Archive for the ‘Labor & Unions’ Category

Kaiser issues update on labor negotiations, strikes to begin Thursday and Friday

Thursday, November 18th, 2021

By Antonia Ehlers, PR and Media Relations, Kaiser Permanente Northern California

In response to the planned healthcare worker strikes beginning today and tomorrow, Thursday and Friday, Nov. 18 and 19, Kaiser Permanente issued the following statement:

We are extremely grateful for all our frontline health care workforce, whose commitment to providing care and service throughout the COVID-19 pandemic has been nothing short of inspiring. We recently reached successful agreements with dozens of unions that represent more than 60,000 Kaiser Permanente employees that demonstrate our commitment to providing excellent wages and benefits for all employees while meeting our commitment to delivering high-quality, affordable care for our members and patients. These are market-leading contracts, reached through constructive and reasonable bargaining.

Bargaining with Local 39 IUOE

Kaiser Permanente has been bargaining in good faith with Local 39 IUOE, the union that represents about 600 Kaiser Permanente operating engineers, for several months. The union decided to call a strike and have kept employees out for more than two months. We are offering Local 39 employees wages that are similar to our other employees’ and that, on top of Local 39’s generous medical and the richest retirement benefits, will keep our engineers among the best compensated in their profession, at an average of more than $180,000 in total wages and benefits. We are not proposing any take-aways and our proposals do not differentiate between current and future employees. But union leadership wants more, asking for unreasonable increases far beyond any other union at Kaiser Permanente.

UPDATE: Unfortunately, after many hours bargaining on Tuesday and Wednesday, there is no movement in negotiations with Local 39. The union insists it receive much more – in some cases nearly two times more – than other union agreements covering Kaiser Permanente employees.

Michelle Gaskill-Hames, Senior Vice President, Hospital and Health Plan Operations, Kaiser Permanente Northern California spoke via video about the workers and patient care during the strike.

We are optimistic that we can resolve the remaining issues with Local 39 at the bargaining table and reach an agreement that continues to reward our employees and supports health care affordability, just as we have with several unions this week.

Sympathy strikes

As one of the largest health care union employers in the United States — with nearly 75% of our employees working under collective bargaining agreements — we fully understand solidarity among unions. But given the demands of Local 39, on top of the already market-leading compensation and highest retirement benefit of any represented employee in our organization, we believe that sympathy strikes are not appropriate in this case. We are asking our staff to choose to be there for our patients, and to come to work.

We question why leaders of other unions are asking their members to walk out on patients on Nov. 18 and 19 in sympathy for Local 39. This will not bring us closer to an agreement and most important, it is unfair to our members and patients to disrupt their care when they most need our employees to be there for them.

Several unions have submitted sympathy strike notices: SEIU-UHW, Local 20, and Local 29 on Thursday, November 18 and the California Nurses Association, Friday, November 19. Kaiser Permanente is not in bargaining with these unions, and each has a current contract. In fact, we have informed SEIU-UHW, Local 20, and Local 29 union leaders that we believe in accordance with their contracts, these sympathy strikes are not protected by law.

We are also in bargaining with NUHW, the union that represents our mental health professionals. NUHW has announced a one-day strike for Friday, November 19.

We have taken steps to ensure that our members and patients will continue to receive high-quality, safe care and service should these strikes occur.

We have prepared thoroughly to care for our patients in the event of a strike and are working diligently to reduce the impact.

  • During the strike, care will be provided by physicians and experienced clinical managers and staff, with the support of trained and qualified contingency staff.
  • Some non-urgent medical appointments or procedures may be affected, and we will reach out to patients to reschedule or convert appointments to phone or video if that is appropriate. We will not postpone any urgent or emergency care, or critical medical appointments.
  • We encourage members to schedule an appointment should they need lab, optometry, or radiology services this week as some of our locations will be temporarily closed or operating with reduced hours. If a member has an urgent need for services, they should call the Appointment and Advice Call Center, which is available 24 hours a day, 7 days a week.
  • Some outpatient pharmacies will be temporarily closed from Nov. 18 and 19.  If a member does not need their refill right away, any closed pharmacies will reopen on Saturday, Nov. 20. Our Mail Delivery pharmacy will remain open during the strike to order refills at kp.org or by phone.
  • In the event an urgent prescription is needed and the outpatient pharmacy is closed, Kaiser Permanente staff will provide members with direction on how to fill their prescription at an open Kaiser Permanente pharmacy or at a retail pharmacy. Hospital pharmacies for inpatient care and critical infusion services will remain in operation.
  • All our hospitals and emergency departments will continue to be open during a strike and remain safe places to receive care.

As this is an evolving situation, we will continue to communicate directly with our members and post updates on kp.org as they are available.

We are very sorry for any disruption members may experience as we take steps to ensure that we continue to provide high-quality, safe care during this union strike.

Kaiser Permanente is indisputably one of the most labor-friendly organizations in the United States.

Our history and our future are deeply connected to organized labor. Labor unions have always played an important role in our efforts to provide more people with access to high-quality care and to make care more affordable.

It’s unconscionable that union leaders would ask health care workers to walk away from the patients who need them and deliberately disrupt their care.

Pharmacy strike canceled as tentative agreement reached with Kaiser Permanente and the Guild for Professional Pharmacists

Monday, November 15th, 2021

Statement from Kaiser Permanente

November 15, 2021

By Deniene Erickson, Issues Manager, Kaiser Permanente Northern California

We are very pleased to announce that at about 1:00 a.m. this morning, Kaiser Permanente and the Guild for Professional Pharmacists reached a tentative agreement for a new 3-year contract for pharmacists in our Northern California region. The tentative agreement reflects our respect for Kaiser Permanente pharmacy professionals and the exceptional care they provide and provides industry-leading wage and benefit packages. The agreement is aligned with our commitment to high quality, affordable health care and to being the best place to work in health care, and includes the following:

  • Wage increases: Guaranteed across-the-board wage increases each year through the duration of the three year contract
  • Health benefits: No reductions or takeaways to already low-cost family medical and dental coverage with the same low copays for prescriptions and office visits
  • Retirement benefits: Maintains generous retirement income benefits and employer-subsidized retiree medical.
  • Bonus opportunities: Higher incentive bonus opportunities
  • Agreement on important operational matters

In light of this, the Guild for Professional Pharmacists has canceled the strike that was expected to begin November 15 and our pharmacies will return to normal operations later today.

This agreement comes on the heels of Saturday’s landmark tentative agreement between Kaiser Permanente and the Alliance of Health Care Unions, affecting nearly 50,000 Kaiser Permanente employees across the enterprise.

We are continuing to bargain in good faith with Local 39 Operating Engineers and the National Union of Healthcare Workers (NUHW), and are confident we will reach agreements with these unions very soon. At this time there is no change in the Local 39 Operating Engineers strike. Other unions have not yet rescinded their one-day sympathy strike notices for Thursday, November 18 and Friday, November 19. NUHW, the union that represents our mental health professionals has also announced a one-day strike for Friday, November 19, which remains in effect.

As always, our first priority is our members and patients and we have taken steps to ensure they will continue to receive high-quality, safe care and service should these strikes take place.

Union claims Sutter Health cancels mediation, 350 Antioch healthcare workers strike again over unfair labor practices

Monday, November 8th, 2021

Healthcare workers protest during strike at Sutter Delta Medical Center in Antioch on Oct. 11, 2021. Source: SEIU-UHW Facebook page video screenshot.

Starting today, Monday, November 8, 2021; Congressmen DeSaulnier and McNerney urge Sutter to come to an agreement with workers over safe staffing

Sutter Delta will remain staffed and open

“they negotiated the contract…and it was approved by more than 3,000 employees at seven other SEIU-represented hospitals across our system weeks ago… the union at Sutter Delta continues to be the one outlier” – Sutter Health spokesperson

By Renée Saldaña, Media Relations, SEIU-United Healthcare Workers West

On November 7, after management at Sutter Delta canceled the bargaining session which had been scheduled with federal mediation, U.S. Reps. Mark DeSaulnier and Jerry McNerney sent a letter to Sutter Health CEO Sarah Krevans, urging the healthcare company to reach an agreement with workers in writing on unsafe staffing.

“We understand that finding trained and qualified health care workers is a challenge right now, not just for Sutter Delta, but across the country,” wrote U.S. Reps. DeSaulnier and McNerney. “It is our understanding that this hospital has not seen a significant drop in patients over the last few years, but dozens of workers have resigned their positions during this time and have not been replaced, which has greatly increased the workload on those who remain… For the health and safety of the people of Antioch and surrounding communities, this issue must be resolved.”

The letter is available to view here: SEIU-UHW-Sutter-Delta-Letter

Employees at Sutter Delta Medical Center say conditions are dire for caregivers and patients inside their facility as management ignores concerns about understaffing and working conditions. Workers are worried about patient and staff safety and say they’ve been pushed to the limit by their employer.

“We voted to strike because we want to put a stop to Sutter’s unfair labor practices and because we care about patient safety, and we want safe staffing levels. We are exhausted and overwhelmed, and we feel like Sutter management is ignoring our concerns,” said Stefanye Sartain, a respiratory therapist at Sutter Delta Medical Center. “Our hospital has multiple job openings that haven’t been posted because management feels they don’t need the positions filled. But we are so short-staffed, it’s hard to provide adequate care. Sutter is eroding the staff and it’s not safe for patients or workers.”

Workers at Sutter Delta Medical Center say staffing shortages predate the COVID-19 pandemic and, as a result of years of poor staffing and management decisions by Sutter, the hospital already didn’t meet adequate staffing for average patient levels. Frontline caregivers say COVID exacerbated this already strained infrastructure, and their employer’s response to the pandemic has only worsened the preexisting crisis.

The strike consists of a variety of job classes at the hospital in Antioch, including emergency room technicians, respiratory therapists, phlebotomists, transporters, and licensed vocational nurses.

Today, Monday, Nov. 8, 2021, caregivers in their uniforms will walk off the job at  Sutter Delta Medical Center, 3901 Lone Tree Way in Antioch, and will be joined by their coworkers and supporters. Later, caregivers in their uniforms and scrubs will form picket lines, hold signs, chant, and give speeches.

Sutter Health Claims Contract Approved By All Others, Sutter Delta Union Only Holdout

In response, a Sutter Health spokesperson wrote, “We are disappointed that minutes after our second mediated negotiation session, the union decided to give notice of another strike and walk away from patients who need them. After that, we had no choice but to turn our focus to our top priority – meeting the needs of our patients by securing qualified workers to replace the staff who decide to walk off the job instead of caring for patients. Because of this focus, Sutter Delta Medical Center will remain open, continuing to provide, safe, high-quality care for the people of Antioch and surrounding communities – just as it did during last month’s strike.

“We stand by our most recent offer, and the union should too: they negotiated the contract, were confident enough to place it on a ballot, and it was approved by more than 3,000 employees at seven other SEIU-represented hospitals across our system weeks ago. Yet, the union at Sutter Delta continues to be the one outlier, distracting from patient care instead of focusing on reaching a fair agreement on behalf of their members.

“The union talks freely about the staffing and patient care needs of the hospital, but when push comes to shove, it’s the union that is asking employees to walk out on their patients. We’ll deal with the strike, and when it’s over, we’ll be able to return our attention to resolving this.

Our proposed contract guarantees pay and benefits that are as good or better than others in the area. The current offer includes 13% salary increase over four years (3% yearly salary increases each year for three years and a 4% increase in year four) and 100% employer paid health coverage for employees and their families.”

Questions About Cancelled Mediation

Asked about their claim that Sutter Health canceled mediation, Saldaña of said, “Over the weekend there was a bargaining session with federal mediation. But that was cancelled by Sutter Delta management staff.”

Asked why Sutter Delta workers were the lone holdouts on the contract she replied, “For the workers at Sutter Delta it’s more about patient care and the workers’ safety. They’re feeling severely understaffed.”

Asked if Sutter Delta management staff canceled mediation as the union is claiming and why, a Sutter Health spokesperson responded, “both parties agreed to mediation but then the union immediately issued a strike notice. Which meant, as mentioned in our (previous) statement, we had to turn our attention from negotiating to securing qualified replacement workers to keep the hospital open and able to provide, safe, high-quality care for the community.”

Allen Payton contributed to this report.

 

Hundreds of Sutter Delta healthcare workers to strike citing short staffing, unfair labor practices

Sunday, October 3rd, 2021

Beginning early Monday morning; “We’re drowning. There’s just not enough staff…” – Sutter Delta ER technician; “We stand by our offer, and SEIU should too: they negotiated this contract” – Sutter Health spokesperson

ANTIOCH, Calif. – Citing massive understaffing, difficult working conditions, and a series of unfair labor practices, more than 350 healthcare workers at Sutter Delta Medical Center in Antioch will strike next week. Workers will walk off the job and onto the strike picket line at 5 a.m. on Monday, October 4th.

Employees at Sutter Delta Medical Center say conditions are dire for caregivers and patients inside their facility as management ignores concerns about understaffing and working conditions. Workers are worried about patient and staff safety and say they’ve been pushed to the limit by their employer.

“We’re drowning. There’s just not enough staff,” said Jennifer Stone, an emergency room technician at Sutter Delta Medical Center. “We’re wearing too many hats – we’re talking down angry COVID patients, then we’re rushing to a code, then we’re talking to family members who just lost a loved one. We can’t give adequate care. We feel like management is ignoring our concerns and is leaving us to fend for ourselves. We can’t do it all anymore.”

Workers at Sutter Delta Medical Center say staffing shortages predate the COVID-19 pandemic and, as a result of years of poor staffing and management decisions by Sutter, the hospital already didn’t meet adequate staffing for average patient levels. Frontline caregivers say COVID exacerbated this already strained infrastructure, and their employer’s response to the pandemic has only worsened the preexisting crisis.

WHAT:          Caregivers in their uniforms will walk off the job joined by their coworkers and supporters, including SEIU-UHW President Dave Regan. Later, caregivers in their uniforms and scrubs will form picket lines, hold signs, chant, and give speeches.

WHEN:          MONDAY, October 4     5 a.m. Walkout    11 a.m. Speaking program

WHERE:       Sutter Delta Medical Center, 3901 Lone Tree Way (main entrance), Antioch

SEIU-United Healthcare Workers West (SEIU-UHW) is a healthcare justice union of more than 100,000 healthcare workers, patients, and healthcare activists united to ensure affordable, accessible, high-quality care for all Californians, provided by valued and respected healthcare workers. Learn more at www.seiu-uhw.org.

Sutter Health Responds

Sutter Delta Medical Center received a strike notice from SEIU in late September. In response a Sutter spokesperson issued the following statement.

“We received notice that SEIU intends to strike for five days at Sutter Delta Medical Center in Antioch beginning October 4. We are disappointed union leaders have chosen to distract from patient care by taking this action, especially at a time when we should be focusing our attention on caring for our community.

The union has proved its disregard for our patients and communities by engaging in a strike while refusing to make a good faith effort to reach a deal. In fact, Sutter Delta negotiators twice offered to work with a neutral federal mediator and the union refused –twice. It’s a clear statement that the union is more interested in flexing its political power than reaching a fair agreement on behalf of its members.

We stand by our offer, and SEIU should too: they negotiated this contract, were confident enough to place it on a ballot, and it was recently approved by more than 3,000 employees at seven other SEIU-represented hospitals across our system.

We value our caregivers and their continued commitment to compassionate patient care in the face of an unprecedented health crisis, which is why our proposed contract guaranteed pay and benefits that are as good or better than others in the area:

o   13% salary increase over four years: 3% yearly salary increases each year for 3 years and a 4% increase in year 4

o   100% employer paid health coverage for employees and their families.

o   Funding to support access for our employees to education, credentialing and growth opportunities and creates a pipeline for new hires.

We will continue to focus on our patients, as always, despite the union’s strike. Regardless of the union’s actions, our commitment to providing our patients with high-quality, safe patient care remains unchanged.”

Healthcare workers to protest short-staffing at Sutter Delta Medical Center in Antioch using “Danger Zone” Wednesday

Tuesday, July 6th, 2021

Workers, elected leaders to highlight understaffing, long patient wait times, worker safety issues

OAKLAND, Calif., July 5, 2021 /PRNewswire/ — During the month of July, Sutter Health caregivers and allies will be protesting at facilities across northern California to expose the threat to workers and patients caused by understaffing, long patient wait times and worker safety issues at Sutter facilities.

“While Sutter has been driving up costs, they’ve been driving down the quality of care, staffing and safety at our hospitals. Just about every department is understaffed. Workers are getting run ragged with no time for breaks, and patients are suffering with long wait times for the care they need,” said Stefanye Sartain, Respiratory Therapist, Sutter Delta Medical Center. “It’s time for Sutter Health management to put patient and caregiver safety first. Listen to caregivers. Stop short-staffing and lowering the quality of patient care.”

Despite making $189 million in profits in 2021, receiving $843 million in taxpayer money during the COVID-19 pandemic, and paying out millions of dollars in executive salaries and bonuses, Sutter Health has announced layoffs of workers and continues to short-staff their hospitals.

WHAT: Healthcare workers will set up a danger zone with large signs and other visuals,
caregivers in their uniforms, PPE and safety gear. They will hold a rally, give speeches, and hold signs in protest of Sutter Health’s understaffing, long patient wait times and worker safety issues.
WHERE & WHEN: 11 am – 1 pm (Workers & Elected Leaders speaking at 11:30 am)
July 7: Sutter Delta Medical Center, 3901 Lone Tree way, Antioch, CA 94509
July 7: Sutter Santa Rosa Regional Hospital, 30 Mark West Springs Rd, Santa Rosa, CA 95403
July 14: Sutter Eden Medical Center, 20103 Lake Chabot Rd, Castro Valley, CA 94546
July 14: Sutter Solano Medical Center, 300 Hospital Dr., Vallejo, CA 94590
July 21: Sutter Roseville Medical Center, One Medical Plaza, Roseville, CA 95816
July 21: Sutter California Pacific Medical Center-Mission Bernal, 3555 Cesar Chavez Ave, San Francisco, CA 94110
July 28: Sutter Lakeside Hospital, 5176 Hill Road East, Lakeport, CA 95453
July 28: Sutter Alta Bates Summit Medical Center, 350 Hawthorne St., Oakland, CA 94609

SEIU-United Healthcare Workers West (SEIU-UHW) is a healthcare justice union of more than 100,000 healthcare workers, patients, and healthcare activists united to ensure affordable, accessible, high-quality care for all Californians, provided by valued and respected healthcare workers. Learn more at www.seiu-uhw.org.

 

Construction workers’ organization unhappy with “discriminatory and costly” PLA in Antioch’s desal plant contract

Tuesday, January 5th, 2021

Note: The following letter was sent via email to the five members of the Antioch City Council on Thursday, Dec. 24.

Antioch City Councilmembers,

When you placed a discriminatory and costly Project Labor Agreement (PLA) on the Brackish Desal Plant in 2018 we warned you not only what it would do to discriminate against local construction workers but what it would do to your costs. Judging by the manner in which you snuck the approval for the contract to build it through on a Friday night before Christmas with no public notice, you obviously did not want us to remind you.

But here we are.

A reminder of the bigotry you approved: Your welfare for local union bosses in the form of a PLA forces all workers to pay union dues, pay into union pensions they’ll never vest in (that’s wage theft) and explicitly discriminates against young men and women in state approved non-union apprentice programs by banning them from working at all. Any union-free contractor who worked on the job would only be allowed a few of their own employees period with all others coming from union hiring halls. The result? Reduced bidders and increased costs. 85% of the local workforce is union-free, as is the state’s construction workforce. That number holds true for your contractor base as well. These companies simply don’t bid work with PLAs on it so the results are higher bids from those who do, as every major study conducted proves and as you just learned firsthand.

So, a project that you had estimated would cost $60 million before the PLA has now been awarded for $86,689,000. BUT THAT OF COURSE IS NOT ALL. There is a 5% contingency of $4,334,450 in case of “unforeseen costs” (count on it) for a total of $91,023,450. BUT THAT IS NOT ALL EITHER. In addition, you authorized city staff to increase the total budget for the desalination project to $110 million.

In 21 years of fighting PLAs we have never seen a PLA come in this far over budget. Ever. Congrats.

Of course, a body who took their fiduciary responsibility to ratepayers seriously would have rebid this with no PLA and compared costs but your canine affection for big labor special interests wouldn’t allow for this. So here we are.

We will continue to monitor this debacle and make sure citizens are kept updated. The story that recently ran in the East Bay Times about this last-minute cram down before Christmas did not mention the PLA. We will make sure the next one does.

Merry Christmas.

Eric Christen

Executive Director

Coalition for Fair Employment in Construction

 

Senator Glazer calls BART labor contract extension “premature”, “big mistake”, Board VP Foley supports, Director Allen oppose

Friday, December 4th, 2020

State Senator Steve Glazer and screenshot of BART Board meeting, Thursday, Dec. 3, 2020.

Board approves contract “after secret negotiations were held during BART Directors’ campaign elections” he said.

“…giving space to someone who can’t pronounce our past GM’s name or spell eBART correctly and someone who makes false claim after false claim is a disservice to the public and spreads lies.” – BART Director Li

“These agreements offer BART budgetary stability as we plan our recovery from COVID-19.” – Board V.P. Foley.

“The contract extensions come seven months before the contracts are due to expire, locking in employee costs at pre-pandemic levels…at the level that it was when we were carrying 410,000 riders each week day and now we carry about 50 (thousand).” – BART Director Allen

By Allen Payton

In an attempt to get them to reconsider the proposed labor contract with employee unions, State Senator Steve Glazer challenged the BART Board during their meeting on Thursday, Dec. 3. He asked why they were considering the contract long before it’s set to expire, and more is known about the impacts of COVID-19 next year. In response, he was called a liar by one director.

Nevertheless, the BART Board voted 7-2 in favor of the contract, with Directors Debra Allen from Contra Costa County and Liz Ames from Alameda County casting the votes against. Board Vice President Mark Foley who represents Antioch on the board voted in favor of the contract extension.

Glazer issued a statement earlier this week about BART’s announcement “on Thanksgiving eve…(about) a tentative labor contract with their represented groups, after secret negotiations were held during BART Directors’ campaign elections.”

“Along with other specific contract changes, this tentative agreement is premature and a big mistake and will likely harm BART riders, commuters and taxpayers through fare hikes and service erosion,” his statement continued.

Glazer read most of the statement during the Thursday meeting, but offering additional comment.

“I want to be clear what I have to say reflects my views of accountability and trust that the public expects from all of us,” he said. “I think we all agree that BART is in a financial meltdown due to the pandemic and it’s not clear to me that you have a clear plan for recovery. The district’s own financial analysis projects a shortfall of tens of millions of dollars by next summer amidst the steepest decline in ridership in your agency’s history. My view, the district needs all the flexibility it can to avoid a financial disaster. Yet, BART is tying its hands with this agreement.”

“In the first half of 2021 BART will have a clearer idea about the COVID-19 vaccine availability, ridership improvements, any potential financial bailout assistance from the federal government, and the results of your early retirement incentives that have already been offered to existing employees,” Glazer explained. “All of these potential outcomes will provide important budgetary insight that should shape any new contract terms. But instead of waiting for that information, you are now rushing to approve a contract, negotiated behind closed doors, with no public notice and it will prevent you from making any kind of targeted salary reductions if your revenues do not recover. This will likely lead to service reductions and fare increases which will hurt the very people you are here to serve.”

His statement issued on Monday adds, “BART is leaving few options but to lay off employees and curtail the number of trains, which would further depress ridership and deepen the agency’s financial crisis.

“So, I come here with a question,” Glazer continued during the meeting. “The current labor contract with your representative employee groups doesn’t expire until July 1st, 2021. So, why did the district make an early agreement with so many economic unknowns?”

“It’s my understanding that BART has not even done a salary survey of other transit districts and public agencies to determine if the current salaries called for in this agreement are needed to recruit and retain qualified employees, basic data needed to inform any effective negotiation,” he said. “I question whether the failure to conduct a salary survey is keeping with board policy and procedures.”

“Now, the public was never told when your negotiations started. I’m told these negotiations were initiated by the Board in September and October. If true, that means that directors were negotiating with BART unions on their salaries and benefits on one hand, while asking the same unions for campaign contributions with the other hand. This is an outrageous injection of politics in a hugely consequential employer-employee agreement. And by setting the terms of the agreement at three years rather than four years based on past contract durations, the future contract will be negotiated during another election year.”

“You know that, Board members, before you came to this board for the most of you, had worked for a long time to ensure the contract negotiations would not be immersed in politics and election year circumstances. So, that four-year duration was done purposely. You unravel that in this proposed contract before you.

“In this agreement, for the most part, you’ve abandoned any of the work rule changes that were central to the 2013 contract negotiations. Where have those work rules been laid out, publicly disclosed and discussed, so that we can understand why they’ve been abandoned in this agreement.”

“You know, when the strike happened in 2013, BART management was clear that the work rules were probably more important than the salaries and benefits being negotiated. It had that kind of consequence and impact on the agency. But there’s a complete void of understanding or knowledge about what efforts were made to negotiate those work rules.”

It reversed important e-BART reforms that were instituted by former General Manager Grace Crunican. Again, BART, the board members, and the management (were) very involved in establishing those eBART reforms which you’re throwing out in this proposed contract.”

So, it’s not surprising to me, that you are moving forward with due haste to approve these negotiations and rush this contract through with very little public review, and I think that it’s because the details and the consequences are uncomfortable.

“I would hope that you will reconsider what you are doing, today and take a more deliberate and cautious approach to these negotiations as you consider the full impact of the pandemic on our economy. It would be best for your financial well-being and more importantly for BART riders throughout the Bay Area.”

“In conclusion, let me just say that the foundation of your service as board members is to ensure that this transportation system is able to function during good times and bad times. This contract continues the limitation against training management to run the trains during a work stoppage. So, all of BART riders, many of them low-income people who can’t afford to stay home, will be prevented from getting to work under this contract provision. We’re talking about teachers and nurses, social workers, grocery clerks and other essential workers, who will all be left stranded if your trains stop running because you created this self-inflicted problem.”

“This strike protection provision is an abdication of your sacred duty and will limit future boards from helping the commuters when matters cannot be worked out at the bargaining table. And listen, we all would strongly hope that all matters can be worked out at the bargaining table.”

In  his issued statement, Glazer included, “BART’s management doesn’t want the public to see what they are doing because they know that BART riders and other Bay Area residents would not support this agreement if they understood its details and its consequences.”

The BART Directors then took up the issue of the labor union contract.

General Manager Robert Powers responded to Glazer, saying, “I was the one…negotiating these tentative agreements with our labor partners. There were no elected officials in those discussions. I was supported primarily by our chief labor negotiations officer as well as our AGM of Operations. I wanted to be…crystal clear that it was me leading these negotiations under the authorization granted to me by the BART Board.”

During public comments, Sal Cruz, president of AFSCME Local 3093 said, “Our work has accelerated during this pandemic at great risk to our employees, as we position ourselves for the recovery we know will come. Proper positioning will be critical for the survival of all transit and for the Bay Area economy that is now linked to BART. Thank you for your leadership during these challenging times. Every transit agency in the country is in the same position as you are, now. The decision before you, today, is not an easy one. But it allows us to focus on rebuilding o ur system, continuing to provide safe transportation for our essential workers and preparing for the return of our riders. The workforce is behind you, the riders are behind you and the Bay Area is behind you.”

BART Director Li. Video screenshot of board meeting, Dec. 3, 2020.

Li Calls Out Glazer

BART Director Janice Li, who represents District 8 which includes portions of San Francisco, spoke next calling out Glazer for lying, mispronouncing the past general manager and misspelling eBART (it was spelled “e-Bart” in his statement from earlier in the week.

“I am proud to vote yes on this action, today. A yes vote, today is a yes vote for BART, is a yes for our riders and a very, very important yes for our workers,” she said. “Voting no makes BART an enemy to our workers and our riders.”

“There has been a lot of talk about this decision coming forward as too early or as a result of private meetings. I just want to be very clear that this claim is factually not true,” she stated. “First, I’m a member of the board’s labor negotiations review committee. We have been meeting since May of this year, then again in July, then again in August. These meetings are open to the public. They are publicly noticed and at subsequent board meetings we always give updates during board reports.”

“Second, we have held multiple closed session meetings regarding labor relations in recent months, and once again they have always been noticed as part of our board agenda,” Li continued. “Third, people who are saying that this is too early are saying that because the financial situation ahead is so unclear and that the board should wait until more is known. The truth is that things will inevitably change. But our staff has been doing excellent work in scenario planning and being transparent about all the potential futures, both good and bad. Furthermore, this contract is not one in the same as our budget revisions. In fact, this does not mean layoffs can’t or won’t happen. So, saying that by voting, yes it ties our hands or limits our options is incorrect.”

“And fourth, respectfully, I strongly refute the false claims made by Senator Glazer. Honestly, giving space to someone who can’t pronounce our past GM’s name or spell eBART correctly and someone who makes false claim after false claim is a disservice to the public and spreads lies. The idea that this was timed with elections is wrong and I will speak for myself, I was not up for election, re-election and I have not raised a cent for re-election, this year and I was not even endorsed by unions when I first ran in 2018.”

“So, what we actually have before us is a result of an incredible collaboration between BART management and labor unions and at the end of the day, who benefits?” she asked. “It’s our riders.”

She then thanked “the entire BART team for rebuilding trust with our labor unions and of course I want to thank our labor union partners for being collaborative at an incredibly difficult time.”

“As a board member I’m incredibly grateful that this decision is coming to us sooner rather than later so we can get back to focusing on running a safe system for our essential workers and implement a successful recovery plan during and through the pandemic that has raged every public transit agency, every public institution and every aspect of our lives. Let’s vote yes on this, today and if you remember our new slogan from the board workshop, earlier this year which, I know feels like years ago, ‘Let’s Go,’” she concluded.

Foley Speaks in Support

Board Vice President Mark Foley speaks on the matter during the meeting on Thursday, Dec. 3, 2020. Video screenshot.

Foley shared his thoughts in support of the contract.

“There was a lot of hard work that went in to making this happen. I am fully in support of this prudent approach to labor negotiations during the pandemic,” he said. “These agreements offer BART budgetary stability as we plan our recovery from COVID-19. A wage freeze, next year, coupled with two years, of at most, very modest increases, increases that are directly tied to returning ridership and BART’s financial recovery, is a responsible course of action to take.”

“More importantly, you know these contracts provide language to allow us to reopen negotiations, a necessary safety net during these challenging times,” Foley continued. “These proactive steps are being taken to hopefully avoid further service cuts, like closing stations, eliminating weekend service or laying off employees, employees that will be needed when we ramp up service.”

“And to those employees I say thank you. You are BART’s most important asset,” he stated. “We wouldn’t have been successful if not for the collaboration of your union leadership and union partners.”

“And lastly, I’d like to thank the district secretary’s office for bringing this item, publishing this agenda to the board, two days early rather than publishing it during the Thanksgiving holiday. This gave us additional transparency around this action. I urge my fellow board members to vote in support of these tentative agreements and I fully support this motion,” Foley concluded.

Allen Offers Arguments Against Contract

BART Director Debora Allen speaks during the board meeting on Thursday, Dec. 3, 2020. Video screenshot.

Director Allen spoke against the contracts and supported what Glazer said.

“First, I want to touch on the private meetings because that seems to be a contentious little dialogue. I believe that is absolutely how these contracts come to be,” she said. “It is unfortunate the board discussion about these agreements doesn’t happen in public session. I believe we shouldn’t be discussing the contract extensions in closed door sessions where board members may say things that they would not say in public. In addition, I really do believe not enough of our own closed board discussion has occurred prior to this day of ratification.”

“There’s so much operational uncertainty, right now for BART and I’m not comfortable that the financial projections and plan give us the data we need for this decision,” Allen continued. “It’s really hard to say whether these are fair contracts. But despite having received $377 million in federal CARES Act subsidies already, this year, BART  projects another $210 million deficit over the next 18 months and that is the case after we slashed the capital and pension funding allocations from the Fiscal Year ‘21 budget, along with the load shedding to the capital budget that has occurred throughout this year.”

“From my view we should be receiving regular updates of projected deficits for three years…and that information should be part of any decision by this board to extend labor contracts for three years out. They go together. Labor is 80% of our budget,” she stated.

“So, now we are all hopeful that another $377 million will come to us from D.C. and we’re hopeful that the retirement incentive will induce enough people to retire from exactly the right positions that we can afford to eliminate which we know is not really a reasonable assumption. We already know that some people are retiring from positions that we are going to have to turn around and refill,” Allen said. “We shouldn’t be budgeting to hopeful or aspiration. This is what we did back in June when we passed the budget, and it didn’t work out. We really projected far more revenue than we have. But, if even if those other things come true…it will likely only fund another three-quarters to one year of operating deficits. And it won’t do anything to make up for the lack of capital funding and pension funding that we put aside in ’21 and are likely to do, again in Fiscal Year ’22.”

“The contract extensions come seven months before the contracts are due to expire, locking in employee costs at pre-pandemic levels even as revenue projects remain wildly uncertain well into the next couple of years,” she explained. “Costs will be locked in at the level that it was when we were carrying 410,000 riders each weekday and now we carry about 50 (thousand).”

Other board members spoke, mostly in favor of the contract extension and they then voted 7-2 to approve.

Texas man charged with defrauding Operating Engineers Local Union No. 3 of $4.5 million

Saturday, June 27th, 2020

Scheme allegedly involved kickbacks paid in bricks of cash wrapped in silver bags

OAKLAND – Scott A. Wilson was arrested today in connection with a complaint unsealed in Oakland alleging that he defrauded the Operating Engineers Local Union No. 3, based in Alameda, California, of approximately $4.5 million, announced United States Attorney David L. Anderson, Federal Bureau of Investigation Special Agent in Charge John L. Bennett, and U.S. Department of Labor Office of Inspector General Special Agent in Charge Quentin Heiden.

According to the complaint, Wilson, 52, of Corsicana, Texas, was the director of the union’s information technology department, where he had authority to purchase goods and services.  While working for the union, Wilson allegedly set up a front company called OST.  Using the alias, “John Lasson,” Wilson allegedly used OST to receive funds from the union, at first directly and then through two other front companies set up by a friend and a relative under Wilson’s direction.  Between 2011 and 2017, Wilson allegedly used these front companies to fraudulently invoice the union for IT-related goods and services that were never to be delivered, taking some funds directly through OST, and others through kickbacks paid by his friend and relative.  Wilson also allegedly used the front companies to conceal payments made with union funds to his own family members, primarily for work that was never done.  At one point, according to the complaint, Wilson arranged for the union funds to be withdrawn from the front companies’ accounts and delivered to him at various restaurants around the Bay Area in the form of cash, wrapped in the shape of bricks and placed in silver bags.

The complaint alleges that over the course of six years, in total Wilson fraudulently directed approximately $4.5 million to the front companies, of which $2.5 million was kicked directly back to Wilson in various ways.  The complaint further alleges that Wilson used the allegedly embezzled funds to, among other things, purchase land in Corsicana, Texas, and build himself a house there.

According to the complaint, the scheme was discovered when the union’s finance department learned that Wilson had concealed that he was the principal behind one of the front companies with which his IT department was conducting business.

Wilson was arrested on June 26, 2020, in Corsicana, Texas, and made an appearance in federal court in Dallas this afternoon.   He was ordered to appear in federal court in Oakland on July 13, 2020.

A complaint merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of 20 years in prison, and a fine of up to $250,000, along with potential restitution and forfeiture.  However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

The case is being prosecuted by the Special Prosecutions Section of the U.S. Attorney’s Office for the Northern District of California.  The prosecution is the result of an investigation by the Federal Bureau of Investigation, and the Department of Labor’s Office of Inspector General and Office of Labor Management Standards.