A federal appeals court Aug. 1 lifted a judge’s order blocking President Trump from stripping hundreds of thousands of federal workers of the ability to engage in union bargaining with U.S. agencies.

A three-judge panel of the San Francisco-based 9th U.S. Circuit Court of Appeals put on hold pending a further appeal an injunction issued by a lower court judge that had been obtained by six unions including the American Federation of Government Employees (AFGE).

Trump’s order exempted more than a dozen federal agencies from obligations to bargain with unions. They include the Departments of Justice, State, Defense, Treasury, and Health and Human Services.

U.S. District Judge James Donato in San Francisco in June had issued the injunction blocking 21 agencies from implementing Trump’s March executive order exempting many federal agencies from obligations to bargain with unions.

Donato concluded Trump’s order retaliated against unions deemed critical of the president and that had sued over his efforts to overhaul the government, including the mass firings of agency employees, violating their right to free speech under the U.S. Constitution’s First Amendment.

But the 9th Circuit panel said Trump’s order on its face “does not express any retaliatory animus,” and it agreed with the Trump administration that the president “would have taken the same action even in the absence of the protected conduct.”

Eliminating collective bargaining would allow agencies to alter working conditions and fire or discipline workers more easily, and it could prevent unions from challenging Trump administration initiatives in court.

Labor Start, 8/1

Dock workers at Eat Coast and Gulf ports walked off the job Sept 30 after weeks of negotiations failed to yield an agreement between the International Longshoreman’s Association and the US Maritime Alliance, representing the shipping industry.

ILA members have been working under a six-year contract that expired Sept 30 and saw their real income deteriorate during the pandemic when many ports could not operate. The workers unload cargo from ships docked in the ports They are seeking substantial pay increases to make up for their losses and protection from automation severely cutting into their jobs.

Even though a major strike like this one could endanger Democrats just before election, President Biden has said he will not seek a Taft-Hartley injunction against the strike. “Ocean carriers have made record profits since the pandemic,” Biden said in a statement. “It’s only fair that workers, who put themselves at risk during the pandemic to keep ports open, see a meaningful increase in their wages as well.”

Politico, 2 items, 10/1 and 10/1

In June it was a big demonstration in front of the office building at 529 Fifth Avenue, called by the Service Employees International Union. Hundreds of their members who work in the area, picketed in front of the building at 44^th Street in Manhattan’s diamond district in support of their union brothers and sisters. We reported on this demonstration in an earlier post.

Now, just a few weeks later, a strike by the building employees beginning July 10 seems to have stirred the management to reach out feelers about bargaining with the union. At issue was the fact that management, Fifth City Realty, an affiliate of Empire Capital, had recently acquired the building and brought in a new contractor, L&J Janitorial, to manage its janitorial services, L&J then unilaterally tore up the contract that had been negotiated between the old management and SEIU. The new janitorial service,  then proceeded to cut the wages of the buildings cleaners nearly in half to the city’s minimum wage of $16 an hour. cancelling worker benefits like family medical insurance and terminating long term employees, including full-time and part-time security officers and a fire safety director.

The action prompted a mass demonstration of hundreds of SEIU members and supporters on the streets around the building and a walkout by the buildings employees on July 10.

It didn’t take long for the owners and the janitorial contractor, which had adamantly refused to bargain with the union, to reach out to the union, potentially the first step in the negotiating process.

In response, then union agreed to temporarily suspend the strike but said that it’s still possible  for the strike to continue if L&J Janitorial delays negotiations or does not bargain in good faith with the union.

Labor Press, 7/13

By Paul Becker

With health care for retirees the big issue, a major step forward in the fight for democratic unionism was registered last week when a rank-and-file slate swept the elections for officers and delegates of the retirees chapter of the United Federation of Teachers. The chapter vote has implications of trouble for the leadership of the UFT, which through its Unity caucus has been running the union since its founding nearly 65 years ago. The current UFT president, Michael Mulgrew, has held office for the past 15 years. He and the officers of the entire union are up for election next year.

NYC municipal retirees march down Broadway protesting the city’s ongoing campaign to push them into a for-profit, privatized Medicare Advantage plan. Photo by Joe Maniscalco, Workbites

The Retiree Advocate slate, ran up an impressive victory, scoring nearly two-thirds of the more than 27,000 votes and ousting the Unity caucus leadership of the retirees chapter. The UFT is New York’s Local 2 of the American Federation of Teachers.

Resentment against the UFT leadership has been building slowly during the past few years over the union’s acceptance of substandard contracts for teachers, paraprofessionals, and other New York City school employees. A growing number of union members also resent Unity caucus’ cling to power through a well-oiled political machine, abandoning principles of democratic unionism and playing ball with local and state politicians rather than fighting for its members. Unlike many unions, retired members can vote in union-wide elections and, until recently, have provided an important base of support for Unity caucus.

The key issue in this campaign was the attempt by UFT leaders, acting with the heads of other large municipal unions to force their members out of traditional Medicare and into a so-called Medicare Advantage plan. (The insurer for city workers would be the health insurance mega corporation, Aetna.) The move would affect hundreds of thousands of retired city workers. Over the years, these workers, including teachers, made concessions on other benefits over the promise that, upon retirement, they would have fully paid health care with the gap between Medicare payments and costs of medical treatments covered by the city. As such, teachers are covered by Medicare with GHI as the secondary insurer. The premiums for this secondary insurance were reimbursed. Under the new proposal, if teachers elected to stay with traditional Medicare, this reimbursement would be dropped, costing them a substantial amount of money that retirees with their limited income could ill afford.

The so-called Medicare Advantage plans, despite being sold under the label “advantage” and putting forth some enticements like free gym memberships, have some very important disadvantages. It is run by private corporations whose principal goal is bottom-line profits rather than making patients healthy. While some 85 to 90 percent of American doctors accept Medicare payments, under corporate Medicare Advantage, you have to choose from their panel of doctors. Thus, many teachers would have to abandon the doctors they have had over the years whom they have trusted and who know them to switch to a doctor they do not know.

Cartoon by Fred Wright. Courtesy United Electrical, Radio & Machine Workers (UE)

Even more important, Medicare Advantage plans require pre-approval for many medical procedures. If pre-approval is denied, they won’t pay for it. The patient can appeal but it can still be denied, or even if it’s approved, it often takes time when a speedy treatment is necessary. During the campaign of teachers and other city workers against the planned switch, a number of people have come forward to tell of their experiences when the delay has resulted in severe damage including death to a family member or friend. Medicare, on the other hand, usually accepts the judgment of the doctors, except in cases of outright fraud. My own doctor, an outstanding physician who is recognized as one of New York City’s best cardiologists, complained to me that he now has to spend nearly half his time on the phone arguing with private insurance companies about the necessity of a medical treatment for patients who have been denied coverage.

These private insurance plans have been reaping fat rewards since Congress, about 30 years ago, allowed them to collect subsidies from Medicare that should have gone to health care for people on the government program. And recently, some of them have been caught defrauding Medicare by billing for services that were never delivered. Little wonder that giant insurance companies now crowd the field as they discover “there’s gold in them thar hills.”

Several months ago, a state court ruled that the city could not change the health care plan promised to retirees. The ruling was upheld by the New York State Appellate Court but New York Mayor Eric Adams has said he would appeal to the state Court of Appeals, the highest court in the state.

The win for the Retiree Advocate slate pledged to fight against forcing retired school employers into these private plans could have important implications not only for next year’s elections for union-wide UFT officers but for other unions of city workers which have endorsed the plan despite the growing objections of their retirees.