Corporatization of Unions – a Threat to Workers Everywhere

 

 By:  John E. Peck  (UW Infoshop - IWW I.U. 620)

 

 On June 4th, 2002 the U.S. Labor Dept. (www.union-reports.dol.gov) posted for

 the first time the financial reports from labor unions, including

 salaries.   This self-serving disclosure by the Bush Whitehouse triggered

 a predictable avalanche of irate media coverage about labor bosses raking

 in six digit salaries while their rank-and-filers struggled for a living

 wage.  On the defensive, Teamsters spokesman, Bret Caldwell, countered

 that while James P. Hoffa’s “official” $228,000 salary in 2000 may be a

 bit “high” compared to that of the average union member, a much better

 barometer he suggested would be comparing union leaders to corporate

 executives – such as former UPS chairman, James P. Kelly who enjoyed a

 base salary of $1.1 million before his retirement in 2001 (Washington

 Post 6/4/2002).  Still, it was a bit much to swallow for a typical big

 city teacher to learn that their average salary of $52,000 was only one

 sixth of that earned by Sandra Feldman, president of the American

 Federation of Teachers (AFT) or for the average grocery cashier to

 discover that the United Food and Commercial Workers (UFCW) has over 75

 officers and directors earning between $100,000 and $300,000 per year

 (www.reapinc.org).

 

 That supposed advocates for workers would even try to excuse these

 bloated compensation packages with flimsy CEO parallels also speaks

 volumes about the insidious influence of corporatization within the

 mainstream labor movement.  In the May 2002 issue of the L.A. Labor News

 (www.lalabor.org), Jim Smith published a long overdue critique on this

 very topic which has since appeared in other alternative press such as Z

 Magazine (July-Aug. 2002)  Despite their populist origins and democratic

 pretenses, unions – like cooperatives or universities – are highly

 susceptible to corporatization.  Jerry Mander in his book, In the Absence

 of the Sacred, outlines several defining characteristics of corporate

 behavior – principal among these being insatiable growth, profit motive,

 aggressive competition, and stifling hierarchy.  While at the turn of the

 20th century grassroots empowerment was typical of radical unions such as

 the Western Federation of Miners (WFM) and the Industrial Workers of the

 World (www.iww.org), the rise of the American Federation of Labor (AFL)

 under Samuel Gompers led the bulk of unions down a divergent trajectory

 with labor eventually becoming a “junior partner” to capital.

 

 To expand on Smith’s article, this slippery slope began with a glass

 ceiling - a chauvinistic preference for organizing in skilled trades

 dominated by white males, while abandoning and marginalizing other

 workers.  Probably one of the lowest points in this sordid history was

 the deal cut between the AFL, the Farm Bureau, and Roosevelt’s New Deal

 to exclude migrant farmworkers and domestic servants from collective

 bargaining under the Wagner Act.  Later, when a rightwing Congress passed

 the Taft-Hartley Act over Truman’s veto, the mainstream labor movement

 found it more pragmatic to not seek a repeal and instead collaborated

 with big business to ferret out “communists” and accepted federal

 prohibitions on such effective tactics as secondary boycotts and sit down

 strikes.  This “industrial peace pledge” between union leaders and

 corporate executives greased the skids for the Cold War, while

 understandably breeding alienation and cynicism among many U.S. workers. 

 Meanwhile, in Europe workers never gave up their basic rights to organize

 or take direct action – with or without a union endorsed by the state. 

 

 Walking into a typical mainstream union headquarters today, one would be

 hard put to distinguish it from a corporate facility.  There is the

 chauffeured limousine fleet, posh hardwood interiors, weekend golfing

 junkets, and a prevailing utilitarian mentality that at best reduces the

 operation into a “service provider” and former “brothers and sisters”

 into hapless clients.  Money is siphoned off from far flung locals and

 kept under tight national control, often finding its way into rather

 dubious real estate investments, exploitative mutual funds, and insider

 stock options. When under-paid over-worked field organizers try to join

 or form their own unions, they often face a familiar union-busting wrath

 from their in-house managers.  Successful organizers that “go native” and

 lead locals in open revolt will find themselves ostracized and their

 adopted union fettered by a colonial-style “trusteeship” – as happened to

 uppity janitors in L.A. under the thumb of Service Employees

 International Union (SEIU).   If the going really gets too tough on the

 ground – as in Decatur, IL during the Staley strike – headquarters may

 well decide to downsize and abandon the subsidiary altogether, with

 hardly any local input or outside sympathy.

 

 Corporatization goes even further with leveraged buyouts and merger mania

 in the labor movement, often carefully orchestrated to rein-in excessive

 militancy.  One recent example cited by Smith is the progressive Oil,

 Chemical and Atomic Workers (OCAW) – which helped launched the Labor

 Party – being consumed by the reactionary Paper, Allied-Industrial,

 Chemical and Energy Workers (PACE).  Dispelling the Horatio Alger

 mystique, union leaders are also routinely appointed or nominated from an

 elite inner circle rather than working their way up from the shopfloor

 and being openly elected by the general membership. These executives then

 serve out their cushy terms with minimal transparency or accountability. 

 As Smith notes, the Sweeney “revolution” in the AFL-CIO was more a kin to

 a palace coup, since no locals or members were ever invited to the

 official nomination convention.  Current SEIU leader, Andy Stein, has

 been quite frank in describing the drawbacks of too much democracy in a

 union – it will politicize staffers, cost too much, and become a

 distraction from business as usual in the office (Chicago Tribune, 4/7/

 1997).

 

 Lofty rhetoric about “an injury to one is an injury to all” also suffers

 when corporatization leads to short-term fixation on “not rocking the

 boat” and just getting ones paycheck.  Ex AFL-CIO chief, George Meany’s

 personal profiteering from Dominican sweatshops is now almost legendary. 

 The much ballyhooed post Seattle “Turtles and Teamsters” alliance quickly

 fell apart when union leaders rushed to reaffirm their stake in the

 status quo.  The Machinists Union is now a cheerleader for Star Wars, the

 United Auto Workers (UAW) simply adore landmines and SUVs, the Teamsters

 are all gung ho about drilling in the Arctic (who cares if the oil will

 be sold in Asia and never reach U.S. markets). AFL-CIO willingness to

 undermine radical labor movements overseas as a proxy for covert

 activities by the CIA and the National Endowment for Democracy (NED) has

 apparently not disappeared either – as witnessed by recent meddling in

 countries such as Venezuela and Zimbabwe.  Hopefully, the WI State AFL-

 CIO’s recent resolution to support the World Bank Bond Boycott campaign

 will “trickle up” and usher in a more sincere attempt at global

 solidarity.

 

 Purging this corporate mentality from the mainstream labor movement will

 not be easy, especially when so much of the entrenched union leadership

 has “grown up corporate” – to paraphrase Ralph Nader.  Wayne Price offers

 a refreshing “to do list” for radical labor activists (Northeastern

 Anarchist, Spring/Summer 2002) that would reclaim such reliable tactics

 as the wild cat, workplace occupations, and the general strike.  Workers

 may just be ready to up the ante against capital if their pathetic co-

 opted leadership would get out of the way.  Last year alone the Teamsters

 had to scramble to do “damage control” in the wake of several wild-cats –

 from barge workers at Jeffboat in Jeffersonville, IN (Industrial Worker,

 June 2001) to meat packers with Tyson-IBP in Amarillo, TX (Labor Notes,

 Nov. 2001).  Hopefully, the next generation of labor activists are also

 taking notes from successful general strikes that have recently swept

 across Italy, Argentina, Zimbabwe, and Spain - to name a few labor

 hotspots.  Smith’s own unabashed recommendation is a return to labor’s

 radical roots – a democratic community-based organizing model still

 embodied in the ideals and practices of the IWW.   If not us – who?  If

 not now – when?