Organizing Private Sector Workers — Completing the Circle
AFSCME has devoted a great deal of time to preserving quality treatment services in state institutions and in developing state- operated, community-based programs. However, as deinstitutionalization forces the closure of some institutions and consolidation of others, private MR/DD and mental health organizations have become the provider of choice for states who seek to cut costs by expanding their community-based services. As a consequence, the private industry workforce generally has no collective bargaining agreements and has a high turnover rate. Workers in the private sector find that the working conditions, wages and benefits are generally worse than those of their counterparts in the public institutions. Community advocates are alarmed at the high worker turnover rates in private-sector homes. Advocates have pressured a number of legislators to examine the public/private disparity.
AFSCME councils across the country have taken up the challenge to organize the private sector to improve the quality of treatment services in the community-based programs, and to promote more equitable wages and benefits among workers. To do this, workers had to overcome workplace intimidation by employers, union-busting activities, and unreasonable layoffs and firings. As a result of the tireless efforts of organizers and courageous workers who refused to be intimidated, significant elections have been won, and contracts negotiated and ratified. AFSCME’s fight to raise the quality of services for the patient and improve workplace conditions goes on.
Organizing Illinois’ Private Community-Based Services
Council 31 continues to score victories in their battle to organize privately run community-based mental health and MR/DD programs. Since its first major victory in winning an NLRB election in 1994 to represent nearly 400 workers in a private ICF/MR with over 300 beds, AFSCME continues to push to increase its membership in the private industry.
Since its first major victory in winning an NLRB election in 1994 to represent nearly 400 workers in a private ICF/MR with over 300 beds, Council 31 continues to push to increase its membership in the private industry.
As in many other states, Illinois has been downsizing its state-operated facilities for the mentally ill and the developmentally disabled for some time, and has turned those services over to private providers. The effect of this deinstitutionalization effort was job loss for public workers, a reduction of quality of services to the patients, and poor wages for private workers. In fact, direct care workers at private agencies in Illinois earn wages one half of what their counterparts in state facilities earn, and receive almost no benefits at all. It became obvious to AFSCME that they had to shift gears from fighting to keep the state-operated facilities from downsizing to “following the work” by organizing private provider workers.
Since its first victory in 1994, Council 31 has won more NLRB elections and one representation through voluntary recognition. In addition, they have organized over 500 workers within the last six months. These organizing efforts have included Frances House, which runs group homes for the developmentally disabled; Kreider Services, Inc., a private, community-based mental health residential and day program service; and Litchfield Terrace, a nursing facility for the mentally ill.
Frances House:
One of the most difficult fights Council 31 became embroiled in was organizing Frances House. Facing great odds in the face of calculated labor law violations, the workers refused to be intimidated by their employer and finally won an all important representation election in January 1996. Negotiations for a first contract were difficult. Employees filed over 30 charges against Frances House for violations of federal labor law. In addition, employees engaged in informational picketing, held public hearings, and actively lobbied state legislators. In spite of virulent anti-union tactics conducted by the employer, employees at Frances House settled their first union contract a year later. The contract provides wage increases retroactive to the first of the year, improvements in health insurance and more paid holidays. Also, Frances House employees, through a new labor management committee, will gain a voice in the care and treatment of residents.
Tracey Abman, director of organizing in Council 31 said that, “The struggle at Frances House shows how tough organizing can be in the private sector. The weakness in the NLRA is the first roadblock. However, we were able to persevere and win here because the workers stood together and never gave up. These workers were joined by our members, community and religious leaders, local politicians and family members.”
Kreider Services, Inc.:
Workers at Kreider Services, Inc. in Dixon, Inc. faced down an intense and sophisticated anti-union campaign and voted 96-78 in favor of AFSCME representation. Winning the unit of 200 workers who staff Kreider’s residential and day program provides a big boost to Council 31’s campaign to follow mental health work into the community. Kreider hired a anti-union consultant to discourage organizing efforts. Management held weekly staff meetings that would exclude known union supporters and spoke against the union as if it were some outside intrusive force invading the workplace. But workers in these meetings refused to be intimidated and boldly declared that the union is not a bunch of strangers that no one knows but that, “we are the union.”
Organizing committee members, organizers and local AFSCME activists fought management tactics with home visits, phone calls and informational leaflets to win the election.
Organizing committee members, organizers and local AFSCME activists fought management tactics with home visits, phone calls and informational leaflets to win the election.
Littchfield Terrace:
Employees at Littchfield ratified their first contract which came on the heels of voluntary recognition by the employer. This gave the workers a much needed boost in wages and an employer-paid health insurance plan. The three-year agreement provides for wage increases ranging from $.20 to $2.25 per hour. The contract requires the employer to pass through to workers any increase in reimbursement that the agency receives from the state for labor costs. The contract also provides for an employer-paid health insurance plan, for which employees will contribute $20 per month; a grievance procedure that ends with binding arbitration; $.50 per hour bonus when the facility census gets above 60 residents and an attendance incentive of 2.5 percent per quarter for employees who miss no days during that period; and a 401(k) plan.
Council 25 Organizes Private Industry in Michigan
AFSCME Council 25 continues to show significant gains in its campaign to organize workers in Michigan’s privately operated group homes. In Michigan, this industry consists of 2,600 group homes and 2,000 family homes caring for approximately 30,000 mentally ill persons. It employs over 15,000 workers of which AFSCME represent over 2,500. Many of these workers continue the struggle to address issues of industry abuse.
After years of legal battles and fights with state officials for the right to organize workers, the struggle continues, even though the state was considered by the state civil service commission and the state courts to be a joint, “co-employer” with the private providers. When AFSCME Council 25 filed petitions to represent workers at Louisiana Homes with the Michigan Employment Relations Commission (MERC) in the late 1980s or early 1990s, the state challenged them. The state’s argument was that the direct care workers at Louisiana Homes were not state workers because the company was a private organization. AFSCME took this case and a related one, C.K. Homes, to court, contending that since providers like these are state funded, and since terms and conditions of their employees are state regulated, direct care workers are, in fact, state employees entitled to the same union representation as other state workers.
AFSCME Council 25 continues to show significant gains in its campaign to organize workers in Michigan's privately operated group homes. After years of legal battles and fights with state administration for the right to organize workers, the struggle continues.
Louisiana Homes went to court twice over this issue, and both times the courts ruled in AFSCME’s favor, holding that the state was a joint employer of direct care workers with the private companies. When MERC finally released the ballots that were impounded from the original five companies, an overwhelming 284 workers were in favor of AFSCME (only 17 were against). AFSCME was subsequently successful in other elections and began the difficult process of negotiating contracts for the workers.
The state continued its efforts to stop the union organizing and bargaining strategy, while simultaneously appealing to the courts for relief. Meanwhile, AFSCME negotiated directly with some of the providers and was able to win wage increases for some of the workers, resolve some disciplinary actions and establish labor/management committees.
On January 12, 1996, the Michigan state Court of Appeals gave AFSCME a slight setback by vacating all of the cases that make the state a joint or “co-employer.” The court held that, based on the NLRB’s July 1995 decision in Management Training Corporation vs. Teamsters, a Utah case, NLRB jurisdiction preempts the state personnel board. In effect, AFSCME would have to bargain with several dozen different providers and not at all with the state. Subsequent to this decision by the state Court of Appeals, AFSCME filed Unfair Labor Practice complaints against all of the companies with which the union was certified, for failure to bargain. AFSCME also asked the NLRB to grant comity to the MERC certifications, i.e., assume responsibility and/or jurisdiction of those units. AFSCME’s case was heard in January 1997 and the NLRB ruled in AFSCME’s favor in January 1998 by accepting jurisdiction of most of the MERC certifications and issued a bargaining order to 29 companies. The companies are appealing this decision and a decision from the full board is pending.
In May 1996 when AFSCME was preparing to take its case to the NLRB, one of the companies, Cyprian Center, Inc., decided to cut its own deal and agreed to negotiate a contract with the union. Cyprian Center consists of 10 facilities funded by Wayne County and the state of Michigan. It is under contract with the county to provide services for mentally impaired residents in six homes, one semi-independent living program (apartment), two day care programs and a children’s respite program. This non-profit company employs approximately 110 direct care workers.
It is the practice of AFSCME organizers to establish bargaining committees in companies as soon as the union is certified. It was such a committee at Cyprian Center that helped to get us to the bargaining table. After a series of meetings with the company director, AFSCME was able to begin negotiations on substantive issues in July 1996.
The struggle continues. The council says that their immediate goal is targeting other group homes and their long-range goal is to change the face of the industry. They inted to continue organizing to make places better so that there is continuity and consistency in providing treatment services.
Finally, one of the most comprehensive contracts in the industry was finalized in May 1998. For the first time, this three-year agreement gives workers a voice regarding their working conditions. They have a grievance procedure that ends in arbitration by a neutral party; they have recognition of seniority; there is a job posting and bidding procedure; an equalization of overtime procedure; there is sick leave, bereavement leave, personal days and vacation days spelled out in a binding agreement. A new hospitalization plan with a reduction in co-payment, which includes vision and dental benefits, was negotiated.
In March 1997 AFSCME won an election for employees at Hunter Homes, Inc. and began contract negotiations in July 1997, which have still not been resolved.
AFSCME continues to organize workers in Michigan and has demonstrated to state legislators that many workers in community mental health are part of the working poor in that state. Many workers in Detroit and rural communities are still struggling to make a living on $6 to $7 per hour. Most workers in this industry work two jobs and as much overtime as they can to make ends meet.
Due to AFSCME’s extensive lobbying efforts, one Michigan House member took a special interest in these union members and wrote into the 1997-98 Community Mental Health budget a $.75 per hour increase which will be directly passed through to direct care workers. This increase became effective January 1, 1998. AFSCME is working with this same legislator to continue the $.75 per hour increases for the next fiscal year’s budget and to add to it if possible.
Organizing Private-Sector Workers in Oregon
Some workers of Oregon Community Support, a private non-profit MR/DD organization that operates 10 group homes, decided they wanted to organize due to deplorable working conditions, high staff turnover and low wages. Secretly these individuals, who were former state employees, approached AFSCME Council 75 and asked what they should do. They were advised to get signature cards from as many employees as possible and, with the help of AFSCME organizers, they accomplished this task in short order. AFSCME Council 75 filed with the National Labor Relations Board and received clearance to hold an election and won. Subsequent to the election, it took a year of negotiations for workers to get their first contract.
Six months after the contract was ratified, the workers at Oregon Community Support suffered a major setback. The company went out of business. A new employer, Albertina Kerr Centers, assumed control of the group homes and picked up 90 percent of the employees. Although Albertina Kerr Centers agreed to recognize the union, they would not recognize the contract. In fact, they tried to have the union decertified in the group homes. Union organizers were relentless in their pursuit to keep employees from succumbing to employer intimidation. And, through personal visits to employees’ homes, phone banking and networking, AFSCME prevailed and won the right to hold another election which they won.
Negotiations for the new contract began in October 1997 and were completed on May 8, 1998. AFSCME is now prepared to go to the membership for ratification.
The struggle continues. The council says that their immediate goal is targeting other group homes and their long-range goal is to change the face of the industry. They intend to continue organizing to make places better so that there is continuity and consistency in providing treatment services.
