fired illegally. The labor board has accused Starbucks of refusing to bargain with workers at 21 stores in Oregon and Washington state. The union asserts that Starbucks is deliberately dragging out negotiations to dishearten union supporters. Starbucks representatives have walked out of dozens of bargaining sessions, refusing to talk so long as union negotiators insist on letting other union members use Zoom to watch the sessions.The NLRB has accused Amazon’s CEO, Andy Jassy, of illegally coercing and intimidating workers by saying they would be “less empowered” if they unionized. NLRB judges have ruled that Amazon fired several pro-union workers illegally, and the board recently accused Amazon of unlawfully terminating one of the most effective organizers at its JFK8 warehouse on Staten Island, where the Amazon Labor Union won a landmark victory for the warehouse’s 8,300 employees last 1 April.Ohio train derailment reveals need for urgent reform, workers sayRead moreAmazon has filed a series of challenges to overturn the union’s Staten Island victory in the hope of not having to recognize or bargain with the union. In January, an NLRB judge upheld the union’s victory, but Amazon said it would appeal.“We know they plan to appeal and appeal and drag things out,” said Christian Smalls, president of the Amazon Labor Union. Smalls voiced frustration that nearly a year after the Staten Island workers voted to unionize, there have been no contract talks.Benjamin Sachs, a labor law professor at Harvard, admits to some surprise that several supposedly progressive companies are using hardball anti-union tactics. “What we have is new economy companies using the old, anti-union playbook on a national scale and in a way that people are paying attention to,” Sachs said.“It’s not new, but it’s more prominent: firing union organizers, threatening to close stores, closing stores, not bargaining, holding captive audience meetings, selective granting of benefits. To observers of labor, this has been going on for a long time. What’s different is these companies that hold themselves as different and progressive – they’re proving they’re not. There’s a dissonance between these brands’ progressive image and their old-school union-busting.”Amazon has repeatedly denied any illegal anti-union actions. It said: “We don’t think unions are the best answer for our employees” and “our focus remains on working directly” with our them “to continue making Amazon a great place to work”. Amazon argues that the union’s win on Staten Island “was not fair, legitimate or representative of the majority” and should therefore be overturned, maintaining that the union illegally intimidated and harassed anti-union workers and illegally distributed marijuana to win support.Tesla fires more than 30 workers after union drive announcementRead moreStarbucks denies that it fired any pro-union baristas unlawfully, saying that those workers were dismissed for misconduct or violating company rules. The company denies that it is deliberately dragging out negotiations, saying: “Counter to the union’s claims, Starbucks continues to engage honestly and in good faith while ensuring actions taken align with decades of case law and precedent.” It added: “We’ve come to the table in person and in good faith for 84 single-store contract bargaining sessions since October 2022.” Starbucks acknowledges that it has walked out of bargaining sessions because the workers “insist on broadcasting” the sessions “to unknown individuals not in the room and, in some instances, have posted excerpts of the sessions online”.Leaders of the Starbucks union say they have repeatedly pledged that the workers would not broadcast, record or post excerpts of the bargaining sessions. Furthermore, they ask why Starbucks refuses to let union members watch the negotiations by Zoom when it allowed that practice during the pandemic and so many other companies allow the use of Zoom during negotiating sessions. For its part, Starbucks has accused the union of failing to bargain in good faith, a claim the union says is ludicrous.One study found that after workers won union elections, 52% of the time they were without a first contract a year later and 37% of the time without one two years later. Many companies drag out contract talks as long as they can in order to dishearten workers and show that there’s little to gain by unionizing and because they know they save money on wages and benefits by delaying – or never reaching – a first union contract. Moreover, many companies prolong contract talks in the hope that union members will grow frustrated with their union and vote to decertify it.Sarah Beth Ryther, a leader of the successful effort to unionize a Trader Joe’s in Minneapolis, said the retailer is moving far slower than she hoped in negotiations. “I have said it was like writing a novel. We were on page one for a long time, and now we’re finally on page two,” Ryther said. “It’s just folks with very little experience who have organized an independent union, and to face these union-busting tactics, it’s hard. We’re not being paid a thousand dollars an hour like some TJ’s lawyers. We do this because we want to help our fellow workers.”Even if the NLRB rules that a company broke the law by negotiating in bad faith to drag out negotiations, federal law doesn’t allow the labor board to order management to reach a contract. “Even if the NLRB issues a complaint about bad faith bargaining, it takes a long time to handle those cases. Any meaningful order is a year down the road,” said Wilma Liebman, who headed the NLRB under Barack Obama. “The remedies take too long and they’re too weak. The board can’t order parties to reach an agreement or make concessions.”Liebman pointed to the big issue that labor organizing faces right now. “Can the unionization surge be sustained by continued growth?” she asked. “Otherwise it’s going to fizzle. This is the year that’s kind of make or break.”Under federal law, employers can’t be fined for illegal delays or bargaining in bad faith. The proposed protecting the right to organize (Pro) act sought to overcome lengthy delays by providing that if the two sides failed to reach a contract within 120 days of a new union’s being certified, a panel of arbitrators should be appointed to decide on the terms of a first two-year contract. The Pro act would also allow for substantial fines against employers that violate the law when fighting unions. The House of Representatives approved the Pro act in March 2021, but, facing a filibuster and unanimous Republican opposition, the legislation went nowhere in the Senate.Sachs says corporations have sizable incentives to violate the law when battling against unions because the National Labor Relations Act doesn’t provide for any fines for illegal actions. “We need to fundamentally change the incentive structure facing employers during union drives,” he said. “You can change the incentive structure in different ways. Consumers can do it if there is a national boycott of Starbucks or Apple or Chipotle or REI. That would have a huge impact. The other way to change the incentive structure would be to have massive monetary damages for anti-union violations. That would require not only legislative change, but the courts to order damage awards – and that would be a slow process.”Eisen, the barista in Buffalo, voices keen dismay that Starbucks keeps ratcheting up the pressure against the union drive. Arguably its most effective strategy to discourage unionization was not the firings or store closings, but when its CEO, Howard Schultz, announced that the company would give certain raises and benefits to its nonunion workers while denying them to workers at its unionized stores. The NLRB has brought a complaint asserting that this Starbucks policy illegally discriminates against union members.‘The lavatory waste comes on us’: unsafe, unsanitary work conditions, airport workers claimRead more“One of the things we need to win is public pressure,” Eisen said. “Can we let billionaires and billionaire companies continue to bully their way out of union campaigns? That’s essentially what is happening. It’s not fair. We need as much help as we can get. We need the public to recognize that these companies are not as good as they say they are.”The anti-union tactics have taken their toll. Partly because Starbucks’ aggressive anti-union efforts have discouraged and frightened many workers, the number of petitions for union elections at Starbucks stores has dropped from 71 last March to about 10 per month recently. Trader Joe’s workers in Boulder, Colorado, withdrew their petition for a unionization vote a day after they filed charges accusing the retailer of illegal intimidation and coercion. With highly paid anti-union consultants on hand to press workers to vote no, the Amazon Labor Union lost a unionization vote at a warehouse outside Albany, New York, and following that loss and facing an anti-union campaign, workers at an Amazon warehouse in Moreno Valley, California, withdrew their petition for a union election.“That comes with the territory, but that’s what we signed up for as organizers,” said the Amazon Labor Union’s Smalls. “We know this is a marathon not a sprint. In the words of Mother Jones, you fight like hell. That’s what we’re doing right now, fighting like hell.”TopicsUS unionsAmazonStarbucksAppleUS politicsTeslaReuse this content More

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      Republicans want working-class voters — without actually supporting workers

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      AnalysisRepublicans want working-class voters — without actually supporting workersSteven GreenhouseGOP courts blue collar voters but most favor anti-union ‘right to work’ laws and reject laws that would protect right to organize After years of struggle, America’s labor unions enjoy greater public approval than at any time in more than 50 years. Yet even as the Republican party seeks to rebrand itself as the party of the working class, its lawmakers, by and large, remain as hostile as ever toward organized labor. It doesn’t look like that situation is about to change.With the midterm elections approaching, and many polls indicating that the Republicans will win control of the House, nearly all Republican lawmakers in Congress oppose proposals that would make it easier to unionize. One hundred and eleven Republican House members and 21 senators are co-sponsoring a bill that would weaken unions by letting workers in all 50 states opt out of paying any fees to the unions that represent them. And at a time when many young workers – among them, Starbucks workers, Apple store workers, museum workers, grad students – are flocking into unions, Republican lawmakers often deride unions as woke, leftwing and obsolete.Congressional Democrats – seeing the surge in unionization drives along with the aggressive anti-union campaigns by Starbucks, Amazon and other companies – say there is increased urgency to enact the Protecting the Right to Organize Act (Pro Act), which would make it easier for workers to unionize. The Pro Act passed the House last year – with 205 Republicans voting against and five in favor – but it faces an uphill battle in the Senate, largely because of a GOP filibuster, and will almost certainly fail to pass if Republicans gain Senate seats in the midterms.The Pro Act remains the Democrats’ overwhelming legislative priority for helping unions – it would, among other things, ban employers’ captive audience meetings and create substantial penalties for corporations that break the law when fighting unionization. Republicans denounce the legislation, vigorously opposing a provision that would override the right-to-work laws enacted in 27 states, laws that allow workers to opt out of paying union dues. The Senate Republicans’ policy committee has slammed the Pro Act, saying it would undermine worker freedom, “heavily tilt the scales in favor of labor” and “curb workers’ choices, threaten jobs and increase costs on employers”.It wasn’t always this way. Two decades ago, there were 30 union-friendly Republicans in the House, but that number has dwindled to a handful, partly because many of the party’s billionaire and corporate donors frown on pro-union Republicans. These donors see unions as bothersome institutions that favor Democrats and reduce corporate profits. Indeed, many Republican lawmakers treat unions and their leaders as enemies.Virginia Foxx, the senior Republican on the House Education and Labor Committee, scoffed at the idea that there is a union resurgence and said Democrats “are in the pocket of Big Labor”. “Unions are hitting the panic button and praying that Democrats can gin up a PR campaign to cover up the declining numbers and lack of interest in union membership,” Foxx told the Guardian, noting that union membership has sunk to just 6% of the private-sector workforce. Foxx, who often serves as Congress’s chief spokesperson on labor matters, belittled unions’ recent gains, saying that only a tiny percentage of Starbucks and Apple stores have been unionized.Foxx, a nine-term House member from North Carolina, said: “If Democrats genuinely believe that union popularity is soaring and that union campaigns and strikes are resonating with American workers, then they truly have a tortured relationship with both math and reality.”Even as the National Labor Relations Board (NLRB) reported a 53% jump over the past year in the number of workplace petitions for union elections, Foxx and many other Republicans are backing bills that would make it harder to unionize. With corporations prohibiting union organizers from setting foot on company property to speak with workers, unions rely on NLRB rules requiring employers to give them workers’ home addresses, phone numbers and email addresses so they can communicate with them. But the Employee Privacy Protection Act, a Republican-sponsored bill re-introduced last March, shortly after the recent union surge began, would limit unions to obtaining just one of those three ways to contact workers. Foxx said workers should “never have to hand over their personal contact information” to “a union to which they object”.Bill Samuel, legislative director of the AFL-CIO, the nation’s main union federation, said he has seen no sign of Republicans warming up to unions despite their increased popularity – 71% of Americans approve of unions. “I haven’t seen any change” among Republicans, Samuel said. “There’s been no outreach. We haven’t been getting calls from Republicans asking, ‘How can we help workers organize?’”Bobby Scott, a Virginia Democrat who is chairman of the House education and labor committee, agreed, adding: “Republicans are pretty much as hostile as ever toward unions – pretty much down the line.”Scott said Democrats should rush to enact the Pro Act in light of the many daunting obstacles that workers face in seeking to unionize at Starbucks, Amazon and other companies due to intense corporate opposition and a flurry of alleged illegalities by management. In Scott’s view, especially important is a provision that would for the first time allow the NLRB to impose substantial fines against companies that violate the law when battling union drives. “The biggest improvement we need is to have some meaningful sanctions for unfair labor practices,” Scott said. “Right now, there is no meaningful deterrent.”Oren Cass, executive director of American Compass, a thinktank for conservative economics, said that many Republicans have grown more interested in worker issues. Cass acknowledged, however, that most Republican lawmakers remain hostile to organized labor because “unions are predominantly financing mechanisms for the Democratic party.”He said some Republicans are open to the idea of increasing worker power, but only if it’s done largely outside the framework of traditional unions. Nevertheless, whether with or without unions, hardly any Republicans are pushing to expand worker power – an idea that would irk corporate Republicans. Many GOP lawmakers instead emphasize worker choice and worker freedom – part of their decades-long effort to enact state right-to-work laws that allow workers to opt out of paying any dues or fees to the unions that represent them.Senator Rand Paul of Kentucky and Representative Joe Wilson of South Carolina are co-sponsoring the National Right to Work Act, which would let workers in all 50 states opt out of union dues. Wilson told the Guardian that the bill would “eliminate forced-dues clauses” and “allow workers to choose for themselves”. He said Joe Biden and the Democrats were on “a mission to force unionization” on “workers by eliminating employee choice”. Senator Paul said their bill would “put bargaining power where it belongs, in the hands of American workers”. Unions assert, however, that workers have far more bargaining power by bargaining collectively, rather than as individuals.Cass, who worked in Mitt Romney’s 2012 presidential campaign, supports steps to give workers more power and said it’s a good time for Republicans to push to increase worker power. Their “constituents are significantly and increasingly working class”, Cass noted, adding that Republicans might be more willing to distance themselves from corporations now that more business executives “are on the other side”, having endorsed Democrats.For years, most Republicans lawmakers have opposed any increase in the NLRB’s budget; that agency oversees private-sector union elections and cracks down on employers that break the law in fighting unions. The labor board’s budget hasn’t increased since 2014, a budget freeze that has angered union leaders because they say it hampers the board’s ability to move quickly against law-breaking, anti-union employers.“The NLRB has been flat-funded for a long time,” said Scott, chair of the House labor committee. “With the popularity of unions increasing, the work of the NLRB has increased. In order to get their work done, the board needs significant increases in funding.”But Foxx called increasing NLRB funding “an inherently stupid idea”, asserting that the labor board tilts in favor of unions, just as Democrats asserted that President Trump’s labor board was far too anti-union.The AFL-CIO’s Samuel voiced dismay that many Republicans seem implacably opposed to anything that would help unions expand. “All this,” Samuel said, “illustrates their hostility to make it easier for workers to enjoy what is supposed to be their basic right under the law: to come together to form a union.”TopicsUS unionsUS politicsStarbucksAmazonanalysisReuse this content More

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      The Right to Fair Recollection

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      The Fair Observer website uses digital cookies so it can collect statistics on how many visitors come to the site, what content is viewed and for how long, and the general location of the computer network of the visitor. These statistics are collected and processed using the Google Analytics service. Fair Observer uses these aggregate statistics from website visits to help improve the content of the website and to provide regular reports to our current and future donors and funding organizations. The type of digital cookie information collected during your visit and any derived data cannot be used or combined with other information to personally identify you. Fair Observer does not use personal data collected from its website for advertising purposes or to market to you.As a convenience to you, Fair Observer provides buttons that link to popular social media sites, called social sharing buttons, to help you share Fair Observer content and your comments and opinions about it on these social media sites. These social sharing buttons are provided by and are part of these social media sites. They may collect and use personal data as described in their respective policies. Fair Observer does not receive personal data from your use of these social sharing buttons. It is not necessary that you use these buttons to read Fair Observer content or to share on social media. More

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      Oh no. Is Jeff Bezos preparing to run for office? | Hamilton Nolan

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      Oh no. Is Jeff Bezos preparing to run for office?Hamilton NolanWhen an unaccountable billionaire starts putting himself out in the world as a Public Policy Thinker, alarm bells should ring Jeff Bezos is getting nervous. You can tell because he’s going on Twitter more, the universal activity of those who are channeling their restlessness in an unhealthy way. This should make the rest of us nervous, too. This is a big, flashing warning sign that America’s richest union-buster is about to throw himself more forcefully into politics – an inevitability that could have many bad outcomes, but only one good one.For the past week, the centi-billionaire Amazon founder has been firing off tweets not about his typical, anodyne interests – improved penis-shaped rocket design, luxury head wax – but rather about his policy opinions. Though Bezos (or whichever PR drone drafts his tweets) writes with the bloodlessness of a man who has attended too many management consulting meetings, it is easy to imagine the seething anger that must have been present in order to prompt him to produce them in the first place. On May 13, he criticized one of Joe Biden’s economic pronouncements, tweeting that “Raising corp taxes is fine to discuss. Taming inflation is critical to discuss. Mushing them together is just misdirection.”He followed that up with another, saying “the administration tried hard to inject even more stimulus into an already over-heated, inflationary economy and only Manchin saved them from themselves. Inflation is a regressive tax that most hurts the least affluent.” On Monday, he again railed against the failed Democratic stimulus bills, saying they would have added to inflation.‘Extra level of power’: billionaires who have bought up the mediaRead moreIt would be too easy to point out here that, actually, union-busting is a tax that most hurts the least affluent, or to point out that Bezos could mitigate inflation’s damage by giving his own employees a raise. The notable thing here is not that the staggeringly wealthy executive chairman of one of the world’s most powerful companies would bristle at talk of raising corporate taxes, or that he would bemoan the pandemic-era stimulus packages that saved millions of Americans from total economic disaster. For Amazon, which depends on the existence of a nationwide standing army of desperate people who are willing to take unstable, low-wage warehouse and delivery jobs, the sales benefits of all of that stimulus money have been mitigated by what it has done to the labor market. As demand for employees has soared, it has become harder to hire people; and, more importantly, it has helped to embolden workers to the degree necessary to vote for a union, as Amazon warehouse workers did in Staten Island last month. Like Walmart and every other low-margin retail megacorp whose profits are dependent on total control of an infinite, compliant workforce, Amazon believes that unions are an existential threat. The economic conditions created in part by government stimulus programs have momentarily made things more conducive to organized labor, and therefore, must be crushed, reversed, and judged as historic mistakes, so that policymakers don’t go thinking about doing such a thing again.Of course Bezos believes all this. Duh. We knew he was a rat-bastard union-busting ultra-rich guy many years ago. The fact that he is flying his dumb Twitter flag like a bargain-basement Elon Musk is not really worth getting exercised about. What is distressing is what this signals about Bezos’s future plans. Because when an unaccountable rich business guy starts suddenly putting himself out in the world as a Public Policy Thinker, you can be sure that he is about to start seriously leaning into the world of political influence. And that means that we are now threatened by the very real possibility that Bezos is about to make himself the next, even richer Mike Bloomberg – something that could have devastating effects on the weak-willed functionaries of the already pathetic Democratic party.Though Bezos is certainly an economic Republican, it is hard to imagine him placing his political bets on being a Republican, if only because of what it would mean for his social life. No, if he decides that he must really jump into politics – to protect his own interests, and due to the classic rich-guy belief that nobody poorer than himself should be in charge – he is bound to use the Democratic party as his tool. He could, if he got annoyed enough, flood the party with so much incoming money that the entire “centrist” wing would crawl to his doorstep on its knees, begging to write any bill he wants. The big-picture impact would be to add a huge weight to the neoliberal side of the party’s scale, a powerful force trying to tilt the party away from its recent tiptoes towards progressivism, and towards the vision of the Democrats as the sober new corporate-friendly counterweight to the psycho Maga capture of the Republicans.Last month, Bernie Sanders sent a letter to Joe Biden calling on him to stop giving federal contracts to companies that break federal labor law, especially via illegal union-busting. That simple move could take billions of dollars away from Amazon, which – in the eyes of a labor-friendly NLRB, at least – is guilty of a lot of illegal union-busting. (Amazon disputes this.) It is also a great example of what could be the new vision of the Democrats: not the slick operators trying to arbitrage corporate campaign donations, but rather the party of labor, the party ready to take seriously its own rhetoric about the dangers of rising economic inequality. The Democratic response to the rise of crazies on the right does not need to be to simply try to woo Republican donors away; instead, the Democrats can become the actual populists, the ones who side with working people against the power of capital. (The Republican version of populism, which mostly means “being prepared to wear a John Deere ballcap while you say racist things”, pales in comparison.)Look, I love to see one of the world’s richest men spending his precious time whining on Twitter. That’s time that he’s not union-busting or coming up with aggressive new algorithms to monetize our lives, and besides, I know that time spent on Twitter will make him miserable, which I support. But I am here to warn you that this is a very bad omen. The last thing we need is Jeff Bezos transforming himself into the Democratic party’s biggest power-broker. Just keep playing with your rockets, Jeff. The farther away from Earth you get, the better for everyone.
      Hamilton Nolan is a labor reporter at In These Times
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