Worker-friendly wage, union bills debated in Congress

Pope Leo XIII, in his 1891 Encyclical Rerum Novarum, set out some basic principles of Catholic Social Teaching in a modern economy: that every worker has the right to a living wage, and that workers have the right to organize in labor unions. There’s some modest good news on both fronts in Washington. In mid-July the 2019 Raise the Wage Act passed the House of Representatives. Meanwhile, the Protecting the Right to Organize (PRO) Act continued to collect co-sponsors.

Pope Leo XIII, in his 1891 Encyclical Rerum Novarum, set out some basic principles of Catholic Social Teaching in a modern economy: that every worker has the right to a living wage, and that workers have the right to organize in labor unions. There’s some modest good news on both fronts in Washington. In mid-July the 2019 Raise the Wage Act passed the House of Representatives. Meanwhile, the Protecting the Right to Organize (PRO) Act continued to collect co-sponsors.

The Raise the Wage Act proposes to raise the federal minimum wage in a series of steps to $15/hour in 2025. The bill passed the House July 18 by a vote of 231-199. The federal minimum wage has not been raised for a decade.

The PRO Act targets a number of tactics employers often use to prevent their workers from forming a union. It would provide swift remedies for workers illegally fired for union activity; forbids employers from holding “captive audience” meetings with workers, where they attack unions but don’t permit union advocates to respond; and offers binding arbitration when an employer refuses to bargain with a union voted in by a majority of employees. The PRO Act has won 190 co-sponsors in the House, and 40 in the Senate.

Sadly, prospects for these important bills seem dim in the current Senate. The Catholic Labor Network hopes and prays that these initiatives for the common good will find a warmer welcome after the 2020 elections.

Extreme Capitalism

The Working Catholic: Extreme Capitalism
by Bill Droel

Economic indicators ebb and flow, though not with high predictability. In the years after World War II the U.S. economy was growing and its benefits were enjoyed by most middle-class families. Sputtering began in the late-1960s and by the mid-1970s U.S. companies were losing their competitive edge, details Steven Pearlstein in Can American Capitalism Survive? (St. Martin’s Press, 2018). U.S. consumers judged all types of imports to be of better quality and/or of a better price than the U.S.-made counterpart. Several U.S. companies, slow to innovate, were near extinction.
A rescue effort, indeed a transformation, began in the 1980s. President Ronald Reagan (1911-2004) is often associated with this economic comeback, but the factors were many. Re-engineering, mergers, deregulation, sub-contracting, new tech businesses and more all played a part. “The transformation was messy, painful, contentious and often unfair,” writes Pearlstein. However, “it worked.” He outlines the business philosophy that drove the recovery. Briefly: 1.) Government is “significantly responsible for the decline” in U.S. competitiveness; 2.) “The sole purpose of every business is to deliver the highest possible financial return to its investors; 3.) No matter how ruthless, no matter how big the wealth gap, business “must ignore and dismiss moral concerns as naïve and ultimately self-defeating.” Pearlstein nods favorably toward these principles—to a degree. He summarizes them as supply-side economics, maximum attention to shareholders and a self-justifying market.
Pearlstein goes on to argue that the improvements of the 1980s have gone extreme. “What began as a useful corrective” became “morally corrupting and self-defeating economic dogma.” The business philosophy of the moment is driven by supply-side fantasies, anti-regulatory zealots, single-mined management focused on short term stock returns, the “grubby pursuit of self-interest” and a perversion of justice that cheats, manipulates and disrespects loyal workers and ordinary consumers. Today’s business philosophy has “betrayed its ideals and its purpose and forfeited its moral legitimacy,” Pearlstein concludes.
Catholicism agrees. But it is not because the economy has taken some useful principles to an extreme. No, the principles named by Pearlstein are at fault, no matter the degree. Business is a noble vocation, Catholicism repeatedly proclaims. (See Vocation of the Business Leader, NCL, PO Box 291102, Chicago, IL 60629; free.) Further, there can be legitimate differences over how much government regulation is proper; over the relationship between shareholders and stakeholders; over the best way a business can serve the common good. But the prior principles for business are different in Catholicism than in extreme capitalism.
Work and creative genius are needed for any healthy economy, Pope Francis recently told an Italian business publication. A healthy economy “is never disconnected from the meaning of what is produced and economic activity,” he said. The meaning of work, Catholicism insists, is the worker. The first purpose of a business is its workers, which includes executives, janitors, sales force, delivery drivers, part-time consultants, assembly-line people and all others. Start with that principle, says Catholicism, and the chances increase for regular customers, honest suppliers, responsive lenders, successful recruiting and profit over time.
Unfortunately, Francis continued, some people have a business mentality which says money is made by money. But “money, real money, is done with work. It is work that confers dignity on people, not money.” Of course, financial investment is essential. And of course, profit is a good thing as long as “actions and responsibilities, justice and profit, production of wealth and its redistribution, operation and respect for the environment, become elements that over time guarantee the life of the company… From this point of view the meaning of the company widens and makes us understand that the sole pursuit of profit no longer guarantees the life of the company.” When Francis says “This economy kills,” he means extreme capitalism. It kills the very outcome that it pretends to desire.
Presenting Catholic economic principles is a hard sell. Who believes that our company or any company or firm is here for all the workers? It is a hard sell too because Catholic institutions are hypocritical when, for example, they preach justice but do not pay a family wage. Or hypocrisy is the word when bishops do not deal responsibly with deviant employees while preaching respect for life.
Yet some companies do operate under the principle that each worker is a subject of work. They do not—and should not—trumpet Catholicism on their marquee. A company does not have to be Catholic in any sense to be excellent. Nor is it is necessary that these good companies are even aware of any ethical sources for their operations. Finally, they don’t—and probably cannot—be consistently principled. There are though—partially, imperfectly, inconsistently—companies that are not interested in extreme capitalism.
Can you think of any? Chobani? Southwest Airlines? Starbucks? Procter & Gamble? UPS? Dick’s Sporting Goods? Please react to these suggestions and nominate others.
Businesses, says Pope Francis, “can make a great contribution so that work retains its dignity by recognizing that people are the most important resource of every company, working to build the common good, paying attention to the poor.”

Droel is associated with National Center for the Laity (PO Box 291102, Chicago, IL 60629)

Airline Food Service Workers across US Take Strike Votes

After a strike vote, food service workers at National Airport in Washington DC warn passengers about the developing labor dispute.

The workers who prepare food for flights are among the poorest paid in the airline industry. In many areas they earn little more than the minimum wage, and they can seldom afford the high premiums to participate in their employer’s health insurance plans. That’s why thousands of them have organized and joined UNITE HERE, the hotel and restaurant workers’ union. The catering firms that employ them, however, have refused to budge. So one by one, workers in airport kitchens across the country have taken strike votes. Will there be a nationwide strike in the fall?

That depends on the airlines. Although most of the airlines outsourced these jobs long ago, they still hold the key to a living wage for these food service workers. One job should be enough to support a worker and his or her family, and the highly profitable airlines can afford to make this happen. The Catholic Labor Network will keep you posted as this story develops.

Labor Priest Elected to AUSCP Leadership Team

Fr. Andy Spitzer (left) was elected to the AUSCP leadership team.

In late June, hundreds of priests from across the country gathered in St. Louis for the annual meeting of the Association of US Catholic Priests (AUSCP) and elected Fr. Andy Switzer, a prominent West Virginia labor priest, to join the organization’s leadership team.

Fr. Switzer introduced himself to the assembly in a speech reflecting on his upbringing as the son of a coal miner and his ongoing commitment to bring the good news to West Virginia workers. Switzer first came to the attention of the Catholic Labor Network when he was arrested alongside more than two dozen retired mineworkers and union activists in a civil disobedience action. (The mine operators were attempting to use restructuring and bankruptcy proceedings to escape health care obligations for some 23,000 retirees.)

Other high points of the conference included a keynote address by Cardinal Blase Cupich exploring how both lay and ordained Catholics share a common priesthood through their Baptism, and a colloquium led by Bishop John Stowe on the topic of “Prophetic Obedience and Prophetic Action.” Finally, Fr. Rich Creason, recently retired Pastor of Holy Trinity Church in St. Louis and a longtime member of the Catholic Labor Network, was honored for his life’s work at an award banquet (alongside Sr. Norma Pimentel, whose work caring for migrants in McAllen, TX, has brought her national recognition).

The AUSCP’s Labor Working Group has supported Catholic Labor Network initiatives for several years, and today the organization is providing valuable assistance in our new Church-Labor Partnership Project.

Union Grocery Workers Picket to Protest DC Metro Store Closures

In the Baltimore-Washington area there are three union supermarket chains: Safeway, Giant, and Shoppers Food. There may soon be two, as Shoppers’ corporate parent is rapidly closing locations with little public explanation.

The grocery workers, who are members of United Food and Commercial Workers (UFCW) Locals 400 and 27, say the parent company, United Natural Foods Inc, (UNFI), is closing the profitable stores to satisfy private equity investors. They want the company to consider more than their wealthy investors, and have conducted informational picketing to alert the community.

Prior to its sale to UNFI, Shoppers had been known as a good company to work for, with excellent benefits and wages negotiated by UFCW over the years.  The roughly 3000 Shoppers workers have an average seniority of 18 years and their long tenures in the same store means they know their customers personally. One UFCW member in DC expressed uncertainty about the future and the ability to find a secure job with good benefits in a grocery industry that is under pressure from anti-union retailers like Wal-Mart to drive down wages. She said many workers live paycheck to paycheck and losing these union jobs will drive many into financial distress trying to make ends meet. Union activists said Shoppers workers could go from a union job offering $18 per hour with vacation, extra Sunday pay, and excellent healthcare to a nonunion one offering $12 per hour with little or no benefits.  Another member from a store in Maryland was worried about losing the healthcare benefits because her daughter depends on the vision benefits negotiated in her union contract.

The UFCW members are frustrated because the parent company has left them in the dark about the store closures. UFCW is demanding the UNFI take measures to facilitate handing off the Shoppers locations to other union employers such as Giant or Safeway in order to preserve good jobs and avoid food deserts in poor communities.

Losing union jobs like those at Shoppers has a devastating impact on workers and consumers in our communities. Many of the Shoppers locations facing closure are serving communities bereft of grocery stores and their closure drives consumers out of their community to shop. The decent wages and benefits offer stability and dignity in many communities that are often economically insecure.

As Catholics, we must stand up for good union jobs that uphold the dignity of work and give members of our community economic security. We need to stand against the erosion of decent jobs in favor of an economy that favors Wall Street and wealthy investors instead of our communities.

Tenth Anniversary of “Respecting the Just Rights of Workers”

Today, June 22, marks the tenth anniversary of a remarkable document. Respecting the Just Rights of Workers: Guidance and Options for Health Care Workers and Unions was released on June 22, 2009, signed by a roster of 10 Bishops, union leaders, and Catholic hospital administrators.

Throughout US history, nuns belonging to a variety of religious orders had made care for the sick a focus of their work in the world, and their institutions came to account for some 15% of the nation’s hospital beds. The sisters became a model of Catholic and Christian charity known especially for their care for the poor – unlike many competitors, their nonprofit institutions could focus on the needs of patients rather than the demands of shareholders.

The last years of the twentieth century witnessed an explosion of organizing in the nation’s hospitals and nursing homes. Had nuns still been staffing the Catholic hospitals this movement would surely have had little effect: the sisters, who took vows of poverty, chastity and obedience, did not pursue personal wealth, had no families to support, and a vow of obedience that made strikes unlikely. But by the 1980s and 1990s, the dwindling number of sisters in these communities dictated that most employees were laypeople, who had taken no such vows and were supporting spouses and children.

I suspect that this experience gap between the sisters who still dominated the hospital corporate boards and the new lay workforce — many of whom were not Catholic in any event – explained much of the bitterness that accompanying some of the organizing campaigns. (Adam Reich’s 2013 study examining one of these organizing campaigns, With God on Our Side: The Struggle for Workers’ Rights in a Catholic Hospital, is illuminating on this issue.)

Catholic Social Teaching on the right to organize offered a framework for the two sides to begin a dialogue in 1997, hosted by the USCCB. In 1999 the group issued a Working Paper describing their shared principles, “A Fair and Just Workplace: Principles and Practices for Catholic Health Care.” But it would be another decade before the discussants issued the final product, Respecting the Just Rights of Workers. The guidance document urged that management and labor debate the issue of collective bargaining in a spirit of charity, each assuming the goodwill of the other party – and stressed that under Catholic Social Teaching the right to organize or not to organize in a union belongs to the workers alone.

The document has not put an end to bitter union organizing fights in Catholic hospitals – to work, both hospital administrators and unions must agree to honor its principles. Today, most Catholic hospitals in the Northeast and on the West Coast are organized, but the situation in the Midwest is mixed, and few Catholic hospitals in the South engage in collective bargaining with unions representing their employees. As workers in nonunion hospitals continue to seek union organization, and hospital management must decide how to respond, Respecting the Just Rights of Workers offers an important resource for both parties to consider.

 

On the Edge

The Working Catholic: On the Edge
by Bill Droel

There are prophets of peace and builders of peace. There are protesters and institutional reformers. There are outsiders and insiders. The distinction is fluid. A person might be a prophetic outsider on one topic and an expert insider on another.
Newspapers and textbooks often present the outsider as a model for social justice. The outsider is concerned with social change but not overly concerned with how to implement reform. The insider gets less attention. They are the ones who speak institutional jargon. They can be dull. They know tax tables and zoning laws; they know about international protocols and about pipeline treaties. These insiders resist the first answer that occurs to them because they have heard the world’s complexities reduced to slogans. They take confidence in their faith but they do not believe that God is on their side or that God is opposed to their opponents. Insiders regularly wonder if they are right. They readily acknowledge to themselves that in this or that situation they are only 75% right.
The outsider is necessary for momentum but eventually the insider makes social change. Without inside reformers there are only passing reactions to grievances. Are there any bridges between the vociferous outsider and the stodgy insider?
The term ginger group is sometimes used in England and elsewhere. It refers to a conscience within a broader social reform movement or organization. A ginger group is loyal but it also dissents from an organization’s leaders. For example, Labor Notes (www.labornotes.org) with offices in Detroit and Brooklyn is loyal to unions. But it champions those workers that reform a workplace without waiting for clearance from an international union headquarters. Voice of the Faithful (www.votf.org), to mention a second example, has headquarters in suburban Boston. Its members have not left Roman Catholicism in disgust over bishops’ malfeasance nor have they challenged Catholic dogma. Instead they are a controversial ginger group that presses for reform.
Center for Action and Contemplation (www.cac.org) is the hub for all things regarding Fr. Richard Rohr, OFM. In a 2013 pamphlet titled Eight Core Principles and in some of his blogs, Rohr uses the term edge of the inside. A group on the edge of the inside of an institution is “free from its central seductions, but also free to hear its core message in very new and creative ways,” Rohr writes. An edge of the inside type group must love both the institution and the outsider critique of the institution, and it must “know how to move between these two loves.” An edge of the inside group advocates for change by “quoting [the institution’s] own documents, constitutions, heroes, and Scriptures against its present practice. This is their secret: systems are best unlocked from inside,” Rohr writes. The total outsider simplistically chooses one idealized alternative while denigrating the other institution. “This has gotten us nowhere,” Rohr concludes.
Does a posture of edge of the inside make sense in our current predicaments? Would Democrats for Life be an edge of the inside example? How about Change to Win, an affiliation since 2005 of four labor unions? Is an edge of the inside group ever effective? Or is edge of the inside but a temporary stop for outsiders with their denunciations and agitations on their way to being insiders? Please share your experience with this columnist.

Droel is an editor with National Center for the Laity (PO Box 291102, Chicago, IL 60629).

Personalism

The Working Catholic: Personalism
by Bill Droel

Is there a sustaining philosophy for idealistic young adults? Is there a creative path that cuts through the inanity of social media, of most TV programming, of the self-help industry? Is there a comprehensive outlook that resists cynicism and resentment? Is it possible to access a fountain of inspiration while maintaining a busy work schedule and keeping up with family obligations?
World War I ended in 1918, only to be followed by the Great Depression which began in 1929. In the wake of these major traumas, idealistic young adults seriously probed the meaning or lack thereof in the feverishness of modern progress. Could it be that the promise of plenty necessarily results in the opposite? In grappling with these and similar questions, a cadre of young adults in Paris and elsewhere constructed a philosophy they called personalism. Emmanuel Mounier (1905-1950) was its initial leader; the literary journal Espirit (www.espirit.presse.fr) was its main organ. In addition to Mounier, other personalists included Jacques Maritain (1882-1973), Nicholas Berdyaev (1874-1948) and Gabriel Marcel (1889-1973). A young actor and seminarian in Poland, today known as St. John Paul II (1920-2005), contributed to Espirit. Jacques Ellul (1912-1994), sociologist and leader in the Reformed Church, can likewise be considered a personalist.
The common response to the Great Depression and to our own societal and economic disruptions is a call for more self-reliance, more unencumbered liberty. A personalist, however, knows that a hard accent on individualism only leads to worthless relativism. Today of course, relativism has taken over our culture. For example, White House advisor Kellyanne Conway, a Catholic, says there are “alternative facts” and Rudy Giuliani, another Catholic, says there is no truth to be found. Or there is this extreme expression of relativism from former Supreme Court Justice Anthony Kennedy, also Catholic: “At the heart of liberty is the right to define one’s own concepts of existence, of meaning, of the universe and the mystery of human life.”
Liberty is a marvelous modern achievement. Personalists, however, make a distinction between a solitary individual and a relational person; between freedom from and freedom for. One’s future is not predetermined by nor subordinate to one’s family of origin or by one’s caste. But the modern celebration of autonomy cannot mean an absolute defense of individual privileges. A person naturally self-actualizes within relationships, personalists say.
There is another characteristic of personalism that appeals to today’s young adults. The plan for life “emerges from the comradeship of the road rather than the diagrams of the classroom,” Mounier writes. Abstract principles preached from on high only answer questions no young adult is really asking. Moralizing, says Mounier, only further alienates. Experience is what counts. Serious thinking alone is but one more rotation on the merry-go-round. Friendship and involvement are crucial. Then young adults process the experience with critical reading and thinking, along with deep conversation. There must be action. A book club or a rump group is good, but alone such gatherings do not adequately contain enough substance. Action is essential for a meaningful, holy life. And along the way, young adults in action/reflection improve our world.
The secret is involvement in the world absolutely combined with a spiritual element, the personalists say. Don’t expect a fully formed spiritual life to come first, however. “The first step in the spiritual revolution is the economic and political revolution,” Mounier writes. The material world has to be reformed in a way that allows distressed people “to find their way towards things spiritual.”
Personalism is not an organization with a website. There is no Personalism for Dummies workbook. So where can a young adult find this philosophy? It is a process of reading, thinking, finding friends and small collective efforts for improving one’s workplace, school, neighborhood or society.
Peter Maurin (1877-1949) brought personalism to the United States from France. He was a co-founder of the Catholic Worker Movement, a chain of 174 hospitality communities in the United States, plus some overseas. Several publish a newspaper. The flagship publication is titled The Catholic Worker (www.catholicworker.org). The Houston Catholic Worker (www.cjd.org) is particularly good.
Some organic community organizations in our country, though maybe unaware of its influence, are promoting the basics of personalism. They stress one-to-one encounters prior to any public policy topic or any grievance. The bigness of the state and of industry is not a solution, a personalist group maintains. Action is essential. Then reflection, or what Maurin called “clarification of thought,” must follow.

Droel’s booklet, Public Friendship, is available from National Center for the Laity (PO Box 291102, Chicago, IL 60629; $5)

Corporate Elections

The Working Catholic
by Bill Droel

There are new rules for electing players to the All Star teams. As in a presidential election, fans now vote in a primary and then in a conclusive election. The primary determines the top three players at each position for each league (each league’s top nine outfielders are grouped together). The fan’s conclusive vote determines the starters. Then MLB players have a ballot, plus the All Star managers and the commissioner have some discretion. Thus some players will be in Cleveland on July 9, 2019 by way of the fans, others by way of fellow-players and some by way of management.

New rules for electing corporate boards are needed. Currently, stockholders vote (including by proxy). Many of these stockholders are “the most uninvested, irresponsible parties involved” with the company, says David Ciepley in Hedgehog Review (Spring/19). “They have never contributed a dime to the corporations” because they acquire the stock on speculation in the secondary market, often in a bundled retirement fund. They hold a stock on average for four months. They are uninterested in “making improvements for long-term returns” but instead favor “quickly squeezing what they can out of the company.” A few people acquire a company’s stock in a different way, but they too are often fixated on the firm’s quarterly performance on the Nasdaq or another exchange. These people are the company’s executives who are paid in stock, not cash. At election time they nominate and vote for like-minded directors.
A crucial step “for reducing corporate misconduct and for reorienting the corporation to public purposes,” writes Ciepley, is “overthrowing the baleful notion, currently regnant in law schools, the business press and even the courts…that corporations are purely private associations and that their stockholders are [in any meaningful way] their members, owners or principals.” He admits that “there is no simple or obvious path to restoring the public purpose of the corporation.” Ciepley does though allude to co-determinism, a mechanism for including stakeholders in corporate governance.

This notion, which derives from Catholic doctrine, has long been advanced by theologians, public policy leaders and business executives, as Matt Mazewski, a student at Columbia University, details in Commonweal (3/22/19). There are examples from Great Britain and elsewhere, though he concentrates on Germany.
Catholic philosopher and mining engineer Franz von Baader (1765-1841) was among the first to develop sound arguments for worker participation in corporate governance, Mazewski finds. By 1891 Germany passed legislation for factory councils to advise management. The notion gained popularity after World War II. For example, Heinrich Dinkelbach (1891-1967), a Catholic and a steel manager, devised a plan for general input from trade unions for business direction. In 1951 Chancellor Konrad Adenauer (1876-1967), also Catholic, won legislative support for special co-determinism provisions.
The general concept appears in several Church documents. It is explicitly promoted by Pope Pius XI (1857-1939) in his 1931 encyclical Reconstructing the Social Order. His Latin phrase for co-determinism, collegia ordinum, is translated industry council plan in the U.S.  Pius XI and the others said that some form of this doctrine tempers adversarial feelings between workers and owners because both are participating in the company’s success. It puts an emphasis on self-regulation and thus makes government meddling in business less necessary. The temptation to absorb these stakeholder councils into one or another government agency must be resisted. Unions do not disappear; management does not disappear; stockholders remain and government retains a role. The council plan can be variously constituted and look differently in various sectors. With genuine and full cooperation a business grows because participation is enhanced through the plan.
Establishing a true community of work “will not be easy,” Mazewski concludes. But putting varied interests on corporate boards “would certainly be a good place to start.”

Droel is associated with National Center for the Laity (PO Box 291102, Chicago, IL 60629). NCL distributes Were You Born On the Wrong Continent by Tom Geoghegan ($20), which considers co-determinism in Germany.

One year after Janus

Supreme Court decision opposed by Bishops, unions impacting labor movement

Last year, in a narrow 5-4 decision, the Supreme Court struck a critical blow against social solidarity in Janus v. AFSCME. The conventional practice of American labor relations holds that workers in a particular place of employment are a community with shared concerns, so they choose as a group whether they wish to form a union and engage in collective bargaining. If a majority of the workers vote yes, the union represents everyone in the shop in bargaining and grievance handling, and everyone may be required to pay dues for its support. If the workers become dissatisfied with their union, they may vote to dissolve it – again, by majority rule. The workers go in together, and out together. Besides fostering social solidarity, this method addresses a practical issue that economists call the “free rider” problem: the union contract benefits everyone in the shop, whether they pay dues or not.

Mark Janus didn’t much care about social solidarity or the desires of his co-workers. An Illinois state employee covered by a union contract, he argued that his personal freedom of speech was violated if he had to pay any fees for the union’s services and maintenance. Naturally, the AFL-CIO and AFSCME (the American Federation of State, County and Municipal Employees) opposed Janus. Moreover, the US Conference of Catholic Bishops (USCCB) filed an “amicus brief” reviewing the history of Catholic Social Teaching on labor unions and supporting the union. The brief even compared the case to the notorious Roe v. Wade ruling, in that a decision for the plaintiff would in essence rule Catholic teaching unconstitutional. Nevertheless, the Court sided with Janus, and overnight so-called “right-to-work” policies were imposed on every public workplace.

Predictably, the year saw the number of “free riders” multiply. AFSCME and other unions representing public employees vowed to redouble their efforts to persuade “free riders” to join the union, with some success. A recent Politico story indicates that these “internal organizing” efforts, combined with (member-authorized) dues increases, prevented expected financial losses for the affected unions, at least in the early running.

Nevertheless, the spirit of individualism — the spirit of the “free rider” — is abroad in the land, and we are the poorer for losing one of our remaining frameworks for social solidarity.