Inside the Union Where Coronavirus Put 98% of Members Out of Work

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Last June, D. Taylor, the president of the union Unite Here, stood before a throng of hotel, casino and food service workers. They’d packed into a giant ballroom at the MGM Grand casino in Las Vegas to hear their leader celebrate the accomplishments of one of the few success stories in private-sector union organizing.

To thunderous applause, Taylor ticked off the victories. The union, he said, was pulling thousands of members and their families into better existences, winning contracts with generous health care plans and pensions and safer, fairer working conditions. And it was gaining power, he said, helping labor-friendly Democrats win key races in Nevada and Arizona, with ambitious plans for 2020, including voter drives in Florida and Arizona.

Taylor urged members to seize the moment. “We are in a moment of time where we have an opportunity to organize on scale we have never seen in our lifetime,” he said, exhorting leaders to sign on 100,000 new members over the next five years. “This moment will not last, by the way; it will not wait on us.”

The warning was prophetic. Today, Unite Here is being pounded. Many unions will suffer during the coronavirus crisis, but the situation facing Unite Here is particularly acute. Nearly all of its members are in industries — not just hotels and casinos, but also providing food services for universities, airlines, airports and sports stadiums — that have been ravaged by the pandemic. Two months ago, Taylor could boast that the organization had never seen better days. Today, a staggering 98% of Unite Here’s 307,000 members are out of work, he said.

“Right now, we’re fighting for our survival,” Taylor said in an interview with ProPublica. “We’re crushed in every city and every sector of our industry. There is nobody that has escaped the effects of COVID-19.”

The crisis poses a sweeping financial challenge to Unite Here and its local affiliates, which derive most of their revenue from member dues. In 2019, the central administration of the union, known as the international, took in $65 million from the monthly per-member dues it collects from local affiliates. With nearly all members unemployed, that flow is quickly drying up. The local affiliates, which maintain their own budgets but rely on the same stream of dues, are also suffering.

The international, which ended 2019 with $56 million in cash and nearly $80 million in investments, according to Unite Here’s public filings, has a good rainy day fund. But it needs to quickly cut expenses and shore up struggling affiliates, which tend to have smaller financial cushions and whose members urgently need the union’s help.

The belt-tightening will be painful. Already the union is asking its employees to raise their hands for early retirement packages. “We’re fairly confident we will have mandatory layoffs,” Taylor said. “We don’t want to do that.” Staff members are taking pay cuts — 20% for Taylor and the union’s No. 2 official — according to people familiar with the matter. Other staff members were asked to take 5% or 10% cuts.

Some locals have already begun layoffs, cutting as much of half of their paid staff, the union confirmed. At the international, Taylor has been calling vendors, including lawyers and political consultants, telling them they will be furloughed or their fees significantly reduced. “We are going to continue to look at every single penny because we have to,” he said.

As the crisis erupted in early March and air travel and hotel occupancy plummeted, the union had to scramble. The international assembled a crisis response committee of leaders from locals around the country. The group set up a new system using mass text messaging to communicate with members who were being laid off in droves. Unite Here lobbyists pushed for worker protections in the federal bailout, the union said, and helped ensure that airline catering workers were included in the rescue. They are still trying to get the government to protect unemployed workers’ health care.

Unite Here staff is running phone banks and helping members fill out unemployment forms, apply for food stamps and find emergency housing. In Las Vegas, the local said it has fed 6,000 workers via drive-through and home delivery of meals.

Taylor said a lot of the larger affiliates still have adequate strike funds and reserves. “They will have to make all kinds of tough choices too,” he said, “but their survivability is more likely regardless.” But smaller and medium-sized locals are less well funded, Taylor said, and need immediate help.

To keep its local affiliates afloat, the International is sending $50 million from its strike and investment funds to hard-hit locals. “We’re a fighting union,” Taylor said, “and so obviously you have got to have money to fight.”

Unite Here has been one of the few bright spots in recent decades in an otherwise bleak landscape for private-sector organized labor, said Kate Bronfenbrenner, the director of labor education research at Cornell University’s School of Industrial and Labor Relations. (Unite Here traces its history back to 1891, when it was founded as the Hotel Employee and Restaurant Employees union.)

Unite Here is strategic about which industries it targets, whom it recruits and how it wages campaigns, Bronfenbrenner said. Its research teams study the corporate structures of targets, she said, using orchestrated campaigns to disrupt the companies’ relationships with “suppliers, customers, regulators and every aspect of their business.” The idea, she said, is to make it easier for the company to accept the union than to fight it.

Bronfenbrenner said Unite Here members are overwhelmingly women and people of color, including many recent immigrants from Latin America. (The union confirms it has a high percentage of minority and female members.)

Unlike manufacturing, most service jobs in the hospitality industry can’t be sent overseas. Until the COVID-19 crisis, the hospitality and leisure industries were booming.

Unite Here is one of the country’s more aggressive unions, according to labor experts. In addition to embracing strikes, it has also been a force politically, with a formidable get-out-the-vote operation. The union’s Las Vegas affiliate, Culinary Workers Union Local 226 is the largest of its locals, with around 60,000 members. In 2018, along with reinforcements from the International and other locals, its members knocked on over 370,000 doors in Las Vegas and Reno. The union was credited with helping increase voter turnout, resulting in a new Democratic senator (who defeated a Republican incumbent) and governor.

A similar effort was underway for the 2020 election with a focus on two swing states: Arizona and Florida. In-person canvassing efforts have been paused.

Unite Here has assured workers, including those who’ve been laid off, that it will continue to advocate for them. Many Unite Here members were covered by generous health insurance plans negotiated with employers, and in Nevada, those workers will be able to keep their health insurance for up to six months. The local is negotiating with employers to try to ensure that workers are paid through the entire period a given business is closed, according to Bethany Khan, a spokeswoman for the Las Vegas local. For example, on April 1, after negotiations with Unite Here, Wynn Resorts announced that it would extend pay and benefits for full-time, part-time and hourly workers through May 15.

In Boston and Rhode Island, where Unite Here’s Local 26 represents 12,000 workers in the hotel, food and gaming industries, 90% of the businesses where the union represents workers have closed. The few hotels that are open are operating with 5% or less of their staff, said Carlos Aramayo, Local 26’s new president. “It’s very bare bones.”

Harvard University and Tufts University have agreed to pay wages and benefits through the end of the spring semester, Aramayo said. MIT went further, agreeing to pay wages — including elevated “hazard pay” for the few workers still on the job — and benefits for subcontractors through the same period.

“Some companies are doing the right things,” Taylor said. “Others are not.” He pointed to the hotel industry as an example of the latter category. For instance, the union noted, tens of thousands of Marriott executives and staff have been furloughed and Unite Here staffers say the company must do more, including protecting workers’ health insurance through the crisis. “Marriott has not stepped up,” Aramayo said, asserting that the company’s position has been that it will not compensate furloughed employees or contribute to their benefit funds. “It’s a real shame to see a company that has been so successful and that has all these resources not be willing to do right by its employees.”

A spokeswoman denied that Marriott has resisted the union’s pleas to address health insurance. “The company has been engaged in effects bargaining with Mr. Aramayo and numerous other national and local Unite Here leaders for several weeks, concerning the impact of Covid-19 on our associates, including continuing health insurance coverage,” the spokeswoman said. “We will continue to do so.”

Taylor, who started in the union nearly four decades ago as a casino organizer in Reno, said the crisis would change the union, but he predicted the union would emerge stronger and more resilient as workers experience the difference between having union protections and not having them. “We will be raring to go.”

Doris Burke contributed reporting.

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Trump Removed the Head of the Coronavirus Bailout Oversight Board. Its Members Could Be Next.

This story first appeared at ProPublica. ProPublica is a Pulitzer Prize-winning investigative newsroom. Sign up for The Big Story newsletter to receive stories like this one in your inbox.

In the wake of President Trump’s move to push aside the official who was supposed to lead the coronavirus bailout watchdog group, four other members are just as vulnerable.

Trump was able to remove the panel’s chosen head, Glenn Fine, by naming a new Defense Department inspector general and bumping Fine to the No. 2 job at the Pentagon watchdog office. No longer an acting inspector general, Fine was disqualified from serving on the panel he was supposed to lead.

Fine’s removal sounded an alarm among Democrats in Congress, who had demanded that spending safeguards be built into the $2 trillion recovery package. House Democrats rushed out a proposed tweak that would stop further removals like Fine’s by opening up eligibility to senior officials in IG offices, not just IGs themselves.

“We must not allow President Trump to openly flout the oversight measures that Congress put in place,” Oversight Committee Chairwoman Carolyn Maloney, along with Reps. Gerald Connolly and Stephen Lynch, said in a statement on Wednesday. “There are literally trillions of taxpayer dollars at stake, and Americans across the political spectrum want those funds to be spent without waste, fraud, abuse, or profiteering.”

The four other members of the Pandemic Response Accountability Committee who serve in an acting capacity are Mitchell Behm at the Department of Transportation, Sandra Bruce at Education, Richard Delmar at Treasury and Christi Grimm at Health and Human Services. That means they could also be removed by being replaced, just as Fine was.

Spokespeople for Fine and Michael Horowitz, the Justice Department IG who chairs the council of counterparts across the government, declined to comment.

Grimm, in particular, has faced attacks from Trump this week after she released a report on Monday finding “severe” and “widespread” shortages of medical supplies. “Another Fake Dossier!” he tweeted on Tuesday. Grimm’s office declined to comment, and the White House didn’t respond to requests for comment.

Last Friday, Trump nominated a new Education IG who would replace Bruce if confirmed. The nominee, Andrew De Mello, is a tax attorney at the Justice Department who has been detailed to the Homeland Security watchdog office since 2019. Bruce is a career employee who would return to being the Education Department’s deputy IG, a spokeswoman said.

The PRAC was added to the stimulus package at the insistence of Democrats, with language drafted by Maloney along with Sens. Ron Johnson, R-Wis., and Gary Peters, D-Mich., the chairman and ranking member of the Homeland Security and Governmental Affairs Committee. In rushing to finish the stimulus bill, lawmakers modeled the PRAC after a similar oversight body in the 2009 stimulus bill, known as the Recovery Accountability and Transparency Board.

“At the time the language was being drafted, I don’t think anybody had in mind that the president a week later was going to go on a firing spree of IGs,” said Elizabeth Hempowicz, the director of public policy at the Project on Government Oversight, who consulted with lawmakers on the PRAC language. “It was drafted quickly and meant to be immediately responsive to the moment.”

Congress sought to draw on the powers of inspectors general at various federal agencies. The IGs offer established expertise and credibility, as well as sweeping authority within their various agencies to pull records and interview officials. Lawmakers gave the PRAC added powers such as the ability to hold hearings and subpoena private citizens and companies.

When Trump signed the law, he included a statement objecting to several oversight provisions, such as requiring Horowitz to consult Congress on picking PRAC staff and empowering the special inspector general within the Treasury Department to tell Congress about any stonewalling.

Then, last Friday, Trump fired the IG for the intelligence community, Michael Atkinson, who had handled the whistleblower complaint that eventually led to Trump’s impeachment. Atkinson said the firing was retaliation for doing his job.

Eight senators led by Chuck Grassley, R-Iowa, said Trump failed to give a sufficient explanation for firing Atkinson as required by law and “appears to have circumvented Congress’s role” by replacing him without 30 days notice. “Congress intended that inspectors general only be removed when there is clear evidence of wrongdoing or failure to perform the duties of the office, and not for reasons unrelated to their performance, to help preserve IG independence,” the senators wrote in a letter Wednesday.

Even though IGs are political appointees, they typically serve across administrations and have an entrenched tradition of independence and nonpartisanship.

“IGs are not supposed to be anything other than independent,” said Earl Devaney, a former IG at the Interior Department and former chairman of the Recovery Accountability and Transparency Board. “Legislation would be better used to firm up the notion that the president just can’t on a whim get rid of somebody.”

Devaney said the flaw was not with the PRAC’s design but with the president’s behavior. “I don’t think this is healthy with anybody,” he said. “Sitting IGs are horribly upset by this.”

Protecting IGs from at-will firing passed the House as part of a 2008 reform bill but wasn’t included in the final version. Some lawmakers have constitutional concerns, opting instead for the notice requirement that Grassley and his colleagues cited.

“Even though there has been this vulnerability, we haven’t seen a president taking advantage of it in the way we’re seeing right now with President Trump,” Hempowicz said. “I’m not sure if there’s anything Congress could have done short of enacting for-cause removal for inspectors general.”

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Biden Seems To Offer Consolation Prizes To Sanders Camp On Medicare, Student Debt

Presumed Democratic nominee Joe Biden offered up two new policy planks Thursday, a seeming conciliatory gesture towards supporters of Sen. Bernie Sanders (I-VT), who suspended his campaign a day previously.

Continue reading “Biden Seems To Offer Consolation Prizes To Sanders Camp On Medicare, Student Debt” →

Goodfellas

One of the big questions hovering over this medical supply and PPE shortage story is how much of this is just chaos and mismanagement versus some sort of more organized bad acting. It’s simply not clear. This morning I heard from a board member of a regional private hospital system who said these seizures aren’t just happening. They’re commonplace. Seemingly bordering on routine. To paraphrase this person’s account it’s searching high and low everywhere to find supplies and on those rare occasions when you strike gold the feds are likely to jump in and grab your stuff anyway. Hearing this my sense – not the source’s words – is that it’s almost like FEMA and whatever other agencies are doing this are using these desperate buyers as their involuntary lead generators. Let them find the stuff and when you see a shipping order surface, grab it.

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Census Bureau To Add Coronavirus-Related Questions To Its Business Surveys

The Census Bureau is adding COVID-19-related questions to a handful of business surveys it conducts, according to regulatory filings submitted this week.

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How A Border Wall Fundraiser Jumped Head-First Into The International Medical Supply Game

On March 3, Brian Kolfage tried to reach the U.S. government — through Instagram.

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UK Prime Minister Boris Johnson Moved Out Of ICU

LONDON (AP) — British Prime Minister Boris Johnson has been moved out of intensive care, his office said Thursday.

In a statement, a spokesman at 10, Downing Street said Johnson “has been moved this evening from intensive care back to the ward, where he will receive close monitoring during the early phase of his recovery.”

Johnson had been in intensive care for three days after his symptoms for coronavirus worsened. He tested positive for the virus two weeks ago and at first had only “mild” symptoms.

PPE and Ventilators Becomes Patronage in Trump’s Hands

As we work to find out the scope and goals of the White House’s seizure of medical goods across the United States, a simpler pattern is coming into view: the White House seizes goods from public officials and hospitals across the country while doling them out as favors to political allies and favorites, often to great fanfare to boost the popularity of those allies. The Denver Post today editorialized about one of the most egregious examples. Last week, as we reported, a shipment of 500 ventilators to the state of Colorado was intercepted and rerouted by the federal government. Gov. Jared Polis (D) sent a letter pleading for the return of the equipment. Then yesterday President Trump went on Twitter to announce that he was awarding 100 ventilators to Colorado at the behest of Republican Senator Cory Gardner, one of the most endangered Republicans on the ballot this year. As the Post put it, “President Donald Trump is treating life-saving medical equipment as emoluments he can dole out as favors to loyalists. It’s the worst imaginable form of corruption — playing political games with lives.”

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Why The Economy Is Unlikely To Recover As Quickly As It Collapsed

BALTIMORE (AP) — President Donald Trump has been telling voters that the U.S. economy will leap back to life “like a rocket,” stronger than ever after its bout with the coronavirus.

But there is a reason economics is called the “dismal science.” There are emerging signs that any recovery will fail to match the speed and severity of the economic collapse that occurred in just a few weeks. The 2020 presidential and Senate elections likely will take place as the world’s largest economy is still attempting to climb back from the deadly outbreak.

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NYC Mayor: Don’t ‘Let Up The Gas’ Or Else There Will Be COVID-19 Resurgence

New York City Mayor Bill de Blasio said on MSNBC Thursday that despite a decrease in COVID-19 hospitalizations in his city, people still need to continue complying with mitigation strategies. Continue reading “NYC Mayor: Don’t ‘Let Up The Gas’ Or Else There Will Be COVID-19 Resurgence” →