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	<title>GANGBOX: CONSTRUCTION WORKERS NEWS SERVICE</title>
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		<title>BROKEN ACORN - corruption, sweatshop labor practices and the Michael Miliken approach to community activism at famed leftist not for profit organization</title>
		<link>http://gangbox.wordpress.com/2008/07/20/broken-acorn-corruption-sweatshop-labor-practices-and-the-michael-miliken-approach-to-community-activism-at-famed-leftist-not-for-profit-organization/</link>
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from the INDYPENDENT:
 

ACORN Leader Steps Down, Group Puts New Controls In Order
By Bennett Baumer
July 18, 2008 &#124; Posted in IndyBlog &#124; Email this article 

 
One of the largest progressive community based organizations in the country, Association of Community Organizations for Reform Now (ACORN) announced its founder has stepped down. Wade Rathke, who founded ACORN in [...]]]></description>
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<h2>ACORN Leader Steps Down, Group Puts New Controls In Order</h2>
<p><strong>By </strong><a href="http://www.indypendent.org/?pagename=author_search&amp;a=Bennett Baumer"><strong>Bennett Baumer</strong></a><strong><br />
July 18, 2008 | Posted in </strong><a href="http://www.indypendent.org/2008/07/18/acorn-leader-steps-down-group-puts-new-controls-in-order/?cat=13"><strong>IndyBlog</strong></a><strong> | </strong><a title="Email this article" rel="nofollow" href="http://www.indypendent.org/2008/07/18/acorn-leader-steps-down-group-puts-new-controls-in-order/email/"><strong>Email this article</strong></a><strong> </strong></p>
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<p class="MsoNormal"><strong>One of the largest progressive community based organizations in the country, Association of Community Organizations for Reform Now (ACORN) announced its founder has stepped down. Wade Rathke, who founded ACORN in 1970, left his position as the organization’s chief organizer after an embezzlement scandal that occurred eight years ago surfaced last month involving his brother and the group’s finances. ACORN’s national board asked Rathke to step down from his position about a week ago. Rathke’s brother, Dale, embezzled almost $1 million from the community group but the crime was handled internally and not reported to the police, allegedly at the behest of Wade Rathke.</strong></p>
<p class="MsoNormal"><strong>From an article on Huffingtonpost.com:</strong></p>
<p class="MsoNormal"><strong>The right-wing blogosphere is abuzz over the article, which reported that an ACORN staff-person embezzled almost $1 million from the organization’s coffers eight years ago. (The aggregate budgets of ACORN and its affiliate organizations back then totaled about $41.5 million). ACORN immediately established new internal controls to put the organization’s financial house in order. But ACORN’s founder and chief organizer, Wade Rathke, covered up the incident in order to protect the wrongdoer, his brother Dale, who at the time was the group’s chief financial officer. Even worse, he kept his brother on the payroll until June 2, although he was long before removed from having any responsibility for the group’s finances.</strong></p>
<p class="MsoNormal"><strong>Only a handful of top ACORN staff knew about the scandal, and Rathke persuaded them to keep it quiet in order, he argued, to protect the group’s reputation. The staff group obtained an enforceable restitution agreement so that the funds would be returned to ACORN. With the help of friends and family, his brother has now repaid all the stolen funds. But now that the scandal has surfaced, Wade Rathke has resigned, and his brother has been fired.</strong></p>
<p class="MsoNormal"><strong>(</strong><a href="http://www.huffingtonpost.com/john-atlas/acorn-under-the-microscop_b_112503.html"><strong>http://www.huffingtonpost.com/john-atlas/acorn-under-the-microscop_b_112503.html</strong></a><strong>)</strong></p>
<p class="MsoNormal"><strong>According to an article in the <em>New York Times,</em> New York City ACORN leader, Bertha Lewis said ACORN has received $210,000 in restitution since 2001. An unidentified donor is bailing out the Rathke family for the rest of the money.</strong></p>
<p class="MsoNormal"><strong>From the<em> New York Times:</em></strong></p>
<p class="MsoNormal"><strong>“Clearly, this was an uncomfortable, conflicting and humiliating situation as far as my family and I were concerned,” he said, “and so the real decisions on how to handle it had to be made by others.”</strong></p>
<p class="MsoNormal"><strong>The executive director of New York Acorn, Bertha Lewis, who has been named director of an interim management committee set up to run the national group’s day-to-day operations, said Dale Rathke was paid about $38,000 a year but that none of that money was used to pay back Acorn. </strong></p>
<p class="MsoNormal"><strong>Instead, she said, the Rathke family has paid Acorn $30,000 a year in restitution since 2001, or a total of $210,000.</strong></p>
<p class="MsoNormal"><strong>A donor has offered to give Acorn the rest of what the Rathkes owe, and an agreement to that effect should be finalized in coming days, Ms. Lewis said.</strong></p>
<p class="MsoNormal"><strong>ACORN is implementing fraud prevention mechanism and according to a statement by the organization’s president Maude Hurd. </strong></p>
<p class="MsoNormal"><strong>“We want to assure our many friends and supporters that ACORN’s Board has taken additional steps to ensure increased transparency and accountability. We have a very strong management team in place. Bertha Lewis, the Executive Director of New York ACORN – as a member of that team — has been named interim Director of the organization’s Management Committee, with responsibility for managing the day to day affairs of ACORN.</strong></p>
<p class="MsoNormal"><strong>We are hiring an outside accounting firm to examine our financial controls and will be instituting any necessary safeguards.”</strong></p>
<p class="MsoNormal"><strong>(</strong><a href="http://www.acorn.org/index.php?id=12439&amp;tx_ttnews%5btt_news%5d=22241&amp;tx_ttnews%5bbackPid%5d=12340&amp;cHash=dc0e2c5e3c"><strong>http://www.acorn.org/index.php?id=12439&amp;tx_ttnews[tt_news]=22241&amp;tx_ttnews[backPid]=12340&amp;cHash=dc0e2c5e3c</strong></a><strong>)</strong></p>
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<h3>3 Responses to “ACORN Leader Steps Down, Group Puts New Controls In Order”</h3>
<div id="comment-269699" class="alt comment"><strong><cite>John Brownz</cite> Says:<br />
<a href="http://www.indypendent.org/2008/07/18/acorn-leader-steps-down-group-puts-new-controls-in-order/#comment-269699"><span style="font-size:x-small;">July 19th, 2008 at 9:01 am</span></a><span style="font-size:x-small;"> </span></strong><strong>As a person of color. A former ACORN staff member, and as a revolutionary, and in light recent revelations of Wade Rathke’s coverup of the theft of 1,000,000USD I just gotta say amen. Wade doesn’t allow dissent within ACORN. </strong></p>
<p><strong>Here is what I can tell you, you gotta read Gery DelGado’s ACORN: Growing the movement. DelGado, a founding organizer pushed out by Rathke detailed almost 30 years ago that ACORN had an all white management staff. Until Wade was pushed out of Chief Organizer USA by the board this month? Now Bertha Lewis is heading up the management team to clean up the mess? </strong></p>
<p><strong>Wade pushes her under the bus and into the drivers seat as it is teetering on the edge of a cliff? I have not published my real name and I hope you can appreciate why. I am just a lowly organizer who can be easily smashed by Wade’s long arms in the Democratic party. </strong></p>
<p><strong>The kicker for me is that in light of Wade’s racism towards CLU, the embezzlement of 1,000,00 and in my opinion more importantly the horrible treatment of ACORN staff who were from the working class? He is getting promoted to Chief Organizer of ACORN International? Chief Organizer of the World? Are people in LA going to stomach that? </strong></p>
<p><strong>A couple of points. The management staff that helped Wade cover up the theft are still in place and he is Chief Organizer International. Anyone who knows non-profit work knows you can shred the books (most of the them) every 5 years. That would mean Wade and his brother Dale (who was in charge of the cash box) could have done this up top 6 times. We in ACORN know that the 1,000,000 is a drop in the bucket. Meanwhile mangement staff all over the country are switching jobs right now. All except the star chamber.</strong></p>
<p><strong>I remember once at a staff of color caucus there were maybe 150 of us in a room. Bertha Lewis asked all staff who had been there over 5 years to stand. Only two people were standing. Then she asked everyone there over two years to stand and literally like 10 stood up. They then asked everyone over a year to stand and maybe 20 stood. The other 115 stood. I remember the resistance the management staff had to us even having a staff of color caucus and remember hovering outside the door nonchalantly. We all resolved to call Wade and others out on several issues. Wade never even acknowledged our resolve. </strong></p>
<p><strong>There are good people at ACORN. Unfortunately they are overshadowed by things like office riots when people who haven’t been paid in over a month from poor communities explode. They are overshadowed by staff directives that do not allow for true community organizing. The way it is set up working class staff can’t hang with the 60 to 100 hour weeks, the low mileage stipend, the ridiculous fund raising goals set etc.. </strong></p>
<p><strong>If you have a kid? And you weren’t born from money you can forget about working for ACORN. The Democratic party and Unions are helping to feed this beast. The outsourcing to ACORN for low wage campaign workers at 7-8 bucks an hour to do VR and GOTV with no minimum standards that workers get paid the Living Wage ACORN has out fighting for? This just feeds the beast. PIRG is doing it, Move on does it and so do others. The only poeple who survive between campaigns are North East liberals from often times Ivy League or private liberal colleges that are using ACORN as a resume stuffer in their climb up the ladder to be an Exec Dir or Dem party operative. What about all those people from black, Latino and other communities of color that really could have excelled at ACORN had they been paid a living wage. </strong></p>
<p><strong>When I read the letter circulated about Community Labor Union by Wade Ratke shortly after the unrest that was a result of CLU organized actions in New Orleans by people of color. When I saw that Wade said “these people couldn’t organize a two car funeral”? HE compared them to the CIA mole Chalabi who falsely claimed to represent the Iraqi people (are we a little over the top Wade?). I couldn’t believe the white chauvinism that dripped from this hypocrite. DelGado has it right. A change has to come about in community organizing. Where people form directly affected communities control the work. It has to happen. This was the Ratke I knew, brow beating, condescending, demeaning, and yes racist. As if he deserved to talk to organizers of color (who had comparable experience) in the way that he did simply because he helped some black folks. Or becuase he had read some Alinsky. There was no excuse for the way he treated his staf.</strong></p>
<p><strong>Working for ACORN and watching some of the white folks in the field made me feel like we were putting poor communities in a skinner box to see how they would react if we gave this toy or that stimulus etc.. Or worse like some zoologist trying to get close to a lion or monkey in the jungle and acting proud if they were able to sit and eat with the animals. I am serious that is how it felt. </strong></p>
<p><strong>I hope the people of New Orleans LA take this opportunity to force ACORN to reverse the methods, tactics, and employment policies of ACORN. Save that other 115 organizers out there from souring on organizing for ever. </strong></p>
<p><strong>Also, SEIU you need to tell ACORN they have to pay a living wage or they can’t do SEIU work. Yes SEIU outsourced work to us often, if the Dems, SEIU, or any other progressive group is going to outsource any of their work to anyone. This business of not getting a contract that ensures the workers will be treated fairly has to stop. I have video I have never released of employees rioting in offices who were not paid for over a month. How embarrassing for them, for me, for the movement. </strong></p>
<p><strong>I don’t know if you will print this but judging from your site I thought it might be the right place. I am living in the aftermath of ACORN wrecking my life and many of my friends. Burned out, turned out, and broke. That isn’t the way progressives are supposed to be. </strong></p>
<p><strong>When I found out about the million? I wasn’t even one bit surprised. I have personally seen that much money thrown out the money on nothing in a week at ACORN. By the way, if you leave ACORN the standard line is “F—k them, they left”, you have to secretly leave. It is like a cult. If you do good you can’t get a reference, your supervisor will hint that you are a problem worker. I know it. It is hard to re-enter the field of organizing because you are burned out and you are white listed by ACORN. </strong></p>
<p><strong>Please post this response. Maybe edit it if you feel any of it is over the top. Our story must be told by progressives or the right wing will turn it to stone and nothing will ever change. </strong></p>
<p><strong>In light of the life ACORN organizers lead to think of Rathke and his brother living rich and happy while ACORN Live lives like this. </strong></p>
<p><strong>ACORN Organizers MUST:</strong></p>
<p><strong>Go door to door ALONE in the dark in high crime neighborhoods.</strong></p>
<p><strong>Work 10 hours a day and 11-4 on Saturday with no overtime.</strong></p>
<p><strong>Work 60 hours (sometimes more) a week for 25,000 a year. (That’s 8.68 an hour which is not a living wage anywhere in the Unitied States)</strong></p>
<p><strong>Go door to door no matter the weather conditions (that includes lightning).</strong></p>
<p><strong>Get two members a day in low income neighborhoods who have bank accounts and commit to give $10.00 a month regardless of income.</strong></p>
<p><strong>Collect cash and carry it with them until the end of their workday.</strong></p>
<p><strong>Get arrested when called upon to do so.</strong></p>
<p><strong>BAIL themselves OUT!</strong></p>
<p><strong>Shake down local businesses for money.</strong></p>
<p><strong>Not carry personal protection.</strong></p>
<p><strong>Even when sick go door to door alone no matter the neighborhood.</strong></p>
<p><strong>Work while Sick.</strong></p>
<p><strong>Work without overtime.</strong></p>
<p><strong>Not organize a union.</strong></p>
<p><strong>Manipulate members when necessary.</strong></p>
<p><strong>Not complain about sexual harrassment.</strong></p>
<p><strong>Allow themselves to be the subjects of homophobia, sexual oppression, and even racism by superiors.</strong></p>
<p><strong>Lie to funders.</strong></p>
<p><strong>Lie to members.<br />
Work with other organizers who are abusive and sexist.</strong></p>
<p><strong>Abandon chapters when the members are too poor to raise large amounts of money.</strong></p>
<p><strong>Do outsourced work for Unions at wages that are below union wages and living wages.</strong></p>
<p><strong>Wait for their paychecks for months after they resign, quit, or are fired.</strong></p>
<p><strong>Tolerate never getting reimbursed for personal expenses (mileage,cell phone,copies)</strong></p>
<p><strong>Tolerate money for community organizing being placed into accounts set aside for political action.</strong></p>
<p><strong>Allow their staff to be hired guns for whatever effort their supervisor determines important.</strong></p>
<p><strong>Thanks for the memories Wade.</strong></div>
<div id="comment-269781" class=" comment"><strong><cite>anonymous</cite> Says:<br />
<a href="http://www.indypendent.org/2008/07/18/acorn-leader-steps-down-group-puts-new-controls-in-order/#comment-269781"><span style="font-size:x-small;">July 19th, 2008 at 9:56 pm</span></a><span style="font-size:x-small;"> </span></strong><strong>I totally agree. I currently work for ACORN, and have personally dealt with condescending attitudes towards me because of my age and the color of my skin. I feel sorry for those who work in the field, risking their lives for a paycheck. The organizers are looked upon as “low-skilled” and ignorant. Unless one has worked for (survived) ACORN for at least 10 years, they are treated with absolutely no respect. This has to stop. The management skills of some the superiors of the organization are absolutely incompetent. They are placed in these positions of power, not because of merit, but because they have allowed themselves to become members of the “cult.” The work atmosphere is very uncomfortable. One would think that after numerous lawsuits for incompetence of supervisors, that this would change. WRONG. Employees are still afraid to ask questions or say the “wrong thing” because of fear of being fired. It is funny how the #1 fan of unions is actually ANTI-UNION when it comes to their employees. </strong></p>
<p><strong>The work dynamic of ACORN reminds me of a “Get Rich Quick” scheme: Organizers are trained and lied to, only to be placed into an office that is drowning in debt. Some have gotten lucky and become successful, while the remaining 98% remain hopeless, drained, and absolutely BROKE. Hopefully Bertha Lewis, the interim director, will turn this whole mess around. Community organizers and other ACORN workers deserve the workplace respect and LIVING WAGES THEY WORK SO HARD FOR OTHERS TO RECEIVE. It is a crying shame that ACORN was run with such hypocracy and disdain for the poor. </strong></p>
<p><strong>Hopefully, there are better days ahead for this organization. Although the management is questionable, there are still workers and volunteers who are dedicated to promoting TRUE SOCIAL JUSTICE in their communities. It is unfortunate that their work has been overshadowed by the ignorance of a small few. I encourage these workers to keep working and fighting for the issues they believe in. ACORN NEEDS MORE LIKE YOU TO SURVIVE. </strong></p>
<p><strong>Although the Wade Rathke have given us all a chance and opportunity to earn a living working for what we believe in, his archaic (and demeaning) way of management is no longer tolerable. Transparency is the key for success in any company. Workers AND MEMBERS do not deserve to be kept in the dark about anything dealing with any issue affecting the organization. A CHANGE IS NEEDED AND THE TIME IS NOW TO DO SO.</strong></p>
<p><strong>THANK YOU</strong></div>
<div id="comment-269796" class="alt comment"><strong><cite>mike howells</cite> Says:<br />
<a href="http://www.indypendent.org/2008/07/18/acorn-leader-steps-down-group-puts-new-controls-in-order/#comment-269796"><span style="font-size:x-small;">July 19th, 2008 at 11:54 pm</span></a><span style="font-size:x-small;"> </span></strong><strong>The failure of the left intelligentsia in the United States to seriously address the glaring and longstanding contradictions that pit the so-called guiding principles of ACORN against the actually existing internal regime of the organization is, at least to me, very troubling. Having been active in New Orleans in the struggle for justice over the last twenty-five years I’ve reached the conclusion the good arising from ACORN’s best interventions is far outweighed by the bad arising from the organization’s Michael Milliken approach to community organizing. As far as the treatment of its “organizers” go ACORN has a long history in this city of exploiting them ruthlessly. ACORN New Orleans has subjected its workers to union busting, poverty wages and witch hunts. ACORN New Orleans almost certainly used its connection with former Mayor Marc Morial to sidetrack attempts by workers at City Hall to win union recognition in the late 1990s. And ACORN avoided the struggle to reopen public housing in post-Katrina New Orleans like the plague. The list goes on and on and on.</strong></p>
<p><strong>How can the left in America expect to build a mass movement powerful enough to turn the tide against neoliberalism while turning a blind eye to even the grossest abuses of power by what is arguably the most powerful “progressive” non-profit/grass roots organization in the United States? I direct this question specifically to Noam Chomsky, Frances Fox Piven and Mike Davis since these individuals occupy both a prominent position in America’s left intelligentsia and maintain a more than cordial relationship with ACORN’s longstanding leadership.</strong></p>
<p><strong>Mike Howells<br />
C3/Hands Off Iberville<br />
New Orleans, Louisian</strong></p>
<p><strong>P.S. Isn’t it sad that activists affiliated with a supposedly progressive organization feel compelled to hide their identity when they criticize it.</strong></div>
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May 15, 2005, 4:32PM
BP leads nation in refinery fatalities
Records show big gap between company and top U.S.-based peer

By LISE OLSEN
Copyright 2005 Houston Chronicle 





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<p><span class="timestamp"><strong>May 15, 2005, 4:32PM</strong><br />
</span><strong><span class="storyheading3"><span style="font-size:x-large;">BP leads nation in refinery fatalities<br />
</span></span><span style="font-size:medium;"><span class="storydeck3">Records show big gap between company and top U.S.-based peer</span><br />
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<p class="copyright"><strong><span class="author">By LISE OLSEN<br />
</span>Copyright 2005 Houston Chronicle </strong></p>
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<p><!--  rbox ends here --><!-- end of resource box --><!-- Mille Photo Reference   Type: image   ID: a0515death3   Width: 150   Credit:    Caption:   end of Photo --><strong>BP leads the U.S. refining industry in deaths over the last decade, with 22 fatalities since 1995 — more than a quarter of those killed in refineries nationwide, a Houston Chronicle analysis shows.</strong></p>
<p><strong>The company&#8217;s total includes 15 contractors who died in the March 23 Texas City accident, as well as those who died in seven other fatal accidents, including one just last week in Washington state.</strong></p>
<p><strong>More than 10 times as many people have died in BP refineries as in those owned by Exxon Mobil Corp., considered the company&#8217;s major U.S.-based peer.</strong></p>
<p><strong>BP has paid about $20,000 in federal and state fines in connection with four of those fatal incidents, and investigations of three others remain open.</strong></p>
<p><strong>But in the weeks prior to the Texas City blast, the oil giant&#8217;s dismal record landed BP on an internal Occupational Safety &amp; Health Administration watch list of companies for being &#8220;indifferent&#8221; to its legal obligations to protect employee safety because of a fatal explosion in Texas City in September 2004 that killed two pipefitters and injured a third.</strong></p>
<p><strong>OSHA accused BP of a &#8220;willful&#8221; violation of its rules that led to the accident.</strong></p>
<p><strong>OSHA&#8217;s Enhanced Enforcement program &#8220;zeroes in on employers with the gravest violations who have failed to take their safety and health responsibilities seriously,&#8221; Jonathan Snare, acting assistant secretary of labor for Occupational Safety and Health, said in a recent speech.</strong></p>
<p><strong>BP is the only major oil company on that list, said John Miles, OSHA&#8217;s regional director.</strong></p>
<p><strong>Although the list is not made public, it is an exclusive club that includes construction contractors and industrial employers such as McWane Industries, the Alabama company with one of the nation&#8217;s highest totals of workplace fatalities.</strong></p>
<p><strong></strong></p>
<h3>Signs of trouble</h3>
<p><strong>Under the program, OSHA inspectors were to conduct follow-up inspections at BP&#8217;s Texas City refinery, and also look for potential systemic problems at BP facilities in other states. </strong> </p>
<p><strong>But before that happened, the Texas City refinery again exploded on March 23, 2005. It killed 15 contractors and injured more than 100 other people.</strong></p>
<p><strong>&#8220;We had not been back out there because we had just finished issuing the (previous citation) three weeks before,&#8221; Miles said. &#8220;But they would have been under much more scrutiny.&#8221;</strong></p>
<p><strong>The fact that Texas City has had repeated fatalities and repeated fines is a sign of potential trouble within BP, said Charles Jeffress, a former director of OSHA.</strong></p>
<p><strong>&#8220;It&#8217;s their biggest refinery and you&#8217;d think this would get some attention, so if their flagship&#8217;s not getting attention, well, shame on them,&#8221; he said.</strong></p>
<p><strong>In response to questions sent by the Chronicle, BP&#8217;s Lord John Browne said he personally deeply regretted the Texas City accident and its effect on BP&#8217;s reputation.</strong></p>
<p><strong>&#8220;BP takes responsibility for what happens at its sites. We want BP to be a safe place to work,&#8221; he said. &#8220;So as well as mourning for those we have lost, we are determined to learn from this tragedy and improve our safety record.&#8221;</strong></p>
<p><strong>Company spokesman Hugh Depland insisted that BP makes safety a priority and that there have been &#8220;significant upgrades at Texas City&#8221; in recent years.</strong></p>
<p><strong>The Texas City explosion was the seventh time a fatal accident had been reported this decade at a BP-owned facility — and the third fatal accident in Texas City.</strong></p>
<p><strong></strong></p>
<h3>Leading in fatalities</h3>
<p><strong></strong></p>
<p><strong>No other U.S. refining company reported as many deaths during the decade, according to a Chronicle analysis of 80 deaths described in newspaper reports, lawsuits, interviews with major oil companies, and government and industry statistics.</strong></p>
<p><strong>Among big oil companies, only Shell and its Houston-based refining companies came close to BP&#8217;s death toll. Shell Oil Products, predecessor Equilon Enterprises and sister company Motiva Enterprises together recorded 11 deaths — half the BP total. The last fatality was in 2001.</strong></p>
<p><strong>In that case, Motiva was prosecuted for negligent homicide in Delaware; it also paid a $10 million fine earlier this year in a related federal environment lawsuit.</strong></p>
<p><strong>Nineteen of BP&#8217;s 22 deaths came in the last 18 months, including two separate explosions in Texas City and the fall of a worker through a rotted railing in 2004 at the refinery water plant in Whiting, Ind. Earlier this month, a maintenance worker was found dead inside a tank in BP&#8217;s Cherry Point refinery in Washington, an incident under investigation as either asphyxiation or natural death, according to Whatcom County Medical Examiner Gary Goldfogel.</strong></p>
<p><strong>Naomi Brimer, whose husband, Terry, fell when a corroded railing gave way at the Indiana refinery last year, said she didn&#8217;t think BP or OSHA took safety violations seriously enough.</strong></p>
<p><strong>OSHA fined the company $1,625.</strong></p>
<p><strong>&#8220;I have a BP paper that says we will provide our employees with a safe work environment, but there wasn&#8217;t one for my husband,&#8221; Brimer said. &#8220;I don&#8217;t feel like a $1,625 fine is enough of a motivator for them.&#8221;</strong></p>
<p><strong>In Texas City, at least, BP officials might have focused so much on individual worker safety that they missed problems with overall system safety, said Glenn Erwin, a former Texas City refinery employee who monitors refinery safety nationwide for the Paper, Allied-Industrial, Chemical and Energy Workers International Union.</strong></p>
<p><strong>&#8220;They spend all their time saying, &#8216;Don&#8217;t strain your back, don&#8217;t get dirt in your eye,&#8217; &#8221; he said. Safety statistics improve because more workers are avoiding minor injuries, but lurking problems, such as the outmoded ventilator stack cited in the March blast, have been neglected.</strong></p>
<p><strong>&#8221; A good company will investigate all accidents, incidents and near misses and say: &#8216;We&#8217;ll fix what we find, and we&#8217;ll follow it to completion,&#8217; &#8221; Erwin said. &#8220;In BP&#8217;s case, they found the problem years ago — the vent stack — but they never fixed it.&#8221;</strong></p>
<p><strong>Miles, the OSHA regional administrator, called the unit that blew up in Texas City &#8220;antiquated equipment that is no longer used.&#8221;</strong></p>
<p><strong></strong></p>
<h3>Exxon Mobil shines</h3>
<p><strong>Texas City&#8217;s BP refinery, the nation&#8217;s third-largest, has reported three fatal accidents in the past decade. </strong> </p>
<p><strong>In contrast, the nation&#8217;s two largest refineries in Baytown and Baton Rouge, La., both of which are owned by Exxon Mobil Corp., have had no fatal accidents since 1995.</strong></p>
<p><strong>All of the Exxon Mobil refineries in the United States reported only two work-related deaths, both involving contractors at a Torrance, Calif., refinery.</strong></p>
<p><strong>One man was electrocuted there while installing air-conditioning equipment because of an error by an electrical contractor working for another outside company. In the other death, a contractor was asphyxiated after an air line became twisted when he went inside a storage area where liquids are stored under pressure, according to Exxon officials.</strong></p>
<p><strong>In both cases, workers for contracting companies were found to have made errors or failed to follow Exxon policies. Two of the three companies involved no longer work for Exxon Mobil, said Exxon Mobil spokesman Russ Roberts.</strong></p>
<p><strong>In an interview with the Chronicle, Exxon Mobil&#8217;s chief of global safety, Mike Henderek, said the company enforces the same safety rules in all its refineries worldwide — down to a ban on the use of cell phones in parking lots.</strong></p>
<p><strong>Contractors must agree to intensive background checks and to follow safety rules to be hired.</strong></p>
<p><strong>&#8220;We treat employees and contractors throughout our operations consistently,&#8221; he said.</strong></p>
<p><strong>In 2005, Management &amp; Excellence, a Madrid-based organization that rates companies on their ethics, compared BP to eight other large petroleum companies. It gave BP a 69 — the same score as Mexico&#8217;s Pemex in the area of safety and health. Exxon Mobil scored 92.</strong></p>
<p><strong></strong></p>
<h3>The most dangerous plants</h3>
<p><strong></strong></p>
<p><strong>Nationwide, nine of the nation&#8217;s 149 refineries have been the scene of more than half of the decade&#8217;s 80 refinery deaths, Chronicle research shows.</strong></p>
<p><strong>BP&#8217;s Texas City refinery is one of only two that had three separate fatal accidents — the explosions in 2004 and 2005 and the asphyxiation of a worker in 2001. The other refinery: Port Arthur&#8217;s Motiva facility, where three people also died in separate fatal accidents.</strong></p>
<p><strong>While state regulators in California, Washington, Delaware and Pennsylvania have issued multimillion-dollar fines in recent refinery deaths, Texas refineries have generally received low fines even after repeated accidents.</strong></p>
<p><strong>For example, when a contractor was asphyxiated by poisonous gas at Valero&#8217;s Corpus Christi refinery in November 2000, OSHA originally proposed fines of more $138,000. That was eventually reduced to $55,000, according to public records.</strong></p>
<p><strong>Valero was not found to be at fault in a more recent asphyxiation involving a contractor from another company in 2004, though OSHA officials have cited the contractor&#8217;s employer, Houston&#8217;s Cat-Spec.</strong></p>
<p><strong>San Antonio-based Valero is considered a company that strives to improve safety.</strong></p>
<p><strong>In a recent speech to a business group in San Antonio, Miles publicly compared Valero&#8217;s Texas City refinery to the one owned by BP.</strong></p>
<p><strong>Safety attitudes in the two facilities, he said, are like &#8220;daylight and darkness.&#8221;</strong></p>
<p><strong><br />
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<p><em><a href="mailto:lise.olsen@chron.com"><strong>lise.olsen@chron.com</strong></a></em></div>
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		<title>HOUSTON OPERATING ENGINEERS LOCAL 450 IS NAUSEATINGLY UNCRITICAL OF LACK OF CRANE SAFETY IN TEXAS - even though 4 of their members lie dead because of an unsafe crane</title>
		<link>http://gangbox.wordpress.com/2008/07/19/houston-operating-engineers-local-450-is-nauseatingly-uncritical-of-lack-of-crane-safety-in-texas-even-though-4-of-their-members-lie-dead-because-of-an-unsafe-crane/</link>
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		<pubDate>Sat, 19 Jul 2008 16:03:22 +0000</pubDate>
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July 18, 2008, 5:53PM
Officials in Houston let feds handle crane inspections

By DANE SCHILLER
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Massive construction cranes with mighty arms that hoist Houston&#8217;s skyline are not regulated by the city but are subject to random checks by the federal government, as well as obligatory self [...]]]></description>
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<span class="timestamp"><strong>July 18, 2008, 5:53PM</strong><br />
</span><span class="storyheading3"><span style="font-size:large;">Officials in Houston let feds handle crane inspections<br />
</span></span></p>
<p class="copyright"><strong><span class="author">By DANE SCHILLER<br />
</span>Copyright 2008 Houston Chronicle </strong></p>
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<p><!--  rbox ends here --><strong>Massive construction cranes with mighty arms that hoist Houston&#8217;s skyline are not regulated by the city but are subject to random checks by the federal government, as well as obligatory self inspections.</strong></p>
<p><strong>The cranes, which are easily 30 or 40 stories high and lift 1,200 tons, captured the public imagination again Friday when in New York, for the second time in three months, a tower crane collapsed.</strong></p>
<p><strong>In Houston, where there have been no recent major incidents, officials have kept an eye on events in New York but have no plans to get in the crane inspection business.</strong></p>
<p><strong>City inspectors check the concrete platforms the cranes sit on, but the structures themselves are the purvey of the Occupational Safety and Health Administration, said Frank Michel, spokesman for Mayor Bill White.</strong></p>
<p><strong>The cranes, also known as hammerheads, could be inspected by the federal government a few times a year or go a year or more without a review, said Elizabeth Todd, a regional spokeswoman for the U.S. Department of Labor, which includes OSHA.</strong></p>
<p><strong>&#8220;There is no routine inspection plan, like a monthly or an annual,&#8221; she said. &#8220;They randomly go by work sites and if they see a crane, they inspect a crane.&#8221;</strong></p>
<p><strong>Inspections and citations are recorded in a national database that can be reviewed company-by-company, but there were no overall figures for Houston crane inspections readily available Friday.</strong></p>
<p><strong>At the Houston chapter of the International Union of Operating Engineers, Local 450, which includes tower-crane operators, discussion Friday focused on the New York accident.</strong></p>
<p><strong>&#8220;We&#8217;ve been fortunate nothing like that has happened in Houston,&#8221; said Waris Mustafa, a spokesman for the union.</strong></p>
<p><strong>&#8220;People think: &#8216;Operating a crane, what is the big deal?&#8217; &#8221; he said. &#8220;But it is one of the more dangerous jobs. You are so many stories high, you are in a little, bitty cabin and can see the world from it.&#8221;</strong></p>
<p><strong>The union is satisfied with inspection and safety procedures in Houston, said Mustafa, who estimated there are as many as 40 tower cranes on the job within the city.</strong></p>
<p><em><a href="mailto:dane.schiller@chron.com"><strong>dane.schiller@chron.com</strong></a><strong> </strong></em></div>
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		<title>DEATH AT LYONDELLBASELL more on the lethal crane failure at a Houston oil refinery</title>
		<link>http://gangbox.wordpress.com/2008/07/19/death-at-lyondellbasell-more-on-the-lethal-crane-failure-at-a-houston-oil-refinery/</link>
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		<pubDate>Sat, 19 Jul 2008 15:58:26 +0000</pubDate>
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Micheal Gabriel, 22, of Spring, said the impact of the crane hitting the ground was so strong that it lifted him off the ground. &#8220;It was very loud, very loud,&#8221; Gabriel said as he was leaving Memorial Hermann hospital this evening. He said he did not see the crane [...]]]></description>
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<div id="captiontemplate"><strong>Micheal Gabriel, 22, of Spring, said the impact of the crane hitting the ground was so strong that it lifted him off the ground. &#8220;It was very loud, very loud,&#8221; Gabriel said as he was leaving Memorial Hermann hospital this evening. He said he did not see the crane fall. &#8220;I was in shock, I was crying. It was bad.&#8221;</strong></div>
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<span class="timestamp"><strong>July 19, 2008, 10:31AM<br />
</strong></span><strong><span style="font-size:large;"><span class="storyheading3">Engineers and government look for possible cause<br />
</span><span class="storydeck3">Accident at LyondellBasell kills 4 workers</span><br />
</span></strong></p>
<p class="copyright"><strong><span class="author">By DANE SCHILLER, LINDSAY WISE and ROSANNA RUIZ<br />
</span>Copyright 2008 Houston Chronicle </strong></p>
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<div class="columnbox IEfix"><span class="icon3"><a href="http://www.chron.com/disp/story.mpl/metropolitan/5896373.html"><strong>Few regulations on cranes, but that could change </strong></a></span></div>
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<div class="columnbox IEfix"><span class="icon3"><a href="http://www.chron.com/disp/story.mpl/side2/5810465.html"><strong>Houston officials let feds handle crane inspections </strong></a></span></div>
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<h3>CONSTRUCTION DEATHS AND INJURIES</h3>
<p><strong>Crane incidents around the United States this year: </strong><strong>• March 15: Six construction workers and a woman in New York for St. Patrick&#8217;s Day were killed when the crane broke away from a Manhattan apartment tower under construction and toppled like a tree onto buildings as far as a block away. </strong></p>
<p><strong>• May 20: A crane replacing a bridge on an interstate highway topples onto railroad tracks in Adair, Iowa, killing the operator. </strong></p>
<p><strong>• May 23: An 800-ton crane collapses near a power plant construction site in Iatan, Mo. One worker is killed and three others injured. </strong></p>
<p><strong>• May 30: A 200-foot crane building a condo project in Manhattan smashes into another apartment building and to the street, killing the operator and another construction worker. </strong></p>
<p><strong>• May 31: A crane at the site of a Las Vegas resort fatally crushes a construction worker caught between the crane track and its counterweight system. </strong></p>
<p><strong>• May 31: Three ironworkers are hurt when a large crane collapses as it sets a section of tubing above railroad tracks at a coal mine in Wright, Wyo. </strong></p>
<p><strong>• June 4: A crane collapses during a storm, briefly trapping two steel mill workers in Dundalk, Md. </strong></p>
<p><strong>• June 11: A Dallas construction worker is killed when a hook snaps off a crane. </strong></p>
<p><strong>• June 12: Three workers at the new Dallas Cowboys stadium in Arlington are hurt when a cable connector failed. </strong></p>
<p><strong>Source: The Associated Press </strong></div>
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<p><!--  rbox ends here --><strong>Federal safety authorities this morning launched their official investigation into a massive crane collapse at a Houston refinery that killed four workers and injured seven others.</strong></p>
<p><strong>The Occupational Safety and Health Administration arrived at the refinery Thursday for a preliminary review, but the formal work began at 9 a.m. Saturday, said David Roznowski, a spokesman for LyondellBasell refinery.</strong></p>
<p><strong>&#8220;This is a very tragic event, very unfortunate. It is certainly something no one wants to see happen,&#8221; Roznowski said of the Friday accident. &#8220;It does impact the entire refinery team. It is something that is going to take some time to recover from.&#8221;</strong></p>
<p><strong>The four dead men were identified this morning as Marion &#8220;Scooter&#8221; Hubert Odom III, 41, of Highlands; John D. Henry, 33, of Dayton; Daniel &#8220;DJ&#8221; Lee Johnson, 30, of Dayton; and Rocky Dale Strength, 30, of Santa Fe.</strong></p>
<p><strong>Their families could not be immediately reached for comment.</strong></p>
<p><strong>The 700-acre refinery, which produces gasoline and gasoline-related products continues production, he said, but a large-scale maintenance project that included one of the world&#8217;s largest cranes has been temporarily suspended.</strong></p>
<p><strong>With an investigation underway, Roznowski said the facility would remain closed to the media.</strong></p>
<p><strong>Grief counselors are on hand, and a series of meetings will be held with the approximately 3,000 employees and contractors to hear any of their concerns and discuss safety procedures, he said.</strong></p>
<p><strong>&#8220;It is an ongoing investigation. I&#8217;d be remiss to speculate what caused it,&#8221; he said. &#8220;OSHA is going to be in there conducting the investigation with us.&#8221;</strong></p>
<p><strong>Experts will sift through the damage to try to re-create the final seconds before one of the world&#8217;s largest cranes toppled, taking a smaller crane with it.</strong></p>
<p><strong>Margaret Landry, a spokeswoman for Deep South Crane &amp; Rigging, which owns the large crane adn employees those whoe were killed, said the company was shaken by the accident.</strong></p>
<p><strong>&#8220;It is a family-owned business, and we are grieving right now with our employees and families going through this tragedy,&#8221; she said. &#8220;We&#8217;re just getting through it.&#8221;</strong></p>
<p><strong>The company said in a prepared statement: &#8220;This is a terrible loss to the Deep South Crane and Rigging family. We are committed to doing the right thing to make sure this type of tragedy does not happen again. Please keep our co-workers and their families in your prayers.&#8221;</strong></p>
<p><strong>There has been little public speculation about what caused the accident. The formal investigation could take months.</strong></p>
<p><strong>In the immediate wake of the crash, there was plenty of emotion.</strong></p>
<p><strong>&#8220;It is difficult to see this,&#8221; said a tense Mike Loesch, who had rushed to the refinery to check on co-workers. &#8220;These are guys who knew what they were doing, and nobody knows what happened.&#8221;</strong></p>
<p><strong>Four injured workers were taken to hospitals for treatment. Three others received care at the refinery.</strong></p>
<p><strong>Late Friday, two people remained hospitalized with nonlife-threatening injuries, officials said. It was unclear if they had been released this morning.</strong></p>
<p><strong>The dead and injured were all contract employees at the 12000 Lawndale facility, near Allen Genoa.</strong></p>
<p><strong>In the immediate aftermath of the accident Friday, friends and loved ones of the victims had few answers.</strong></p>
<p><strong>The larger crane apparently crashed to the ground about 1:20 p.m.</strong></p>
<p><strong>As it fell, the crane hit a smaller one nearby and landed on a tent set up for workers to cool off and get refreshments. The crane was not scheduled for any lifts Friday. Security cameras in the area may help investigators reconstruct what happened, he said.</strong></p>
<p><strong>But even before there are answers, at least one lawsuit relating to the accident has been filed.</strong></p>
<p><strong>Houston attorney Jim S. Hart filed suit in a Harris County state district court on behalf of Grant Pasek, of Santa Fe, who was injured when he leaped from an elevated bucket when he saw the crane start to fall.</strong></p>
<p><strong>The lawsuit seeks a temporary restraining order to preserve the scene and any evidence relating to the accident, Hart said. It also seeks access to the site by the attorney and his experts to inspect the evidence.</strong></p>
<p><strong>Pasek, a lineman, was working in the area to bring electricity to the site and was in a bucket about 45 feet in the air when he saw the crane start to fall, his attorney said.</strong></p>
<p><strong>One of the survivors, Micheal Gabriel, 22, of Spring, said the impact was so strong it lifted him off the ground.</strong></p>
<p><strong>&#8220;It was very loud, very loud,&#8221; Gabriel said after being treated at Memorial Hermann-Texas Medical Center. He said he did not see the crane fall. &#8220;I was in shock, I was crying.&#8221;</strong></p>
<p><strong>Gabriel added he is grateful to be alive.</strong></p>
<p><strong>&#8220;I just have to thank God that&#8217;s it,&#8221;he said.</strong></p>
<p><strong></strong></p>
<h3>OSHA team assigned</h3>
<p><strong>Greg Smith, vice president for the Houston-based American Society of Safety Engineers, said it is too soon to know if something was done wrong. </strong> </p>
<p><strong>&#8220;They (investigators) will come out and look at the way the debris is scattered, look at the ways the cranes are lying, looking at the connection points — everything will be examined in detail,&#8221; Smith said.</strong></p>
<p><strong>Diana Peterson, a spokeswoman for OSHA, said an investigative team has up to six months to report its findings.</strong></p>
<p><strong>LyondellBasell officials said in addition to contractors, the Houston refinery has 1,600 employees, and is one of the largest in the United States that processes high-sulfur crude oil.</strong></p>
<p><strong>The plant has a daily capacity of 268,000 barrels, transforming crude oil into gasoline and ultralow-sulfur diesel, as well as jet fuel, aeromatics, lubricants and petroleum coke, according to the company.</strong></p>
<p><strong>The refinery has been preparing for a major turnaround. That involves shutting down equipment for maintenance or repair, then bringing them back into operation. The cranes were needed for lifting for maintenance.</strong></p>
<p><strong>Among the people who hurried to the plant after the accident was Miguel Garcia, who said he was driving to Galveston when he heard about the accident on the radio. He turned the car around to check on his son, Jesus, a 21-year-old contract worker at the plant.</strong></p>
<p><strong>&#8220;I keep calling his cell phone, but he doesn&#8217;t answer,&#8221; the father said as he paced outside the plant entrance.</strong></p>
<p><strong>About an hour later, he spoke with an official who confirmed that his son was unhurt.</strong></p>
<p><strong>&#8220;I feel better. I feel good,&#8221; Garcia said. &#8220;I just feel sorry for the people who got hurt and the people who got killed, and their families.&#8221;</strong></p>
<p><strong>Deep South Crane &amp; Rigging, which owns the cranes, said it would cooperate with investigators.</strong></p>
<p><strong>&#8220;We are taking every measure to ensure that the injured employees receive the best possible medical attention,&#8221; the company said in a statement.</strong></p>
<p><strong>It continued: &#8220;At this point, we have few details on what actually happened and we are trying to gather information. We will use this information to conduct an investigation to determine the root cause, correct it and ensure that this type of tragedy does not occur again.&#8221;</strong></p>
<p><strong>The crane has two arms. It takes more than a month to set up the crane, which is one of the few mobile cranes able to lift a derrick, officials said.</strong></p>
<p><strong>Ronald Witt, a spokesman for the International Union of Operating Engineers, Local 450, said from what he&#8217;s seen of the accident. it looks like there was a problem with the giant crane&#8217;s counterweights, rather than a mechanical issue.</strong></p>
<p><strong>&#8220;It is not like playing checkers. It is like playing chess, you have to think way ahead,&#8221; Witt said of the challenges of working with tons of steel.</strong></p>
<p><em><strong>Chronicle reporters Lise Olsen, Terri Langford, Peggy O&#8217;Hare, Chase Davis and Jennifer Leahy contributed to this report.</strong></em></p>
<p><em><a href="mailto:lindsay.wise@chron.com"><strong>lindsay.wise@chron.com</strong></a><strong> </strong></em></p>
<p><em><a href="mailto:dane.schiller@chron.com"><strong>dane.schiller@chron.com</strong></a><strong> </strong></em></p>
<p><em><a href="mailto:rosanna.ruiz@chron.com"><strong>rosanna.ruiz@chron.com</strong></a><strong> </strong></em></p>
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		<title>&#8220;EQUALITY IS NOT A GOOD THING&#8221; Barney Frank and the death of Democratic Party liberalism</title>
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		<pubDate>Sat, 19 Jul 2008 15:30:12 +0000</pubDate>
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from the WORLD SOCIALIST WEB SITE:
 

“Equality is not good”
Barney Frank and the putrefaction of American liberalism
By Bill Van Auken
18 July 2008
Use this version to print &#124; Send this link by email &#124; Email the author
Chairing a hearing of the House Financial Services Committee Wednesday, Representative Barney Frank (Democrat of Massachusetts) let slip one of the [...]]]></description>
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<div><strong>from the WORLD SOCIALIST WEB SITE:</strong></div>
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<h4>“Equality is not good”</h4>
<h2>Barney Frank and the putrefaction of American liberalism</h2>
<h5>By Bill Van Auken<br />
18 July 2008</h5>
<p><a href="http://www.wsws.org/articles/2008/jul2008/fran-j18_prn.shtml"><strong><span style="font-family:Arial;">Use this version to print</span></strong></a><strong><span style="font-family:Arial;"> | <a href="http://www.wsws.org/cgi-bin/birdcast.cgi">Send this link by email</a> | <a href="https://secure.wsws.org/phpform/use/comments/form1.html">Email the author</a></span></strong></p>
<p><strong>Chairing a hearing of the House Financial Services Committee Wednesday, Representative Barney Frank (Democrat of Massachusetts) let slip one of the most revealing remarks made in response to Federal Reserve Chairman Ben Bernanke’s testimony on America’s deepening economic crisis.</strong></p>
<p><strong>“No one expects equality, equality is not a good thing, you can’t have an economy that works if everything’s equal,” said Frank. “But too much inequality also has negative consequences.”</strong></p>
<p><strong>Frank made the comment after noting that, given a continuation of the present rate of layoffs and downsizing, the US economy will lose a million jobs this year. He also drew attention to a section in the Federal Reserve Board’s own monetary policy report which noted that real wages are falling significantly as a result of spiraling prices, while labor productivity is rising.</strong></p>
<p><strong>In other words, the income of working people is being eroded even as they face intensified exploitation.</strong></p>
<p><strong>The latest Labor Department figures show that real wages fell by 0.9 percent in June alone, a rate that would slash workers’ incomes by nearly 11 percent over the course of a year.</strong></p>
<p><strong>Frank, who has chaired the Financial Services panel since the Democrats took the leadership of the House in 2007 and was previously its ranking Democratic member, was speaking not as an outraged advocate for workers, but rather as an advisor to the bankers and corporate CEOs whose interests he serves.</strong></p>
<p><strong>The message was clear: inequality is good because it is the source of great wealth for the ruling class, but social polarization beyond a certain level threatens the entire system with social eruptions.</strong></p>
<p><strong>The outlook of the fourteen-term Massachusetts lawmaker, often referred to as one of the most liberal members of the US House of Representatives, reflects the putrefaction of American liberalism.</strong></p>
<p><strong>The point that Frank was making in his remarks was not new. He has repeated the same theme again and again over the last several years, making it something of a political mantra in addressing audiences of financiers, businessmen and corporate executives.</strong></p>
<p><strong>In a speech at the National Press Club shortly after taking the chairmanship of the key financial oversight committee, Frank declared: “Inequality is not necessarily a bad thing. It’s necessary in the capitalist system, and I’m a capitalist. But we do not have to have a government that reinforces it.”</strong></p>
<p><strong>Talking to an audience of Boston business leaders a few months earlier, he sounded the same theme: “I’m a capitalist, and that means I’m for inequality. But you reach a point where you get more inequality than is healthy.”</strong></p>
<p><strong>And in an opinion column drafted for <em>BusinessWeek</em> magazine in February 2006 he wrote: “Inequality is not a bad thing in a free market economy; indeed, it’s essential if we’re to benefit from the incentives and efficiencies that make the market so effective a producer of wealth.”</strong></p>
<p><strong>If Barney Frank is a capitalist, as he proudly proclaims, he has become one thanks to his political career in the Democratic Party. His most recent financial disclosure forms indicate a net worth in financial assets of well over $1 million, with an extensive portfolio of investments.</strong></p>
<p><strong>His relations with Wall Street’s largest banks and finance houses have stood him in good stead. According to the Center for Responsive Politics, he pulled in $1.8 million in campaign contributions in the run-up to the 2006 election. He is well on his way to substantially topping that figure in the present campaign season, recording $1.2 million in contributions by the end of March. Securities and Investment firms were responsible for $164,600 of that money, real estate interests for $156,401, law firms for $130,768, insurance companies for $117,674 and commercial banks for $74,350.</strong></p>
<p><strong>In return, he has dutifully defended these massive financial interests, acting as a key architect of the government bailout of Bear Stearns earlier this year and now the plan to prop up the mortgage finance giants Fannie Mae and Freddie Mac with unlimited cash from the federal Treasury.</strong></p>
<p><strong>But even given these financial-political relations, Frank’s blunt defense of inequality is a significant testimony to the state of the Democratic Party and American liberalism.</strong></p>
<p><strong>“Equality is not a good thing.” Such a statement stands in diametrical opposition to a long and central tradition in American political thought that—however much it was violated in practice by chattel slavery and the workings of the capitalist system—held equality to indeed be a “good thing.”</strong></p>
<p><strong>For Thomas Jefferson and the other founders of the American republic, inspired by the revolutionary spirit of the Enlightenment, the equality of man was not just a “good thing” but, as Jefferson wrote in the Declaration of Independence, a self-evident truth.</strong></p>
<p><strong>Abraham Lincoln went further, taking equality not only as a self-evident truth, but as a proposition that had to be proven in bloody struggle, a transcendental goal to be realized by American society in a “new birth of freedom.”</strong></p>
<p><strong>In the depths of a Great Depression, Franklin Delano Roosevelt delivered his “rendezvous with destiny” speech to the 1936 Democratic convention, again invoking these profound political traditions, while flaying the “economic royalists” of Wall Street as the reincarnation of King George III.</strong></p>
<p><strong>“For too many of us the political equality we once had won was meaningless in the face of economic inequality,” Roosevelt said. “A small group had concentrated into their own hands an almost complete control over other people’s property, other people’s money, other people’s labor—other people’s lives. For too many of us life was no longer free; liberty no longer real; men could no longer follow the pursuit of happiness.”</strong></p>
<p><strong>Roosevelt spoke as a highly class-conscious representative of the American capitalist class, who sought to save the system from the threat of social revolution by implementing social reforms and imposing certain restrictions on the predations of his own class. That was in a period when, even in the midst of the greatest collapse of capitalism to that point in history, American capitalism retained immense financial reserves and benefited from the most advanced and powerful industrial base in the world. The decayed state of American capitalism today, with its massive deficits and shrunken industry, is a far cry from that of Roosevelt’s day. This immense decline in the objective position of American capitalism is the most important factor in the repudiation by American liberalism of any reform agenda.</strong></p>
<p><strong>The inequality outlined by Roosevelt more than 70 years ago has today become even more extreme. It has indeed proven a “good thing” for those at top of the economic ladder, who have amassed obscene fortunes through a vast transfer of wealth from American working people, the overwhelming majority of society.</strong></p>
<p><strong>The share of the national income monopolized by the top 1 percent is now higher than at any time since 1928, not only before Roosevelt, but before Herbert Hoover. Since the end of the 1970s, the top 1 percent has seen its income rise on average by nearly 240 percent, while the majority of the population has seen its real income stagnate or decline.</strong></p>
<p><strong>Yet neither Frank nor any other leading Democrat is sounding an alarm against today’s “economic royalists” or “malefactors of great wealth.” Instead, they present themselves unabashedly as their representatives and defenders.</strong></p>
<p><strong>Frank’s embrace of inequality as a positive good under conditions in which millions are being thrown out of foreclosed homes, seeing their incomes ravaged by soaring gas and food prices and facing the threat of employment is the end product of a protracted and deep decay of American liberalism.</strong></p>
<p><strong>The immense growth of social inequality is at the root of this process. It is to the top 1 percent that Frank and the other leading Democrats are politically oriented. They speak for the privileged social layers—of which they are a part—which have seen their personal wealth balloon at the expense of society as a whole.</strong></p>
<p><strong>The ideal of equality—openly repudiated by the Democrats—is today inseparable from the fight of working people to defend their living standards and basic rights against the attacks being carried out by the corporations and the government. This struggle can be advanced only through an irreparable break from the Democratic Party and the building of a new independent political movement of the working class fighting for the socialist reorganization of society.</strong></p>
<p><strong>See Also:<br />
</strong><a href="http://www.wsws.org/articles/2008/jul2008/econ-j17.shtml"><strong>US: Amid surging prices, Fed raises specter of renewed class struggle</strong></a><br />
<strong>[17 July 2008]<br />
</strong><a href="http://www.wsws.org/articles/2008/apr2008/dems-a26.shtml"><strong>The Pennsylvania primary and the crisis of the Democratic Party</strong></a><br />
<strong>[26 April 2008]<br />
</strong><a href="http://www.wsws.org/articles/2008/apr2008/clin-a08.shtml"><strong>The Clintons cash in: Wealth and American politics</strong></a><br />
<strong>[8 April 2008]</strong></p>
<p><strong></strong></p>
<p><strong></strong></p>
<p><a href="http://www.wsws.org/articles/2008/jul2008/fran-j18.shtml#top"><span><strong>Top of page</strong></span></a><strong></strong></p>
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		<title>BUZZ HARGROVE&#8217;S DYNASTY - retiring Canadian Auto Workers chief hand picks his successor</title>
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		<pubDate>Sat, 19 Jul 2008 15:22:31 +0000</pubDate>
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		<description><![CDATA[from MONTHLY REVIEW MAGAZINE&#8217;S MRZINE:
Democracy:
Too Important to Leave to the Members?
by Sam Gindin 
Earlier this summer, it looked like the Canadian Auto Workers (CAW) union was about to experience something truly unusual in its history – &#8212; a contested campaign for national president.  The last contest for the union&#8217;s top Canadian officer was in [...]]]></description>
			<content:encoded><![CDATA[<div class='snap_preview'><br /><p><strong>from MONTHLY REVIEW MAGAZINE&#8217;S MRZINE:</p>
<p>Democracy:<br />
Too Important to Leave to the Members?<br />
by Sam Gindin </p>
<p>Earlier this summer, it looked like the Canadian Auto Workers (CAW) union was about to experience something truly unusual in its history – &#8212; a contested campaign for national president.  The last contest for the union&#8217;s top Canadian officer was in 1960, a quarter of a century before the formation of the CAW and a year when Tommy Douglas was Premier of Saskatchewan and John F Kennedy was running for President of the United States. </p>
<p>The possibility of a break with tradition and an actual election did not come out of nowhere.  During relatively good times, the absence of contested elections was commented on, but passively accepted.  Now, with crises piling up in one sector in manufacturing after another in Canada (the state of the auto industry being the most publicized), a good number of CAW activists were increasingly frustrated and restless.  It was in that context that rumors of an election began to circulate and the contesting candidates surfaced.</p>
<p>This was an opportunity that the union leadership should have jumped at.  After years of growing demoralization inside the union, an election could have been a catalyst for union renewal, opening a space for membership participation in the crucial questions facing the union, and developing the candidates&#8217; own thinking.  How could the union&#8217;s dismal record in organizing new members be reversed?  What changes in union priorities would an organizational drive imply and what commitments from the locals did it demand?  The union&#8217;s formal policy against concessions was contradicted by the reality on the ground.  What was needed to return the union to its slogan that &#8216;fighting back makes a difference&#8217;?  International solidarity between unions is often discussed, but what could it concretely mean?  The environment had emerged as a central issue that would transform everything about how we produce and live.  Where did the candidates stand on the insecurities and opportunities this implies?  The regional and sectoral composition of the CAW&#8217;s membership base is today radically different than when the CAW was formed, but the union&#8217;s structures have remained the same.  What do the candidates have to say about how to take advantage of this potential, and what do the locals themselves want to put on the agenda in terms of structural change? </p>
<p>It was an opportunity as well to raise the issue of the CAW&#8217;s relative separation from the rest of the labour movement (notably its continued absence from the Ontario Federation of Labour), at the same time that the CAW drifted closer to the corporate and political elite (symbolized by the joint dinner with Canada&#8217;s business and political elites in the middle of a CAW Bargaining Convention).  Who are the union&#8217;s friends and who are its enemies?  Where do the candidates stand on union support for the Liberals?  Can the union really expect to address the crisis in manufacturing jobs, the restructuring of private services, the commercialization of social services, or reverse free trade without rebuilding ties to the rest of the Canadian working class and mobilizing working class communities beyond its own? </p>
<p>A contested election might have reminded people why unions remain so important and brought more members into the active life of the union.  That opportunity, in terms of the contest for the CAW presidency, was thrown aside.  The union leadership seemed more concerned with ensuring executive control over the presidential succession and especially determined not to open debates it could not control and risk commitments that might hold future leaders accountable.  In a phrase that may come to define his legacy, Hargrove expressed his impatience with an open electoral contest for the leadership of one of Canada&#8217;s largest and most storied working class organizations in these terms: &#8220;We&#8217;re not a political party, we&#8217;re a union&#8221; (Globe and Mail, July 7, 2008). </p>
<p>Managing the Transition</p>
<p>Hargrove quickly moved to prevent such an open contest by calling a meeting of the National Executive Board (NEB) and of the appointed staff for July 8th to &#8220;put this thing to bed&#8221;.  The NEB&#8217;s endorsement of Hargrove&#8217;s choices could be taken for granted.  Though formally elected by union delegates, the NEB had never, a few secondary issues aside, demonstrated any collective autonomy from the CAW President.  Nor did anyone expect this might change now.</p>
<p>The staff, however, was another matter.  The majority of the CAW staff are experienced and skilled former elected local officials, with a history as activists and leaders in their own right.  Though they cannot vote in any official union body, they have traditionally had the right freely to cast votes within the union&#8217;s &#8216;administration caucus&#8217;, a political body that ensures that all who attend it will support the administration at union convention, but which meets before conventions to decide what resolutions and candidates for office the administration will endorse.* The caucus system came out of the early right-left splits in the union in the 1940s.  Such an organized opposition within the CAW had disappeared, but the administration caucus has continued as a form of control over what takes place at union conventions.  Even as the CAW broke away from the UAW and its culture, it retained the essentials of the UAW&#8217;s leadership-controlled caucus system.</p>
<p>Mitic&#8217;s intention was to run within the caucus, which would have allowed staff members to vote for him there.  He was thus intending to use one aspect of caucus tradition to challenge another, i.e. to open the possibility of a free caucus choice among the candidates (who all came from previous leadership team, even if Hargrove had pre-selected his favourites).  But Hargrove brought the staff together not for a collective discussion among people with a wealth of experience as local leaders and activists, but as his employees.  It was not their opinions he was interested in, but getting the staff in line well before they joined local activists possibly to challenge his candidate at the pre-Convention caucus meeting. </p>
<p>Because a rebellion was brewing, with the staff reflecting the wider dissension in the union, Hargrove was pushed into a further tactical step.  On the morning of the scheduled meetings, the CAW President suddenly announced that he would retire by mid-September and a convention to choose his successor would be held before then.  Virtually no union meetings are scheduled during the summer.  Since workers would be at home or on vacation for much of July and August, any campaigning was essentially foreclosed. </p>
<p>Hargrove argued that the hurried timing was to avoid the &#8216;divisiveness&#8217; of a ten-month campaign.  Leaving aside that democracy functions because of differences, no explanation was given for why a shorter but more sensible period (such as one running to late-October) was also excluded.  To some it looked as if the timing was not so much about union solidarity as about guaranteeing the victory of his candidate (the longer Hargrove stayed, the more of a liability he seemed to be to Lewenza&#8217;s candidacy), and limiting any debate over the union&#8217;s direction.  Democracy was apparently too important to leave to the members.</p>
<p>The morning of the NEB meeting, Hargrove met with key board members from Quebec whose position was critical and who had pledged their support to Mitic.  Coming out of that meeting they surprisingly switched their support to Lewenza.  That loss was amplified because it potentially weakened the resolve of others both at the Board and on staff.  Moreover, Hargrove presented Mitic with a catch-22: if he participated in the Board decision, he would have to abide by their vote (which was a foregone conclusion); if he refused, he would be understood to have left the administration caucus.  Since Mitic was committed to running within the caucus and because he saw his support unraveling, he stepped down and joined NEB member Earle McCurdy from Newfoundland in calling for a review of &#8216;the process&#8217;.</p>
<p>Hargrove had won.  At the staff meeting that followed, Hargrove made it clear that the staff, who could not vote at the convention itself, had a vote in the administration caucus &#8212; but only in line with what the NEB (i.e. the President) recommended.  This meant not only that the approximately 150 staff had no say in the choice of CAW President, but that local delegates who participated in the caucus effectively faced an out-going President with multiple votes in his pocket.  Though he had laid down the law that the staff had no right to vote independently, and though there was, in any case, no longer any alternative candidate for President, Hargrove insisted on a show of hands to endorse the NEB&#8217;s recommendation.  The point of the vote was, of course, purely formal and symbolic: it merely allowed it to be claimed that a consensus had been reached, so that those who didn&#8217;t know what was really going on might think all this indicated the depth of the union&#8217;s democratic process.</p>
<p>Carol Phillips remains in the race for Secretary-Treasurer in August 2009, having declared that she will run outside the administration caucus.  Phillips is a talented, progressive and respected candidate, and though the demographic changes in the CAW might suggest that a woman should be supported for one of the top two positions, Phillips is running on her merits and not as an &#8216;affirmative action&#8217; candidate.  The CAW structures guarantee that this will be an uphill battle.  The new President will have some ten months to establish his authority and consolidate support for his caucus running mate, Kennedy.  The staff will only be allowed to work for Kennedy.  And though the Convention vote will be by secret ballot, a good many delegates will be hesitant to leave the administration caucus even if they want to support Phillips, and having participated in the caucus they are likely to abide by caucus discipline.  A critical test for her candidacy &#8212; one posed by the early defeat of Mitic &#8212; will therefore be whether any locals rebel against this. </p>
<p>Union Democracy</p>
<p>The question of union democracy involves more than voting for leaders: it is about empowering the members to collectively effect change.  It&#8217;s therefore about both process and the kind of union that is being built.  That is why the depth of union democracy and the degree of struggle often seem so closely linked. </p>
<p>When unions are fighting the status quo, a degree of democracy is virtually inevitable because it is essential.  At those moments, workers receive information and analysis that counters what they get elsewhere.  Educationals come alive.  Workers develop their ability to articulate their cause and strategize.  The capacity to organize in the workplace and community is deepened.  The confidence that emerges from active participation spills over into other dimensions of workers&#8217; lives and sometimes raises larger questions about democracy in society.  These can be powerful and revealing: if we&#8217;re a democracy, why do corporations and financiers have so much power over our lives?  </p>
<p>In contrast, when unions are only adapting to the status quo, democracy suffers because, from the leadership&#8217;s perspective, democracy may represent a problem rather than an asset.  If the leadership is arguing for concessions, it is repeating the arguments of the corporations, not giving workers an independent perspective.  If bargaining is reduced to making deals with companies, the members become a nuisance.  Educationals on past struggles become counterproductive.  Collective Agreements are rushed through without a real chance for consideration.  Workers who vote against concessions are told to vote again &#8216;until they get it right&#8217;.  Actions that go against union principles cannot be justified, so they must simply be rammed through without reasoned debate.  In this context, prospects of an election raising questions about how the union functions, as well as leadership accountability, are seen as a threat, not an opportunity. </p>
<p>As convoluted as the events around the CAW &#8216;almost-election&#8217; were, it did highlight what had long been true but shrugged off: there is something broken in the union&#8217;s internal democratic process.  It is telling that, a day after the NEB and staff meetings &#8212; before the administration caucus had met, never mind before the Convention itself &#8212; Ken Lewenza was already referred to as the new CAW President, thus foregoing even the formality of union democracy. </p>
<p>The much-needed debate inside the CAW should not be limited to how to fix the administration caucus.  The problems go much deeper and involve issues central to all unions.  What unions face today is rooted in the way North American unions organized themselves in much better economic times for workers than the present.  Not having understood that period to be an interlude, a break before the pressures of capitalism renewed attacks on the working class, unions did not prepare for what lay ahead.  Workers are now suffering for that lack of understanding and preparation.  While corporations have become more radical and aggressive, the labour movement has become more cautious and defensive.  The most important question for the labour movement is to come to grips with those past failures and the need to become as radical as the other side.  If we don&#8217;t develop a vision that fundamentally questions the anti-social logic of capitalism, and build the collective capacities that can challenge corporate power, things won&#8217;t just stay the same: they are likely get worse. </p>
<p>The real issue of Lewenza&#8217;s leadership is not, as some commentators have emphasized, his relative lack of experience outside auto and southern Ontario.  This may be a concern, but Lewenza is bright and energetic enough to learn how to move from being a local auto president to leading the largest private sector union in the country.  Rather, the issue is whether Lewenza, as the candidate for continuity in the CAW leadership, will address the accumulated set of problems and challenges that the union confronts.  To do so, the  union will need to make adjustments in its current strategies and structures, and address internal democracy to mobilize the input of its staff, elected local leaders, and activists.</p>
<p>It would be a tragedy for all of Canadian labour if, in the face of the intimidating challenges confronting the CAW, the next CAW President circled the wagons, silenced dissenters, and just continued on without reassessing the union&#8217;s direction and current limits.  Any creative leadership has to allow for innovations, and encourage departures from past practices.  Whether this happens will not, of course, depend on Lewenza alone.  Democracy always has to be fought for and local leaders and activists have a responsibility &#8212; now, perhaps more than at any time in recent CAW memory &#8212; to insist that they and their members have an impact on the outcome. </p>
<p>* For a more detailed discussion of the CAW administration caucus, see Jim Reid, &#8220;The Death of the Administration Caucus?&#8221; at  workersforunionrenewal.blogspot.com/2008/06/<br />
death-of-administration-caucus-by-jim.html.</p>
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<p>Sam Gindin is the Packer Visiting Professor in Social Justice at York University. </p>
<p>&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8211;</p>
<p>URL: mrzine.monthlyreview.org/gindin180708.html </p>
<p>&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8211;</p>
<p> from WORKERS FOR UNION RENEWAL:</p>
<p>skip to main | skip to sidebar<br />
Workers For Union Renewal </p>
<p>Monday, June 30, 2008<br />
The Death of the Administration Caucus?<br />
The following article is a contribution to the process of democratic debate about the way CAW members select our top leaders. The writer is a respected CAW activist and local leader as well as a participant in the WUR. We urge readers to discuss and debate the issues raised in this article.<br />
— Herman.</p>
<p>The Death of the Administration Caucus?<br />
by Jim Reid</p>
<p>The move by Bro. Hargrove to hand pick his successor is not without precedent in the CAW, UAW or in many other unions. In most cases a succession plan is put in place long before the departing leader steps down. The successor is usually someone who has worked closely with the outgoing leader over the years and shares many of the same ideas and views and has demonstrated a competency for leadership.</p>
<p>While critics may argue that in a truly democratic organization the outgoing leader should have no more right to choose who follows him (I use “him” because in the CAW/UAW there has never been a “her” president or candidate). In an ideologically pure world uncontaminated by politics, egos or personal ambition such a concept might bear fruit. In the CAW and predecessor UAW there is a history and culture of strong and sometimes forceful personalities in the office of President. There has also always been a cultural or organizational acceptance of the outgoing President selecting his successor. One of the most difficult tasks any leader faces is managing the ambitions of those who wish to succeed him.</p>
<p>When leadership transition happens smoothly there is little dissension and even less opposition. When it is managed poorly or in a heavy handed or capricious manner it has the potential to damage both the incoming leader and the organization.</p>
<p>The election of our top officers is made by the free and democratic will of the Constitutional Delegates at the Constitutional Convention that will be held in August 2009 in Quebec City. Historically part of that process has involved what in both the UAW and the CAW is known as the Administration Caucus. Over the years the Administrative Caucus has elected the overwhelming number of Officers and NEB members. The President of the Union is the Chair of the Caucus and most often proposes to the National Executive Board who he supports for any vacancies, either on the NEB, CLC, or Officers of the National Union prior to the Administrative Caucus meeting. The NEB has almost uniformly accepted the proposals of the President.</p>
<p>So while this process has all the appearances of what some in our union cynically refer to as “guided democracy” it has always provided potential candidates for office the choice of either coming to Administration Caucus and putting their name forward and abiding by the decision of the Caucus or alternatively, not coming to Caucus and being nominated and running from the floor of the Constitutional Convention.</p>
<p>While this system is far from perfect it has been an integral part of the history and culture of our union. Where this system started coming off the track was two years ago when long time activist Bro. Willie Lambert decided to make an unprecedented challenge Bro. Hargrove for the Presidency of the union. To watch the reaction of some of the National Union administration and staff, you would have thought that war had been declared on Placer Court. Instead of waiting for Administrative Caucus to take place prior to the Constitutional Convention and unanimously endorse the candidacy and Presidency of Brother Hargrove they called regional meetings across the country and instructed the Local Unions to put their workplace leadership and Local Officers out on lost time to hear from Brother Hargrove and hold a binding vote to endorse his candidacy for re-election. Next they went to the various Councils of CAW Council (IPS, Health Care, Skilled Trades, GM, Ford and Daimler Chrysler) and held binding votes to affirm support for the candidacy of Brother Hargrove. Finally, the machine rolled into the Administrative Caucus in Vancouver and unanimously endorsed Bro. Hargrove.</p>
<p>At the IPS Council I was the only delegate out of the nearly 150 in the room who voted against endorsing Bro. Hargrove and Bro. O&#8217;Neil (who ran unopposed). The reason I voted against the recommendation was not that I didn&#8217;t support Bro. Hargrove but that I felt the issue of candidacies and endorsements are more appropriately handled at the Administrative Caucus. The mistake I made was not getting to a mike prior to the vote and challenging the validity of the vote. In the weekend that followed I had many delegates approach me and congratulate me for my vote. I had to explain repeatedly that it was not about supporting Bro. Hargrove but about respecting the process. I asked a number of delegates and Staff at the time what would happen in three years if there were two highly credible candidates stepping forward for the Presidency. Would this same process of locking the various Councils and regional groups into supporting the presidentially anointed one happen again? Why do we have an Administration Caucus? Would both candidates be offered the opportunity to address the different Councils of our union? And if not, why not?</p>
<p>To be clear I am not endorsing either candidate for President of our union. For me this is about respecting the right of both candidates to campaign up to the time the Administration Caucus is held. Brother Hargrove and the NEB can make their preferences known and I respect that those preferences will carry some weight for the candidate fortunate enough to garner their support. However, if we are to continue talking the talk of being a democratic union we have to start walking the walk. To this end I am proposing the following:</p>
<p>The vote to endorse the candidacy of any candidate be conducted by secret ballot at the NEB and Staff meeting.</p>
<p>The vote of the NEB or Staff shall not be binding to the extent that prevents either candidate from campaigning up to and including the Administration Caucus held prior to the Constitutional Convention.</p>
<p>There will be no repercussions to any member or Staff for their support or non support of either candidate.</p>
<p>If any Council of the union endorses either candidate such vote will not be binding on any delegate of that Council / or in the alternative if a vote of any Council is considered binding both candidates will have an equal opportunity to make a presentation to said Council.</p>
<p>While these proposals may not go far enough for some in our union who share legitimate concerns about union democracy they are in my opinion a progressive step that will foster genuine support of the rank and file and reflect positively on both Brother Hargrove and our great union.</p>
<p>In Solidarity</p>
<p>Jim Reid</p>
<p>(The writer is the 1st Vice President of Local 27. The views expressed do not necessarily reflect the position or opinions of Local 27 or its Executive Board.)</p>
<p>from the WORLD SOCIALIST WEB SITE:</p>
<p>Longtime Canadian Auto Workers union chief to retire<br />
By Carl Bronski<br />
19 July 2008<br />
Use this version to print | Send this link by email | Email the author</p>
<p>Buzz Hargrove, president of the Canadian Auto Workers union, on July 8 announced his imminent retirement from the presidency of the union he has led since 1992. The retirement, which will take affect this September, comes fully six months ahead of Hargrove’s previously expected departure date, and at a time when a deepening crisis in the auto industry, and the economy as a whole, threatens thousands of manufacturing jobs.</p>
<p>This was not the first time this year that the CAW president has made a surprise announcement that moved forward set timetables. Last April, Hargrove secretly advanced the traditional contract negotiation period by some six months in order to ram through massive concession contracts at Ford, General Motors and Chrysler-Cerberus. And only two weeks ago, he announced that the union’s National Executive Board (NEB) would push forward a meeting to recommend a successor amongst one of the three candidates who had signaled their intention to lead the union.</p>
<p>In typical bureaucratic fashion Hargrove has moved to install his handpicked successor without even the pretence of a debate or election. This only underscores the disregard and contempt the CAW bureaucracy has for the 225,000 workers who are forced to pay dues to the organization.</p>
<p>“I just thought,” stated Hargrove, “if I just leave this (election) open, it’s just going to cause all kinds of dissension in the union. So I thought, let’s have the debate and agree on a candidate and then let’s move ahead and continue to build the union.” For Hargrove, the “debate” was never meant to include the union membership. Rather, it was to take place amongst a closed circle of his trusted lieutenants. Indeed, since the CAW split from the United Auto Workers union in 1985, no one has succeeded to the presidency without the endorsement of the senior members of the bureaucracy.</p>
<p>Of course, auto workers were not holding their breath for this or that candidate to emerge from within the union bureaucracy. They have already had too bitter an experience with the union’s concession contracts, sweetheart deals, bogus jobs fight-backs and cynical maneuvers with right-wing corporate magnates and big business political parties to become excited by the prospect of one bureaucrat battling another for the lucrative presidential sinecure. After all, the membership has watched as the CAW has transformed itself over the past several decades into a thoroughly anti-working class organization tied entirely to the corporate elite and the institutions of the capitalist state.</p>
<p>If there are complaints from some quarters within the union bureaucracy over the procedures Hargrove has used it is not out of concern for the democratic rights of the membership. Instead it is largely due to rising concern that with the threatened shrinking of the dues paying base through mass layoffs in the manufacturing, airline and retail sectors, the preservation of the entire apparatus is at stake.</p>
<p>Thusly, on the same day that Hargrove declared his intention to retire early, the union’s eighteen member National Executive Board gathered to endorse Hargrove’s preferred candidate, Ken Lewenza, president of Windsor’s 10,000 strong Local 444 and the union’s chief negotiator at Chrysler. The endorsement from this cabal of top union officials proved more than enough reason for erstwhile opponents Hemi Mitic and Tom Collins to immediately withdraw from the race and support the bureaucratic anointment.</p>
<p>On the eve of the NEB vote, Mitic and Collins, as well as members of the union’s administrative staff, had criticized what they characterized as “strong arm” maneuvers to ensure a Lewenza victory. In a message to the NEB, Collins wrote, “I have been quite amazed by some of the developments this last week which appear to be premature and driven by a need to subject and control the democratic constitutional process of our union.” Of course, none of these supposed critics raised a peep when only last April Hargrove over-rode the constitutional requirement to assemble the union’s collective bargaining council before entering into negotiations with the Big Three. Nor did they oppose the lightning ratification process on the Big Three deals, where members where given in some cases less than 24 hours notice prior to the contract votes.</p>
<p>Both men have been loyal hand-raisers for the bureaucracy for many years. Mitic had recently distinguished himself by spearheading Hargrove’s initiative last fall to form a company union at the auto parts giant Magna International, while Collins was granted a position at National Headquarters in return for merging his Retail and Wholesale Workers union with the CAW in 1999.</p>
<p>For his own part, Lewenza, who hails from Hargrove’s “home” local in Windsor, was a key member of the collective bargaining team that orchestrated the pattern of massive concessions with the Big Three auto companies this past spring. He was also a key supporter of Hargrove in squashing opposition to the corporatist agreement with Magna when that secret deal caused unrest amongst the membership, particularly in Oshawa and London, Ontario. He has stated that under his leadership, he will continue the policies carried out by Hargrove.</p>
<p>In a press conference held in May to announce the tentative agreements with GM and Chrysler, Hargrove stated that his over-riding bargaining concern was to “get in and out real quick” before things really began to fall apart in the auto industry. He has now extended that sentiment to his own future career.</p>
<p>In the days prior to his retirement announcement, rumblings out of Detroit and the New York financial markets pointed to a renewed round of retrenchments at General Motors. GM’s stock price fell to its half-century low July 2 after a Merrill Lynch analyst asserted that the auto firm needed to raise as much as $15 billion in cash to shore up its liquidity and that bankruptcy was “not impossible.” In the credit derivatives market, the cost of default protection for both GM and Ford is hovering around its highest levels ever. Standard and Poor’s last month put GM, along with Ford Motor and Chrysler, on credit watch. Peter Schiff, president of Euro-Pacific Capital opined, “The question now is who will go into bankruptcy first, GM or Ford?”</p>
<p>Meanwhile, in a portent of things to come, Tim Carrie, president of London’s CAW Local 27 and 3M plant chairperson Randy Mason announced that the union has re-opened a contract for its 240 tape and sandpaper makers and agreed to relinquish wage increases, cost of living protections and gut work rules. Although the signed contract took the membership through until 2010, Mason stated, “We did not have to do anything, but the bottom line is we came to an agreement and gave the company some relief.” Neither Hargrove nor Lewenza passed comment on this unprecedented concession even under conditions where there is already talk that the Big Three will re-open UAW contracts in the US in the near future.</p>
<p>Speculation is rife that Hargrove—a loyal defender of Canadian capitalism—will stand for election to federal parliament in the next national poll. He has stated that although no political party has yet to approach him, he is more than interested in standing for the Liberals, or failing that, as an independent. Liberal Party leader Stephane Dion has already sent out recruitment feelers.</p>
<p>Hargrove made headlines several years ago when he embraced right wing Liberal Prime Minister Paul Martin and recommended union members vote “strategically” (i.e. for the Liberal Party) in most federal and/or provincial ridings in a series of elections. Although a long time supporter of the New Democratic Party, Hargrove in recent years has fallen afoul of the party officialdom, particularly in Ontario, the center of the auto industry in Canada, where he was expelled from the party over his calls for strategic voting.</p>
<p>But whether or not Hargrove seeks political office, there is no doubt that he will land solidly on his feet. He has already received several lucrative offers from Canadian universities and other institutions, not to mention a nomination to the prestigious Order of Canada. The black tie gala organized in his honour only last month and attended by the pillars of the Canadian establishment is further testimony to the services rendered to the captains of Canadian industry. And as no less a corporate figure as Arturo Elias, GM Canada’s president, told the Detroit News after Hargrove’s retirement announcement, “Buzz has had a remarkable career leading the CAW, steering it through growth and maturity as Canada’s largest private sector union. Well done, Buzz!”</p>
<p>See Also:<br />
Canada: GM seeks discussions with CAW to end Oshawa “blockade”<br />
[11 June 2008]<br />
CAW officials grandstand after GM plant closure announcement<br />
[7 June 2008]<br />
Canada: Business press advises auto union leaders on containing rank-and-file anger<br />
[6 June 2008]</p>
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		<title>nevada power tries to take pensions away from it&#8217;s utility workers</title>
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Jul. 17, 2008
Copyright © Las Vegas Review-Journal 
Utility, labor union clash
Nevada Power plan to lower pension benefits sticking point with IBEW
By JOHN G. EDWARDS
REVIEW-JOURNAL 

For the first time in 18 years, a union strike could threaten the reliability of power as air conditioners are roaring around the valley.
Nobody wants that, representatives of Nevada Power Co. [...]]]></description>
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<td><span class="story_date_copyright">Jul. 17, 2008<br />
Copyright © Las Vegas Review-Journal </span></p>
<p><span class="story_title_font"><strong>Utility, labor union clash</strong></span></p>
<p><span class="story_dropheadline"><strong>Nevada Power plan to lower pension benefits sticking point with IBEW</strong></span></p>
<p><span class="story_byline">By JOHN G. EDWARDS<br />
REVIEW-JOURNAL </span></p>
<div class="story_body_intro">
<p>For the first time in 18 years, a union strike could threaten the reliability of power as air conditioners are roaring around the valley.</p>
<p>Nobody wants that, representatives of Nevada Power Co. and the International Brotherhood of Electrical Workers No. 396 say.</p>
<p>Yet the utility and the union have been in stalled contract negotiations for months. The union&#8217;s previous contract expired in February.</p>
<p>The company has refused to budge on plans to change a pension program that could reduce benefits for union workers up to 70 percent, said Jesse Newman, union senior assistant business manager.</p></div>
<div class="story_body_remaining">
<p>Newman said Nevada Power negotiators are saying the utility faces a bleak financial future if changes aren&#8217;t made in pension benefits.</p>
<p>&#8220;It&#8217;s like a car,&#8221; management representatives say, according to Newman. &#8220;Company representatives say: &#8216;You don&#8217;t change the oil after the car blows up. You change the oil before the car blows up.&#8217; &#8220;</p>
<p>Mark Shank, Nevada Power regional executive for operations, declined to discuss the company&#8217;s proposed changes.</p>
<p>&#8220;I can&#8217;t go into any details about negotiations,&#8221; Shank said, adding that the union representatives are making incorrect statements. &#8220;I think (union representatives) are picking an extreme (outcome.)&#8221;</p>
<p>County Commissioner Tom Collins, a union member and former Nevada Power worker, said a work stoppage is likely if the company continues to refuse to compromise on the pension program.</p>
<p>&#8220;If Nevada Power management doesn&#8217;t move off their pension demands, it&#8217;s probably 90-to-10 percent (the IBEW local will strike),&#8221; Collins said.</p>
<p>Shank declined to speculation on the likelihood of a strike but said he hopes a walkout can be avoided.</p>
<p>Nevada Power on Wednesday said it has a contingency plan for operations if union workers walk off the job, but he declined to say what it entailed.</p>
<p>The last time the union walked out, the company kept the power on by using nonunion workers and management personnel.</p>
<p>But, Collins said a work stoppage could cause delays in repairing downed lines and restoring power after outages.</p>
<p>&#8220;You&#8217;re rolling the dice on reliability when you have a labor stoppage,&#8221; Collins said.</p>
<p>Setting meters and other construction-related work also could be delayed, Collins said.</p>
<p>&#8220;It would just be too much for them to cover,&#8221; Collins said, referring to nonunion employees and managers at Nevada Power.</p>
<p>The union counts 1,300 employee members at Nevada Power. The utility says it employs 1,800 workers.</p>
<p>The union doesn&#8217;t want a strike, Collins said, and has no strike fund to pay workers during the down time.</p>
<p>&#8220;If these guys walk out, they have to start spending their savings, their credit cards, whatever,&#8221; he said.</p>
<p>Collins negotiated with Nevada Power before the last strike in 1990 and then stood on picket lines for hours.</p>
<p>The company then benefited from a short-term reduction in payroll, Collins said.</p>
<p>Shank, another veteran of the 1990 strikes, said the company &#8220;did whatever we had to do to make sure power plants, lights stayed on and air conditioners kept turning (in 1990).&#8221;</p>
<p>That strike ended after about two weeks, Collins recalled, mainly because the business manager accepted a new job out of town.</p>
<p>Several union representatives criticized Nevada Power during a Public Utilities Commission consumer meeting Tuesday at the Sahara West Library.</p>
<p>&#8220;They are trying to slash the retirement benefits of some of their most loyal employees,&#8221; said Amy Wilson, a union member from Henderson.</p>
<p>&#8220;Why do they want to strip my livelihood away?&#8221; asked Corey Poeller, a union worker from North Las Vegas.</p>
<p>Union member Robert Brien of Boulder City said he has worked for Nevada Power for 16 years and typically works 50 to 60 hours of overtime every two weeks. He complained about the &#8220;revolving door&#8221; of seven CEOs during that time.</p>
<p>&#8220;I don&#8217;t think (Nevada Power has) a direction or vision or anything,&#8221; Brien said.</p>
<p>Contact reporter John G. Edwards at jedwards@reviewjournal.com or 702-383-0420.</p></div>
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