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Vol 4, Issue 9

May 1, 2008

President Joe DiNicola

    Every day, every SEIU Local 503, OPEU member has an opportunity to stand up for the rights of co-workers on the job. Some fights make a big difference. Some fights may seem to make only a small difference. Sometimes the issue can be about being able to take a rest break at the proper time and sometimes it can be about stopping the mistreatment of co-workers. It can also be about protecting the retirement security of every worker.

     In this issue of President Joe's Journal, members take a close look at how union member public pension fund dollars are invested. Also, every member has an opportunity to be nominated or put in his or her own name for the SEIU Local 503, OPEU statewide officer positions of President, Vice President, Secretary-Treasurer and Executive Director. This regularly scheduled election is held every even numbered year. Finally, the labor story in the movie North Country tells about a woman worker's historic fight for a proper rest break and respect on the job that turned into a big win for every worker in America.

    In this issue: What's Wrong with Private Equity?    Statewide Officer Nominations: Now's the Time!  Labor Movie Review: North Country

 What's Wrong with Private Equity?
    In recent years, SEIU Local 503, OPEU members and Public Employee Retirement System (PERS) plan participants have been paying very close attention to decisions made by the Oregon Investment Council (OIC). The OIC manages more than $60 billion of member pension fund assets and every one of those dollars belongs to members. Investment returns have increased this fund by nearly $20 billion since 2003. The OIC invests member pension funds in stocks, bonds and real estate, as well as alternative investments which include "private equity."

     Private equity includes investments in what are called Leverage Buyout (LBO) firms. These LBOs typically buy public companies off the stock market and re-sell them a few years later. They can generate hundreds of millions of dollars for owners, company management and pension funds. LBOs typically don't use their own money in these deals; they use other people's money. University endowments, wealthy individuals, and pension funds like PERS are rich sources of cash. LBOs borrow the rest of what they need to finance a deal and often leave the companies they buy loaded with debt.

     While LBOs have generated good returns in the past, SEIU researchers and recent reports in the financial press suggest that LBO practices work to undercut the tax base, increase wealth disparity, remove transparency from business practices and cut out workers and communities from decision making. In today's economy, LBOs may also represent an unacceptable level of financial risk for pension plan members. "The buyout industry and its harmful practices are receiving greater scrutiny as Americans struggle with a growing sense of anxiety over the state of the economy and the expanding income gap between the richest 10th of Americans and those in the middle class." (From: Winners and Losers: Fallout from KKR's Race for Profit, 2008, SEIU, Washington, D.C.)

    The retirement security of more than 20,000 public-sector SEIU Local 503, OPEU members is invested with LBO firms through OIC. Last year, the OIC invested $1.5 billion dollars with Kohlberg, Kravis & Roberts, known as "KKR." Recently, KKR has been accused of irresponsible business practices that endanger consumers as well as using risky investment strategies that may not adequately protect the interests of pension fund investors and the members they serve. SEIU members believe it's time to call on KKR and other major LBO firms to meet higher standards of transparency, accountability and corporate responsibility.

     It's time for the biggest players in the buyout industry to answer questions about how their investments affect the tax base Oregonians count on for critical services, the products Oregonians may purchase, the health of the environment Oregonians live in and the economy Oregonians count on to earn their livelihood. It is certainly within the fiduciary duty and responsibility of the OIC to raise these questions and consider these issues on behalf of every PERS plan beneficiary.

     Visit the SEIU website for more information about private equity and LBOs at www.behindthebuyouts.org. You can also contact me directly at dinicolaj@opeuseiu.org or by phone at 503-581-1505, ext. 222. It's not just members' retirement security on the line. These issues affect everyone's financial future and the future of our communities.

 Statewide Officer Nominations: Now's the Time!
    Have you ever thought about running for elected office in our union? While it may sound daunting, holding an SEIU Local 503, OPEU statewide office is an opportunity to stand up for members and make a difference in the lives of workers all over Oregon. Speaking from personal experience, it's an opportunity like no other.

    Nominations have been open since January 1, 2008 and the statewide officer election will be held in October of this year. The final nomination deadline is set for August 22, but you must get your nomination and candidate statement filed by June 13 by 5:00 p.m. to take advantage of your first opportunity to get your message published in the SEIU 503 VOICE that will be mailed in July to every member statewide.

    There are five statewide officer positions: Executive Director, President, Vice President, Secretary-Treasurer, and Immediate Past President. The first four positions are elected every two years. The office of Immediate Past President is filled by the previous President, as long as he or she maintains active membership in our union.

    The President, Vice President and Secretary-Treasurer are subject to term limits. As a consequence, the current SEIU Local 503, OPEU President and current Secretary Treasurer cannot run for re-election this year. So, whatever the outcome of this next union election cycle, union members will see new faces in both of those positions.

    SEIU Local 503, OPEU is unusual in that unlike most unions, we do not hire an Executive Director, but instead elect one every two years. The Executive Director is the only statewide officer position that does not have term limits. The Executive Director serves as the Chief Executive Officer of our union, as well as the Chief Administrative Officer. It is the Executive Director who makes all decisions about union staff member assignments and has the final say over all day to day union business operations. The Executive Director is also the only statewide officer election in which staff members may be nominated.

     If you want to serve as a statewide officer, now's the time to send in your nomination and get ready to share your vision of SEIU Local 503, OPEU with every represented co-worker. What are the most important issues facing members? How will you help members make progress on those issues? Is our union on the right track or the wrong track? These are the kinds of questions every candidate will get to debate and discuss all over Oregon until the ballots are counted in October.

    Many members may not know that as current President, my second term ends in six months when the next President is installed November 14. The limit of two terms for the President means that my name won't be on the ballot this year. We've been through a lot together since November 2004. Each and every member has fought for and won tremendous victories. Together we've stood strong and won at the bargaining table, at the Capitol, where we work and where we live. Thousands of new members have joined our union and made SEIU Local 503, OPEU stronger.

     Every member knows there are many challenges ahead. Every member also knows that as long as we work together, show respect for each other when we have differences, and stand up for what's right and what makes sense, we will always win. Contact any officer or steward and find out how you can put your hat in the ring for any statewide office. When you decide to run for office, you will be standing up for every union member and worker in Oregon. Good luck!

 Labor Movie Review: North Country
    The 2005 film North Country is based on a true story about Lois Jensen, the first person in American history to file a class action lawsuit to stop sexual harassment. Directed by Niki Caro, Charlize Theron was nominated for an Academy award for best actress for her portrayal of the lead character, Josey Aimes. Frances McDormand brought Josey's best friend and staunch ally to life and Woody Harrelson puts just the right touch of cynicism and character into his role as the class action lawyer. This movie reveals a reality that is both enraging and uplifting.

     The story takes place during the 1980s in the strip mines of the Mesabi Iron Range in northeastern Minnesota where 29 out of 30 mine workers are men. The movie is a searing portrait of the almost unbelievable level of harassment and abuse women working at "the Range" were forced to deal with every day on the job. One of those mine workers, Josey Aimes, is a single mother determined to earn a paycheck that can support her family. Josey decides it's time to speak up.

     When she tries to do the right thing, Josey's community, family members, even her union and just about everyone else in town turns against her. She takes on management at the mining corporation in an epic legal battle. But her battle for fairness means that she must fight on another front to keep her family together at the same time. North Country is the story of a larger than life-sized struggle based on reality. That makes it just like the struggle of every worker who decides to stand up and fight for dignity and respect on the job.

     In the film, Woody Harrelson's character (as attorney Bill White) is given one of the best lines: "What are you supposed to do when the ones with all the power are hurting those with none? Well for starters, you stand up. Stand up and tell the truth. You stand up for your friends. You stand up even when you're all alone. You stand up."

     For those who appreciate the movie, but would also like to read about the actual events, check out the book Class Action: The Story of Lois Jensen and the Landmark Case That Changed Sexual Harassment Law. The real-life Lois Jensen stood up and eventually made a difference for herself, her family and her co-workers. She also changed history for the better for millions of women and men on the job everywhere.