This is the second great setback for workers and unions in Michigan, coming on the heels of last year’s ramming through of so-called ‘right to work’ laws by Republicans and right-wing Governor Snyder. That same Republican-dominated legislative session overrode a fresh, legally binding referendum passed by Michigan voters that rejected Governor Snyder’s use of Emergency Financial Managers (EFM). The Republicans simply tinkered with the old law and passed a new EFM as part of an appropriations bill – which cannot be put to a referendum.

For union workers in Detroit, a city which is 84% African American, the bankruptcy is a disaster. Despite union givebacks and changes to retirement and pension plans, workers are hearing bankruptcy experts say they can expect between 10 and 20 cents on the dollar for their years of hard work and dedication. So despite years of union contracts, negotiated with local elected officials and approved under state laws, a judge will ultimately decide how much of a pension workers will get.

The American Federation of State, County, and Municipal Employees union, or AFSCME, represents about 70% of Detroit city workers, excluding categories like police and firefighters. AFSCME says their pension benefits were reduced by nearly 40% since 2012. In addition, on the job workers took a 10% pay cut in the past fiscal year to help avoid bankruptcy. Right now the average yearly pension is $19,000, but could go down to $9000 after the judge’s ruling.

There is no doubt that Detroit is a suffering city, whose manufacturing base along with hundreds of thousands of jobs largely disappeared since the 1970s. In previous decades Detroit was seen as a successful and exciting city, popularly known throughout the world for cars, sports, Motown music and good jobs. African Americans and their labor were a large part of this success. People in Detroit were proud of their city, their struggles and their accomplishments and they exercised more control over their lives than ever before.

However the big capitalists began to abandon Detroit starting in the 1970s, taking their investments and production elsewhere – to the suburbs, the South and overseas. Population began to fall, reaching less than half of what it once was, down to 701,000 today. With population falling steeply after 2000, Detroit now has a smaller tax base and the same and sometimes greater responsibilities. Corporations that did stay paid less in taxes. The good jobs dwindled. The great economic crisis that hit in 2008 left even more workers unemployed – today around 18% – hurting city income even more.

During the great economic crisis, the U.S. government spent billions to bail out banks and insurance companies, but there is no lifeline for Detroit and its workers. Instead they are being punished with bankruptcy, as if it is the only option. In the process, the politicians and judges are breaking contracts and abandoning long-held promises to workers and unions. Republican Governor Rick Snyder, instead of working with Detroit to avoid crisis, cut state funding in recent years ($66 million was cut between 2011-2012) and then took over local government by appointing an Emergency Financial Manager, sidelining the Mayor and other elected officials. The Governor has used the EFM to take over in small blue-collar towns, local school districts, and now the city of Detroit. The result of the EFM is always the same: cuts in social programs, privatization of schools and services and a refusal to negotiate with union workers, followed by their eventual replacement. In most cases thus far, the targets of EFM are government bodies run by African Americans.

Detroit faces real problems, but the rich and their politicians take advantage of the situation, and turn it into a crisis so they can seize power. Next they privatize valuable assets, like the Detroit Water and Sewage Department, at bargain basement prices. Wall Street wants to get their hands on the water works, so they can charge higher prices to homeowners and make a profit off of what should be a public utility. The EFM for Detroit, Kevyn Orr, has outside experts providing ‘valuations’ of the full range of city assets, including the parking meters and parking garages, publicly owned land like Belle Isle and other parks, the Detroit-WindsorTunnel (to Canada) and the Coleman A. Young International Airport. It may soon all be up for sale.

Even the public works of art in the Detroit Institute of Art are not safe. Emergency Manager Kevyn Orr had all the art appraised this week by Christie’s auction house. Orr’s representative, the New York investment banker Ken Buckfire, had secretly sent Christie’s appraisers to the art museum in June on an ‘informal’ basis. This past week, Buckfire was forced to cancel an ‘informal’ tour of Detroit. ‘Advisers’ were going to be shown the assets of the city that are going up for sale.

Judge Rhodes’ ruling is an attack on pensions, workers and unions across the country. It opens the door for other cities to run out on their contracts and displace unions. With Illinois pensions being called into question and some California cities facing similar funding problems, Detroit is now a test case. Republicans are leading the charge to force bankruptcy, suspend and override election results, to sell off assets and to cut and privatize social services. The Democrats are shrugging their shoulders and promising things will be different at the next election. The unions are in a life and death fight in Detroit. Workers have a lot at stake.

#DetroitMI #PoorPeoplesMovements #pensions #privatization #RepublicanAgenda #GovernorRickSnyder #antiunionBusting #workersRights

Grand Rapids, MI – Giving new meaning to ‘soldiers of solidarity,’ U.S. veterans joined fired health care workers to rally in front of the Grand Rapids Home for Veterans on the afternoon of July 1. The action, involving nearly 100 people, exposed Michigan Governor Rick Snyder’s privatization schemes, in this case leading to neglect and abuse of veterans. Longtime resident care aides employed by the state of Michigan were fired, and their jobs privatized by the non-union J2S Group, a for-profit company that refuses to speak on the matter.

AFSCME Local 261 President Mark Williams called for the protest saying, “Experienced aides were tossed aside on a flimsy cost saving argument. Veterans deserve proper care!”

Ed Helwig is a retired Army veteran E8, and member of both the Disabled Army Veterans and the Veterans of Foreign Wars. Helwig was out protesting in full Vietnam era uniform, including a radio pack. He said, “I am concerned about the abuse and neglect of veterans inside the Grand Rapids Home for Veterans, including 50 women vets from the Vietnam era. There are also Korea and World War II veterans.”

Helwig continued, “Veterans testified at the Michigan State Civil Service Commission a few months ago and told shocking stories. Apparently a trainee from the private company was going to physically lift a vet from a wheel chair to a bed without a Hoyer lift, so the trainer took him out of the room to get the lift and when they came back, the veteran had fallen out of the wheelchair and was lying on the floor with a broken nose and back pains.”

Veterans and fired union workers say military patients are endangered by low staffing levels and poor training that leads to substandard care under the J2S Group. The privatized workers are paid $10 an hour – less than half the pay and benefits the unionized health care workers had. J2S is struggling to fill full-time positions and retain employees.

Megan Terry and Gail Klukos are resident care aides who worked at the Grand Rapids Home for more than nine and ten years respectively. They were fired on March 12, when the private contract workers they were told were “filling in” for vacations and sick days during the past year replaced the 172 union workers. The women said, “Two years ago they stopped admitting to our 750-patient facility and there are 450 veterans now. It is unbelievable, but the entire top floor is empty. Even still, there are still not enough workers to cover weekend shifts and some workers are being forced to take three shifts in a row. That is a violation.”

Terry explained, “As state employees our training involved two weeks of classroom and two weeks of shadowing experienced resident care aides. The privates get eight hours and are sent on their way not knowing what they are doing.”

Asked, “What do you do now?” Terry replied she has a new job in Kalamazoo and Klukos says she is still looking. Klukos said, “I would love to come back and work here again. We still come to visit our patients. We love these guys. Both of us come once a week.”

Fired Veterans Home health care worker and AFSCME union member Michael Booker explained, “The veterans we care for are not just ‘patients’ but also fathers, brothers, sisters, friends and family. My own father spent the last two years of his life here before he died. I saw and cared for my Dad every day. I was lucky not to be drafted to go to Vietnam and I did not want to go, but coming from a military family I felt it was important to take care of those veterans who were forced to go.”

Local African American leader and Vietnam era veteran Paul Mayhue pointed out, “Governor Snyder can fix this terrible situation with an executive order and make it right. All we need is the word from the Nerd! Things are heading in the wrong direction.”

#GrandRapidsMI #Healthcare #AFSCME #veterans #GovernorRickSnyder #workersRights #tradeUnion

Lansing, MI – Upwards of 10,000 union workers and their supporters rallied outside the Michigan State Capitol today, Dec. 11, chanting, “Kill the bill!” People of all ages rallied, from Vietnam Vets to high school students. The United Auto Workers, Michigan Teachers Union, government workers with AFSCME and AFGE, construction, fire fighters and other unions joined together to oppose so-called ‘right to work’ bills.

Michigan Republicans caught Democratic legislators sleeping on the job, and launched a surprise campaign, speeding the ‘right to work’ bills through the House. The vote by Michigan legislators to hamper government unions passed 58 votes to 51. A second bill affecting the private sector, like auto plants, passed 58-52. It allows workers to opt out of paying dues to the union, while benefiting from a union contract. It is a step by Republican politicians aimed at destroying unions altogether.

Now the bills go to Governor Rick Snyder, who promised to sign them, reversing his earlier position. Snyder, a Republican, campaigned for governor presenting himself as “the Nerd”, but once in office ran a far-right agenda benefiting the wealthy and corporations. When the bill passed the House, demonstrators chanted, “Don’t sign it!” both inside and outside the Michigan capitol building.

The governor called out riot police, including riot-clad horses. Former Congressman Mark Schauer of Michigan and other union members were pepper sprayed by police as they attempted to negotiate a path to move away from the capitol building. Then around noon, union rank and file members knocked down a large tent belonging to a handful of anti-union types. The union members reportedly told the misnamed Americans for Progress that today was the union members’ day to protest and chased the corporate toadies away after a few scuffles. Police moved in to try to protect the corporate funded anti-union activists, but arrived too late.

Unions mobilized broadly across Michigan for today’s protest, including unions arriving from the state’s Upper Peninsula. Labor activists also came from Wisconsin, Illinois, Indiana and Ohio in solidarity. The union leaders’ message is “strong unions mean a better life for all working people.” In states with ‘right to work’ laws, wages and benefits are amongst the lowest in the country. The battle is going to heat up again prior to Governor Snyder signing the bills into law. Jesse Jackson arrived in the afternoon and, using the people’s mic, called for a one-day general strike.

#LansingMI #StateRepression #rightToWork #GovernorRickSnyder #antiunionBusting