Bargaining to Preserve Jobs

April 10, 2009: Times are tough and many employers are telling members that they have to sacrifice or they’ll lose their jobs. That doesn’t mean our union has to take cuts lying down.

Here’s what rank-and-file members can do to help preserve Teamster jobs even when concessions are on the table.

Many Teamsters have seen their business agents just give in when employers come asking for concessions.

It doesn’t have to be that way. Even when a company does need economic concessions to survive, members can use their sacrifice as leverage to win contract language that strengthens job security.

What Members Can Do

In many Teamster locals, members who are covered by local agreements can play a direct role in bargaining by serving as rank-and-file members of negotiating committees.

Even in locals where members aren’t on bargaining committees, members can suggest contract improvements, distribute informational materials to other members, and work together to hold the bargainers accountable.

Can the Company Pay?

First of all, find out if the company can really pay or not.

When a company says it doesn’t want to pay for wage increases or benefit improvements, it may just be hard bargaining.

When a company says it cannot pay, the NLRB has held the union has the right to audit the books. The union may not be able to win economic improvements. But the union can still ask for non-economic improvements, especially improving job security—an opportunity many Teamster locals miss.

Before going into bargaining, research the company’s finances and decide for yourself if they can pay. You can download government filings and stock reports for companies that are publicly-traded on the U.S. stock market.

Successors and Assigns

If your company is in really dire shape, one of the first areas to improve is the section on “Successors or Assigns,” the section that says what happens when the employer is sold, goes into bankruptcy, or changes its legal status.

Usually members are the last to find out when their company is going under.

In bargaining, members can demand at least 30-day written notice prior to any sale, bankruptcy, or any other change of status. That way members will have a chance to organize and represent themselves if the company does go into bankruptcy.

One goal is language requiring the company to require, as a condition of sale, transfer, or re-organization that the contract is honored in writing prior to the change.

Stopping Subcontracting

Is your employer giving union work to nonunion subsidiaries or other firms? Push for language that limits or eliminates subcontracting.

If you can’t win that, another option is a neutrality or card-check agreement at your employer’s nonunion subsidiary.

Recall and Bumping

When members are laid-off, how long do they have recall rights for?

Does your contract include language about bumping down in your classifications, or into other classifications? You can strengthen seniority by winning language that lets members bump down in their classification, and horizontally into other classifications.

Length of the Concession

At YRC, our union negotiated a cut that lasts for the length of the contract—over four years. That’s too long. If you have to agree to a cut, you can ask for language that lets you re-open the cut one or more times during the contract. Make sure to include language that gives the union access to the company’s books.

Sharing the Pain

Asking for management to take a pay cut and share the pain is a non-mandatory subject of bargaining; that means the company does not have to discuss the issue if it doesn’t want to.

Still, union negotiators can remind management that members must approve any deal—and they won’t be happy if management isn’t sharing the pain.

Wiggle Words

Management loves “wiggle words” that make the contract ambiguous; such as, “insofar as practical,” “whenever possible,” “in cases of emergency,” “advisable,” “normal,” “seasonal,” “casual,” or “qualified.”

Many contracts have management rights clauses which say “The employer retains all rights except those specifically modified by this agreement.” Absent the union and company agreeing on who is a seasonal employee or what is work normally performed by the bargaining unit, management retains the right to make the call.

Wiggle words make it harder for stewards to win grievances and for the union to win in arbitration. When the company demands a wage freeze or concession, you can demand stronger contract language and clear, enforceable language.

Be Prepared

Management, or an uncooperative business agent, can easily dismiss your suggestions if you’re not well-prepared.

Start off by looking at your contract. Look at each article, and make a list of areas where you need improvement.

Compare your current contract to the two previous agreements. Has your language improved, or degraded? Look at the grievances you have lost under the current agreement. Why have certain grievances not been taken to arbitration? What language gives you the most trouble?

Once you have identified what needs improvement, prepare proposed changes to the language that would eliminate wiggle words and strengthen job protection. Contact Teamsters for a Democratic Union to talk to experienced bargainers who can help you craft tighter language.

And of course, work with other members to educate them about why these changes are necessary, so that you have the support of your bargaining unit behind you. TDU can give you advice on that, too.

The more prepared you are, the harder it will be for your business agent to shoot you down, and the more you can do to protect members’ jobs.

Education for Stronger Contracts

Go to school. The National Labor College, Cornell University, Wisconsin School for Workers all have programs, as do many state colleges and universities.

Get the books. Books such as The Common Law of the Workplace (by St. Antoine), Negotiating a Labor Contract (by Loughran), Drafting the Union Contract (by Lareau) or The Contract Bargaining Handbook (by Better) are good examples. There are also shorter materials.

Be at the TDU Convention to attend classes on bargaining strong contracts taught by experienced Teamster bargainers and leaders. Nov. 6 - 8 at the Cleveland Airport Sheraton.

Contact TDU to get advice or meet with other members in your area. Call (313) 842-2600.