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MARKETPLACE: Building blocs

Politics, economy help organized labor thrive in Southern Nevada

The national headlines tell stories of unions in retreat, of organized labor groups facing record-low membership numbers and fewer retirement benefits for their workers.

But unions in Las Vegas seem to have missed that message.

Labor experts say organized labor in the Silver State thrives today, and they point to sustained organizing and bargaining efforts as evidence of a healthy union climate here.

“Las Vegas has been on the radar screen for the labor movement for many years now,” said Daniel Cornfield, a sociology professor at Vanderbilt University in Nashville, Tenn. “It probably won’t go away.”

Added Nelson Lichtenstein, director of the Center for the Study of Work, Labor and Democracy at the University of California, Santa Barbara: “Las Vegas is the center of unionism in the country. Everyone is watching, because there’s a lot of activity going on and all sorts of things happening.”

Take the tussle between local electric utility Nevada Power Co. and the International Brotherhood of Electrical Workers Local 396. Nevada Power wants to reduce union workers’ pension benefits by up to 70 percent in a bid to protect the company’s long-term bottom line; IBEW officials say the company can afford current benefits, given the 40 percent increase in net income the utility posted in the second quarter. Neither side is yielding, despite their labor contract’s expiration in February.

Or look at the bitter fight between the Service Employees International Union and the California Nurses Association/National Nurses Organizing Committee. The nurses’ group attempted in May to wrangle representation of 1,100 St. Rose Dominican registered nurses from the SEIU, forcing an employee election that split workers but fell three votes shy of winning representation outright. Contested votes and pleas to the National Labor Relations Board followed. A runoff election is pending.

From the AFL-CIO’s Building Justice campaign to organize residential construction workers to Culinary Local 226’s efforts to unionize locals casinos, area unions are agitating for more members and richer benefits. The share of Nevada workers belonging to unions is 15.4 percent, up from 13.8 percent in 2005 and higher than the nation’s 12.1 percent. Local union officials say the ailing local economy, with its rising unemployment and its falling government revenue, could give them an important assist in further boosting their share of the state’s labor market.

“This (economic) environment is very clearly an opportunity for workers to organize,” said D. Taylor, secretary-treasurer of Culinary Local 226. “If you notice when workers really organize in this country, it is during a depression, not during good economic times. What’s going to happen is that all the cuts that companies have done where workers don’t have a collective bargaining agreement, when the economy gets better and they start rolling around, most of the time they don’t restore those cuts. Those cuts become part of the landscape.”

The economy isn’t the only factor set to bolster union fortunes in Las Vegas.

An area’s political climate, including its “managerial-legal framework,” plays a large role in fomenting organized labor, Lichtenstein said. And in its managerial-legal setup, Las Vegas offers a friendly environment to unions: The Culinary maintains mostly positive relationships with the resorts that employ its 60,000 local members. The deals local unions work out with employers amount to a “sort of de facto abridgement of right-to-work laws” that prohibit making union membership a condition of employment, Lichtenstein said.

Also important to the expansion of organized labor: prevailing union sentiments. There, too, Las Vegas offers benefits to unions. With organized labor’s heavy penetration in the resort sector, workers in other industries are well-acquainted with unions and thus more comfortable with their presence. Also, Las Vegas is home to a growing number of Latino immigrants, a demographic that Lichtenstein said tends to harbor strong, pro-union leanings.

“You might have a Latino construction worker whose sister works in a hotel, and he hears about hotel maids who can buy houses,” Lichtenstein said. “He’ll say a union is a good idea.”

Most of the favorable sentiment about unions locally is based on the relatively good relations that the Culinary has had with casino companies.

The Culinary has contracts with most of the major Strip and smaller downtown casinos, the big exceptions being Las Vegas Sands Corp. and Station Casinos — two companies the union has long targeted.

Taylor wouldn’t discuss current organizing efforts. But on July 18, Culinary members descended on resorts owned by locals operator Station Casinos, the largest nonunion gaming company in Clark County to protest.

New York Times labor writer Steven Greenhouse recently described the Culinary union as “unusually farsighted,” and the “most successful union local” in the country.

Greenhouse’s new book, “The Big Squeeze: Tough Times for the American Worker,” dedicates three pages to the union’s rise from 18,000 workers in the late 1980s to nearly 60,000 members today.

The expansion happened as unions nationwide shrank with the modernization of factories and the offshoring of U.S. manufacturing jobs.

Other unions are joining the Culinary in intensifying local organizing and negotiating activities.

The 7,000-member United Food and Commercial Workers Local 711 continues to picket retail giant Wal-Mart, even as it negotiates new contracts with Albertsons, Food 4 Less, Smiths and Vons. Union officials have said they see Wal-Mart, which has 13 local supercenters and 11 area neighborhood markets, as a long-term growth opportunity.

Unions that used to organize industrial factories now want other avenues to curtail their decline.

The United Auto Workers, whose labor force at General Motors shrunk from 400,000 in 1970 to 74,000 last year, according to Greenhouse, trolled Atlantic City casinos for new members.

Following the UAW’s lead, the Transport Workers Union of America is organizing dealers along the Strip through its Las Vegas Dealers Local 721.

After failing to organize workers inside 10 Las Vegas casinos in 2001, the TWU found success at Wynn Las Vegas, where dealers angry over the resort’s tip-sharing policy voted for union representation in May 2007. Dealers at Caesars Palace followed suit in December.

The TWU suffered a defeat in mid-July when nearly 60 percent of the Rio’s dealers rejected it.

Unions aren’t relying on gaming alone for their growth.

Labor officials are increasingly focusing on industries that provide personal and professional services such as entertainment and tourism. They’re also chasing the home-building sector, health care, retail and services related to hospitality, such as caterers and launderers, Lichtenstein said.

Those targeted growth areas put Las Vegas right in the path of labor union management and organizers.

The AFL-CIO launched its Building Justice movement in 2006. The campaign, focused on the homebuilding sector in Nevada and Arizona, has involved more than 5,000 workers, many of whom work for subcontractors of Michigan-based housing giant Pulte Homes.

Union representatives and workers have distributed pamphlets outside Pulte’s local new-home communities, and they’ve held news conferences that feature local construction workers discussing their treatment on the job. They’ve also picketed residential job sites belonging to Pete King Construction, accusing the contractor of poor safety practices.

Pulte officials have countered that they don’t employ the staff members of subcontractors, and they’re not responsible for the relationships between subcontractors and their workers. They’ve also said the AFL-CIO is targeting Pulte in its organizing campaigns to generate publicity.

Pete King executives have said they field regular visits from the Occupational Safety and Health Administration to ensure that their safety practices are up to snuff. They countered that the union is more interested in organizing Pete King workers than it is in safety, and they believe unions have targeted Pete King for its large business volume and its big employee base.

Shifting political winds could also have implications for local union growth.
With the 2009 Legislature now six months away, some unions are weighing legislation to send to Carson City.

One of the most public issues, with 12 deaths on Strip construction sites since December 2001, is safety.

Steve Ross, a Las Vegas city councilman and secretary-treasurer of the Southern Nevada Building and Construction Trades Council, said his organization is looking at legislation that would require union and nonunion contractors to adopt stricter safety standards, including OSHA safety training, for all workers.

“We look at the industry in general,” said Ross, whose trade council contains 17 construction labor unions. “We want everyone protected.”

Ross is also looking at promoting labor agreements for public works projects, and keeping more of them in the hands of in-state contractors.

He plans to present the Legislature with proof of unscrupulous contractors that underpay workers, pocketing the money.

“We want to save the taxpayer money,” Ross said. “Someone’s walking away with the money and stealing it. The worker’s not getting it. We think we have a pretty good case.”

And November’s presidential election will also affect the expansion of organized labor.

Lichtenstein said unions would benefit more from a Barack Obama presidency than they would a John McCain term. That’s because Obama would likely emphasize providing universal health care, which would remove health benefits as a common sticking point in union negotiations and allow organized labor to focus more on what Lichtenstein said they do best — negotiate over grievances and wages.

What’s more, Lichtenstein said, Obama is more amenable to the Employee Free Choice Act, a proposed federal law that would replace secret-ballot union votes with card-check procedures. Unions say the act would make it easier to organize a company, because the bill would protect workers from anti-union speech and actions that employers undertake before secret balloting. Employers say the law would make organizing easier because card checks aren’t anonymous, and that would leave workers open to union intimidation.

Obama supports the Employee Free Choice Act, while McCain would veto the bill, Lichtenstein said.

“Although the promised land will not be reached with Barack Obama as president, he will be much better for unions than John McCain,” Lichtenstein said.

Contact reporter Arnold M. Knightly at aknightly@reviewjournal.com or 702-477-3893. Jennifer Robison contributed to this report.

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  • Open talk key to peaceful coexistence of unions, businesses

    As unions ramp up local activities in a bid for growth, more local businesses will find themselves working with organized labor. Here’s a primer on how to get along before, during and after contract talks:

    Know your corporate practices. We’re not talking about what your employee handbook says. We’re talking about the stuff your company actually does. Unions that research companies they’re negotiating with often find disconnects between written policies and actual procedures, said Edwin Keller, a partner in the Las Vegas labor law firm of Kamer Zucker Abbott. Typically, the status quo that existed when the union entered is what you must maintain in your labor agreement. Try to impose a handbook rule that doesn’t exist in practice, and the union could accuse you of making unilateral changes in employment agreements. That could violate federal labor laws. You could end up in front of the National Labor Relations Board defending your company against unfair labor practices, rather than spending your time negotiating a mutually beneficial contract, Keller said.

    Pinpoint your priorities before you bargain. Ask yourself what corporate policies and practices you most want to preserve, and what policies need changing. Your general counsel might spend days arguing with the union over vacation protocol, only to report back to human resources and find department heads cared far more about sick leave.

    Develop informal lines of communication. Bargaining meetings can include as many as 60 people advocating for the union or the company.

    “Some sessions can turn into circuses,” Keller said. “There can be a lot of posturing on one side or the other.”

    That’s why it’s essential for just one or two lead negotiators on each side to get together occasionally outside formal labor talks. Just grabbing a cup of coffee before a session can help each side understand where the other party is coming from.

    “I can recall situations where the union representative would say, ‘This is a real hot-button issue for some people who’ll be there today, so let’s both make sure we don’t ratchet up the tension level by giving short shrift to it or making offhand comments that can be taken wrong,’” Keller said.

    Educate your managers on the new contract. Contract-administration training helps your managers know basics ranging from vacation-time seniority to proper layoff procedures. If you botch a vacation request because you don’t understand the new agreement’s rules, you could have some minor aggravation on your hands. Or you could end up on the wrong side of a serious grievance procedure. Either way, some contract training can prevent big mix-ups.

    Share information with the union. The union has a legal obligation to represent all its members equally. It can’t always do so if an employer doesn’t give details during a grievance process. If you’re taking a union member through a disciplinary process, or if you’re having trouble interpreting a contract, provide as much information as you can so the union can effectively cover its members.

    Keep in touch. Regular post-contract discussions with union officials can head off smaller concerns before they become full-blown grievances, Keller said.

    Preventing unionization

    Perhaps the most effective way to avoid strife with organized labor is to prevent union entry into your business. Here are some tips that could help:
    Make your pay and benefits competitive. Perform regular salary and benefit surveys to ensure the compensation you offer is up to snuff when compared with competitors in your market.

    “If you think everything is fine even though you’re paying $3 an hour less than the competition in wages and benefits, you’re asking to be organized,” Keller said.

    Keep up management training. When the economy tanks and companies look to cut expenses, supervisor training often goes out the window. But good management skills are essential in department heads who have immediate contact with employees. The best technical skills don’t mean much if a manager doesn’t communicate well, or if he fails to understand why he shouldn’t dress down poorly performing employees in front of their coworkers.

    “There’s an old adage out there that bad employees don’t bring in unions — bad supervisors do,” Keller said.

    At a minimum, find a two- or four-hour management class that will review labor laws and impart basic people skills. Labor law firms, including Kamer Zucker Abbott, often offer such courses.

    Be consistent. Implementing policies and procedures fairly and evenly can head off discontent among employees. Applying rules differently could send disgruntled workers into the arms of the nearest labor union.

    Boost communication in uncertain times. Keller said he frequently sees unions enter the picture when corporations experience big changes. The departure of a key executive or the sudden attrition of departmental managers can make workers nervous. Be up front with your work force about what’s going on.

    “If the employer is not communicating with employees and assuring them that things are OK during a transition, they will look for that support and input from a third party,” Keller said.

    Contact reporter Jennifer Robison at jrobison@reviewjournal.com or 702-380-4512.
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    Unions wrote on August 24, 2008 11:24 AM: So why are unionized private companies going broke.

    In Nevada Labor Union worker also are citizen legislators and local officials in charge of their own salary negotiations. In Las Vegas the Unions and the elected government leaders are co-dependent on their prospects. Steve Ross is head of the Building and Construction Trades Council and is a Las Vegas City Councilmen.
    Labor Unions are one of the largest special interest lobbyist groups in the US. Clearly big supporters of Obama along with hedge fund managers (like Philip Falcone and John Paulson) and trial lawyers (like Mel Weiss and Noel Gage). The AFL-CIO, is sending in May, 2008, more than 6,000 of its people to more than 22 states during the next two weekends to talk to more than 200,000 union voters about McCain.
    “Senator McCain’s economic path would lead to disaster for America’s working families,” said John Sweeney, president of the AFL-CIO, the nation’s largest labor organization.
    They ensure that only the political correct politicians get elected. Intimidations of other candidates including 24/7 (Anthony Pellicano like) electronic surveillance of the opposition (Lynette Boggs) is the norm.


    ex gambler wrote on August 24, 2008 10:42 AM: The comments made thusfar sound like gaming companies fighting the unions. Stations claims to offer 'competitive wages.' They need to get their head out fo the sand and survey their competitors to learn the truth. The truth is employees are tired of hearing lies from the company and are looking at ways to retaliate for the companies high expectations with little reward. Casinos want loyalty from their employees but will eliminate jobs at the drop of a hat. If a company goes union, it's because the casino does not treat their employees with dignity and respect.


    Unions wrote on August 24, 2008 09:37 AM: The reason that Las Vegas is in a major recession while the rest of the U.S. is in a downturn is the result of the price pressure that Unions have put on Las Vegas services.

    Labor Unions have done very little to communicate what their purpose is in today’s society. We know that membership is on decline because most of the old line employers that they have locked up are going bankrupted or are losing market share. Those old employers have generally been ones that produce tangible products which no longer can be priced to compete in the market place (steel, autos, airlines, etc.) without concession in wages and benefit. The UAW had 1.7 million member in 1979 and 465 thousand in 2007. Unions now only represent 7.5% of the private sector employees.

    The new employers that Labor Unions are infiltrating are services that are not as subject to being lost to competition such as Teachers, Nurses, State and City employees, Police and Fire, Hospitality, and local commercial construction. Education and Healthcare costs are increasing at twice to three times the national inflation rate.

    Unions create two classes of Working Americans. An elite union worker with free healthcare and padded pensions; and a poor bitter worker. In 2007 Union median income was $863 a week, healthcare and a retirement plan, and non-union income was $663.

    The Visitors are declining, as they are going to more affordable places, so now the Casinos struggling for profits are in a harsh cycle of reducing comps and laying off people, and new casino construction is falling by the wayside.Casinos are looking for foreign investment (Dubai World, Australia-based Crown Ltd., and Israel-based Elad Properties) to bail them out.


    Ted wrote on August 24, 2008 08:50 AM: I own my business, a large scale publishing company. I have great respect for my people, and I pay my employees significant professional wages for professional work. If an employee cannot produce such work, it is within my pervue to terminate them, without any interference from some damn union punk. That understanding, and the salaries paid, are the primary reasons that ny business has never been, nor will ever be, unionized. And, oh yes, the "communication" between owner and employees that has created the understanding that if perchance they ever did decide to have a union, they would all be former employees. I would close the building and outsource everything overseas within a month of such a vote.


    UNIONS wrote on August 24, 2008 08:12 AM: Unions are lazy, corrupt, stupid, increase prices on everything they touch, and usually put companies out of business or moving overseas in a matter of years!



    CEO -- GM



    P.S. They also produce an inferior product and are drunk at their jobs.


    UNIONS wrote on August 24, 2008 08:12 AM: Unions are lazy, corrupt, stupid, increase prices on everything they touch, and usually put companies out of business or moving overseas in a matter of years!

    CEO -- GM

    P.S. They also produce an inferior product and are drunk at their jobs.