As UFCW Local 400 members prepare for contract negotiations with Safeway, the union says one factor looms as perhaps the greatest obstacle they face: the toxic impact of private equity.
“Private equity is the ultimate example of our rigged economy,” says Local 400 President Mark Federici. “They’ve gamed the system so no matter what happens to the corporations they acquire, it’s ‘heads they win, tails you lose.’” Here’s how private equity has impacted Safeway: In 2013, a private equity firm, Cerberus Capital Management, bought Albertsons through a leveraged buy-out—in other words, the sale was financed by debt. In 2015, when Albertson’s bought Safeway, Cerberus borrowed almost $8 billion dollars to finance the transaction. As a result, the entire Albertsons empire is under the control of Cerberus and owes $12.5 billion dollars to bond-holders. Meeting this enormous debt burden has thus become the priority for Cerberus, rather than investing in Safeway’s stores and workers. But even that’s not the whole story, because Cerberus is also trying to milk every last dollar for itself by paying millions in management fees. Federici said that success at the bargaining table depends on both inside and outside strategies, finding investor-related pressure points while empowering members to mobilize at the same time. Read more about this on Local 400’s website at ufcw400.org On today’s labor calendar, locked-out Baltimore Symphony Musicians will picket from 9 am to 10:30 am outside the BSO concert hall in Baltimore. For all the latest local labor calendar listings, go to dclabor.org and click on Calendar. In today’s labor history, on this date in 1935, President Roosevelt signed the Social Security Act, providing, for the first time ever, guaranteed income for retirees and creating a system of unemployment benefits. Today’s labor quote is by Lech Walesa, co-founder of Solidarity, the Polish union that seized the Lenin shipyard in Gdansk on this date in 1980. Sixteen days later the government officially recognized the union, and many consider the event the beginning of the end for the Iron Curtain. Lech Walesa, who said: “Tanks can threaten and massacre us, but they will never be able to force us to work.” Union City Radio is supported by our friends at Union Plus. The Union Plus Prescription Savings program can save you money on brand names and generic drugs at pharmacies nationwide. Download the free Union Plus RX card and save today. Visit unionplus.org/healthsavings.
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After a three day strike, AFSCME Local 3001 OmniRide drivers settled a new contract with their employer, First Transit, last week.
"The new tentative agreement represents a giant step forward from previous offers on workplace safety, time off and pay," said AFSCME Council president Andrew Washington. "Local 3001 members are an example of what working people can accomplish when we stand together." For all the latest local labor calendar listings, go to dclabor.org and click on Calendar. In today’s labor history, on this date in 1900, Bay Area mill employers locked out 8,000 workers because they demanded the 8 hour day and a daily wage of $3. The San Francisco Building Trades Council established a large union-operated mill to continue to make union-milled lumber available. Eventually, mill owners agreed to the 8 hour day. Today’s labor quote is by civil rights leader and union president A. Philip Randolph, who on this date in 1963 strongly protested the AFL-CIO Executive Council's failure to endorse the August 28 "March on Washington." A. Philip Randolph, who, in his opening remarks at that march, declared: “We are the advanced guard of a massive moral revolution for jobs and freedom.” Union City Radio is supported by our friends at Union Plus. The Union Plus Prescription Savings program can save you money on brand names and generic drugs at pharmacies nationwide. Download the free Union Plus RX card and save today. Visit unionplus.org/healthsavings. For all the latest local labor calendar listings, go to dclabor.org and click on Calendar.
In today’s labor history, on this date in 1919, with the news that their boss, Florenz Ziegfeld, was joining the Producing Managers’ Association, the chorus girls in his Ziegfield Follies created their own union, the Chorus Equity Association. They were helped by a big donation from superstar and former chorus girl Lillian Russell. In 1955 the union merged with the Actor’s Equity Association. And, on this date in 1994, major league baseball players struck over owners' demands for team salary caps; 938 games were cancelled during the 232-day strike. Today’s labor quote is by J.J. Bentley, who said that “It is all very well to say that a man should play for the pure love of the game. Perhaps he ought, but to the working man it is impossible.” Union City Radio is supported by our friends at Union Plus. The Union Plus Free College Program is now enrolling students for Fall classes, starting August 19. There are both full and part-time enrollment options for working adults. To learn more, visit unionplusfreecollege.org. For all the latest local labor calendar listings, go to dclabor.org and click on Calendar.
In today’s labor history, on this date in 1927, nine men and one woman met in Oakland, California to form what was to become the 230,000-member California School Employees Association, representing school support staff throughout the state. And on this date in 1998, 73,000 Bell Atlantic workers ended a successful two-day strike over wages and limits on contracting out of work. Today’s labor quote is by business columnist David Leonhardt, who said: “Today, unions are clearly playing on an uneven field. Companies pay minimal penalties for illegally trying to bar unions and have become experts at doing so, legally and otherwise. For all their shortcomings, unions remain many workers' best hope for some bargaining power.” Union City Radio is supported by our friends at Union Plus. The Union Plus Free College Program is now enrolling students for Fall classes, starting August 19. There are both full and part-time enrollment options for working adults. To learn more, visit unionplusfreecollege.org. |
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