AFSCME.org Press Release Feed http://www.afscme.org/rss/press-releases AFSCME.org Press Releases Tue, 3 May 2011 05:00:00 +0000 AMPS en hourly 1 AFSCME Calls for Congress to “Stop Their Games and Get to Work” http://www.afscme.org/news/press-room/press-releases/2012/afscme-calls-for-congress-to-stop-their-games-and-get-to-work Tue, 24 Jan 2012 19:12:00 -0500 http://www.afscme.org/news/press-room/press-releases/2012/afscme-calls-for-congress-to-stop-their-games-and-get-to-work “President Obama has a plan to move our country forward, create jobs and find real solutions. The choices Congress makes in 2012 will determine whether we save the middle class. We can do that by enacting President Obama’s jobs agenda. Or we can focus on misguided policies that do nothing but give more tax breaks to Wall Street financiers and transfer even more wealth to those at the top of the economic ladder.

“This nation cannot continue to be held hostage by corporate-backed politicians who have rejected every meaningful jobs plan. Their reckless games have already harmed the recovery and cost us our credit rating – all because they care more about political games than creating jobs. Unfortunately, Indiana Gov. Mitch Daniels’ response to the president is a clear indication that his party will pursue a policy of more of the same. It’s time for Congress to stop their games and get to work. It’s time to enact the president’s agenda for jobs.”

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Investors Announce New Shareholder Initiative Seeking Disclosure of Company Lobbying Activities http://www.afscme.org/news/press-room/press-releases/2012/investors-announce-new-shareholder-initiative-seeking-disclosure-of-company-lobbying-activities Thu, 19 Jan 2012 14:28:00 -0500 http://www.afscme.org/news/press-room/press-releases/2012/investors-announce-new-shareholder-initiative-seeking-disclosure-of-company-lobbying-activities Investors today announced the filing of shareholder resolutions at 40 corporations, for votes at 2012 shareholder meetings; the resolutions urge the corporations to report on lobbying expenditures, including indirect funding of lobbying through trade associations.

The investors believe that shareholders have the right and need to understand how company resources are spent in efforts to change both elections and public policy; hence, this lobbying disclosure initiative is a natural extension of an ongoing shareholder campaign, which encourages greater political spending transparency and accountability.  Specifically, the investors believe that enhanced lobbying disclosure will enable them to better evaluate business risk associated with their companies’ efforts to influence regulatory and legislative processes.

This position is consistent with that of U.S. Supreme Court Justice Anthony Kennedy, who, as author of the 5 to 4 majority decision in Citizens United v. Federal Election Commission stated that if given prompt disclosure of political expenditures, “Shareholders can determine whether their corporation’s political speech advances the corporation’s interest in making profits…”  While Justice Kennedy spoke of corporate expenditures aimed to influence elections, his logic applies equally to the need for lobbying disclosure.

While Citizens United and the focus on political expenditures have attracted a great deal of media attention, corporate lobbying expenditures extend far beyond campaign contributions.  A November 2011 study by Si2, funded by the IRRC Institute, entitled “Corporate Governance of Political Expenditures” found that in 2010, S&P 500 companies spent a total of $1.1 billion on political contributions and lobbying, with $979.3 million in federal lobbying expenditures comprising 87 percent of this spending[1]

Moreover, lobbying by trade associations to which corporations contribute is substantial, and the corporate contributions are largely unreported. In 2010 the U.S. Chamber of Commerce spent more than $132 million lobbying, making it the country’s largest lobbying group. Yet the Si2 study found that only 14 percent of S&P 500 companies disclose the portion of their trade association dues used to fund lobbying.

Thomas DiNapoli, Comptroller of the State of New York stated, “As a fiduciary, it’s important that companies in which the New York State Common Retirement Fund invest are open, transparent and demonstrate high standards of governance.”  DiNapoli’s office oversees the $133.8 billion state fund. “That’s why we’ve joined this year in filing resolutions urging companies to report to their investors about their lobbying priorities, oversight and corporate dollars spent.”

In fact, most companies do not provide even rudimentary disclosure on their lobbying expenditures and practices to investors.  Out of the S&P 500, the IRRC study found 64 percent of companies make no mention of lobbying activities, policies or oversight.  Furthermore, the study found that only 13 companies in the S&P 500 provide investors information on how much they spend on lobbying.

Corporate lobbying has also been used to weaken shareholder rights.  For example, in 2010, Chesapeake Energy participated in drafting an Oklahoma law requiring that publicly traded companies have classified boards.  In both 2008 and 2009, shareholder proposals calling for the declassification of the board, or annual elections of all directors, had received majority support from shareholders.  But instead of declassifying the board, Chesapeake lobbied to change Oklahoma law to require classified boards.[2]

Gerald McEntee, President of AFSCME stated, “The issue of lobbying and trade association payments by publicly held corporations is serious, and I am committed to pushing for real change.”

Timothy Smith, Director of Environmental, Social and Governance (ESG) Shareowner Engagement at Walden Asset Management and one of the coordinators of this initiative stated, “Over the last five years, investors increasingly have urged companies to disclose their spending aimed at influencing elections.  This year investors have taken a logical next step and asked companies to disclose their direct and indirect lobbying activities. Whether the issue is environmental impact, consumer protection, financial reform or shareholder rights, it is important for investors to understand how company dollars are spent to influence our laws and regulations by lobbying activities. While many companies have modest government affairs budgets, others spend tens of millions of dollars annually on lobbying directly and through trade associations.  We believe it is timely and appropriate for companies to be much more transparent.”

More than 40 investors joined in filing and co-filing the resolution seeking comprehensive disclosure of corporate lobbying; among them are New York State Common Retirement Funds; Walden Asset Management; the AFSCME Employees Pension Plan; Needmor Fund; PAX World Fund; Tides Foundation; Funding Exchange and Russell Family Foundation.  Also participating are faith-based investors such as CHRISTUS Health; Catholic Health East; Midwest Capuchin Franciscans; Sisters of St. Joseph of Boston; Sisters of Notre Dame Boston; Mercy Investment Services; Glenmary Home Missioners and Sisters of Notre Dame Toledo. This unique investor network is organized by the AFSCME Employees Pension Plan and Walden Asset Management, a division of Boston Trust & Investment Management Company.

Specifically, the resolution asks for disclosure of:

  1. Company policy and procedures governing lobbying, including that done on the company’s behalf by trade associations.
  2. Payments used for direct lobbying as well as grassroots lobbying communications.
  3. Membership in and payments to any tax-exempt organization that writes and endorses model legislation.
  4. Decision-making processes and oversight by management and the Board.

Among the companies receiving the shareholder resolution are 3M; Altria Group; AT&T; Bank of America; Chevron; Coca-Cola; ConocoPhillips; Devon Energy; Goldman Sachs; Johnson & Johnson; JPMorgan Chase; Occidental Petroleum; PepsiCo; Target; UPS and YUM! Brands.

The companies receiving lobbying disclosure resolutions for 2012 are

3M

Abbott Laboratories

Aetna

Altria Group

Amgen

AT&T

Bank of America

Caterpillar

CIGNA

Chesapeake Energy

CVS Caremark

Chevron

Coca-Cola

Comcast

ConocoPhillips

Devon Energy

Eli Lilly

General Electric

GEO Group

Goldman Sachs

IBM

Johnson & Johnson

JPMorgan Chase

Kraft Foods

Northrop Grumman

Occidental Petroleum

Peabody Energy

PepsiCo

Pfizer

PG&E

Southern

St. Jude Medical

Target

Union Pacific

United Parcel Service

UnitedHealth Group

Verizon

WellPoint

Yum! Brands

Zimmer Holdings

Filers of Lobbying Disclosure Resolutions

Pension Funds

New York State Common Retirement Fund

Labor

AFSCME Employees Pension Plan

AFL-CIO

Communications Workers of America

Service Employees International Union

Asset Management Companies

First Affirmative Financial Network

Green Century Funds

PAX World Funds

Sustainability Group, Loring Wolcott & Coolidge

Walden Asset Management

Zevin Asset Management

Foundations

Brainerd Foundation

Edward W. Hazen Foundation

Haymarket Foundation

Lemmon Foundation

Nathan Cummings Foundation

Needmor Fund

Russell Family Foundation

The Funding Exchange

Tides Foundation

Non-Profit Institutional Investors

Manhattan Country School

Religious Filers

Catholic Health East

CHRISTUS Health

Congregation of Benedictine Sisters, San Antonio

Dubuque Franciscans

First Parish Unitarian Church, Cambridge, MA

Franciscan Sisters

Glenmary Home Missioners

Jewish Voice for Peace

JOLT Coalition (Justice Organizers, Leadership & Treasurers)

Mercy Investment Services

Mount St. Scholastica

Northwest Women Religious Investment Trust

Province of St. Joseph of the Capuchin Order

Sisters of Charity, New Jersey

Sisters of Charity of the Incarnate Word, San Antonio, TX

Sisters of the Holy Names of Jesus & Mary U.S. Ontario Province

Sisters of Notre Dame de Namur, Boston

Sisters of Notre Dame, Toledo

Sisters of St. Dominic of Tacoma

Sisters of St. Francis, Philadelphia

Sisters of St. Joseph of Boston

Unitarian Universalist Association

Individuals

Daniel Altschuler

Gwendolen Noyes

Gun Denhart

Sample Resolution Language: Devon Energy

Disclosure of Lobbying Policies and Practices

Whereas, businesses, like individuals, have a recognized legal right to express opinions to legislators and regulators on public policy matters,

It is important that our company’s lobbying positions, as well as processes to influence public policy, are transparent.  Public opinion is skeptical of corporate influence on Congress and public policy and questionable lobbying activity may pose risks to our company’s reputation when controversial positions are embraced. Hence, we believe full disclosure of Devon’s policies, procedures and oversight mechanisms is warranted.

Resolved, the shareholders of Devon Energy Corp. request the Board authorize the preparation of a report, updated annually, and disclosing:

  1. Company policy and procedures governing the lobbying of legislators and regulators, including that done on our company’s behalf by trade associations. The disclosure should include both direct and indirect lobbying and grassroots lobbying communications.
  2. A listing of payments (both direct and indirect, including payments to trade associations) used for direct lobbying as well as grassroots lobbying communications, including the amount of the payment and the recipient.
  3. Membership in and payments to any tax-exempt organization that writes and endorses model legislation.
  4. Description of the decision making process and oversight by the management and Board for
    1. direct and indirect lobbying contribution or expenditure; and
    2. payment for grassroots lobbying expenditure.

For purposes of this proposal, a “grassroots lobbying communication” is a communication directed to the general public that (a) refers to specific legislation, (b) reflects a view on the legislation and (c) encourages the recipient of the communication to take action with respect to the legislation.

Both “direct and indirect lobbying” and “grassroots lobbying communications” include efforts at the local, state and federal levels.

The report shall be presented to the Audit Committee of the Board or other relevant oversight committees of the Board and posted on the company’s website. 

Supporting Statement

As shareholders, we encourage transparency and accountability on the use of staff time and corporate funds to influence legislation and regulation both directly and indirectly as well as grassroots lobbying initiatives. We believe such disclosure is in shareholder’s best interests. Absent a system of accountability, company assets could be used for policy objectives contrary to a company’s long-term interests posing risks to the company and shareholders.

For example, a company may lobby directly or through a trade association to weaken the Foreign Corrupt Practices Act, or stop the Environmental Protection Agency from regulating climate change or trying to limit the Consumer Finance Protection Bureau.

Devon is actively involved in the American Petroleum Institute and National Association of Manufacturers –  both very active lobbyists.

Company funds of approximately $4.45 million for 2009 and 2010 supported direct federal lobbying activities, according to disclosure reports.  (U.S. Senate Office of Public Records) This figure may not include grassroots lobbying to directly influence legislation by mobilizing public support or opposition. Also, not all states require disclosure of lobbying expenditures.

We encourage our Board to require comprehensive disclosure related to direct, indirect and grassroots lobbying.

_______________________________

[1] Heidi Welsh and Robin Young, “Corporate Governance of Political Expenditures: 2011 Benchmark Report on S&P 500 Companies,” Sustainable Investments Institute & IRRC Institute, November 2011 (www.irrcinstitute.org).

[2] “Oklahoma Board Rule Benefits Chesapeake,” Wall Street Journal, July 11, 2011

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Imperial CEOs Targeted as AFSCME Employees Pension Plan Announces 2012 Shareholder Proposals http://www.afscme.org/news/press-room/press-releases/2012/imperial-ceos-targeted-as-afscme-employees-pension-plan-announces-2012-shareholder-proposals Tue, 17 Jan 2012 10:17:00 -0500 http://www.afscme.org/news/press-room/press-releases/2012/imperial-ceos-targeted-as-afscme-employees-pension-plan-announces-2012-shareholder-proposals The American Federation of State, County and Municipal Employees, AFL-CIO (AFSCME) Employees Pension Plan (“the AFSCME Plan”), today announced that it has filed 21 shareholder proposals designed to protect and enhance the economic value of its long-term investments. The Plan’s proposals would require greater director accountability, independent corporate board leadership, and greater transparency in the companies in which the Plan invests.

The AFSCME Plan, an institutional shareholder with more than $850 million in assets, has submitted the 21 shareholder proxy proposals for consideration at annual company meetings this spring. The Plan’s proposals are designed to increase corporate management’s accountability and transparency and better align the interests of management with those of shareowners. The changes sought through these proposals would reduce risks to the companies’ future performance and protect and improve the value of these companies’ shares.

“On Wall Street, the model of the imperial CEO who also serves as board chair has proven to be a failed experiment,” said AFSCME Pres. Gerald W. McEntee. “Our independent chair proposals are designed to make these boards un-beholden to an all-powerful CEO and chair and more accountable to their owners, the shareholders.”

The AFSCME Plan has filed proposals seeking independent board chairs, annual director elections, and reports on the risks to shareholders of corporate lobbying expenditures and aggressive corporate tax strategies.

“These 21 proposals will bring greater transparency and accountability when boards of directors fail to properly represent shareholders’ best interests. Additionally, as shareowners, we will review Say on Pay at all companies and voice disapproval for unwarranted CEO pay,” added McEntee.

Proposals have been filed at: Abbott Laboratories (ABT); Amazon (AMZN); American Express (AXP); Anadarko Petroleum (APC); AT&T (T); Bank of America (BAC); Boeing (BA); Chevron (CVX); Coca-Cola (KO); Dean Foods (DF); Emerson Electric (EMR); Goldman Sachs (GS); Janus Capital (JNS); Johnson & Johnson (JNJ); JPMorgan Chase (JPM); Kraft Foods (KFT); Lockheed Martin (LMT); Northern Trust (NTRS); Pfizer (PFE); Union Pacific (UNP); and Verizon (VZ).

Summary Attachment

Declassification:
Requiring annual elections of management increases management’s accountability to its shareholders. A proposal seeking the annual election of directors has been filed at Emerson Electric.

Independent Chair:
The role of a corporate board is to monitor management, and the person acting as chair runs the board. But if the board is led by a chair who is also the Chief Executive Officer (CEO) of the company, then the CEO effectively becomes his or her own boss. Requiring that different people fill the roles of chair and CEO avoids that fundamental conflict of interest. Proposals seeking independent chairs have been filed at American Express, Anadarko Petroleum, Dean Foods, Goldman Sachs, Janus Capital, Johnson & Johnson, JPMorgan Chase, Lockheed Martin and Northern Trust.

Lobbying Risk
Management’s unconstrained use of corporate funds to support lobbying activities that may be unrelated or deleterious to the company’s economic purposes is a risk to shareholder value.  Proposals asking that companies prepare an annual report disclosing their policies and payments for direct and indirect lobbying activities have been filed at Abbott Laboratories, AT&T, Bank of America, Chevron, Coca-Cola, Kraft Foods, Pfizer, Union Pacific and Verizon.

Tax Risk
Management’s actions taken to avoid or reduce taxation of its business activities can create risks for share value, from potential significant negative effects on financial results to financial restatements.  Proposals asking for a report disclosing a board’s risk assessment of the company’s actions to minimize taxes have been filed at Amazon and Boeing.

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AFSCME Plan to JP Morgan: End Dimon Double Duty http://www.afscme.org/news/press-room/press-releases/2012/afscme-plan-to-jp-morgan-end-dimon-double-duty Tue, 17 Jan 2012 09:59:00 -0500 http://www.afscme.org/news/press-room/press-releases/2012/afscme-plan-to-jp-morgan-end-dimon-double-duty The AFSCME Employees Pension Plan (“the AFSCME Plan”) today announced it filed a shareholder proposal asking JPMorgan Chase & Co. (JPM) to adopt an independent board chair.

The AFSCME Plan, an institutional investor with more than $850 million in assets and a long-term shareholder of JPM, submitted the shareholder proposal for consideration at JPM‟s 2012 annual meeting. The AFSCME Plan views the proposal as an important way to protect and enhance the economic value of its long-term investment in JPM and sees the proposal as a way to refocus the company on better managing its economic risks and protecting and improving the value of its shares.

“Jamie Dimon has gone from the ‘Last Man Standing’1 to ‘the Most Dangerous Man in America’2,” said AFSCME President Gerald W. McEntee, “and it is high time that the board of directors stepped in to manage risk at JP Morgan.”

JPM shares have declined almost 20% relative to the S&P 500 over the past year as the firm has faced significant additional legal and reputational risks3. According to Bloomberg, bad mortgages and foreclosure abuses have already cost JPM $16.3 billion.4 In addition to the serious financial consequences of the foreclosure fraud debacle, JPM has suffered reputational damage due to:

  • alleged involvement with Bernie Madoff5;
  • foreclosure actions taken against six active duty military personnel in violation of the Servicemembers Civil Relief Act6;
  • charges of having participated in an unlawful payment scheme to win business with Jefferson County, Alabama7; and
  • SEC enforcement actions leading to a settlement over allegations that JPM had misled its clients regarding a collateralized debt obligation (CDO).8

During this period, JPM CEO Jamie Dimon has also been acting as the board chair at JPM; Dimon has filled both roles for JPM since 2006. As Chairman of the Board, JPM CEO Jamie Dimon presides over the directors who establish his compensation. Dimon‟s pay increased from $1.3 million in 2009 to $27.8 million in 2010.9

JPMorgan has been at the center of controversy surrounding improper mortgage documentation. The Congressional Oversight Panel reported that for the critical 2005-2007 period, JPM and its subsidiaries constituted the third largest originator of US Mortgages and the largest underwriter of non-agency mortgage-backed securities.10 FBR Capital Markets analyst Paul Miller estimates that JPM faces losses of over $21 billion due to mortgage “putback” litigation.11

The AFSCME Plan believes that adoption of its proposal to require an independent board chair would be an important first step towards refocusing JPM on curing these problems and improving its economic performance.

“An independent chair would get JPMorgan executives focused on generating long term value for shareholders, rather than empire-building and big bonuses,” added McEntee.

Separation of the chair and CEO positions is a reform increasingly supported by both directors and institutional shareholders as instrumental in protecting the value of publicly held companies. In 2009, the Chairmen‟s Forum, a group of more than 50 current and former board chairs, directors, chief executives, investors and governance experts hosted by Yale‟s Millstein Center, endorsed the voluntary adoption of independent, non-executive chair of the board, finding that “[t]he independent chair curbs conflicts of interest, promotes oversight of risk, manages the relationship between the board and CEO, serves as a conduit for regular communication with shareowners, and is a logical next step in the development of an independent board.” Additionally, the number of U.S. companies moving to separate the chair and CEO positions has been increasing. Forty percent of S&P 500 companies now split the chair and CEO roles.

1 http://www.amazon.com/Last-Man-Standing-Ascent-JPMorgan/dp/B003STCKN0/ref=ntt_at_ep_dpt_1

2 http://baselinescenario.com/2010/04/03/the-most-dangerous-man-in-america-jamie-dimon/

3 Decline relative to S&P 500 was 19.52%. CapitalIQ as of January 9, 2012.

4 http://www.bloomberg.com/news/2011-09-16/mortgage-debacle-costs-u-s-banks-66-billion-as-bad-home-loans-sap-profit.html

5 http://www.sec.gov/Archives/edgar/data/19617/000119312511212045/d10q.htm

6 http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=112_house_hearings&docid=f:65867.pdf page 28

7 http://www.sec.gov/news/press/2009/2009-232.htm

8 http://www.sec.gov/news/press/2011/2011-131.htm

9 Institutional Shareholder Services report on JPM, May 13, 2011, page 13.

10 http://cybercemetery.unt.edu/archive/cop/20110402010313/http://cop.senate.gov/documents/cop-111610-report.pdf

11 http://www.thestreet.com/story/11239620/1/stop-bashing-the-banks-analyst.html

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AFSCME’s McEntee on New Hampshire Primary Results http://www.afscme.org/news/press-room/press-releases/2012/afscmes-mcentee-on-new-hampshire-primary-results Tue, 10 Jan 2012 18:02:00 -0500 http://www.afscme.org/news/press-room/press-releases/2012/afscmes-mcentee-on-new-hampshire-primary-results “Tonight marks another step forward in Mitt Romney’s quest to become America’s job-killer in chief. Greedy CEOs are surely toasting Romney’s win and his vision of eliminating workers’ rights and their unions. But the 99% and President Obama are hard at work on policies that will ask these fat cats bankrolling Romney’s campaign to pay their fair share so we can invest in efforts to create jobs in America.”

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AFSCME’s McEntee on Recess Appointments http://www.afscme.org/news/press-room/press-releases/2012/afscmes-mcentee-on-recess-appointments Wed, 04 Jan 2012 16:09:28 -0500 http://www.afscme.org/news/press-room/press-releases/2012/afscmes-mcentee-on-recess-appointments “By making these recess appointments, President Obama has once again stood up for the 99 percent and said ‘Enough!’ to Congressional Republican obstructionism. American families deserve to have dedicated servants protecting them from Wall Street abuses, egregious corporate activity and protecting the rights of working families and consumers. We commend President Obama for using his constitutional authority.”

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Iowa Caucus Results Show GOP is the Fraternity of the 1 Percent http://www.afscme.org/news/press-room/press-releases/2012/iowa-caucus-results-show-gop-is-the-fraternity-of-the-1-percent Tue, 03 Jan 2012 19:42:03 -0500 http://www.afscme.org/news/press-room/press-releases/2012/iowa-caucus-results-show-gop-is-the-fraternity-of-the-1-percent “Tonight’s Iowa caucus results further show that this year’s GOP field is the fraternity of the 1 percent. Once voters get a good look at the candidates it becomes crystal clear that they are desperately out of touch with the real world concerns of America’s working families. How else can you explain Mitt ‘corporations are people too’ Romney’s $10,000 bet, Newt’s shopping sprees at Tiffany’s?

“The GOP candidates do not have a single proposal that will help middle-class Americans struggling to get ahead. With millions of Americans out of work we need to create jobs not tax cuts for millionaires. Americans are looking for leaders like Barack Obama who will pull this nation together to solve the jobs crisis and rebuild the American Dream for all Americans.”

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AFSCME’s McEntee to Congress: Stop Playing Political Games and Help the Middle Class http://www.afscme.org/news/press-room/press-releases/2011/afscmes-mcentee-to-congress-stop-playing-political-games-and-help-the-middle-class Thu, 15 Dec 2011 14:06:35 -0500 http://www.afscme.org/news/press-room/press-releases/2011/afscmes-mcentee-to-congress-stop-playing-political-games-and-help-the-middle-class “With the end of the year looming, congressional Republican leaders thus far have refused to engage in meaningful negotiations over the terms of legislation that would continue the federal unemployment benefit program and the payroll tax.  If Congress fails to act before the close of this legislative session, millions of Americans who are without work will lose vital unemployment benefits and millions more will see their taxes go up.”

“More than 6 million unemployed American workers would lose a much-needed safety net should Congress strip them of the benefits that are set to expire by year’s end.  In addition, 160 million Americans would be forced to dig deeper into their emptying pockets to pay more in taxes in 2012. This is absolutely unacceptable.

“It is time to stop the partisan game playing and pass an extension of unemployment benefits and the payroll tax extension.”

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AFSCME’s McEntee: Overtime Pay Long Overdue for Nation’s 2.5 Million Home Care Workers http://www.afscme.org/news/press-room/press-releases/2011/afscmes-mcentee-overtime-pay-long-overdue-for-nations-2-5-million-home-care-workers Thu, 15 Dec 2011 12:47:00 -0500 http://www.afscme.org/news/press-room/press-releases/2011/afscmes-mcentee-overtime-pay-long-overdue-for-nations-2-5-million-home-care-workers The American Federation of State County and Municipal Employees, AFL-CIO (AFSCME) applauds the proposed reforms to the U.S. Department of Labor Fair Labor Standards Act regulations, which improve working conditions for home care workers. Since 1974, home care workers have been excluded from basic federal, minimum wage and overtime protections due to overly broad regulations and a hostile Supreme Court decision that converted a narrow exemption for companionship services into a wholesale exclusion of home care workers. The rule will ensure that home care workers have the protections of basic federal minimum wage and overtime rules, and will be paid fairly for the work they perform.

“In the wake of the worst recession in our lifetime, the denial of a basic minimum wage and no overtime is a double blow to the millions of home care workers who care for the most vulnerable in our society,” stated AFSCME Pres. Gerald W. McEntee. “This workforce is too critical to the independence and dignity of individuals with disabilities and older adults. Something had to be done to stabilize the workforce and address pay standards.”

The proposed DOL rules will provide home care workers – employed by an agency or other intermediary – the federal minimum wage and overtime pay when warranted. It will also narrow the legal definition of the “companionship” exemption to only cover fellowship and protection, as it was originally intended. The proposal also limits liability of families who hire individuals from agencies that fail to comply with the pay rules.

AFSCME has joined with organizations that work on behalf of the aged and people with disabilities in urging the Department of Labor to issue new rules pertaining to the companionship exemption. “Home care workers have become a lifeline for older Americans. Often they are the breadwinners for their families,” added President McEntee. “They provide physically and emotionally demanding care to their clients and deserve the protections afforded to other workers.”

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AFSCME Endorses President Obama for Reelection http://www.afscme.org/news/press-room/press-releases/2011/afscme-endorses-president-obama-for-reelection Tue, 06 Dec 2011 08:54:00 -0500 http://www.afscme.org/news/press-room/press-releases/2011/afscme-endorses-president-obama-for-reelection The 1.6 million-member American Federation of State, County and Municipal Employees Union, AFL-CIO (AFSCME) announced today their endorsement of Pres. Barack Obama for reelection in 2012. The AFSCME International Executive Board passed a resolution of endorsement at today’s International Executive Board Meeting.

“President Obama is the only choice for the 99%. We must put people back to work, make the 1 percent pay their fair share, and protect Medicaid, Medicare and Social Security. President Obama will stand up for working families,” said AFSCME Pres. Gerald W. McEntee. “Newt Gingrich and Mitt Romney have a prescription for the U.S. economy that was written by the same corporate interests that got us into this mess in the first place. We’ve all seen the depths the right-wing extremists governors will go to at the expense of working families, and we certainly don’t need that type of leadership in the White House. The GOP candidates just don’t get it, they are out of touch with reality. We believe that American voters are smarter than that and will say thanks but no thanks to their 1 percent agenda and work to re-elect President Obama to a second term.”

AFSCME’s Executive board voted to endorse today, and will now begin an extensive conversation with members and non-members nationwide. In 2008, AFSCME launched a one-of-a-kind nationwide campaign to elect President Obama. AFSCME recruited more than 40,000 activists, made more than 6 million calls to members and deployed hundreds of staff to 17 key battleground states to ensure a victory.

“It’s unbelievable that the GOP leadership and Presidential candidates are so eager to protect the Bush tax breaks for millionaires that they are willing to cut off benefits for the long-term unemployed and repeal a payroll tax cut,” added Michael Ebersole, a highway maintenance technician for the Florida Department of Transportation and Local 3106 AFSCME member. “President Obama’s call—to invest in innovation and infrastructure that will put people back to work today and build a strong foundation for the future—is what this country needs. I intend to work day and night to ensure this President gets a second term.”Barack Obama

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All the 99% Wants for Christmas Are Jobs http://www.afscme.org/news/press-room/press-releases/2011/all-the-99-percent-wants-for-christmas-are-jobs Fri, 02 Dec 2011 12:51:00 -0500 http://www.afscme.org/news/press-room/press-releases/2011/all-the-99-percent-wants-for-christmas-are-jobs “All the 99% wants for Christmas are jobs. Even last night, Senate Republicans voted to increase taxes on hard-working Americans instead of asking the 1 percent to pay their fair share,” said AFSCME Pres. Gerald W. McEntee. “Speaker Boehner, Majority Leader Cantor and the rest of the congressional Republicans certainly have made Santa’s naughty list this year and will end up with coal in their stockings. They continue to stonewall any effort to create jobs in this country. America’s working families’ one wish this holiday season would be for the Republicans to work for those who elected them and stop stonewalling the American Jobs Act.”

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Congress Must Now Refocus Their Energy on the Jobs Crisis http://www.afscme.org/news/press-room/press-releases/2011/congress-must-now-refocus-their-energy-on-the-jobs-crisis Mon, 21 Nov 2011 12:00:00 -0500 http://www.afscme.org/news/press-room/press-releases/2011/congress-must-now-refocus-their-energy-on-the-jobs-crisis “We are deeply dismayed that Congressional Republicans on the super committee once again were unwilling to stand up to Grover Norquist and the tea party to find solutions our country needs. The Democrats on the super committee came to the table willing to achieve significant deficit reduction without harming working families. Cutting programs like Medicare, Medicaid and Social Security would have a perilous impact on future generations. Congress must now refocus their energy on the jobs crisis in this country and defend the middle class instead of gouging them even further.”

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McEntee: Congressional Republicans Are Partying with the Tea Crowd while Working People Get Stuck with the Hangover http://www.afscme.org/news/press-room/press-releases/2011/mcentee-congressional-republicans-are-partying-with-the-tea-crowd-while-working-people-get-stuck-with-the-hangover Fri, 18 Nov 2011 13:30:00 -0500 http://www.afscme.org/news/press-room/press-releases/2011/mcentee-congressional-republicans-are-partying-with-the-tea-crowd-while-working-people-get-stuck-with-the-hangover “Make no mistake, today was a win for working families, for the 99 percent, as congressional Democrats stood their ground and rejected the balanced budget amendment and the deep cuts it would have made to Social Security, Medicare and Medicaid. The great majority of congressional Republicans once again stood up for the 1 percent by voting for the balanced budget amendment. It is clear that the extreme tea party agenda continues to be the mantra of Speaker Boehner, Majority Leader Cantor and the rest of the congressional Republican gang. Instead of standing with their constituents, they again kowtowed to the extremist, radical, right-wing agenda. Republican politicians are partying with the tea crowd, and it’s the regular working people that are stuck with the hangover.”

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Ohio Voters Repudiate Anti-Collective Bargaining Law http://www.afscme.org/news/press-room/press-releases/2011/ohio-voters-repudiate-anti-collective-bargaining-law Tue, 08 Nov 2011 16:53:00 -0500 http://www.afscme.org/news/press-room/press-releases/2011/ohio-voters-repudiate-anti-collective-bargaining-law The American Federation of State, County and Municipal Employees, AFL-CIO (AFSCME) issued the following statement on the defeat of Senate Bill 5 in Ohio Tuesday.

“Tonight, Ohioans delivered a clear message to corporate-backed politicians across the country that we will no longer stay silent as Wall Street tries to steal the American Dream,” stated AFSCME Pres. Gerald W. McEntee.

“This was a brazen attempt to silence the voice of the 99%; the voters saw through it and vetoed it. A Main Street movement has begun and tonight we sent a message to all politicians to end the attacks on the economic and retirement security of the working middle class.”

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McEntee: It’s Time for Republicans in Congress to “Occupy Reality” http://www.afscme.org/news/press-room/press-releases/2011/mcentee-its-time-for-republicans-in-congress-to-occupy-reality Fri, 04 Nov 2011 10:27:00 -0500 http://www.afscme.org/news/press-room/press-releases/2011/mcentee-its-time-for-republicans-in-congress-to-occupy-reality In the month of October, the unemployment rate showed little movement clocking in at 9 percent down from 9.1 percent in September. The Labor Department says the economy added 80,000 jobs last month, the fewest added in the last four months, and 24,000 government jobs were lost.

“As do-nothing members of Congress continue to shrug their shoulders at the jobs crisis, it’s no wonder that the other 99 percent have come together in a Main Street movement to say ‘enough!’ It’s well past time for Congress to stop playing politics and pass the Jobs Act, and for Wall Street-backed governors across the country – from Ohio to Wisconsin to New York – to end their assault on workers and the American Dream,” said AFSCME Pres. Gerald W. McEntee.

“Just yesterday, for the third time in four weeks, every single Republican in the Senate voted against putting Americans back to work. It’s time for Republicans to ‘occupy reality’ and accept that the same old trick of paying off millionaire donors at the expense of the rest of us will not fix the economy.”

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Celebrating 75 Years of Solidarity with America’s Working Families http://www.afscme.org/news/press-room/press-releases/2011/celebrating-75-years-of-solidarity-with-americas-working-families Fri, 28 Oct 2011 12:38:21 -0500 http://www.afscme.org/news/press-room/press-releases/2011/celebrating-75-years-of-solidarity-with-americas-working-families Beginning this month until October 2012, AFSCME will celebrate its 75th anniversary as a fighting union. Begun in 1936 by a group of civil servants in Madison, Wis., who sought to prevent political interference in the hiring of public employees, AFSCME has grown to 1.6 million members nationwide and is the largest union in the AFL-CIO.

“For 75 years, our members have worked to build a strong middle class and keep the American Dream alive for every working American,” notes AFSCME Pres. Gerald W. McEntee. “We have a proud history fighting for collective bargaining rights, for civil rights, for women’s rights and for the vital public services that Americans depend upon in good times and in bad.”

The union has developed a traveling exhibit “AFSCME: Yesterday, Today and Tomorrow” that will be displayed at union meetings and conventions around the country throughout the coming year. An early version of the exhibit was first previewed at the AFSCME Women’s Conference in October. The completed exhibit will be displayed in the union’s Washington, DC, headquarters on Monday and Tuesday, Oct. 31 and Nov. 1. In the coming months, it will be displayed in Maryland, Ohio, Pennsylvania, Wisconsin and other states throughout the country.

“This exhibit will remind our members of the long struggle to secure the rights that so many take for granted today,” McEntee said. The exhibit includes panels featuring the union’s fight for collective bargaining rights in the mid-20th century, including the historic struggle of the Memphis sanitation workers, all members of AFSCME Local 1733, who struck in 1968 to gain recognition for the union. “Martin Luther King Jr. died while fighting for the rights of our members,” McEntee noted.

The exhibit also contains panels detailing the union’s successful campaigns to create pay equity for women, including the decade-long effort in Washington State to end discriminatory pay scales for women and the historic 1981 strike by Local 101 in San Jose, Calif., which led the city to raise salaries for positions typically held by women. More than 50 percent of AFSCME’s membership is comprised of women, and the union has a long history of leadership on issues of women’s rights and equality.

Other topics highlighted in the exhibit are AFSCME’s efforts to protect Social Security and the retirement security of American workers and the union’s long struggle to ensure the passage of health care reform legislation. The exhibit also depicts the union’s efforts to protect collective bargaining rights, which were attacked by Wall Street-backed politicians in states such as Wisconsin and Ohio earlier this year. The reaction in those states led to widespread public demonstrations throughout the country and the emergence of a Main Street Movement to create an economy that would benefit all Americans, rather than just the very wealthy.

AFSCME plans other activities and programs to commemorate the union’s 75th anniversary, including events at the union’s biannual convention which will be held in Los Angeles in June 2012. A special video and website will be available in the coming weeks.

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Wisconsin Public Workers Deliver for Occupy Wall Street: Send Pizza in Solidarity http://www.afscme.org/news/press-room/press-releases/2011/wisconsin-public-workers-deliver-for-occupy-wall-street-send-pizza-in-solidarity Thu, 13 Oct 2011 13:52:00 -0500 http://www.afscme.org/news/press-room/press-releases/2011/wisconsin-public-workers-deliver-for-occupy-wall-street-send-pizza-in-solidarity Today Wisconsin public employees stood in solidarity with Occupy Wall Street by making a donation to Liberatos Pizza to fuel the anti-corporate protest.

Protesters in Madison, Wisconsin, earlier this spring were the beneficiaries of pizza donated from people all over the world who supported public employees in their fight to protect their freedom to unionize from corporate-backed Governor Scott Walker.

“We were grateful for all the support that came to Wisconsin from around the world and we wanted to help our brothers and sisters in New York City,” said Tim Birkley, an AFSCME Local 60 member who works for the city of Madison.

“From Madison to Manhattan, it’s time for the other ninety-nine percent to stand up for ourselves and restore the American Dream,” Birkley said.

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AFSCME Launches New Ad Supporting American Jobs Act http://www.afscme.org/news/press-room/press-releases/2011/afscme-launches-new-ad-supporting-american-jobs-act Thu, 13 Oct 2011 09:40:00 -0500 http://www.afscme.org/news/press-room/press-releases/2011/afscme-launches-new-ad-supporting-american-jobs-act The American Federation of State, County and Municipal Employees, AFL-CIO (AFSCME) today announced that a television ad, titled “Podium,” will begin airing in congressional districts across the country.  The 30-second spot is the second advertisement in support of enactment of a robust jobs plan.  The ad urges residents to call their members of Congress and tell them to pass the American Jobs Act.

“Despite this week’s vote in the Senate, millions of Americans are still out of work, the middle class is still under attack, and the corporate-backed politicians don’t have a plan to create jobs,” stated AFSCME Pres. Gerald W. McEntee.  “Americans are reclaiming their voice in a Main Street Movement that spans from Madison to Columbus to New York to cities across the nation. Washington can help them by passing the American Jobs Act now.”

“Podium” will begin airing Oct. 13, in 8 states and 10 media markets across the country.  A separate radio advertisement will also run in select states.  “What if middle-class families were finally given the podium so that politicians finally listen to us instead of fighting for millionaires and corporations,” opens the ad while, “We all need to tell Congress to pass the American Jobs Act Now,” is the tag line at the conclusion. 

 “This country is in the throes of one of the worst financial crises in this country’s history while corporate-backed politicians, including Republican leaders in Congress, play partisan politics while letting the working middle class suffer.  This Main Street Movement will keep marching until Americans are put back to work,” stated AFSCME Sec.–Treas. Lee Saunders.

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AFSCME's McEntee: “Politicians Who Block Jobs Will be Out of Work Come November 2012” http://www.afscme.org/news/press-room/press-releases/2011/mcentee-politicians-who-block-jobs-will-be-out-of-work-come-november-2012 Fri, 07 Oct 2011 09:23:00 -0500 http://www.afscme.org/news/press-room/press-releases/2011/mcentee-politicians-who-block-jobs-will-be-out-of-work-come-november-2012 Gerald W. McEntee, President of the American Federation of State, County and Municipal Employees, AFL-CIO (AFSCME) issued the following statement today in response to employment numbers released by the U.S. Department of Labor.  In the month of September, the unemployment rate stayed at 9.1% while 33,000 state and local government workers lost their jobs.

“Today’s jobs numbers make every hard working American family feel like they’re Bill Murray in Groundhog Day,” said AFSCME Pres. Gerald W. McEntee.  “These numbers should be a wake-up call to politicians around the country, especially those that are blocking the American Jobs Act.  Job creation is the key to the future of your career; continue the partisan games and come November 2012, you’ll be on the unemployment line.”

“We see the frustration in the hearts and minds of Americans across this country.  The main street movement that started in Madison WI has moved to Manhattan, DC, Boston and other cities. Hundreds of thousands of frustrated Americans are occupying cities and taking to podiums across this country and they’re all saying ‘enough’! Enough with the give-aways and tax breaks to the richest 1% and enough with the political gamesmanship. It’s time to put more Americans back to work now.”

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McEntee: Cantor “Just Doesn’t Get It” on Jobs http://www.afscme.org/news/press-room/press-releases/2011/mcentee-cantor-just-doesnt-get-it-on-jobs Tue, 04 Oct 2011 09:26:00 -0500 http://www.afscme.org/news/press-room/press-releases/2011/mcentee-cantor-just-doesnt-get-it-on-jobs “Representative Cantor just doesn’t get it; the country needs jobs, not another out-of-touch politician. Saying that the American Jobs Act is dead on arrival is yet another way for him to show he isn’t paying attention and he isn’t listening to the American people.

“For decades the working middle class has been under attack, and now, when we have a chance to rebuild Main Street, help hard working American families and inject a much-needed jobs program into the agenda, corporate-backed politicians like Eric Cantor show their true colors. Enough with the grandstanding, Representative Cantor needs to get to work. Get his party to work, to do the job they were elected to do, stand up for their constituents. It is time for politicians in Washington to come together and rebuild our economy and pass the American Jobs Act now.”

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Main Street Movement Goes from Madison to Manhattan http://www.afscme.org/news/press-room/press-releases/2011/main-street-movement-goes-from-madison-to-manhattan Tue, 04 Oct 2011 09:00:00 -0500 http://www.afscme.org/news/press-room/press-releases/2011/main-street-movement-goes-from-madison-to-manhattan American Federation of State County and Municipal Employees, AFL-CIO (AFSCME) Pres. Gerald W. McEntee and Sec.-Treas. Lee Saunders issued the following statement today:

“What has been happening on Wall Street for the past two weeks is a Main Street Movement in the spirit of the protests in Madison, Wis., seven months ago. Just as a message was sent to politicians in Wisconsin, a clear message is now being sent to Wall Street: Priority # 1 should be rebuilding Main Street, not fueling the power of corporate CEOs and their marionette politicians.

“We stand in solidarity with those protesting Wall Street’s greed. The economy that has wrecked so many lives, obliterated jobs, and left millions of Americans homeless and hopeless is the fault of banks that gamble with our future. Their reckless pursuit of profits, at the expense of working families’ pursuit of the American dream, must come to an end.”

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Labor Activists Defend Workers’ Rights for Milwaukee City Employees http://www.afscme.org/news/press-room/press-releases/2011/labor-activists-defend-workers-rights-for-milwaukee-city-employees Fri, 30 Sep 2011 16:24:00 -0500 http://www.afscme.org/news/press-room/press-releases/2011/labor-activists-defend-workers-rights-for-milwaukee-city-employees City public service workers, community members and activists were joined by AFSCME members from across the country today at Red Arrow Park to protect collective bargaining rights and defend the vital public services that the people of Milwaukee rely on.

“Today the people of Milwaukee are calling on our elected leaders to stand up for the working middle class and for essential public services in a time of great need,” said Rich Abelson, Executive Director of AFSCME Council 48. “Milwaukee public service workers need a voice on the job through an ordinance to restore some of the rights that the governor has stripped away.”

Hundreds of members of the American Federation of State, County and Municipal Employees District Council 48 (Milwaukee), AFSCME Council 24 and participants in AFSCME’s National Women’s Conference being held this week in Milwaukee urged the city’s Common Council to recognize the rights of public service workers and protect essential public services, especially during these difficult times.

“In these tough times, Milwaukeeans need to pull together to find solutions that work for everyone,” said Annie Wacker, a city resident and president of AFSCME Local 1954. “We can’t cut our way to prosperity.”

When the contract with the City of Milwaukee expires on Dec. 31, Milwaukee’s public service workers, members of AFSCME Council 48, will lose their collective bargaining rights. At that point, they will lose their ability to bargain over wages, hours and working conditions because of the new state law that stripped away the collective bargaining rights of nearly 200,000 Wisconsin public service employees, including more than 60,000 AFSCME members.

“The workers who make Milwaukee an orderly, clean and vibrant city shouldn’t be treated as second class citizens,” said Ken Wischer, a truck driver and equipment operator for the city’s public works department and a member of AFSCME Local 423. “We deserve a voice on the job so we can continue to provide great services to the public.”

The rally also put a spotlight on expected budget cuts and other changes that will adversely affect public service workers and the citizens of Milwaukee who rely on vital public services.

“The people of Milwaukee know that you can’t build a strong middle class when you’re tearing down the services that help people find a way up,” said AFSCME International Secretary-Treasurer Lee A. Saunders. “And you can’t build a strong city by taking it apart, brick by brick by brick.”

“These are not just attacks on public service workers, but the middle class itself,” added Paulette Feld, who works at the University of Wisconsin, Oshkosh and is President of AFSCME Council 24. “These politicians are creating massive deficits by giving tax breaks to the rich, while balancing the budget on the backs of the working middle class.”

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AFSCME Ad Greets Jobs Debate http://www.afscme.org/news/press-room/press-releases/2011/afscme-ad-greets-jobs-debate Wed, 21 Sep 2011 09:00:00 -0500 http://www.afscme.org/news/press-room/press-releases/2011/afscme-ad-greets-jobs-debate Gerald W. McEntee, President of the American Federation of State, County and Municipal Employees, AFL-CIO (AFSCME) today announced that a television ad, titled “More Jobs Equal Less Debt,” will greet Republican presidential candidates in Orlando and nationally. The 30-second spot is the opening salvo in a broader campaign that AFSCME is planning in support of enactment of a robust jobs plan. The ad urges Congress to pass the American Jobs Act.

“Even a kid can understand that the only way to reduce the deficit is to create jobs, so it’s time for Republican leaders in Washington to quit the political games and pass the American Jobs Act now,” stated McEntee. “It’s time to put America back to work.”

“More Jobs Equal Less Debt” will begin airing Sept. 23, in Orlando, Fla., and on national cable. “More jobs equals less debt, even our kids can understand that. Tell Congress to pass the American Jobs Act Now,” is the tag line at the conclusion of the ad.

AFSCME’s first ad can be viewed here: http://www.afscme.org/jobs.

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AFSCME’s McEntee: Millionaires’ Tax “Welcome News,” But Congress Must Pass Jobs Bill Now http://www.afscme.org/news/press-room/press-releases/2011/afscmes-mcentee-millionaires-tax-welcome-news-but-congress-must-pass-jobs-bill-now Mon, 19 Sep 2011 12:57:00 -0500 http://www.afscme.org/news/press-room/press-releases/2011/afscmes-mcentee-millionaires-tax-welcome-news-but-congress-must-pass-jobs-bill-now “Something is seriously wrong when regular, working-class Americans pay a higher tax rate than Wall Street brokers and hedge fund managers. So the President’s proposal to make millionaires pay their fair share is welcome news. The working middle class has suffered massive job losses, millions of foreclosures and decimated retirement security. It’s well past time for millionaires to share in the sacrifice to get America moving again. There is no better way to reduce the budget deficit than putting Americans back on payrolls. The President’s economic growth and deficit reduction proposal takes important steps toward building jobs and investing for the future. Congress should pass President Obama’s jobs bill immediately to improve the economy and put America back to work.”

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AFSCME’s McEntee to Congressional Republicans: Get Out of Jail Free Card Doesn’t Create Jobs http://www.afscme.org/news/press-room/press-releases/2011/mcentee-to-congressional-republicans-get-out-of-jail-free-card-doesnt-create-jobs Thu, 15 Sep 2011 07:03:00 -0500 http://www.afscme.org/news/press-room/press-releases/2011/mcentee-to-congressional-republicans-get-out-of-jail-free-card-doesnt-create-jobs The American Federation of State, County and Municipal Employees, AFL-CIO (AFSCME) issued the following statement today in regards to H.R. 2587, The Protecting Jobs from Government Interference Act:

“Instead of passing the President’s jobs plan and actually creating jobs, congressional Republicans are up to the same old politics and doing the bidding of Corporate CEOs,” stated AFSCME Pres. Gerald W. McEntee.  “H.R. 2587 gives companies a get out jail free card and makes them less accountable for firing workers and shipping jobs overseas.  At a time when our economy is stagnant, and millions of Americans are unemployed, we should encourage companies to hire workers, not debate legislation that will allow companies to ship jobs to other countries.” 

H.R. 2587, if enacted will eliminate the only remedy provided to the National Labor Relations Board, the authority to return workers to their jobs when a company decides to fire employees or relocate a plant to punish workers or avoid their obligation to bargain with workers.  Additionally, enactment of this legislation will allow companies to more easily outsource jobs, and strip the authority to return those jobs to the U.S. if a company began outsourcing in retaliation.

“It is shameful that Speaker Boehner, Majority Leader Cantor and the rest of the congressional Republicans continue to do the work of CEOs, lobbyists and campaign contributors. The members of Congress should do what they were elected to do, fight for an economic recovery that creates jobs and works for all Americans.”

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