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It’s Not Just Right-to-Work: Bills Targeting Unions Multiply

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FILE - In this Nov. 13, 2014 file photo, AFL-CIO President Richard Trumka speaks in Washington. Republicans lawmakers in statehouses nationwide are working to weaken organized labor, sometimes with efforts that directly shrink union membership. Walker's signing of right-to-work legislation in Wisconsin on Monday puts his defiance of organized labor even more at the center of his nascent presidential campaign. And the inability of unions to exact a price for the first round of legislation targeting them in 2011 is encouraging even more proposals to limit their power. (AP Photo/Manuel Balce Ceneta, File)

In this Nov. 13, 2014 file photo, AFL-CIO President Richard Trumka speaks in Washington. Republicans lawmakers in statehouses nationwide are working to weaken organized labor, sometimes with efforts that directly shrink union membership. Walker’s signing of right-to-work legislation in Wisconsin on Monday puts his defiance of organized labor even more at the center of his nascent presidential campaign. And the inability of unions to exact a price for the first round of legislation targeting them in 2011 is encouraging even more proposals to limit their power. (AP Photo/Manuel Balce Ceneta, File)

JONATHAN MATTISE, Associated Press
NICHOLAS RICCARDI, Associated Press

CHARLESTON, W.Va. (AP) — It’s not just Gov. Scott Walker.

Republican lawmakers in statehouses nationwide are working to weaken organized labor, sometimes with efforts that directly shrink union membership. Walker’s signing of right-to-work legislation in Wisconsin on Monday puts his defiance of organized labor even more at the center of his nascent presidential campaign. And the inability of unions to exact a price for the first round of legislation targeting them in 2011 is encouraging even more proposals to limit their power.

The Republican wave in the November elections left many unions nationwide looking exceptionally vulnerable. In West Virginia, a union PAC spent $1.4 million trying to keep the statehouse in Democratic hands but couldn’t reverse the cultural trends turning the state red. Exit polls found that even union members were almost evenly split between the Republican and the Democrat in the major statewide race for U.S. Senate.

Now Republicans, in control of the state legislature for the first time since 1931, are taking advantage of their opportunity, pushing measures to expand non-union charter schools and scale back requirements that public projects pay higher, union-scale wages.

In Wisconsin, Walker beat back attempts to recall him after he signed a law limiting collective bargaining by public sector workers in 2011. His signature on the right-to-work law now makes Wisconsin the 25th state to ban contracts that force all workers to pay union dues. Both he and Michigan Gov. Rick Snyder, who signed a right-to-work law in 2012 and was also opposed by unions, won re-election in November.

“Their examples were inspiring,” said Victor Joecks of the Nevada Policy Research Institute, a conservative think tank whose ideas for limiting labor power have been embraced by Republicans who have taken over that state’s legislature for the first time since 1929. The message, he said, was, “Hey, this is possible, and it’s better for the state, and the taxpayers appreciate it.”

With many legislative sessions just beginning, nearly 800 union-related bills have been proposed in statehouses, according to the National Conference of State Legislatures.

President Barack Obama expressed his concern about the latest Wisconsin move and the general assault on unions.

“It’s inexcusable that, over the past several years, just when middle-class families and workers need that kind of security the most, there’s been a sustained, coordinated assault on unions, led by powerful interests and their allies in government,” Obama said in a statement Monday. “I’m deeply disappointed that a new anti-worker law in Wisconsin will weaken, rather than strengthen workers in the new economy.”

A right-to-work bill passed the lower house of the Missouri Legislature, though it’s likely to be vetoed by the state’s Democratic governor. Indiana is also moving to eliminate requiring union-level wages on public projects. Nevada is considering a wide range of proposals, including legislation that would let local governments dissolve collective bargaining agreements in times of economic hardship. Illinois’ new Republican governor, Bruce Rauner, signed an order prohibiting government unions from automatically collecting dues from members.

Even local governments are getting in on the action — several Kentucky counties are implementing right-to-work measures even though the state, with its House still controlled by Democrats, does not have such a law.

The proposals’ sponsors say they want to save taxpayers money and create jobs. There is also a political consequence.

Labor provides Democrats with crucial cash and volunteers in campaigns, but its political value to the party extends even farther. Belonging to a union increases the odds of a voter supporting Democrats, and labor increases the participation of lower-income voters who tend to back Democrats, said Roland Zullo of the University of Michigan’s Institute of Labor and Industrial Relations. “If you have more unions, you have higher rates of voting, especially in places that are poor,” he said.

Much of the impact of new laws has come in the vote-rich rust belt, where Republicans hope states with whiter and older populations, such as Wisconsin and Michigan, will eventually side with them in presidential elections to counter the loss of states in the South and West with younger and more diverse populations. In Wisconsin, public-sector union membership shriveled after Walker’s 2010 law and the proportion of workers in unions shrank from 14 percent to 11 percent. Hundreds of union members protested against the right-to-work legislation in the state capitol recently but admitted most were demoralized.

“People have lost faith,” said Eric Gates, a union member from the town of Menasha, 35 miles southwest of Green Bay.

Michigan experienced the sharpest loss of union members in the nation in the last two years, when its right-to-work law went into effect, according to federal data. But union officials also trace the loss to another 2012 measure, which received less attention: a law declaring that 42,000 in-home health care workers were no longer eligible to be represented by a union. Unions were unable to overturn the measure at the ballot box.

“They’re decreasing our ability to back supporters of our issues, whether they’re Democrats or Republicans,” said Marge Robinson, president of SEIU Health Care Michigan, which lost four-fifths of its membership as a result but still tries to communicate with many of the aides. “Even though we try to keep them as much engaged as possible, they’re all on their own, they’re not in an organization that works together.”

In Ohio, where unions reversed an effort to eliminate collective bargaining by government workers, GOP Gov. John Kasich still cruised to re-election last year.

Union membership has been steadily declining since the 1980s, when it measured at 20 percent of all workers. In 2014, only 11.1 percent nationally belonged to a union. James Sherk, a labor economist at the conservative Heritage Foundation, said the shrinkage in membership in Michigan may be due to trends other rather than the recent legislation. He noted that Democrats have joined Republicans on some measures that unions oppose, like pension reform and tougher standards for teachers.

If there’s a bright side for labor, it’s that things could be even worse. Given how many states Republicans control, Sherk said, there could be many more challenges to labor than have emerged.

___

Associated Press reporter Dana Ferguson in Madison, Wis., contributed to this report.

Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Activism

Oakland School Board Grapples with Potential $100 Million Shortfall Next Year

The school board approved Superintendent Denise Saddler’s plan for major cuts to schools and the district office, but they are still trying to avoid outside pressure to close flatland schools.

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OUSD Supt. Denise Saddler. File photo.
OUSD Supt. Denise Saddler. File photo.

By Post Staff

The Oakland Board of Education is continuing to grapple with a massive $100 million shortfall next year, which represents about 20% of the district’s general fund budget.

The school board approved Superintendent Denise Saddler’s plan for major cuts to schools and the district office, but they are still trying to avoid outside pressure to close flatland schools.

Without cuts, OUSD is under threat of being taken over by the state. The district only emerged from state receivership in July after 22 years.

“We want to make sure the cuts are away from the kids,” said Kampala Taiz-Rancifer, president of the Oakland Education Association, the teachers’ union. “There are too many things that are important and critical to instruction, to protecting our most vulnerable kids, to safety.”

The school district has been considering different scenarios for budget cuts proposed by the superintendent, including athletics, libraries, clubs, teacher programs, and school security.

The plan approved at Wednesday’s board meeting, which is not yet finalized, is estimated to save around $103 million.

Staff is now looking at decreasing central office staff and cutting extra-curricular budgets, such as for sports and library services. It will also review contracts for outside consultants, limiting classroom supplies and examine the possibility of school closures, which is a popular proposal among state and county officials and privatizers though after decades of Oakland school closures, has been shown to save little if any money.

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Activism

Mayor Lee, City Leaders Announce $334 Million Bond Sale for Affordable Housing, Roads, Park Renovations, Libraries and Senior Centers

Saying “Oakland is on the move,” Mayor Barbara Lee announces results of Measure U bond sale, Dec. 9, at Oakland City Hall with city councilmembers and city staff among those present. Photo courtesy of the City of Oakland.

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Saying “Oakland is on the move,” Mayor Barbara Lee announces results of Measure U bond sale, Dec. 9, at Oakland City Hall with city councilmembers and city staff among those present. Photo courtesy of the City of Oakland.
Saying “Oakland is on the move,” Mayor Barbara Lee announces results of Measure U bond sale, Dec. 9, at Oakland City Hall with city councilmembers and city staff among those present. Photo courtesy of the City of Oakland.

By Post Staff

The City of Oakland announced this week that it is successfully moving forward on the sale of $334 million of General Obligation bonds, a milestone that will provide the city with capital funding for city departments to deliver paved roads, restored public facilities, and investments in affordable housing.

“Oakland is on the move and building momentum with this bond sale,” said Oakland Mayor Barbara Lee. “We are reviving access to funding for paving our streets, restoring public facilities we all use and depend upon, and investing in affordable housing for our community, all while maintaining transparency and fiscal discipline.”

“These bonds represent our city’s continued commitment to sound financial management and responsible investment in Oakland’s future,” said Lee.

“Together, we are strengthening our foundation for generations to come,” she said. “I’m grateful to our partners in the City Council for their leadership and support, and to City Administrator Jestin Johnson for driving this process and ensuring we brought it home.”

According to the city, $285 million of the bonds will support new projects and $49 million of the bonds will refund existing bonds for debt service savings.

Oakland issued the Measure U bonds on Dec. 4 after two years of delays over concerns about the city’s financial outlook. They all sold in less than a week.

The new money bonds will pay for affordable housing, roadway safety and infrastructure improvements, and renovations to parks, libraries, senior centers, and other public facilities under the city’s Measure U Authorization.

Citywide paving and streetscape projects will create safer streets for Oaklanders. Additionally, critical facilities like the East Oakland Senior Center and San Antonio Park will receive much-needed renovations, according to the city.

Some of the projects:

  • $50.5 million – Citywide Street Resurfacing
  • $13 million – Complete Streets Capital Program
  • $9.5 million – Curb Ramps Program
  • $30 million – Acquisition & Preservation of Existing Affordable Housing
  • $33 million – District 3: Mandela Transit-Oriented Development
  • $28 million – District 6: Liberation Park Development
  • $3 million – District 5: Brookdale Recreation Center Capital Project
  • $1.5 million – District 1: Oakland Tool Lending Library (Temescal Branch Library)
  • $10 million – District 3: Oakland Ice Center

“I recognize that many naysayers said we couldn’t do it,” said Johnson. “Well, you know what? We’re here now. And we’re going to be here next year and the year after. The fact is we’re getting our fiscal house in order. We said we were going to do it — and we’re doing it.”

Investors placed $638 million in orders for the $334 million of bonds offered by the City. There was broad investor demand with 26 separate investment firms placing orders.  The oversubscription ultimately allowed the city to lower the final interest rates offered to investors and reduce the city’s borrowing cost.

“The oversubscription ultimately allowed the City to lower the final interest rates offered to investors and reduce the City’s borrowing cost,” said Sean Maher, the city’s communications director.

“The Oakland City Council worked closely with the administration to both advance the bond issuance process and ensure that the community had a clear understanding of the City’s timeline and approach,” said Councilmember at-Large Rowena Brown.

“In September, the City Council took unanimous action to authorize the Administration to move forward with the bond sale because these funds are essential to delivering the very improvements our communities have long asked for – safer streets, restored public facilities, and expanded affordable housing,” she said.

Continuing, Brown said, “I want to extend my sincere thanks to City Administrator Jestin Johnson, Finance Director Bradley Johnson, and Mayor Barbara Lee for their leadership, diligence, and steady guidance throughout the City’s bond sale efforts.

“Navigating complex market conditions while keeping Oakland’s long-term infrastructure needs front and center is no small task, and this moment reflects tremendous professionalism and persistence,” she said.

Moody’s gave the city an AA2 rating on the bonds, its third-highest rating, which it gives to high-quality investment-grade securities.

There was both a tax-exempt portion and a taxable portion for the bond offering, reflecting the various uses of the bond proceeds, according to a statement released by the city.

The $143.5 million of tax-exempt bonds have a 30-year final maturity and received an all-in borrowing cost of 3.99%.  The $191 million of taxable bonds have a 24-year final maturity and received an all-in borrowing cost of 5.55%.

The $49 million in tax-exempt bonds that refinance existing obligations of the City resulted in $5.6 million of debt service savings for taxpayers through 2039, or $4.7 million on a present value basis.

Mayor Lee said that, based on her experience serving on the House Financial Services Committee of the U.S. Congress for more than 10 years, city staff has done an exemplary job.

“I have witnessed many cities go to the bond market throughout the years,” she said. “I can tell you with certainty that Oakland’s team is remarkable, and our residents should be proud of their reputation, their competence, and their deep knowledge of this very sophisticated market.”

Looking ahead to the final sale of the bonds, according to the city press statement, pricing marks the point at which the City and investors locked in the final dollar amounts, interest rates, and other key terms of the bond sale. This stage is commonly referred to as the sale date. At pricing, no funds are exchanged. The actual delivery of bonds and receipt of monies occurs at closing, which is scheduled within the next two weeks.

Capital projects receiving this funding will proceed on individual timelines based on their individual conditions and needs. At the time of closing, funding will be immediately available to those projects.

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Bay Area

Post Salon to Discuss Proposal to Bring Costco to Oakland Community meeting to be held at City Hall, Thursday, Dec. 18

The proposed resolution would give authority to the City Administrator to negotiate terms for an exclusive negotiating agreement (ENA) with Deca Companies and Costco Wholesale Corporation to pursue a potential Costco development at 2008 Wake Ave. in the North Gateway Development Area of the former Oakland Army Base, adjacent to the Port of Oakland.

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Costco. Courtesy image.
Costco. Courtesy image.

By Post Staff

The Oakland Post Salon will host a community meeting with District 3 City Councilmember Carroll Fife and city staff to discuss a proposal for building a Costco in Oakland.

The public meeting will be held Thursday, Dec. 18, from 6 p.m.-7:30 p.m. in City Council Chambers, Oakland City Hall, 3rd Floor at 1 Frank H. Ogawa Plaza in Oakland.

At the meeting, residents will have the opportunity to:

  • Hear about a proposed resolution from Fife for Costco in Oakland
  • Find out details from the City Administrator and Oakland’s Real Estate Division
  • Ask questions, share ideas about benefits residents are looking for
  • Make sure decision-makers know what residents need.

The proposed resolution would give authority to the City Administrator to negotiate terms for an exclusive negotiating agreement (ENA) with Deca Companies and Costco Wholesale Corporation to pursue a potential Costco development at 2008 Wake Ave. in the North Gateway Development Area of the former Oakland Army Base, adjacent to the Port of Oakland.

“As the D3 Council representative, my primary objective is to improve the lives of my constituents, who have endured generations of disinvestment and neglect,” said Fife. “For too long, our West Oakland community has lacked access to essential services, often forcing residents to leave Oakland to find quality options – including groceries. Our families deserve access to affordable groceries, and we want to keep those dollars and tax revenues within our city. This proposed ENA is an important step toward bringing a world-class retailer to Oakland and creating hundreds of good-paying jobs right here in District 3.”

Deca Companies, a San Francisco-based real estate investment and development firm, is leading the development project. Deca has extensive experience with major projects across California, including the redevelopment of the Phillips 66 Refinery in Southern California, large mixed-use California projects in Perris, Bakersfield, and Mead Valley; along with electric vehicle charging lots and industrial projects across the Bay Area and Southern California.

“We’re thrilled to be working with Councilmember Fife to bring a major grocery retailer to West Oakland,” said Travis Duncan, vice president of Deca Companies. “This project sends a clear message: Oakland is open for business. We’re proud to be part of the team working to help alleviate the food desert and bring affordable, high-quality groceries that can serve folks in Oakland and people from across the East Bay.”

Tony Beatty, longtime broker for Costco in the Bay Area noted, “While I cannot comment on the specifics of potential opportunities that are currently being evaluated, existing Costco locations in the Bay Area perform very well, and we have been looking at potential expansion opportunities where they can best serve their members.”

If approved by the full City Council, the City Administrator would be authorized to negotiate terms for an exclusive negotiating agreement with Deca Companies and Costco Wholesale Corporation, a critical first step. If negotiations are fruitful, the resulting ENA would come before the City Council for approval.

In the interim, community outreach and engagement will continue to ensure residents are included in the decision-making process in a meaningful way, according to a statement from Fife’s office.

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