Archive for January, 2009

Shame on You, Wall Street

January 30th, 2009

It’s no mystery. The economy is ailing, working families are fighting hard to make ends meet and this week alone, American companies reported as many as 65,000 job cuts.

You’d think that in these times of duress everyone would be tightening their belts and pulling together to jumpstart the economy, right? Well, not Wall Street bankers, that’s for sure. According to a report by the New York State comptroller, financial executives received a whopping $18.4 billion in bonuses for 2008.

President Obama condemned their behavior as the “height of irresponsibility,” adding that:

“It is shameful. And part of what we’re going to need is for the folks on Wall Street who are asking for help to show some restraint and show some discipline and show some sense of responsibility.”

That’s right. We are talking about the same banks and investment firms that were bailed out last year to the tune of $700 billion because of their own financial irresponsibility. If taxpayers and shareholders take huge losses, there should be no bonuses. Period.

This is why for years AFSCME has spearheaded the fight to curb executive pay. Congress should give shareholders a “say on pay” on CEO compensation and “golden parachute” severance agreements. Not only is the compensation awarded to CEOs outrageous, but shelling out excessive amounts of money to a few greedy individuals genuinely damages the economy.

Put Our Economy Back on Track

January 30th, 2009

This entry by AFSCME President Gerald McEntee is cross-posted from The Huffington Post and Oxdown Gazette.

This week’s historic vote by the House of Representatives in favor of President Obama’s plan to revitalize our economy and protect the jobs of millions of working Americans is proof that the change we voted for has finally arrived. The House acted boldly to protect jobs and create opportunity by passing President Obama’s American Recovery and Reinvestmant Plan. Against a backdrop of a worsening economic crisis that resulted in last year’s loss of 2.6 million American jobs, and layoffs that accelerated in the early part of 2009, President Obama’s plan will create or save three to four million jobs, strengthen our middle class, and improve the economy in the near and long term. As Americans face the worst financial crisis since the Great Depression, we need to work together to put our economy back on track by passing this legislation.

President Obama’s recovery plan will create jobs, jumpstart the economy and reinvest in the long term health of our communities. The plan includes fast-track improvements to our roads, bridges, schools and other infrastructure which are crumbling because of delayed maintenance and heavy use. These public investments create jobs and help the economy in the long run. It includes additional federal resources for the vital health care, education, law enforcement and family services that states and localities provide for their citizens. These services are particularly important during difficult economic times when we most rely on them. We can’t put people back to work if we gut the public services that are vital to our communities.

With 11 million workers unemployed, with home values declining at an alarming rate and the need for vital public services growing rapidly, it is shocking that no Republicans were willing to put partisanship behind them and stand with President Obama. While economists and other experts across the board have praised the package and its focus on sound investments to stimulate the economy immediately, some Republicans on Capitol Hill are playing politics and standing in the way of recovery, blocking the progress that Americans voted for in November.

The Campaign for Jobs and Economic Recovery, a coalition of groups including AFSCME, Americans United for Change, MoveOn.org Political Action, and USAction is organizing hundreds of grassroots events, grass tops contacts, thousands of phone and emails to Members’ offices and paid advertising in a four to five million dollar campaign. This effort will help move key votes in Congress to build support for this important package to begin to turn our economy around. The coalition on Wednesday announced a television advertising campaign targeting Senators Susan Collins and Olympia Snowe (Maine), Senator Lisa Murkowski (Alaska), Senator Charles Grassley (Iowa), and Senator Judd Gregg (New Hampshire) with ads demonstrating the clear momentum behind President Obama’s first initiative in office and calling on them to stand with the American people.

AFSCME launched a new campaign, “Make America Happen,” as part of the coalition support of the President’s efforts to revitalize our economy, provide health care for all and strengthen the middle class. In the days ahead, thousands of AFSCME members will contact their senators, particularly those who remain on the fence, urging them to act responsibly and support the President’s plan. We’ve created a video which highlights the lessons from President Franklin D. Roosevelt’s response to the Great Depression. You can watch the video and sign up for the campaign to “Make America Happen” at www.MakeAmericaHappen.com.

We need to work together to get out of this mess. It won’t be easy, but it can be done. We’re going to flood the Senate with phone calls and letters. We’re going to fight to pass this emergency legislation and put America back to work. And we’re going to make sure that Senators know that working Americans expect them to put partisanship aside and do what is right for America.

We have a big task ahead of us. Every day of delay is a day when more Americans get a pink slip, when more communities see stores shuttering their doors, when more families find the American Dream farther from their grasp. The Senate must pass President Obama’s plan promptly. Let’s hope that Senate Republicans stand with the President during this crisis rather than playing politics like the House GOP.

Equal Pay for Equal Work is Now the Law

January 29th, 2009

Today, President Obama signed his first bill into law: the Lilly Ledbetter Fair Pay Act – a landmark bill to protect workers against pay discrimination.

In other words, equal pay for equal work. Sounds like plain old common sense, doesn’t it? And yet to this day women still earn 77 cents for every dollar earned by men.

As Obama said, as quoted in the AFL-CIO blog:

In signing this bill today, I intend to send a clear message: That making our economy work means making sure it works for everyone. That there are no second class citizens in our workplaces, and that it’s not just unfair and illegal – but bad for business – to pay someone less because of their gender, age, race, ethnicity, religion or disability.

The bill was introduced after a Supreme Court ruling two years ago rejected a $360,000 award in back pay to Lilly Ledbetter, a woman who worked for Goodyear in Alabama. Ledbetter had previously discovered a huge gap between her salary and that of her male colleagues, prompting her to sue.

This initiative restores longstanding protections against wage discrimination and will also ensure that women and families get the pay that they deserve to pull through these difficult economic times.

Since the 1970s, AFSCME has been one of the strongest advocates for closing the wage gap. As we pointed out in a previous Greenline post:

AFSCME members have been the recipients of more than $1 billion in pay equity adjustments won at the bargaining table, in state and local legislatures, and through political action.

There is still much work to be done in the fight for fair pay but, thanks to this new law, we have taken a big step towards attaining justice at the workplace.

AFSCME Pension Plan Calls for Corporate Accountability

January 27th, 2009

In the wake of our current financial crisis, the AFSCME Employees Pension Plan has announced its 2009 shareholder program with an emphasis on reasonable executive pay and more director accountability.

The AFSCME Plan is an institutional shareholder with more than $850 million in assets that works to ensure that the retirement benefits promised to public employees are safe and secure. In 2006, the AFSCME Plan was first to file “Say on Pay” proposals requiring shareholder approval of executive compensation.

In a statement released today, AFSCME President Gerald W. McEntee explained the importance of the 36 shareholder proxy proposals submitted for consideration at annual meetings this spring:

“The failure of boards to properly assess risk, coupled with an emphasis on short term results that produced sky high pay for executives has left us in the worst financial mess since the Great Depression. These proposals will encourage corporate executives to avoid the type of short-term decision-making that has wreaked havoc upon our financial markets.”

Proposals have been filed at: Abercrombie & Fitch; Allstate; American International Group; Ameriprise Financial; Apple; Bank of America; Bank of New York Mellon; Charles Schwab; Citigroup; ConocoPhillipsVS Caremark (CVS); Danaher (DHR); Dow Chemical (DOW); E*TRADE Financial (ETFC); Equifax (EFX); General Dynamics (GD); Honeywell (HON); Huntington Bancshares (HBAN); Ingersoll-Rand (IR); IntercontinentalExchange (ICE); JPMorgan Chase (JPM); Macy’s (M); Moody’s (MCO); Morgan Stanley (MS); Nabors (NBR); Northrop Grumman (NOC); Occidental Petroleum (OXY); Office Depot (ODP); Raytheon (RTN); Safeway (SWY); Tenet Healthcare (THC); Textron (TXT); Valero Energy (VLO); Vulcan Materials (VMC); Wachovia (WB); and Walt Disney Company (DIS).

Read the press release for more.

The First Step in Remaking America

January 27th, 2009

In his inauguration speech last week President Barack Obama said, “starting today, we must pick ourselves up, dust ourselves off, and begin again the work of remaking America.”

AFSCME could not agree more. That’s why we launched our Make America Happen petition two weeks ago and why are mobilizing our members to support the Obama economic recovery plan.

This week, the House is expected to vote on this plan, officially called the American Recovery and Reinvestment Act. The full Senate vote is expected in the next couple of weeks.

The act, crafted by President Obama and Congressional leaders, focuses on addressing immediate economic needs, creating jobs and investing in the infrastructure America relies on for a strong recovery. It will also invest in America’s families and our workforce by ensuring that states can fund the services they depend on, including health care, public safety and education.

We are calling on AFSCME members to sign our petition today. Please join this campaign.

We need to turn the page on the failed economic policies of the past and pass the Obama economic recovery plan — and reject any effort to cut state aid in the package.

Together we can make America happen — again.

Senate Passes Important Pay Equity Bill

January 23rd, 2009

On Thursday, the Senate passed by a vote of 61-36 the Lilly Ledbetter Fair Pay Act (S. 181) which would ensure that women and families get the pay that they deserve to survive these difficult economic times. The bill restores longstanding protections against wage discrimination. A number of harmful amendments were offered by several Republican Senators in an attempt to weaken the legislation, including a Right-to-Work amendment by Sen. Jim DeMint (SC). All were defeated.

The House passed a similar bill (H.R. 11) on January 9, and is expected to approve the Senate bill shortly. President Obama has promised to sign it into law. Read more from the AFL-CIO Now blog.

President Barack Obama’s Inaugural Address

January 21st, 2009

“The question we ask today is not whether our government is too big or too small, but whether it works – whether it helps families find jobs at a decent wage, care they can afford, a retirement that is dignified.”
— President Barack Obama

Inaugural Address
By President Barack Hussein Obama

My fellow citizens: I stand here today humbled by the task before us, grateful for the trust you’ve bestowed, mindful of the sacrifices borne by our ancestors.

I thank President Bush for his service to our nation — (applause) — as well as the generosity and cooperation he has shown throughout this transition.

Forty-four Americans have now taken the presidential oath. The words have been spoken during rising tides of prosperity and the still waters of peace. Yet, every so often, the oath is taken amidst gathering clouds and raging storms. At these moments, America has carried on not simply because of the skill or vision of those in high office, but because we, the people, have remained faithful to the ideals of our forebears and true to our founding documents.

So it has been; so it must be with this generation of Americans.

That we are in the midst of crisis is now well understood. Our nation is at war against a far-reaching network of violence and hatred. Our economy is badly weakened, a consequence of greed and irresponsibility on the part of some, but also our collective failure to make hard choices and prepare the nation for a new age. Homes have been lost, jobs shed, businesses shuttered. Our health care is too costly, our schools fail too many — and each day brings further evidence that the ways we use energy strengthen our adversaries and threaten our planet.

These are the indicators of crisis, subject to data and statistics. Less measurable, but no less profound, is a sapping of confidence across our land; a nagging fear that America’s decline is inevitable, that the next generation must lower its sights.

Today I say to you that the challenges we face are real. They are serious and they are many. They will not be met easily or in a short span of time. But know this America: They will be met. (Applause.)

On this day, we gather because we have chosen hope over fear, unity of purpose over conflict and discord. On this day, we come to proclaim an end to the petty grievances and false promises, the recriminations and worn-out dogmas that for far too long have strangled our politics. We remain a young nation. But in the words of Scripture, the time has come to set aside childish things. The time has come to reaffirm our enduring spirit; to choose our better history; to carry forward that precious gift, that noble idea passed on from generation to generation: the God-given promise that all are equal, all are free, and all deserve a chance to pursue their full measure of happiness. (Applause.)

In reaffirming the greatness of our nation we understand that greatness is never a given. It must be earned. Our journey has never been one of short-cuts or settling for less. It has not been the path for the faint-hearted, for those that prefer leisure over work, or seek only the pleasures of riches and fame. Rather, it has been the risk-takers, the doers, the makers of things — some celebrated, but more often men and women obscure in their labor — who have carried us up the long rugged path towards prosperity and freedom.

For us, they packed up their few worldly possessions and traveled across oceans in search of a new life. For us, they toiled in sweatshops, and settled the West, endured the lash of the whip, and plowed the hard earth. For us, they fought and died in places like Concord and Gettysburg, Normandy and Khe Sahn.

Time and again these men and women struggled and sacrificed and worked till their hands were raw so that we might live a better life. They saw America as bigger than the sum of our individual ambitions, greater than all the differences of birth or wealth or faction.

This is the journey we continue today. We remain the most prosperous, powerful nation on Earth. Our workers are no less productive than when this crisis began. Our minds are no less inventive, our goods and services no less needed than they were last week, or last month, or last year. Our capacity remains undiminished. But our time of standing pat, of protecting narrow interests and putting off unpleasant decisions — that time has surely passed. Starting today, we must pick ourselves up, dust ourselves off, and begin again the work of remaking America. (Applause.)

For everywhere we look, there is work to be done. The state of our economy calls for action, bold and swift. And we will act, not only to create new jobs, but to lay a new foundation for growth. We will build the roads and bridges, the electric grids and digital lines that feed our commerce and bind us together. We’ll restore science to its rightful place, and wield technology’s wonders to raise health care’s quality and lower its cost. We will harness the sun and the winds and the soil to fuel our cars and run our factories. And we will transform our schools and colleges and universities to meet the demands of a new age. All this we can do. All this we will do.

Now, there are some who question the scale of our ambitions, who suggest that our system cannot tolerate too many big plans. Their memories are short, for they have forgotten what this country has already done, what free men and women can achieve when imagination is joined to common purpose, and necessity to courage. What the cynics fail to understand is that the ground has shifted beneath them, that the stale political arguments that have consumed us for so long no longer apply.

The question we ask today is not whether our government is too big or too small, but whether it works — whether it helps families find jobs at a decent wage, care they can afford, a retirement that is dignified. Where the answer is yes, we intend to move forward. Where the answer is no, programs will end. And those of us who manage the public’s dollars will be held to account, to spend wisely, reform bad habits, and do our business in the light of day, because only then can we restore the vital trust between a people and their government.

Nor is the question before us whether the market is a force for good or ill. Its power to generate wealth and expand freedom is unmatched. But this crisis has reminded us that without a watchful eye, the market can spin out of control. The nation cannot prosper long when it favors only the prosperous. The success of our economy has always depended not just on the size of our gross domestic product, but on the reach of our prosperity, on the ability to extend opportunity to every willing heart — not out of charity, but because it is the surest route to our common good. (Applause.)

As for our common defense, we reject as false the choice between our safety and our ideals. Our Founding Fathers — (applause) — our Founding Fathers, faced with perils that we can scarcely imagine, drafted a charter to assure the rule of law and the rights of man — a charter expanded by the blood of generations. Those ideals still light the world, and we will not give them up for expedience sake. (Applause.)

And so, to all the other peoples and governments who are watching today, from the grandest capitals to the small village where my father was born, know that America is a friend of each nation, and every man, woman and child who seeks a future of peace and dignity. And we are ready to lead once more. (Applause.)

Recall that earlier generations faced down fascism and communism not just with missiles and tanks, but with the sturdy alliances and enduring convictions. They understood that our power alone cannot protect us, nor does it entitle us to do as we please. Instead they knew that our power grows through its prudent use; our security emanates from the justness of our cause, the force of our example, the tempering qualities of humility and restraint.

We are the keepers of this legacy. Guided by these principles once more we can meet those new threats that demand even greater effort, even greater cooperation and understanding between nations. We will begin to responsibly leave Iraq to its people and forge a hard-earned peace in Afghanistan. With old friends and former foes, we’ll work tirelessly to lessen the nuclear threat, and roll back the specter of a warming planet.

We will not apologize for our way of life, nor will we waver in its defense. And for those who seek to advance their aims by inducing terror and slaughtering innocents, we say to you now that our spirit is stronger and cannot be broken — you cannot outlast us, and we will defeat you. (Applause.)

For we know that our patchwork heritage is a strength, not a weakness. We are a nation of Christians and Muslims, Jews and Hindus, and non-believers. We are shaped by every language and culture, drawn from every end of this Earth; and because we have tasted the bitter swill of civil war and segregation, and emerged from that dark chapter stronger and more united, we cannot help but believe that the old hatreds shall someday pass; that the lines of tribe shall soon dissolve; that as the world grows smaller, our common humanity shall reveal itself; and that America must play its role in ushering in a new era of peace.

To the Muslim world, we seek a new way forward, based on mutual interest and mutual respect. To those leaders around the globe who seek to sow conflict, or blame their society’s ills on the West, know that your people will judge you on what you can build, not what you destroy. (Applause.)

To those who cling to power through corruption and deceit and the silencing of dissent, know that you are on the wrong side of history, but that we will extend a hand if you are willing to unclench your fist. (Applause.)

To the people of poor nations, we pledge to work alongside you to make your farms flourish and let clean waters flow; to nourish starved bodies and feed hungry minds. And to those nations like ours that enjoy relative plenty, we say we can no longer afford indifference to the suffering outside our borders, nor can we consume the world’s resources without regard to effect. For the world has changed, and we must change with it.

As we consider the role that unfolds before us, we remember with humble gratitude those brave Americans who at this very hour patrol far-off deserts and distant mountains. They have something to tell us, just as the fallen heroes who lie in Arlington whisper through the ages.

We honor them not only because they are the guardians of our liberty, but because they embody the spirit of service — a willingness to find meaning in something greater than themselves.

And yet at this moment, a moment that will define a generation, it is precisely this spirit that must inhabit us all. For as much as government can do, and must do, it is ultimately the faith and determination of the American people upon which this nation relies. It is the kindness to take in a stranger when the levees break, the selflessness of workers who would rather cut their hours than see a friend lose their job which sees us through our darkest hours. It is the firefighter’s courage to storm a stairway filled with smoke, but also a parent’s willingness to nurture a child that finally decides our fate.

Our challenges may be new. The instruments with which we meet them may be new. But those values upon which our success depends — honesty and hard work, courage and fair play, tolerance and curiosity, loyalty and patriotism — these things are old. These things are true. They have been the quiet force of progress throughout our history.

What is demanded, then, is a return to these truths. What is required of us now is a new era of responsibility — a recognition on the part of every American that we have duties to ourselves, our nation and the world; duties that we do not grudgingly accept, but rather seize gladly, firm in the knowledge that there is nothing so satisfying to the spirit, so defining of our character than giving our all to a difficult task.

This is the price and the promise of citizenship. This is the source of our confidence — the knowledge that God calls on us to shape an uncertain destiny. This is the meaning of our liberty and our creed, why men and women and children of every race and every faith can join in celebration across this magnificent mall; and why a man whose father less than 60 years ago might not have been served in a local restaurant can now stand before you to take a most sacred oath. (Applause.)

So let us mark this day with remembrance of who we are and how far we have traveled. In the year of America’s birth, in the coldest of months, a small band of patriots huddled by dying campfires on the shores of an icy river. The capital was abandoned. The enemy was advancing. The snow was stained with blood. At the moment when the outcome of our revolution was most in doubt, the father of our nation ordered these words to be read to the people:

“Let it be told to the future world…that in the depth of winter, when nothing but hope and virtue could survive… that the city and the country, alarmed at one common danger, came forth to meet [it].”

America: In the face of our common dangers, in this winter of our hardship, let us remember these timeless words. With hope and virtue, let us brave once more the icy currents, and endure what storms may come. Let it be said by our children’s children that when we were tested we refused to let this journey end, that we did not turn back nor did we falter; and with eyes fixed on the horizon and God’s grace upon us, we carried forth that great gift of freedom and delivered it safely to future generations.

Thank you. God bless you. And God bless the United States of America. (Applause.)

Union Members March in Official Inaugural Parade

January 21st, 2009
American Workers Contingent
(Photo courtesy Oliver Whitney/AFL-CIO)

A group of over 250 union members braved the freezing temperatures yesterday to participate in the inaugural parade for President Barack Obama. Joining representatives from across the country and members of our armed forces, the American Workers contingent included members from the AFL-CIO, Change to Win and the National Education Association.

The group, carrying a banner which read “America’s Workers: United for Change” and marching in front of a union-made float representing the diversity and strength of America’s workers, received an enthusiastic response from our new President and First Lady as they passed the Presidential viewing stand. Marchers carried flags for the issues that are important to working families: “Economy that Works for ALL,” “Great Public Schools,” “Good Jobs Green Jobs” and “Health Care for ALL.”

Fred Mason, president of the Maryland State and D.C. AFL-CIO, coordinated the effort to make sure working Americans were represented in the parade. Of the nearly 1,500 groups who applied to participate in the official parade only 100 were selected, and the labor group was one of the largest in the parade.

“The workers’ contingent is America at its best—people of different races, faiths and professions coming together for a common good. These are the day-to-day heroes who make this nation great.”

Read more about the parade at the AFL-CIO Now blog and the Boston Globe.

The Fierce Urgency of Now

January 16th, 2009

This entry by AFSCME President Gerald McEntee was originally posted on The Huffington Post.

President John F. Kennedy called Inauguration Day “a celebration of freedom — symbolizing an end, as well as a beginning — signifying renewal, as well as change.” This year, that is dramatically true. President-elect Barack Obama will place his hand on the same Bible President Abraham Lincoln used to take the oath of office. When he does so, at noon on Tuesday, Americans of every party will celebrate both renewal and a long-needed change.

When Obama spoke at Ebenezer Baptist Church last year on Martin Luther King, Jr. Day, he told how the walls of Jericho were too strong and too high for the Israelites to pass through. But the Israelites were inspired by God to cry out together. Through the power of unity, the walls came tumbling down.

Our 44th President told the gathering that on the eve of the Montgomery Bus Boycott, Martin Luther King, Jr. inspired people not with anger, but with a “fierce urgency” to come together. Dr. King said, “Unity is the great need of this hour. Unity is how we shall overcome.”

As we celebrate Dr. King’s birthday and the inauguration of President-elect Barack Obama, Dr. King’s words remind us of how this nation will overcome the multitude of problems we now face. The straightforward truth is: We must face them together. We must be bold. And we must act now.

No campaign for social or economic change has ever succeeded in our nation without unity and urgency. In 1968, the sanitation workers of AFSCME Local 1733 united and stood up to the political leaders of Memphis and demanded to be treated with respect and dignity. Their cause was righteous. Their demands were just. And when Dr. King joined their cause, he spoke for an entire movement of people committed to fairness and equality. He insisted on “the fierce urgency of now.”

Today’s challenges demand no less of us. Think of the extraordinary circumstances that face us today – two wars that are costing lives, damaging our reputation and draining our treasury of needed resources here at home; an economy that threatens the fundamental existence of the middle class at risk; an unsustainable health care system that wreaks havoc on families, overwhelms government budgets and makes businesses uncompetitive; and a state and local fiscal crisis that could cripple the ability of government to meet the ever-increasing demand for vital services.

As AFSCME stood with Dr. Martin Luther King, Jr. we are now standing with President-elect Barack Obama, calling for unity and urgency to deal with our current crisis. He will need our help to repair the damage that has been done during the past eight years. He will need our hearts, our minds and our spirit. That is why AFSCME has launched the “Make America Happen” campaign, to create jobs and jump start our economy, secure health care for all and protect our beleaguered middle class. As we celebrate Dr. King’s legacy and Barack Obama’s inauguration, you can join us as well. Just click here.

House Dems Release Economic Stimulus Package

January 16th, 2009

Hoping to move quickly to stimulate the economy, House Democrats released their version of an economic recovery plan on Thursday which includes $550 billion in spending and state aid plus $275 billion in tax cuts. AFSCME International President Gerald W. McEntee praised the plan:

“The economic recovery plan proposed by the House leadership will protect and create jobs and help states and cities cope with the strain on their budgets. Their bill sends a clear message of support for the vital public services – such as health care, education and law enforcement – Americans rely on during an economic crisis. The American people do not want critics to play political games while workers are losing their jobs, their homes and their retirement security. Congress needs to act quickly to pass this down-payment on President-elect Obama’s plan to turn our economy around and put our people back to work.”

President-elect Obama has said this stimulus bill is critical if we are going to stem the worst economic crisis our country has seen in decades. In a statement, Obama called the bill “a significant downpayment on our most urgent challenges,” adding that “it will contain the kind of strict, independent oversight that will allow the American people to hold Washington accountable for how and where their tax dollars are spent.”

House Speaker Nancy Pelosi expressed confidence the bill would reach Obama’s desk by mid-February.