700 Billion Dollars for CEO’s

The proposed 700 Billion Dollar Bail-Out will be the biggest scam ever pulled on the American public. If you thought Enron was a crime. If you thought the Iraq War was a complete disaster. If you thought the government's response to Hurricane Katrina was heartbreaking. If you thought the price at the pump was outrageous. If you thought the Stimulus Package was a waste. You ain’t seen nothin yet.

How did we get here??? The pundits asked over and over this weekend on television and radio. 

I’ll tell you how we got here….. Eight years of conservative leadership. They lied about wanting limited government. They lied about believing in fiscal responsibility. They lied about helping Main Street. They lied about the reasons we went to Iraq. It WAS for the oil. Two oil men in the White House, the President and the Vice President out to get as much money as they could. 

Now they say we have to bail out the financial system or our pensions and retirement savings will be wiped out. When was the last time you read your 401K Statement? Chances are you already lost 20 percent since the beginning of the year. Every time you fill your tank you’re losing more money. The price of your groceries has gone up 40%. The value of your home if you are lucky to own one has dropped like a rock. So much for your retirement plans.

Trickle down economics is a scam. It always has been. Just how many financial experts will need to be hired to dole out the 700 Billion Dollars? How many of the same CEO’s that ran their company’s in to the ground will be hired to fix this mess? How many golden parachutes and stock options will be distributed? How many politicians will get kickbacks from Lobbyists? How long will our kids have to work to pay this debt off?

Have you any idea how many schools or hospitals could be built with 700 billion dollars?

Like I said, this is the biggest scam ever pulled on the American public. We have got to stop it from passing!

Book Review for Bigger Labor

Book Review

Building Trades News, August 2008, Volume 13, No. 8

 

Bigger Labor: A Crash Course for Construction Union Organizers

By Bob Oedy

Union Organizer Press, 2008

While there are many books available in union organizing, none directly spoke to organizers in the construction trade or were written by a union organizer. Until now. Bob Oedy, a veteran organizer with IBEW Local 11 has just written a primer for construction union organizers based on his years of experience in IBEW 11.

“Virtually all the books on the subject of organizing have been written by management, attorneys or academic’s with zero field experience organizing.  This has always bothered me” said Oedy. “In some cases the people who are actually driving the discussion are from entirely different industries! They have no idea the challenges that construction organizers face.”

            Bigger Labor is a comprehensive guide book to construction organizing best practices.  It covers everything from what to do on a picket line to tips on visiting jobsites, effective handbilling, dealing with police, building a banner, salting, as well as extensive communication tips for every situation from following up with potential recruits and effectively getting your point across at public hearings.

“I’ve heard from organizers all over the country who were given a quick drive around their jurisdiction and handed the keys to the office and expected to figure it out. That’s who this book was written for; the new organizer who wants to get up to speed quickly and get a handle on who’s doing what work and where. He or she doesn’t need to know every detail about common-situs picketing or the Moore Dry Dock case,” Oedy said. “It’s how do we access more jobsites and what do we do when someone chases us off a job? How can we make a database of all the contractors and craft workers and keep in touch with them over time? What can we put on a flyer without getting the union sued? What should we do and not do when speaking at a city council meeting? I believe this book will help organizers everywhere be more effective. No legal jargon, just everyday street language, I think most organizers will appreciate that.”

Bigger Labor will help new and veteran organizers alike avoid common mistakes and pitfalls. Oedy has made many of them, and he recounts some of those mistakes in the book so others can learn from them, such as his harsh introduction to the importance of listening that he learned as a young organizer:

             “Shortly after I was hired as an organizer, a young man contacted me. He had heard he could earn substantially more that he was earning at the time. I assured him it was true and immediately started telling him about the benefits of being accepted into apprenticeship program. …I completed his paperwork and sent him down to be interviewed and placed in the program. The next day he arrived for his interview, and the first question he was asked was ‘So you want to be an electrician?’ He answers, ‘Well not really, see I’m trying to earn enough money so my brother an I can open a muffler shop.” Ouch! See, he was probably tried to tell me that, but I was too busy flapping my jaw, telling him about the benefits and rewards of being in the union.”

Oedy credited the highly successful organizing department of Local 11, which has organized nearly 50 new contractors in the last year alone and the leadership of the Local with providing him training and guidance without which he couldn’t have written the book. This is the first of ten books he plans to write which he hopes will be help union construction organizer reach what he sees as a bright future: “The labor movement has a chance for explosive growth in the next few years. The Baby Boomers are retiring, and young people are choosing college more now then in the past. This will create a shortage of skilled craft workers thereby driving up the wages for those who choose construction as their trade. If unions can bring in enough contractors and meet the growing demands for apprenticeship training we can expect to see union density reach record levels.”

 For more information about or to order a copy the book, visit www.biggerlabor.com

Conference Hits Jackpot

What’s your idea of a great organizing conference? For me it would be upbeat and fun while providing useful knowledge that could be put immediately to use. It would be at a nice location, easily accessible from an airport. Top industry achievers would be there and everyone would have a variety of opportunities to get to know each other, share experiences and ask questions. One last thing, the waitress at the buffet would slip me a coupon for a free meal. That really happened. It’s funny how free food always seems to taste better then food you have to pay for.

This year’s IBEW Membership Development Conference was held at Bally’s in Las Vegas. It was an upbeat week. Huge gains in signatory contractors and membership in the IBEW construction branch gave organizers reason for celebration. While there is much more work to be done the conference reflected the new mood of optimism. 

My own local union, Local 11 was recognized for signing the most electrical contractors. In a 2 year period 75 new contractors became signatory.  These are record breaking gains that only a few years ago would have seemed impossible. 

Conference planners did an outstanding job providing useful presentations. My favorite was Peter Cockshaw an expert on labor-related issues.  I’ve seen him speak before on construction industry developments but he was on fire at this event. He didn’t rely on Teleprompters or a script. He just told it like it is. He applauded the union’s commitment to training electrical workers. He denounced the Associated Builders and Contractors, Inc. for spreading falsehoods about their training being anything close to that of the IBEW. According to Mr. Cockshaw the ABC relies on deceptive use of research to promote itself. This is one of the most important issues requiring organizers attention in his view. 

Comedian with a message Bernie McGrenahan provided some much needed levity on Wednesday of the conference. He had everyone busting up but he also shared some touching personal stories. I spoke with him at the reception. Turns out he lives in my neighborhood. You really should check out his website. He’s amazing! 

Teamwork among organizers was encouraged on the last day of the conference. A football theme with video interviews of epic coaches provided inspiration. Though not much of a fan of sports, it was really effective and appreciated by the 1300 or so in attendance, myself included. Many of the organizers I spoke with at the conclusion of the conference said it was the best so far.  

Labor's Own Think Tank

The UCLA Downtown Labor Center sponsored a 2 day conference called the California Construction Academy. It is a think tank for Statewide Building Trades representatives from the most active unions. The focus of the event was economic justice for those who face barriers to employment and rebuilding California’s dwindling middle-class. The statistics are staggering; 35-50% of craft workers will be retiring within the next 3-5 years. The growing need for apprenticeship training needs to be met in order to fill those positions. Union organizers participated in breakout sessions to help identify solutions. The majority of training in the construction industry in Los Angeles is done by Joint Apprenticeship Training.

2 Million Dollars Recovered for Workers

The Los Angeles Unified School District Work Preservation Group announced $2,000,000.00 in back wages were collected so far this year for workers and $800,000.00 in penalties were paid by contractors who cheated their employees. Over 465 cases were closed and an additional 400 cases are still pending. The Joint Compliance Monitoring Program allows volunteers access to prevailing wage school projects for the purpose of conducting compliance interviews. The district provides identification badges to authorized persons for activities related to the enforcement of the payment of prevailing wage rates. Representatives of the LA/OC Building & Construction Trade Council, Dept. of Labor Standards Enforcement, and Labor Compliance Dept. acknowledged the hard work of the union volunteers. Several unions have participated in the program over the years including the electricians, laborers, carpenters, painters and ironworkers.

KB Homes to Declare Bankruptcy?

You could see the crowd behind the caution tape at the Indymac bank in Pasadena today. There were over 100 desperate people in line despite the FDIC’s best assurances that there is absolutely no rush to get your money out. “Everything is fine” they say on the radio. “Plan on coming down another day when the crowds have died down a bit,” customers were told. FDIC agents served free sandwiches and drinks to the people who stood in line for hours according to one news announcer. Meanwhile a dozen or so news vans peppered the neighborhood. A run-on-the-bank is reminiscent of the great depression and the last Bush Presidency. I remember when the now infamous Savings and Loan Scandal broke causing over 2000 financial institutions to collapse from bad loans. Now Indymac is the latest to fall because of shifty no down, low interest, no documentation, “We’ll lend to anyone” shenanigans. Remember those days? KB Homes stock took off like a rocket back then. But then it all came to an end with the bursting of the residential bubble. Tomorrow General Motors will announce huge layoffs and plant closings. A lot of workers and their families will be hurt by it. Some will say that the two have nothing to do with each other. That the rise in oil prices and the housing bubble are completely separate issues. Perhaps; but one thing is for sure, the workers and the customers are always hurt when something like this happens. Keep an eye on KB Homes this week. If you see more sales offices close, don’t be one of those poor souls waiting to just get out with whatever you can get. I guarantee the FDIC won’t be serving any sandwiches.

KB Homes Shuts Down Sales Gallery

KB Homes has apparently shut down the Ascent at Warner Center Sales Gallery on Oxnard Street in Woodland Hills, CA in hopes protesters will remove the twelve foot inflatable rat attracting public attention to the troubled project. The office manager locked up the empty office after movers loaded furniture on trucks to be delivered to an undisclosed location. An email response to my inquiry to the KB Homes website reads, “Unfortunately, our Ascent at Warner Center community is currently on hold and we do not have a re-opening date available.” Meanwhile a demolition crew at the Ascent project removed ash, soot, and debris left by the construction fire a few months back that some say was caused by a welder. There was major damage to two of the floors exposing construction workers to smoke and flames and causing nearby businesses to be evacuated.

There is speculation that KB Homes is considering changing the name of the project due to the bad publicity from the fire. Let’s face it, the residential market is in terrible shape and these builders are as much to blame for the mortgage crises as the predatory lenders that preyed on unsuspecting buyers. Now they want to hire non-union contractors, pay lower wages to the workers, and put a cheap coat of paint on a project that some industry experts believe should have been demolished. The problem KB Homes faces is buyers are smarter then they were just a few years ago. The popularity of the Internet and availability of information on the Ascent project will make it hard for KB Homes to put a happy face on this stinker. Forget the balloons and the flags; people are going to want answers about the integrity of the building. What corners were cut and how is it that a fire was able to start and spread so fast? How safe would you feel living in a wood structure this poorly managed? Was a fire-watch on duty? Why weren’t extinguishers enough to control the flames before they spread to additional floors?

I believe this is a sign of bigger problems for KB Homes. Sure this is just one project that spun out of control, but what does this say about the company and its leadership. Why was KB Homes CEO Jeffrey Mezger willing to risk bringing in second rate contractors and risk the scorn of their stockholders and customers? What does that say about the man? Amongst the turmoil of the credit markets, and foreclosure activity he decides to lower standards and put the company at more risk? KB Homes has a big problem on its hands. Problems like these are expensive.

Options are limited for the California home builder. The economy is on the ropes, and with Freddie Mac and Fannie Mae both suffering staggering losses it’s not hard to see what’s next for KB Homes. That’s right, “BK” aka “bankruptcy.” What other options do they have right now? Sell-off the Ascent at Warner Center project for pennies on the dollar to an apartment management company? This possibility would have been more likely a few years ago when investors were caught up in the buying frenzy and lenders were only too eager to fund risky endeavors. Let’s face it; those days are gone. Today, investors are plagued with debt and there seems to be no end in sight for the slide in real estate prices. No one is calling the bottom yet. Many industry experts believe it could take a year before we even see the bottom and many more before markets recover to their previous state.

Housing markets are in the worst shape they’ve been in since the great depression. Fox News Channel, and the Bush Administration are the only groups touting the resilience of the American Economy these days. No one is taking them seriously. It’s obvious they don’t even believe it themselves. They buy gas like you and I. They see the value of their 401k’s dropping and their medical insurance skyrocketing. Changing the name of the troubled Ascent at Warner Center project and dropping prices to well below cost may be the only option. The problem is; it’s nowhere near completion. This project is so far behind schedule already, there’s no end in sight.

Some will say, “Recessions are nothing new to home builders.” And they’re right. What usually happens in times like these are non-essential staff are let go. Lights are turned-off and sales people are gathered together and given a do-or-die scenario and told, “We’re going to invoke in a brand new sales competition. We’ll have prizes and awards for the top sellers. We’re going to bring in a special motivational speaker and we’re going to Sell Like We’ve Never Sold Before!!! And I know with a little luck and hard work we’re going make it. I just know we are.” But you know what? I don’t think they’re going to make it. Not this time. Not in this market. What do you think???