Unions

I’m back

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me at waynapicchu.jpg
After an epic five-week trip to Bolivia and Peru, I’m back manning the news desk here at the Guardian and trying to catch up on what’s happening. And it seems the biggest things that have changed in my absence are my perspective and energy levels.
The Republicans in Sacramento and Mayor Gavin Newsom here in San Francisco are continuing to push draconian cuts to government services rather than having the courage to challenge the mindless “no new taxes” mantra and have the wealthy pay their fair share. And neither the Democrats in Sacramento or Washington D.C., nor the Board of Supervisors here, seem to be doing much to challenge this race to the bottom. It’s not that they don’t understand. In the last two days, we’ve had Supervisor Ross Mirkarimi and Assembly member Loni Hancock in for endorsement interviews, and they powerfully sound the message that something needs to change and they’re willing to work for it. But with the labor unions distracted by infighting, Democratic politicians battling one another (such as Carole Migden and Mark Leno, who we have the unfortunate task of deciding between for our endorsements that come out April 30), the mainstream media both smaller and more trivial, and many other factors stacked against our species finally getting wise to the problems we face, it looks like an uphill battle.
Does all this make me want to flee back to South America? No, it makes me want to renew the fight for truth and justice. How about you?

The SEIU strikes back

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› jesse@sfbg.com

The Rhode Island Street headquarters for Local 1021 of the giant Service Employees International Union (SEIU) had several surprise visitors April 14. First, International President Andy Stern arrived from Washington DC to speak with the local’s executive board.

Then, after word of Stern’s last minute appearance got out, a group of 20 activists from Oakland–based SEIU affiliate United Healthcare Workers West (UHW) attempted to enter the building and confront Stern about what they perceive to be his anti-democratic administration. They were barred from the meeting. When the Guardian attempted to gain entrance, we were twice escorted to the exit by 1021 staffers. A source inside the union said Stern left through a back door during lunchtime.

Stern’s visit and the dissidents’ foiled attempt to meet him reflect the high level of tension inside SEIU these days. As it prepares to vote on several democratic reform measures at a convention in early June, internal fault lines have split the 1.9 million-member union.

As we reported last week ("Hard Labor," 4/9/08) Stern loyalists have pushed the boundaries of union rules, and perhaps even federal law, to beat back the slate of reforms championed by UHW’s dissident leader, Sal Rosselli.

Now, in response to our reporting and to Rosselli’s movement, leaders inside the labor giant apparently have gone into full damage-control mode.

In fact, an election committee that appears to have been hand-picked by Local 1021’s president already rejected an internal complaint about the election process — and critics are calling foul.

WHO’S A MEMBER?


Two weeks ago, the Guardian reported on a controversial batch of e-mails among SEIU officials. Calling themselves the "salsa team," high-level union staffers — including Damita Davis-Howard, whom Stern appointed as president of 1021, as well as Josie Mooney, a Stern assistant — swapped campaign strategy and exchanged anti-Rosselli talking points during an election to select delegates to the upcoming convention.

On April 4, more than a dozen union members lodged a formal complaint with the organization’s local election committee. The complaint charged that the salsa team’s missives broke union rules against staff involvement in elections. Soon afterward, lawyers representing Rosselli’s union filed suit against Stern and the SEIU — alleging, among other things, that SEIU "officers, employees, and allies" interfered with delegate elections in violation of federal labor law.

While the lawsuit will not see a courtroom for some time, it didn’t take long for the union committee to rule against the members’ complaint. In a memo dated the following Monday, April 7, and obtained by the Guardian, the nine-member body reported to the union’s International Secretary-Treasurer that "the staff (directors and others) named in the challenge are members of Local 1021 and therefore have the same right as all other members" to participate in the election.

The distinction is key: union rules strictly forbid paid staffers from interfering in elections by members. And supporters of union democracy insist that a central tenet of their movement are the notions that staffers work for the membership — and that the members, not the staff, determine union policy (See Opinion, page 7).

The outcome is important not only to the union but to progressive politics in San Francisco. Local 1021 (and Local 790, the San Francisco chapter that predates it) has played a major role in supporting progressive causes and candidates.

The committee’s ruling, and the speed with which it reached its decision, outraged many inside the union. A number of 1021 staffers who declined to be identified for fear of reprisal called the memo "bullshit" when asked to comment.

Union member Maria Guillen, one of the members who signed the complaint, told us that the salsa team’s actions and their exoneration by the election committee "go against the spirit of union democracy." Guillen went on to challenge the assertion that union staff, especially top management like Mooney and Davis-Howard, have the same rights as rank and file members when it comes to campaigning in union elections.

"None of the executive board members I’ve spoken to can recall voting on that. Who had the authority to permit that? … To think that folks with all the resources and all the connections are working against us, it breaks my heart."

The makeup of the committee also raises conflict of interest issues.

According to the provisional bylaws for Local 1021, which were enacted after it was formed in early 2007 by merging 10 separate Northern California locals, 1021’s appointed president Damita Davis-Howard has control "in creating committees and naming members to such committees." Several sources inside the union told us she used this power to select the members of the election committee that apparently ruled on whether she herself broke union rules.

Davis-Howard did not return calls for comment and our attempts to reach committee chair Cassandra Burdick through staff at Local 1021 were unsuccessful.

SEIU international spokesperson Andy McDonald could not confirm whether Davis-Howard had in fact named the election committee members to their positions

ROUGH STUFF


In another indication of just how radioactive SEIU’s internal dissension has become, numerous Democratic politicians and party officials in California recently received a letter signed by five presidents of SEIU locals around the state, including Davis-Howard. The letter, obtained by the Guardian and dated April 2 — the day after we broke the salsa team story — seeks to reassure party members that the union will clean its own house. It also appears to warn the state’s political leaders not to choose sides between Rosselli and Stern.

With millions of dollars in its coffers, SEIU is a prime source of campaign cash for politicians.

"We have a democratic process for resolving our internal differences," the letter reads. "In fact, our members will debate and set the course of our union at our convention in June. We hope that you will respect the right of our members to decide for themselves the direction of their union and avoid involvement in our internal affairs."

SEIU’s alleged hardball tactics have extended beyond its internal conflict in recent weeks. The union has been feuding with the California Nurses Association over allegations that the nurses’ union has been attempting to woo SEIU members into switching to the competing union.

Last week, several CNA board members in Southern California claimed that SEIU staffers showed up at their doors and confronted them. SEIU confirmed that it’s sending people to CNA members’ houses, but said there was no intimidation. And last weekend, a large crowd of SEIU members allegedly stormed a convention in Michigan put on by the magazine Labor Notes. A press release from CNA claimed several people were injured and that numerous CNA officials had to flee "out the back of the hall for their safety."

SEIU’s Lynda Tran confirmed that "things got a little rough" when a group of SEIU members and staff attempted to confront a CNA official. "Folks from both sides got injured," she added.

Labor activist and author Herman Benson, of the Association for Union Democracy in New York, told the Guardian that the divisions within SEIU, and its conflicts with other unions, are nothing new in the labor movement. For nearly as long as unions have existed, he said, power struggles have taken place among union brass. "Any incumbency has enormous weapons at its disposal."

Benson praised Stern for his efforts in recruiting new members for SEIU. As the rest of organized labor has continued to decline in America, Stern’s shop has brought in nearly 1 million new members. But Benson took issue with what he perceived as intolerance for dissent within his ranks.

"Stern has a vision of an almost militarized bureaucratic labor movement … but if you can’t have criticism before your international convention, when can you have it?"

After the ruins

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› a&eletters@sfbg.com

ESSAY In a journal entry dated Dec. 27, 1835, from his 1840 book Two Years before the Mast, student-turned-seafarer Richard Henry Dana recorded his first impressions of the area we know as the City, while his ship, The Alert, traveled through the Golden Gate:

We passed directly under the high cliff on which the presidio is built … from whence we could see large and beautifully wooded islands and the mouths of several small rivers … hundreds of red deer, and [a] stag, with his high branching antlers, were bounding about, looking at us for a moment and then starting off …

Dana arrived in the Bay Area after one era had ended and before another began. Until the coming of the Spaniards a generation earlier, some 10,000 people, members of around 40 separate tribes, lived between Big Sur and San Francisco, in the densest Native American population north of Mexico. Despite the existence among them of as many as 12 different languages, the people collectively referred to now as the Ohlone lived in relative peace for some 4,500 years.

On his first visit, Dana predicted that the Bay Area would be at the center of California’s prosperity. When he returned more than 30 years later in 1868, he discovered that his hotel was built on landfill that had been dumped where The Alert first landed.

Then in middle age, Dana wrote, "The past was real. The present all about me was unreal." Making his way through the crowded streets where the new city he’d predicted was being built, he remarked, "[I] seemed to myself like one who moved in ‘worlds not realized.’" Thus Dana became one of the first to articulate the peculiar San Franciscan combination of nostalgia for a lost past and despair over an unrealized future.

The past and future are always alive here. On his first visit, Dana wrote in his notebook about the great city to come. But like many residents of SF today, he slept on the cold, hard ground.

In George Stewart’s 1949 science fiction classic Earth Abides, a mysterious disease has killed 99 percent of the Earth’s population; the main character, Ish, roams the City and East Bay until he finds a wife. Stewart’s book ends in a Twilight Zone scenario, as an old, feeble Ish — now the last living pre-plague American — watches in dismay while his illiterate offspring hunt and frolic like the Ohlone, wearing animal skins and fashioning arrowheads from bottle caps.

After a wildfire, Ish notices that a library has been spared. All the information is still in there, he thinks. "But available to whom?"

Perhaps the knowledge Ish once begged his children to learn can be found in 1970’s The Last Whole Earth Catalog. Its 450-plus yellowing Road Atlas–size pages contain terse recommendations of publications about plant identification, organic gardens, windmills, vegetable dyes, edible mushrooms, goat husbandry, and childbirth, while also sharing the fundamentals of yoga, rock climbing, making music with computers, space colonization, and — of course! — the teachings of Buckminster Fuller.

The initial Whole Earth Catalog sought to reconcile Americans’ love of nature and technology. In Counterculture Green: The Whole Earth Catalog and American Environmentalism (University Press of Kansas, 303 pages, $34.95), author Andrew Kirk credits its creator, Stewart Brand, with bringing a sense of optimism to environmentalism. A character in Tom Wolfe’s 1968 Electric Kool-Aid Acid Test, Brand embodied the cultural intersection of acid and Apple at mid-1960s Stanford University. Kirk examines Brand’s 1965 "America Needs Indians" festival, his three-day Trips Festival in 1966, and his time riding the bus as one of Ken Kesey’s Merry Pranksters.

Counterculture Green correctly suggests that Brand’s utopian lifestyle has a hold on our imagination. But Brand was a leader of the counterculture, not a revolutionary. He believed that the market economy, not political change, would usher in a better world. While today’s market — at the behest of individuals — has started to demand renewable energy or sustainable growth, it also has brought us the SUV, suburban sprawl, and the highest fuel prices in history. Apple may empower the individual — or want consumers to believe it does — but at 29, Silicon Valley has the highest concentration of Superfund sites in the country.

Brand deserves credit for intuiting the peculiar "machine in the garden" Bay Area we live in today, a place perhaps more "California Über Alles" than utopian. It’s far from the postmarket SF envisioned in Ernest Callenbach’s 1975 novel Ecotopia, which is set in 1999, nearly 20 years after Northern California, Oregon, and Washington have seceded from the United States to form the titular nation. A colleague of Brand’s, Callenbach bases his society on ideas from the Whole Earth Catalog, but for one major difference — Ecotopia comes into being not through the free market but through an environmental revolution. (I won’t spoil it, but here’s a hint: it starts in Bolinas!)

While Callenbach’s future sometimes resembles a mixture of the Haight Street Fair and Critical Mass, there are twists. Ancient creeks have been unearthed, and on Market Street there is a "charming series of little falls, with water gurgling and splashing, and channels lined with rocks, trees, bamboos and ferns." Ecotopians have instituted a 20-hour work week that involves dismantling dystopian relics such as gas stations. There is a surplus of food produced close to home. Materials that do not decompose are no longer used. This new world is no wilderness — it reconciles civilization and nature. Yet perhaps its most radical idea is that humans can create a utopia without help from a plague, apocalyptic war, or earthquake.

The 1906 San Francisco earthquake leveled 4.7 square miles — or 508 city blocks. It destroyed 28,188 structures, including City Hall, the Hall of Justice, the Hall of Records, the County Jail, the Main Library, five police stations, and more than 40 schools. Yet strangely, many apocalyptic tomes — including recent ones such as the speculative nonfiction best-seller The World Without Us and the born-again Christian Left Behind series — are reluctant to imagine a totally destroyed San Francisco.

In contrast, Chris Carlsson’s 2004 utopian novel, After the Deluge (Full Enjoyment Books, 288 page, $13.95), suggests the City is at its most charming when at least partially in ruins, like the old cities of Europe. In Carlsson’s post-economic SF of 2157, rising sea levels from global warming submerge much of the Financial District, yet the City adapts by serving old skyscrapers — now converted into housing — with a network of canals.

After the Deluge‘s vision of reduced work, free bikes, and creeks unearthed from beneath streets borrows from Callenbach’s Ecotopia. Yet Carlsson seems to have his most fun imagining a city transformed by ruins: take a subtle comment on the Federal Building at Seventh and Market streets. In Carlsson’s map of SF circa 2157, the monstrosity that some call the Death Star is simply labeled "The Ruins."

Similarly, the photographs in After the Ruins 1906 and 2006: Rephotographing the San Francisco Earthquake and Fire (University of California Press, 134 pages, $24.95) appear to delight in the City’s impermanence. Mark Klett presents famous images of the smoldering city in 1906 alongside carefully shot contemporary photographs from the same vantage points. Cleverly, these images are arranged in a manner that suggests the ruins aren’t just the past but also an inevitable future.

The aftermaths of SF’s earthquakes are often described in utopian terms, as if cracks in the landscape revealed the possibility of a better world. In After the Ruins, a 1906 quake survivor remembers cooperation not seen since the days of the Ohlone:

A spirit of good nature and helpfulness prevailed and cheerfulness was common. The old and feeble were tenderly aided. Food was voluntarily divided. No one richer, none poorer than his fellow man.

In an essay accompanying After the Ruins, Rebecca Solnit recollects the 1989 earthquake similarly:

The night of the quake, the liquor store across the street held a small barbecue … I talked to the neighbors. I walked around and visited people. That night the powerless city lay for the first time in many years under a sky whose stars weren’t drowned out by electric lights.

Greta Snider’s classic early ’90s punk and bike zine Mudflap tells of a utopia for bicyclists created by the 1989 Loma Prieta quake. Until torn down, a closed-off section of damaged Interstate 280 became a bike superhighway where one could ride above the City without fear of cars. Earthquakes are seen to have utopian potential in SF, because, like protests or Critical Mass, they stop traffic. In 1991, Gulf War protestors stormed the Bay Bridge, shutting down traffic on the span for the first time since the 1989 quake. Perhaps in tribute to the utopian possibilities of both events, William Gibson’s 1993 book Virtual Light imagines a postquake-damaged Bay Bridge as a home for squatter shanties and black market stalls.

Carlsson’s new nonfiction book, Nowtopia (AK Press, 288 pages, $18.95), explores new communities springing up in the margins of capitalist society. Subtitled How Pirate Programmers, Outlaw Bicyclists, and Vacant-Lot Gardeners Are Inventing the Future Today, it looks for seeds of post-economic utopia in places such as the SF Bike Kitchen and the Open Source software movement. According to Carlsson, these communities "manifest the efforts of humans to transcend their lives as wage-slaves. They embrace a culture that rejects the market, money, and business. Engaging in technology in creative and experimental ways, the Nowtopians are involved in a guerilla war over the direction of society."

A founder of Critical Mass, Carlsson praises the biofuels movement and bicycle culture for promoting self-sufficiency through tools. With its optimism and endorsement of technology, Nowtopia occasionally evokes the Whole Earth Catalog. Yet unlike Brand’s tome, it focuses on class and how people perform work in today’s society. Carlsson finds that in their yearning for community, people will gladly perform hours of unpaid labor on behalf of something they love that they believe betters the world.

Within today’s SF, Carlsson cites Alemany Farm as an example of nowtopia. Volunteers took over an abandoned SF League of Urban Gardeners (SLUG) farm next to the Alemany Projects, farming it for several years before the City gave them official permission. "Instead of traditional political forms like unions or parties, people are coming together in practical projects," Carlsson writes. "They aren’t waiting for an institutional change from on-high, but are getting on with building the new world in the shell of the old."

Ironically, the only literature that truly envisions the complete destruction of large areas of the City are the postwar plans of the San Francisco Redevelopment Agency. In 1956, it began the first of two projects in the Fillmore, slashing the neighborhood in two with a widened Geary Boulevard and demolishing over 60 square blocks of housing. Some 17,500 African American and Japanese American people saw their homes bulldozed.

With their dreams of "urban renewal," the heads of SF-based corporate giants such as Standard Oil, Bechtel, Del Monte, Southern Pacific, Wells Fargo, and Bank of America reimagined the City as a utopia for big business. The language of a Wells Fargo report from the ’60s evokes the notebooks of Dana: "Geographically, San Francisco is a natural gateway for this country’s ocean-going and airborne commerce with the Pacific area nations." Likewise, Prologue for Action, a 1966 report from the San Francisco Planning and Urban Renewal Association, might have been written by dystopian visionary Philip K. Dick:

If SF decides to compete effectively with other cities for new "clean" industries and new corporate power, its population will move closer to "standard White Anglo-Saxon Protestant" characteristics. As automation increases the need for unskilled labor will decrease…. The population will tend to range from lower middle-class through upper-class…. Selection of a population’s composition might be undemocratic. Influence on it, however, is legal and desirable.

This dream of turning San Francisco into a perfect world for business required that much of the existing city be destroyed. First, the colorful Produce District along the waterfront was removed in 1959, its warmth and human buzz replaced by the four identical modern hulks of the Embarcadero Center. Beginning in 1966, some 87 acres of land south of Market — including 4,000 housing units — were bulldozed to make way for office blocks, luxury hotels, and the Moscone Center.

The dark logic of the Redevelopment Agency’s plans are projected into the future in the profoundly bleak science fiction of Richard Paul Russo’s Carlucci series from the ’90s. Russo’s books are set in a 21st-century SF entirely segregated by class and health. The Tenderloin is walled off into an area where drug-addicted and diseased residents kill each other or await death from AIDS or worse. Access to all neighborhoods is restricted and even the series’ hero, stereotypical good cop Frank Carlucci, submits to a full body search in order to enter the Financial District because he lacks the necessary chip implant to be waved through checkpoints.

Russo’s nightmares have their real side today, and many dreams found in Ecotopia and the Whole Earth Catalog — composting, recycling, widespread bicycling, urban gardening, free access to information via the Internet, Green building design — have also come to pass. (There is even a growing movement to unearth creeks like the Hayes River, which runs under City Hall.) Pat Murphy’s 1989 novel, The City Not Long After, imagines these opposing visions of the city will continue even after a plague wipes out all but one-thousandth of SF’s population. In Murphy’s book, those still alive turn the City into a backdrop for elaborate art projects, weaving ribbon and lace from Macy’s across downtown streets and painting the Golden Gate Bridge blue. This artists’ utopia is threatened when an army of survivors from Sacramento marches into SF. But the last forces of America, unlike the dot-com invaders of the ’90s, prove no match for the artists, who use direct action tactics and magic to rout Sacramento in an epic showdown at Civic Center Plaza.

In Carlsson’s After the Deluge, several people enter a bar called New Spec’s on Fulton Street. The walls are covered with old SF ephemera. One character explains to Eric, a newcomer, "Its all about nostalgia, a false nostalgia." Was the City a better place before the war, before the earthquakes, or before it was even the City? So many utopian visions of the future evoke a simpler past that one wonders if believing in one is the same as longing for the other. It’s a question that would make sense, once again, to Philip K. Dick.

Perhaps no fiction about a future SF captures utopian yearning as well as Dick’s decidedly dystopian works, because his stories, though full of futuristic gadgets, are really about the ways human characters relate to them. Do Androids Dream of Electric Sheep? (1968) is set in a radically depopulated postwar SF of 2021. The air is filled with radioactive dust and the streets are hauntingly empty as humans race to colonize Mars. Main character Rick Deckard is a bounty hunter assigned to "retire" humanlike androids, yet he’s mostly concerned about his electric sheep. Because there are almost no animals left on Earth, owning a fake one helps a striver like Deckard keep up appearances.

In 1962’s The Man in the High Castle, Dick imagines life in SF after the Nazis and Japanese have won World War II. Nostalgia haunts this story, too. Protagonist R. Childan makes his living selling rare prewar Americana to rich Japanese collectors. Not much has changed in this alternate SF, though. Market Street is still a place of "shooting galleries [and] cheap nightclubs with photos of middle-aged blondes holding their nipples between their wrinkled fingers and leering." While most utopian futures look to the past, Dick’s dystopian futures are all eerily about the present.

So how does Mr. Childan deal with the pain of living in a world where Nazis have won the war? How else? "To inspire himself, he lit up a marijuana cigarette," Dick writes, "excellent Land-O-Smiles brand."

Erick Lyle is the editor of Scam magazine. His book, On the Lower Frequencies: A Secret History of the City, is out now on Soft Skull Press.

NOWTOPIA BOOK RELEASE PARTY

Wed/9, 7:30 p.m.; $20 suggested donation (includes book, reading/discussion, and contribution to site)

CounterPULSE

1310 Mission, SF

(415) 626-2060

SEIU skullduggery

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>jesse@sfbg.com

As an internal power struggle wracks the giant Service Employees International Union, emails obtained by the Guardian suggest that SEIU officials may have violated union rules by working to influence an important San Francisco delegate election last month.

Delegates selected by Local 1021, based in SF, will attend the union’s international convention in June and will vote on a series of democratic reforms put forward by dissident labor leader Sal Rosselli. In recent weeks, Rosselli has clashed publicly with SEIU’s international president Andy Stern over Stern’s increasing consolidation of the 1.9 million-member labor organization.

And the emails appear to show a concerted effort by Stern’s senior staff and local loyalists to ensure that the dissidents don’t dominate the convention delegation.

Referring to themselves in the emails as the “Salsa Team,” SEIU staffers discussed strategy and coordinated campaign activity for the delegate election with high-ranking union officials like Damita Davis-Howard, the president of Local 1021, and Josie Mooney, a special assistant to Stern, the emails show.

Critics charge that these activities violated Local 1021’s Election Rules and Procedures – specifically Rule 18, which states, “While in the performance of their duties, union staff shall remain uninvolved and neutral in relation to candidate endorsements and all election activities.”

While Rule 18 does not specifically spell out when union staff can advocate for candidates, other than proscribing such activities “while in performance of their duties,” the emails in our possession are date and time stamped and several of them were sent during business hours.

Furthermore, the Guardian has obtained an internal memo from Local 1021 official Patti Tamura in which she warned union staffers that the phrase “‘performance of their duties’ goes beyond [Monday through Friday] and 9-5p.”

One Local 1021 official who asked not to be identified told us that Tamura’s memo appeared to be a clear message that staff should stay completely out of the election. “They made it perfectly clear to the lower staff that your employment doesn’t stop [after hours], you’re still staff. That means, you don’t get involved. But now it turns out they themselves were doing it. That’s a double standard … it’s certainly not right.”

The messages between Salsa Team members show them actively working to recruit potential delegates sympathetic to Stern’s vision for the SEIU and to aid Davis-Howard in her bid to represent the union at the June convention. One missive, dated February 18, which appears to come from the personal email account of Local 1021 employee Jano Oscherwitz and was sent to what appear to be the personal accounts of Tamura and Mooney, requests that a “message for Damita” be drafted.

According to the time stamp on the message, Oscherwitz sent it at 12:03 PM. Feb. 18 was a Monday. [Update: February 18th was the President’s Day holiday. However an email stamped 4:26 PM on the following day, Tuesday the 19th, shows Salsa Team members continuing to confer about Davis-Howard’s campaigning, as well as the recruitment of potential delegates.]

A forwarded email stamped 3:18 PM on that same day, from Oscherwitz to what appear to be personal email accounts for Tamura, fellow 1021 staffer Gilda Valdez, and “Damita” includes a “Draft Message” with bulleted talking points, apparently for Davis-Howard to use as she “Collect[s] Signatures on Commitment Cards.”

“Commitment cards” refers to pledges from union members to support certain delegates.

At the convention, scheduled for June 1 through 4 in Puerto Rico, delegates will weigh in on a series of reforms backed by Roselli, chief of the United Health Care Workers West. These reforms include eliminating the current delegate system for electing union leaders, giving local unions more authority in bargaining for their own contracts, and granting locals more say in proposed mergers.

Stern opposes Rosselli’s reforms. A March 5 Salsa Team message includes an attached document with several talking points critical of Rosselli. In the body of the email, SEIU staffer Gilda Valdez advises Davis-Howard, Mooney, 1021 chief of staff Marion Steeg, and others to “Memorize the points in talking to folks.” Valdez goes on to say in the email that she “will be calling … about your assignments.”

Reached for comment, Davis-Howard confirmed that the AOL email account listed as “Damita” was hers. But she claimed no knowledge of the Salsa Team or the messages sent to her. “If you’re saying those emails went to my home computer, who knows if I ever even got them?”

Despite her unwillingness to acknowledge whether she had received the messages, Davis-Howard bristled at the suggestion that the Salsa Team’s activities violated union rules. “Are you trying to tell me that I can never campaign? Does it [Rule 18] say that I have to be neutral and uninvolved 24 hours a day?”

Calls to Mooney, Oscherwitz, Valdez, and Tamura were not returned.

But some union members think there’s a serious problem here. In a written statement, Roxanne Sanchez, who was the president of the San Francisco local before it was merged with other Northern California locals to create 1021, accused Davis-Howard and the Salsa Team of “rigging the outcome” of the delegate election.

“This type of breach in ethical conduct – at such a high level – threatens the foundation of trust and confidence in our Union and in President Damita Davis-Howard’s ability to hold fair elections,” she said.

Sanchez informed us by phone that a formal complaint will be filed with the union’s election committee by Friday.

Labor’s merger pains

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› jesse@sfbg.com

Part one of a series on the emerging problems with labor mergers

For well over 100 years, San Francisco hod carriers — workers who assist stone, brick, and plaster masons — have gathered at the Local 36 hiring hall to find work. Though not as large and bustling as it was in its heyday, the hall, now situated in Daly City, still serves as an important social as well as professional gathering place for San Francisco and San Mateo County "hoddies."

But on Monday, March 10 and Tuesday the 11th, when the union’s members arrived to put in for jobs, they found the entrance shuttered and a paper sign taped to the door.

"This Office Will be Temporarily Closed Due to the Transition of the Separation between Local Unions," the sign read. Several South Bay phone numbers were listed below — one for the dispatch office at Local 270, a much larger South Bay chapter of the Laborer’s International Union of North America (LIUNA), and one for Carlos Lujan, 270’s business manager. When the workers tried to call the numbers to secure work, they claim officials at 270 told them they couldn’t help them.

Meanwhile, several told the Guardian they could hear the phone ringing through the hiring hall door as calls from contractors came into the office. Every phone call most likely meant a job that would not be filled by one of the willing workers left outside.

"I felt abandoned," 25-year union member Jerrold ‘JJ’ Jones told the Guardian. Jones told us he waited for nearly three hours for the hall to open on March 11, only to give up in frustration. "Here I pay dues six months in advance and because that hall is closed, I didn’t have the opportunity to go out for a job that day."

A LESS THAN PERFECT UNION


The reasons for the hall’s closure trace back to an ill-fated merger between Local 36 and Local 270. The story is more than just a tiff in a relatively small labor group; it’s symbolic of a much wider issue that’s beginning to explode in organized labor.

In recent years, unions across the country have been encouraging smaller locals like 36 to join with larger shops to increase their clout and negotiating power. Supporters say these mergers create organizations better able to stand up to giant businesses and institutions.

But the trend also has drawbacks: more members under the aegis of one organization means more power in fewer hands — and sometimes, a lack of union democracy.

Local 36 seemed a prime candidate for merger, with only 120 members. Local 270 had more than 4,000 dues-paying workers and hefty political and trust fund accounts. But high-placed sources within the San Jose local tell us that it’s had serious turmoil over the past year — and the members from San Francisco say they feel left out.

Local 270’s leader, Carlos Lujan, is the subject of an investigation by the international union’s inspector general. Documents provided to the Guardian show that the inspector general has been looking into several complaints about Lujan’s leadership, including his conduct of meetings. An official from the parent union has observed the last three executive board gatherings and is expected to file a report with the Washington brass in the coming weeks.

"Clearly there are troubles out there," attorney Bob Luskin of the Washington firm Patton, Boggs, told us. Luskin acts as the union’s special counsel. "The marriage [between 36 and 270] looked like a good idea at first," he said. "But in the end, it didn’t turn out so well."

Much of the current internal strife at Local 270 appears to have begun when Lujan announced his retirement at the end of March 2007. Two weeks prior to his planned departure, Lujan’s advisors proposed a post-retirement consultant’s job for him. According to a complaint filed with the Department of Fair Housing and Employment by former 270 employee Leslie Scanagatta, the consulting gig would have paid Lujan $500 a week, and the union would pay to fly him from his home in Texas to San Jose for meetings.

Scanagatta’s complaint states that Lujan became angry after she and several other officials voiced concerns with the plan. It alleges that Lujan declared to another union official that she would "be terminated by the end of the week" — which she was.

"It was devastating," Scanagatta, who now works for Santa Cruz County, said. "I was laid off for eight months and I’ve taken a 38 percent pay cut now."

Lujan did not return repeated phone calls seeking comment.

One of the people pushing for Lujan’s consultant job was Edgar Calonje. Calonje, who worked for the union as an independent contractor, said he met with Lujan before the boss announced his retirement, and that Lujan told him and Enrique Arguello, a member of 270’s executive board, that he was planning "to get his retirement [benefits] and consultant fees as well."

"We thought if we helped him [get the deal], we would be in good shape," Calonje said by phone from Nicaragua, where he was visiting family. "But that’s not what happened."

First, Lujan withdrew his retirement and decided to stay on. Then, in November 2007, Colanje lost his job — after, he says, a private memo he had written surfaced in which he criticized Lujan’s leadership and integrity.

Shortly after Colanje was let go, Arguello — who now says he didn’t actively support Lujan’s retirement plan — resigned from his job as a business agent rather than accept a demotion. A Nov. 28 letter from Lujan to Arguello obtained by the Guardian states, "the reason for the change in your position was because the pattern of actions made by you in the past could put this Local in a difficult position."

THE LOCK OUT


Early in 2008, the atmosphere of dissension in San Jose began to affect the hiring hall in Daly City, and eventually boiled over into physical confrontation. First, former Local 36 business manager Alex Corns clashed with Lujan and resigned in a huff from his new job at 270. Then Will Davis, who ran the Daly City hall after the merger, was dismissed. A March 6 letter from Lujan to Davis cites Davis’s "lack of commitment to work under my agenda as Business Manager" as the reason for his termination.

The following afternoon, Friday, March 7, Davis and Corns arrived at the hall to find the locks changed. That evening, they told us, a group of former Local 36 members met in a pizza parlor across from the shuttered hall and decided to petition the International to grant Local 36 back its independence. According to their account of what happened next, which was verified by Sgt. Ron Mussman of the Daly City Police Department, when Davis, Corns, and the other participants in the meeting emerged from the pizza parlor, they saw Lujan sitting in his pickup truck, which was parked in the restaurant’s lot. Across the street, two officials from 270 were inside the hiring hall removing computer equipment.

The now-dissident union members surrounded Lujan’s vehicle. Lujan fled the scene, according to worker and police accounts, allegedly striking one of the members in the forearm with his car as he backed up. The incensed crowd moved across the street and the workers from 270 barricaded themselves inside the hall. Lujan reportedly flagged down a police car as he drove away and the cops drove to the hall to escort the two men from San Jose safely out of the building.

Corns and Davis said they could not secure keys to the hall’s new locks by the time of Monday morning’s job call. For two consecutive mornings, out-of-work union members were turned away. Corns told us he finally called a local locksmith late Tuesday morning, March 11, so that members could be dispatched to jobs the following day.

HOW BIG IS TOO BIG?


For Corns, the failed merger with Local 270 is a personal as well as a professional tragedy: he was instrumental in helping 36 join with 270 after Lujan’s election as the bigger local’s business manager. Now he feels responsible for jeopardizing the organization he’s worked for since he was a teenager.

"I’ve been in the union for 35 years," Corns said, his voice choking up. "This is so heartbreaking to me."

Beyond the problems with one controversial business manager, Corns says the story is about the larger problem: increasingly top-down union management. In late February, he told us, 70 members of Local 36 voted unanimously to secede from 270 and become an autonomous chapter again. A representative from LIUNA was present at the vote and confirmed their version of the events for us. Despite the members’ calls for autonomy, officials in LIUNA’s International office in Washington, DC refused to go along; instead, on March 13, union brass granted their secession from Local 270 but immediately forced 36 into another merger — this time with a chapter based in Oakland, Local 166.

As a result of the two mergers, Corns says, the assets of Local 36 have been swallowed up by the larger chapters. He produced old bank account statements for us that showed well more than $100,000 in Local 36’s coffers before the organization joined with 270. Now, he says, he doesn’t know where that money is. Laborer’s International spokesperson Jacob Hay told us that the parent union is undertaking a "reconciliation process" to determine how much of Local 36’s money should go to Oakland and how much should stay in San Jose. Despite the apparent desire for independence among 36’s members, Hay argued that the union is making the right decision by forcing them into another merger.

"We think that it is in the best interests of smaller locals like [36] to join with larger, more powerful locals," he said. "You have more collective bargaining power with larger numbers [of members] … the goal here is to get all the hod carriers in the Bay Area into one local."

Will Davis and other Local 36 members do not share Hay’s bigger-is-better enthusiasm. "We’ve never gotten a good reason why we can’t just have the local back," Davis said. "We’ve never done anything wrong. We’ve never been under investigation. Why are we being punished for something we didn’t do?"

Editor’s Note: In the paper edition of this article, the Guardian misidentified two dates. Lujan announced his retirement in 2007, and the atmosphere of dissension began to affect the hiring hall in Daly City early in 2008.

Lessons for the U.S. in Bolivia

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LA PAZ, BOLIVIA — I’ve spent a lot of time in recent months pondering people power, both for my article on the fifth anniversary of the Iraq War and in preparing for my trip to Bolivia, where since 2000 popular movements and direct action have ousted two presidents, thwarted water and natural gas privatization efforts, and brought former coca grower Evo Morales and his MAS (Movement Toward Socialism) Party to power.

Here in Bolivia, where everyone down to the poor street vendors are organized into unions and federations, the people can shut down entire cities or critical infrastructure for weeks on end. Solving the myriad problems facing this poor country may still be difficult, particularly with Morales facing a U.S.-backed upper class in revolt over the new proposed constitution, but there is a sense of real empowerment here, of true democracy in action.

In the U.S., we seem to have forgotten that definition of democracy, instead content to define it as what we do in voting booths, choosing between the two parties every couple years, or bitching about the government in conversations or blog posts. Five years ago today, we saw an exception to that approach on the streets of San Francisco.

But what if we didn’t go home? What if it was like Cochabamba, Bolivia in 2000, or El Alto and other departments spilling into La Paz in 2003, and the people stayed in the streets, absorbed the police and military crackdown, and developed into a broad uprising that drew in the middle class and made governing the country — let alone launching an ill-advised war — an untenable position?

It’s tough to imagine that scenario in the U.S., isn’t it? But whereas President Bush has arrogantly condemned Bolivia for what he sees as “a breakdown in democracy,” I think there are important lessons that we gringos can learn from our Bolivian brothers and sisters. Here, with no power beyond direct action, they have fundamentally altered the course of their country. But we in the States, with all our wealth and power, have allowed our government to illegally run amuck in the world, causing irreparable harm. And I think that’s something we should all ponder today and in the months ahead.

p.s. To read a travel journal of my five-week trip through Bolivia and Peru, visit my personal blog.

Newsom’s commission games

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EDITORIAL Mayor Gavin Newsom didn’t want Debra Walker, an artist and activist, running the Building Inspection Commission. He doesn’t want Theresa Sparks, a transgender woman and community leader, running the Police Commission. And now, we’ve learned, he doesn’t want Robert Haaland, a labor activist and one of the city’s most visible transgender leaders, to serve as vice president of the Board of Appeals.

But of course, the mayor thinks it’s perfectly fine to put two employees of Pacific Gas and Electric Company — an outfit that is suing the city, breaking the law, trying to subvert public power and cheating the public out of hundreds of millions of dollars a year — on city commissions.

This is what the second term of Mayor Newsom, who is now openly running for governor, looks like. It’s not pretty.

We knew the mayor had his sights on higher office, but now that it’s out in the open, almost everything he does at City Hall seems to be aimed not at improving San Francisco but at increasing his odds of moving up in the political world. Why, for example, would Newsom appoint Mary Jung, a PG&E customer services manager, to the Civil Service Commission, and Darlene Chiu, a PG&E City Hall flak, to the Small Business Commission? What possible qualifications could someone whose job involves promoting the interests of a giant corporation that routinely screws small business people have as an advocate for the city’s local merchants? Why would the Civil Service Commission, which deals with city employee issues, need the expertise of someone whose employer wants to prevent the city from creating more public jobs?

Why would Newsom be doing this — if he didn’t need the support of PG&E and its allies for his next political step?

Why would he be directing his appointees to keep out of leadership posts anyone with strong progressive credentials if he weren’t trying to build new bridges to the developers, the big employers, the police unions, and the more conservative interest groups he’ll need for a statewide campaign?

The bottom line is, Newsom needs to stop thinking about running his next campaign and start running the city — because this sort of commission funny business, this practice of treating important agencies that manage key city departments as nothing more than political patronage posts for rewarding allies and punishing enemies, is terrible for San Francisco.

It’s too late to do anything about Mary Jung, but the supervisors can, and should, overturn the Chiu appointment — and let the mayor know that putting PG&E executives on city commissions is unacceptable under any circumstances.

Meanwhile, the Board of Appeals votes for new officers March 19. By tradition, the top posts on the five-member panel rotate based on seniority, with an appointee of the mayor holding one job, and a board appointee the other. But Newsom’s three members have indicated that they won’t allow Haaland — a conscientious commissioner with an excellent record — to serve as vice president. That’s a slap in the face to labor, the queer community, and the supervisors. Newsom ought to show some political integrity and tell his appointees not to suddenly change the rules.

Newsom to small business: Drop dead!

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By Bruce B. Brugmann

And so Mayor Newsom, who wants to run for governor when he still hasn’t learned to manage the city as mayor,
has bestowed the ultimate insult to small business in the City and County of San Francisco.

He has named a City Hall lobbyist for PG@E to the Small Business Commission.

Yes, you read correctly, Mayor Gavin Newsom has appointed Darlene Chiu, a PG@E lobbyst in City Hall, to the SBC.

How in the world does a company that has been screwing small business for decades inside and outside City Hall, stealing our cheap Hetch Hetchy public power for decades and forcing small business and residents to buy its expensive private power, yanking upwards of $650 million a year out of the city’s economy with its high rates, corrupting City Hall for decades with its lobbying muscle, qualify as a member of the Small Business Commission?

We put the issue in a diplomatic question and emailed it to the mayor. His press secretary, Nathan Ballard,
issued this statement this afternoon on Chiu’s glowing qualifications:

“Darlene Chiu was appointed to replace Florence Alberts after her term expired. Darlene has first hand knowledge of the challenges facing small businesses in San Francisco. She grew up working in her family’s these retail businesses in Chinatown, managing nine to l5 employees. She will also bring her knowledge of City government and communications to the Commission, which will be important to the successful operations and promotion of the assistance center.” (As one small business leader told me, “I don’t recall in the requirements of being on the commission that growing up as a child of small business owners quite meets the criteria.”)

No, no, no: PG@E is placing Chiu, via Newsom, on the SBC to help PG@E continue to facilitate the “successful operations and promotion” of further PG@E corruption in City Hall to protect its illegal private power utility in San Francisco. The supervisors can and should move quickly to reject the PG@E appointment.

More: Newsom to the Civil Service Commission: Drop dead. He appointed Mary Jung, a PG@E customer services manager, to the Civil Service Commission.

Meanwhile, as he further cemented PG@E power inside City Hall, he whacked three well qualified and conscientious commissioners: Debra Walker, an artist and activist, from heading the Building Iinspection Commission, Theresa Sparks, a transgender woman and community leader, from running the Police Commission, and Robert Haaland, a labor activist and one of the city’s most visible transgender leaders, from serving as vice president of the Board of Appeals.

Newsom is running for higher office and, as our editorial in tomorrow’s Guardian puts it, “almost everythihg he does at City Hall seems to be aimed not at improving San Francisco but at increasing his odds of moving up in the political world…Why would Newsom be doing this–if he didn’t need the support of PG@E and its allies for his next political step.

“Why would he be directing his appointees to keep out of leadership posts anyone with strong progressive credentials if he wasn’t trying to build new bridges to the developers, the big employers, the police unions and the more conservative interest groups he’ll need for a statewide campaign?” B3

A lousy casino deal

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OPINION After spending millions in campaign contributions, four of the state’s wealthiest and most powerful tribes — Pechanga, Morongo, Agua Caliente, and Sycuan — have cut themselves sweetheart deals for one of the largest expansions of casino gambling in United States history.

As a California Indian and vice-chairman of the American Indian Rights and Resources Organization, an organization working to protect the civil rights of Native Americans, I am deeply concerned that the deals on the February ballot — Propositions 94, 95, 96, and 97 — benefit four tribes at the expense of other tribes, the workers at these tribes’ casinos, and California taxpayers.

The big four tribes bring in huge profits from their existing casinos and spend heavily to influence state laws. Yet they are eager to deny California voters their right to decide this issue and have fought to keep these deals off the ballot and prevent the voters from having their say. Could it be that the big four tribes know their sweetheart deals may not hold up to voter scrutiny?

Here are a few reasons to vote no on Props. 94, 95, 96, and 97.

Labor unions oppose the measures because the deals would shower four wealthy tribes with billions in profits but fail to ensure the most basic rights for casino workers, including affordable health insurance. A study conducted by David Farris, a University of California at Riverside professor of economics, found that Agua Caliente’s health coverage is so expensive that 56 percent of the dependent children of casino workers are forced into taxpayer-funded health care programs.

In addition, the expansion of tribal gaming in California has seen an increase in the number of human and civil rights violations, especially within tribes that have gaming operations. These abuses have resulted in thousands of disenfranchised Indians being cut off from or denied health care benefits, elder benefits, education assistance, and other social services provided by their tribal governments.

Other tribes also oppose the deals. Just four of California’s 108 tribes would get control over one-third of the state’s Indian gaming pie. The deals would create dominant casinos that could economically devastate smaller tribes and local businesses. Moreover, the big four deals fail to adhere to the purpose and intent of previous gaming initiatives, which led California voters to believe there would be modest casino expansion and that Indian gaming would benefit all California Indians and taxpayers.

The big four deals would give these tribes an additional 17,000 slot machines. That’s more than all of the slots at a dozen big Las Vegas casinos. As a result, California would become home to some of the largest casinos in the world.

While the big four would make billions of dollars from these new deals, promises to taxpayers would fall short. The claims about the amount of money the state would get under these deals are wildly exaggerated, and the state’s independent, nonpartisan legislative analyst called the tribes’ figures unrealistic. In fact, under these deals the big four tribes themselves would determine how much revenue they would pay to the state.

Join labor unions, educators, public safety officials, tribes, taxpayers, senior groups, and civil rights and environmental organizations and vote no on 94, 95, 96, and 97. *

John Gomez Sr.

John Gomez Sr. is vice-chairman of the American Indian Rights and Resources Organization.

Attacking the nurses — again

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OPINION On Nov. 29, Department of Public Health nurses once again found ourselves in the San Francisco Chronicle. Forecasting a budget deficit that prompted the mayor to implement a hiring freeze, the article alleged the shortfall "stems in part from a jump in the number of police officers and nurses on the city payroll and hefty pay raises doled out to those professions." "It’s our fault again," a nurse colleague uttered with a sigh.

Her remark needs to be placed in the context of the dissonant realities in which health department nurses work. On the one hand, market forces and a national nursing shortage have forced the city to make some improvements in nurse compensation. On the other hand, we work in an underresourced setting where we find it challenging to care for our patients adequately and keep ourselves intact in the process.

Truthfully, most nurses feel we earn our wages. We work on our feet for 80 percent of our shifts, in ergonomically difficult settings. We sometimes serve as nurse, clerk, and engineer simultaneously due to understaffing. We often forgo our full meal breaks. We increasingly suffer injuries, some permanent. Some of us acquire occupational infections.

But far worse is the soul-corroding distress we experience when we cannot meet our patients’ needs or our professional or ethical standards due to short staffing, a broken system, and decisions made by people remote from the realities of direct patient care. We believe that our patients, many of whom are marginalized in our society, deserve the care, compassion, and opportunities for healing that we try to afford them.

Enter the budget process. Every year vital services are slated to be cut. For three years our hospital interpreters, the lifeblood of the hospital, were on the chopping block. Every spring, health care workers, unions, and the community spend hours at City Hall, testifying to the harm that would be done to San Franciscans, particularly the poor and the ill, should hospital services be cut. Regrettably, neither the mayor nor the city controller is required to join the supervisors in hearing this heartbreaking testimony. Through the work of the supervisors, their staff, community coalitions, and an annual outpouring of public concern, some services are saved. But the yearly threats and fights are exhausting and create a cynical illusion that the process is only a political game.

Additionally, not reflected in the budget process is the accumulated erosion of DPH services and infrastructure: the equipment that is not replaced, the vacant positions that remain unfilled or "frozen," etc.

All of these conditions existed when Mayor Gavin Newsom announced the inauguration of Healthy San Francisco, a program created to provide health care to tens of thousands of uninsured San Franciscans through the Health Department. The program’s ability to succeed is based on the department’s plan to hire more clerks, pharmacists, nurses, and providers. The fact that the mayor was one of the program’s architects, along with Sup. Tom Ammiano, unions, and community participants, suggests that access to health care is a policy and budget priority for his administration.

But is it? After the mayor’s advocacy for HSF, it is confusing to read about a hiring freeze and the budget deficit being blamed on nursing hires and salaries. Health care workers and the public need to know where this administration stands. 2

Mary Magee

Mary Magee is a registered nurse who has worked for San Francisco General Hospital for 20 years.

Obama’s moment

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› news@sfbg.com

Barack Obama came to San Francisco with some pretty heavy baggage Nov. 14. His speech at the Bill Graham Civic Auditorium was swarmed by a diverse crowd of about 7,000, with most of those we interviewed hungry for an answer to the big question: is Obama the one who can take this troubled country in a new direction?

The Illinois senator had just gotten a bump from a cover story in the Atlantic, "Why Obama Matters," which posits that he is the only candidate capable of moving our country past the divisive culture-war paradigms and into a period when fundamental change is possible.

But time is running out for Obama to take the Democratic presidential nomination from front-runner Hillary Clinton, who has locked up moderates and most women. And some progressives, including labor unions, are behind John Edwards. To win the nomination, Obama must find a way to quickly rally the left — including urban voters and the antiwar, social justice, LGBT, and labor movements — into an energized voting block.

And that, some progressives say, means he’s got to stop playing it safe.
obama
Guardian photo by Lane Hartwell

Days before the speech, former California state senator and 1960s radical Tom Hayden sent Obama a letter taking issue with the latter’s comment that Democrats are paralyzed by Vietnam-era fights — and in particular, his response, "That’s just not my framework."

Hayden argued that Obama was squandering his advantage as the sole credible antiwar candidate by running a safe campaign that equally repudiates both political extremes — even though progressives have been far closer to the truth on issues of war, civil rights, economic equity, and the full range of traditional Democratic planks.

Hayden wrote, "The greatest gift you have been given by history is that as the elected tribune of a revived democracy, you could change America’s dismal role in the world. Because of what you so eloquently represent, you could convince the world to give America a new hearing, even a new respect. There are no plazas large enough for the crowds that would listen to your every word, wondering if you are the one the whole world is waiting for. They would not wait for long, of course. But they would passionately want to give you the space to reset the American direction."

Many attendees of Obama’s SF speech shared similar sentiments. "I’m interested in what he’s been saying in his books, but he’s become a kind of politician, so I want to hear what he has to say tonight," Jeremy Umland, 33, a third grade teacher from Oakland, said as he was waiting in line. "I think he had a lot of brave ideas in the past, and I’d like to see him get back to that."

Umland, who is white and gay, stood with his partner, Terrence Marks, 34, who is black. The couple are in the process of adopting a child and wanted to hear Obama call for legalizing gay marriage or for a health care plan that doesn’t involve insurance companies.

"I’d like to see him address it in a way that doesn’t evade this issue," Marks said. "I want to hear him talk not like a politician, but a real person."

Inside, Obama gave voice to many of those same themes.
"Running the same old textbook, by the numbers, Washington campaign just won’t do it…. The triangulation and poll-tested positions because we’re afraid of what Mitt [Romney] or Rudy [Giuliani] will say about us just won’t do it," Obama said, adding, "If we’re going to seize the moment, then we can’t live in fear of losing."

He said we are in "a defining moment in our history," when Americans need to grapple with war, a planet in peril, economic insecurity, and a political system that seems corrupt and incompetent. "We’ve lost faith that our leaders can or will do anything about it," Obama said.

Over and over again, Obama said he is running to deal with the most difficult issues: living wages, universal health care, human rights and dignity, racial harmony, honest foreign diplomacy, and a return to the principles of the New Deal. "I’m running for president of the United States because that is the party that America needs us to be right now.

"I am in this race," he said, "because of what Dr. King called the fierce urgency of now."

Good stuff, but is it too late? "I don’t see it happening, but it’s still possible that Hillary Clinton will slip in Iowa. She’s not invincible," Hayden told us.

In fact, a new ABC–Washington Post poll shows Obama taking the lead over Clinton in Iowa, 30 percent to 26, with Edwards at 22 percent.

"Seeing him through the eyes of my 34-year-old son and his wife, I could see there was a lot of new excitement among the younger generation and that it would be a shame if that just dissipates," Hayden told us. "The thing Obama needs most is what he steers around: he need a new social justice movement similar in strength to what we had in the ’60s."

Donald Fowler, a San Francisco resident and Democratic Party campaign consultant who ran John Kerry’s Michigan campaign in 2004 and Al Gore’s field operation in 2000, said Obama has suffered for trying to communicate detailed positions through an intense media filter.

"You get into the danger of running a government when you should be running a campaign," Fowler told us.

He and Hayden each said that particularly on the Iraq war issue, where Obama is strongest, he should have projected his stance more boldly, something he may now be starting to do.

"My guess is they have decided to be strong, state things clearly, and take back the discussion," Fowler said. Listening to Obama discuss this moment, that assessment seems likely.

"It’s because of these failures that people are listening intently," Obama said. "We have the chance to come together to form a new majority." *

To hear Barack Obama’s speech and read the Atlantic article and Tom Hayden’s letter, visit www.sfbg.com.

Dean Singleton still hates your stupid union

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The Denver Post, flagship paper for Dean Singleton’s MediaNews chain, went on a blinding-mad rampage against Colorado’s governor in a rare front-page editorial Nov. 4.

If there was any doubt in your mind that Dean “Pinkerton” Singleton hates labor unions, this should be enough to dispel it right away. In a 2003 profile of Singleton that appeared in the Columbia Journalism Review, Scott Sherman explains that Singleton receives regular calls from the Post‘s editorial-page editor to finalize the paper’s opinion pieces before going to press.

But placing Singleton’s deep animosity toward labor unions on the front page would make even William Randolph Hearst blush. Perhaps we shouldn’t be surprised that they share similar qualities.

In the editorial, the Post decries Colorado Gov. Bill Ritter as “a toady for labor bosses” and “a bag man for labor unions.” Ritter signed an executive order Nov. 2 giving unions that represent state employees official recognition and bargaining powers covering such crazy bullshit Communist principles like improved health care, wages and workplace safety.

A news story that ran in the Post shortly after the announcement implies bargaining will be a bad deal for state workers, and another suggested bidness would flee the state as a result of the decision, a common refrain from anti-union factions.

According to the editorial:

“When Coloradans elected Bill Ritter as governor, they thought they were getting a modern-day version of Roy Romer, a pro-business Democrat. Instead, they got Jimmy Hoffa. Ritter campaigned under the guise of a moderate “new Democrat” but now we know he’s simply a toady to labor bosses and the old vestiges of his party — a bag man for unions and special interests. The governor on Friday unveiled his plan to drive up the cost of doing business in Colorado by forcing collective bargaining on thousands of state employees. We’re concerned this may be the beginning of the end of Ritter as governor.”

Singleton’s MediaNews empire snapped up nearly every major newspaper in the Bay Area except the Chronicle last year in a complex series of buyouts. The union representing Oakland Tribune employees has since charged Singleton with trying to stamp out guild representation there.

Campaign sewer overflows

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› amanda@sfbg.com

The flow of election cash is often a filthy river that you wouldn’t want to drink from, and a recent local lawsuit, coupled with a new bit of state legislation, has muddied the waters even more.

On Sept. 20, US District Court Judge Jeffery S. White granted a preliminary injunction preventing the city from enforcing key sections of its Campaign Finance Reform Ordinance.

Two local groups with a sordid history of influencing elections with large chunks of cash — the Building Owners and Managers Association and the Committee on Jobs — argued in court that campaign contribution limits violate the First Amendment by financially curbing the ability to communicate a message (see "Pressing the Scales," 8/22/07). The contribution limits of independent-expenditure committees stumping for candidates were set by the voter-passed Proposition O in 2000 after the 1999 reelection of Mayor Willie Brown, in which deep-pocketed business interests backed the mayor in exchange for preferential treatment by city hall.

Prop. O capped contributions to IEs at $500, and people and corporations are allowed to give no more than $3,000 total (e.g., $500 each to six committees).

Those caps are no longer enforceable.

Similar injunctions have been granted in San Jose and Oakland, also destroying local contribution caps in those cities. San Jose appealed to the 9th Circuit Court of Appeals and is waiting for a ruling. Ann O’Leary, a lawyer in City Attorney Dennis Herrera’s office, told us San Francisco is waiting to see what happens in San Jose before making the next move, though an appeal is planned regardless of that outcome. In the past the Supreme Court has ruled that the appearance of corruption in elections is sufficient grounds for restricting campaign contributions, and San Francisco’s history provides ample examples from which to draw to support that decision.

"We don’t know if it will get back to court before November 2008," O’Leary said of the case, "but it’s certainly something to watch in that election."

Meanwhile, over in Sacramento, legislators on cruise control recently passed a bill that may make it impossible for San Francisco to write its election laws anyway. Gov. Arnold Schwarzenegger just signed Assembly Bill 1430, and according to the legislative digest, the new law "prohibits local governments from adopting campaign finance ordinances that restrict communications between an organization and its members unless state law similarly restricts such communications, or by regulation by the Fair Political Practices Commission."

Proponents say the new law will resolve conflicting interpretations of campaign finance regulations, but opponents say it preserves wide-open loopholes in the Political Reform Act that local jurisdictions have tried to close. For example, a person may be prohibited by the city from giving more than $500 to support a certain candidate. That person can, however, give as much as $30,200 to the Democratic Party, which can then "communicate" a message of support for that candidate to its members.

A recent and egregious example: in San Diego the county Republican Party spent almost $1 million on local races in 2006.

The bill was authored by Carlsbad Republican Martin Garrick and flew through the State Assembly unopposed. Assemblymember Mark Leno told us it came to the Elections Committee, on which he sits, with no vocal opposition, so he gave it an aye. One of his aides, however, became concerned and started making calls. Eventually, Common Cause and the League of Women Voters rallied against it, but it only hit a speed bump in the State Senate. There was still too much support from the Democrats to kill it. Leno said, "It’s an uncommon situation to have the left and right supporting something that in fact runs counter to local election laws."

Only nine senators opposed the bill, including Carole Migden and Leland Yee. "She thought it was an end around campaign finance laws," Migden aide Eric Potashner told us.

San Francisco’s Ethics Commission also took a look at the bill and gave it a 5–0 thumbs-down, resolving to send a letter to both the mayor and the Board of Supervisors urging them to speak against it. Neither did. "The Mayor supports AB1430," his press secretary, Nathan Ballard, told us by e-mail. "He has some concerns about the local control issue, but ultimately those concerns are overridden by his belief that groups like labor unions and the Democratic Party should be allowed to communicate directly with their members."

The governor’s signature now makes it more difficult to pass future measures like Prop O.

Neither the injunction nor the new law seems to be affecting the Nov. 6 election — the FPPC won’t be ruling on AB 1430 until January, though the commission is holding a hearing for interested people to speak in Sacramento on Nov. 2.

Though BOMA and the Committee on Jobs stated in their filing for the injunction that the law harms their ability to raise and spend money for candidates in this November’s election, nothing on record with the Ethics Commission shows they’ve been putting up a lot of money for Newsom, Kamala Harris, or Michael Hennessey. But there’s always next year.

41st Anniversary Special: Private practice

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› gwschulz@sfbg.com

Low-income tenants cheered late last year when the San Francisco Department of Public Health ended its housing contract with the John Stewart Co. But no one expected the alternative would be a secret $5 million deal between DPH officials and a preferred vendor.

In fact, the DPH has opened a new chapter in privatization by creating a dubiously accountable, quasi-independent nonprofit while paying someone else to operate it with a sole-source contract.

The health department leases several single-room-occupancy hotels in San Francisco that house mental health and substance-abuse patients through a program called Direct Access to Housing, part of a laudable nationwide trend toward deinstitutionalizing such medical clients and changing how the formerly homeless receive services.

The Camelot on Turk Street and Le Nain on Eddy Street were among those managed by John Stewart until last autumn. Mercy Housing oversaw two more. But there were problems; tenants complained about the Stewart company’s management, and political organizers last year charged that desk clerks at some of the buildings prevented them from registering tenants to vote.

"If you’re part of a larger company that just sees themselves as a more generic property-management company," said Marc Trotz, director of the health department’s housing office, "there isn’t necessarily the training and skills development that needs to be there to handle the complexities that come up on a daily basis with the population we’re dealing with."

So the health department’s answer was to broker an exclusive $5 million contract with a nationwide nonprofit based in San Francisco known as the Tides Center. Tides doesn’t do any of the heartwarming outreach we tend to associate with nonprofits. Instead, the outfit handles the boring administrative functions like payroll and human resources for community projects created by others.

The project in this case is Trotz’s brainchild Delivering Innovation in Supportive Housing, which essentially exists as a nonprofit only on paper. There’s no board of directors. There are no federal tax forms outlining expenses and revenue. And Tides doesn’t itemize projects like DISH in its annual financial statements. So there’s no easy way for the public to track the money that goes into the project.

Yet DISH has so far never been forced to compete for property-management contracts like any other nonprofit wanting to do business with the city. That means the DPH gets the best of both worlds, paying someone in the private sector to manage its books and not having to subject its pet project to the competitive atmosphere of contract bidding.

Further, since Tides is technically the employer of record for DISH’s 60 or so employees, they exist in an ethereal world where they don’t fall under the city’s salary and benefits structure, but unions can’t reach them unless they’re willing to organize all 200 projects managed by Tides nationally.

Needless to say, none of this is sitting well with the nonprofits and unions that insist they weren’t informed of the plan until it was off and running.

"I feel like at union nonprofits, the turnover’s much lower, the training’s higher, and if a manager is abusing a tenant, for instance, a union worker can make a complaint to a city agency, write them up, do something without being afraid for their jobs," said Sarah Sherburn-Zimmer, a former organizer for the Tenderloin Housing Clinic. "And we just give better care."

The THC, whose workers are represented by Service Employees International Union Local 1021, says it was never formally invited to bid on DISH, despite the fact that it does extensive work with the city and manages more than 1,500 units of low-income housing.

"All they had to do to find out was send a letter or call us…. The fact that they made the effort to set up their own entity kind of shows that’s what they wanted to do," THC director Randy Shaw said.

The Tides contract so annoyed Board of Supervisors president Aaron Peskin that he drafted a resolution pointing out that Mayor Gavin Newsom signed an executive order in 2004 calling for maximum competition in city contracts.

"This Board of Supervisors has been on record for years in wanting to make sure contracts are competitively and fairly bid," Peskin told the Guardian. "This whole thing seems rather bizarre. The government was in essence contracting with itself."

The health department’s Trotz dismisses this criticism, saying sole-source contracts were designed in the first place to allow for agreements like the Tides deal, which he calls a pilot project. Next time, he promises, the department will open the contract to bids. Trotz added that Tides is responsible if a DISH employee screws up, and it faces an annual monitoring probe by DPH staffers, just like any other contractor.

"I know now that THC and the union seem to be upset by this," Trotz said. "What we’re saying is we’ve heard that and we are doing what we always intended to do, which is run a two-year pilot and put a [request for proposals] out on the street and ready for people to apply to prior to the start of the next fiscal year."

Of course, no one’s suggesting Tides and DISH will necessarily do a poor job handling supportive housing. Shaw said lefties were the first to argue nearly three decades ago that nonprofits could address public health much more sensitively than did Dianne Feinstein’s mayoral administration of the 1980s. Last year the health department did $174 million worth of business with nonprofits. While unions have been slow to organize nonprofits, the trend is growing, but Tides and DISH seem structured to stiff-arm them when covert, sole-source contracts haven’t done that already.

"This obviously was a secret decision," Shaw said. "[The DPH] never consulted with anybody. They just did it. I don’t want to comment on the health department beyond what I’ve said. But this experience has left people very cynical about dealing with the health department [and] the way they handled the whole thing."

41st Anniversary Special: The perils of privatization

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Click here for Amanda Witherell’s exclusive interview with Columbia professor Elliott Sclar

› amanda@sfbg.com

Over the past few weeks almost every major news outlet in the country has reported on Blackwater, a private company the US government hired to do work in Iraq that was once the exclusive province of soldiers.

The deal hasn’t gone so well: on Sept. 16, Blackwater guards opened fire and, according to the Iraqi government, shot 25 civilians. The incident set off an international furor and has brought into focus the breadth of the company’s work for the US government. It’s prompted an investigation by the House Committee on Oversight and Government Reform, which showed that since 2001, Blackwater’s federal contracts have increased 80,000 percent. It’s revealed the massive pay inequalities between private security guards and US soldiers — the cost of one private guard could pay the salaries of six soldiers.

And it’s raised a question that’s critical to understanding how government increasingly works in the United States: should a private company be doing the work of the military?

Privatization of public services is all the rage in this country now, at all levels of government, from Washington DC to San Francisco. Supporters say the private sector can often work better and more efficiently than the old, bureaucratic, much-maligned government.

But Blackwater is a great example of the perils of privatization. And there are many more.

STARVE THE BEAST


Over the past few decades governments at all levels in this country have been in a near-perpetual state of deficit. Taxes are way down from their historic post–World War II levels, and except for a brief period during the tech boom, there is rarely enough money for even basic social services.

"It’s been a strategy since the ’70s to, as Grover Norquist calls it, ‘starve the beast,’<0x2009>" Robert Haaland, an organizer with Service Employees International Union Local 1021, told us.

And because politicians, even Democrats, are terrified of tax hikes, they’ve been looking for more efficient ways to use the money they have. The magic bullet goes by many names — privatization, public-private partnerships, competitive outsourcing, creative financing solutions — but the basic idea is to allow the power of competition, set free in an unregulated market, to provide the public with the best services at the lowest cost.

"To do or to buy is the question that all governments face," says Ken Jacobs, director of UC Berkeley’s Labor Center.

We’ve been buying. Since 2000, outsourcing of federal dollars has increased 100 percent, to $422 billion in taxpayer funds in 2006, according to a September study by the Washington DC US Public Interest Research Group. The US government is now the private sector’s largest customer.

San Francisco may be known as one of the most progressive cities in the country, but this town has also been wooed by public-private partnerships with promises of improvements to the golf courses, construction of a new power plant, and funding for the many civic needs we have.

PRIVATIZE MUNI?


Cheerleaders for privatization look at someone like Nathaniel Ford, executive director of San Francisco’s Metropolitan Transit Authority, and see everything that’s wrong with the public sector. Ford’s salary is nearly $300,000, plenty high enough to attract a talented leader. But the Muni system he runs keeps the average San Franciscan waiting on the corner in the morning, delivers that person to work at an unpredictable hour, and lurches them homeward every night aboard a standing-room-only bus. Nobody thinks Muni is performing well.

That makes the case for privatization seem almost appealing.

"The public has been schooled to think that government is the problem, not the solution," Elliott Sclar, professor of economics at Columbia University, told us. In his 2000 book on privatization, You Don’t Always Get What You Pay For: The Economics of Privatization (Cornell University), he writes, "American folk wisdom holds that, by and large, public service is uncaring, unbending, bureaucratic, and expensive, whereas competitively supplied private services such as FedEx are efficient and responsive."

Competition, the privatizers say, drives innovation. Less red tape means more efficiency. A lack of unions and collective bargaining agreements translates to lower labor costs. Large-scale multinational operations can reduce redundancy and streamline their processes — all of which adds up to a lean-running machine.

But this country has a lot of experience with privatization, and the record isn’t good.

One hundred years ago private companies did a lot of what we now call government work. "Contracting out was the way American cities carried out their governmental business ever since they grew beyond their small village beginnings," writes Moshe Adler, a Columbia professor of economics, in his 1999 paper The Origins of Governmental Production: Cleaning the Streets of New York by Contract During the 19th Century. At one time private companies provided firefighting, trash collection, and water supplies, to name just a few essential services.

But according to Adler, "By the end of the 19th century contracting out was a mature system that was already as good as it could possibly be. And it was precisely then that governmental production came to America. The realization that every possible improvement to contracting out had been tried led city after city to declare its failure."

For example, the 1906 earthquake and subsequent fires in San Francisco were what prodded the city to municipalize water service after the company charged with the task, Spring Valley Water, failed to deliver while the fires raged.

In Philadelphia as well as San Francisco, the business of firefighting was once very lucrative — for both the firefighting companies and the arsonists who were paid to set fires for the former to fight. And corruption was rampant. "Large amounts of public contracting out historically created lots of opportunities for fraud and nepotism," Jacobs said.

So public agencies stepped in to provide basic services as cheaply and uniformly as possible. Towns and cities took on the tasks of security with police and firefighting, education with schools and libraries, and sanitation with trash collection and wastewater treatment. Nationally, the federal government improved roads and transit, enacted Social Security benefits, and established a National Park System, among many other things.

And then, about 30 years ago, the pendulum started to swing the other way. Driven by University of Chicago economist Milton Friedman, enacted in a massive policy shift by Ronald Reagan, proliferated by Grover Norquist and the neocon agenda, and fully appreciated by corporations and private companies, privatization came back.

In Reagan’s first term, he cut taxes 25 percent overall; the rich got a 40 percent cut. Domestic spending fell by half a trillion dollars in the 1980s, although any savings were countered by a rise in the defense budget.

Harvard economist Lawrence Summers, quoted in Looking Back on the Reagan Presidency (Johns Hopkins University), put it this way: "The Reagan budgets will influence the government for the rest of this century. Just as the Great Society left an imprint of Federal commitment to help the indigent and equality of opportunity, the Reagan budget deficits will leave an imprint of non-involvement."

Such a massive realignment of money coupled with tax breaks too politically painful to reinstate led to a boom in the outsourcing of public services. Private companies began doing more municipal work, while nonprofit organizations tried to fill the gaps in funding for social services, welfare, housing, health care, and the environment.

The George W. Bush era has seen even more overt outsourcing. These days no-bid contracts are preferred, and at times government services are completely turned over to the private sector in "direct conversions," and the public agency that once did the job is not allowed to compete to keep it. The Washington Post recently reported that no-bid government contracts have tripled in the past six years.

This doesn’t really sound like the competitive free market espoused by the theory of privatization.

FLUNKING THE TEST


To field-test the primacy of privatization, the Reagan administration sponsored a transportation experiment in the early ’80s: Miami’s Metro-Dade Transit Agency got to compete against Greyhound. The two providers were each given five comparable transit routes to manage over three years, and 80 new buses were bought with a $7.5 million grant from the federal government.

After 18 months 30 of the Greyhound buses were so badly damaged that they had to be permanently pulled from service. Passenger complaints on the Greyhound line were up 100 percent, and ridership was down 31 percent over the course of a year.

Why? There was no incentive in Greyhound’s contract to maintain the equipment or retain riders. The company’s only goal was to deliver the cheapest service possible.

The Miami transit contract could have contained clauses calling for regular inspections or guaranteed ridership, but that would have significantly increased the cost of the work — perhaps to the point where it would have been competitive with what the city provided.

That’s an important lesson in privatization politics: when you add the cost of adequately protecting the public’s interest and monitoring contract compliance, the private sector doesn’t look so efficient.

Which is why many say privatization only succeeds as a theory — and why, for all the problems with Muni, no private company is likely to be able to do a better job.

"Market fundamentalists present an idealized, simpleminded notion of competitive markets in which buyers and sellers have equal knowledge," Sclar told us. "Anyone can be a buyer, anyone can be a seller, everyone can evaluate the quality of the good. In this never-never land, that’s often the way the case is made for privatization by this particular group of economists."

In the real world a number of issues arise when a service goes private. "Accountability gets to be a really big problem," Ellen Dannin, professor of law at Penn State University, said in an interview. "There are predictions about how much money will get saved through privatization, but no one ever goes back to check."

The September study by the US Public Interest Research Group profiled several companies that do government work, including Bank of America, LexisNexis, ChoicePoint, KBR (formerly Kellogg, Brown, and Root), General Electric, and Raytheon, and found instances of illegal behavior in all cases. There were often massive errors in the companies’ work.

Bank of America and LexisNexis had security breaches compromising the data of at least 1.5 million customers they were handling for the government. ChoicePoint allowed identity-theft scams amounting to more than $1 million in fraud. KBR overcharged the government millions of dollars for work in Iraq and Kuwait. GE made defective helicopter blades for the US military. Raytheon failed to fully test the systems of new aircraft. These companies are all still employed by the government.

When companies take over services that aren’t typically part of a competitive market, all sorts of unexpected problems occur. Jacobs points to the rash of contracting for busing services in cash-strapped school districts. Not only did costs eventually rise in many places, but when schools tried to go back to providing their own service, the skilled drivers who knew the routes, knew the kids, and were able to do much more than drive a bus were gone.

Sclar and Dannin agree that any service that lacks competition should be public. Sclar presented the example of electricity. "It’s a natural monopoly," he said. "Essentially it’s either going to be a well-regulated industry or it’s got to be done publicly."

Corporations exist to make money. And although graft, mismanagement, and scandal have always been present in City Halls around the country, in the end the legislative, judicial, and executive branches were not designed to generate profits. That alone means contracting out is financially dubious.

Hiring mercenaries is a classic example. "It costs the US government a lot more to hire contract employees as security guards in Iraq than to use American troops," Walter Pincus wrote in an Oct. 1 article in the Washington Post. "It comes down to the simple business equation of every transaction requiring a profit."

As Pincus details one of the many contracts between the security firm and the US, "Blackwater was a subcontractor to Regency, which was a subcontractor to another company, ESS, which was a subcontractor to Halliburton’s KBR subsidiary, the prime contractor for the Pentagon — and each company along the way was in the business to make a profit."

Blackwater charged Regency between $815 and $1,075 per day per security operative. Regency turned around and charged ESS a slightly higher average of $1,100. After that, the costs dissolve into the enormous bill that KBR regularly hands the federal government.

When the US Army is paying the bill the costs are far lower. An unmarried sergeant earns less than $100 a day. If you’re married, it’s less than $200. If you’re Gen. David H. Petraeus, it’s about $500 — less than Blackwater’s lowest-paid workers.

Very little about the Blackwater contracts would be known by anyone outside the company if it weren’t for the federal investigation, since private businesses are not subject to the same public-records laws as the federal government. They don’t have to open their books or publicize the details of their bids and contracts, and they often fiercely lobby against any regulations requiring this, which leaves the door wide open for corruption — which is what brought sunshine laws to government in the first place.

Sclar said that when it’s a good call to contract out, corporations, private companies, and nonprofits should be required to abide by public-records laws in addition to adhering to a five-year wait for employees departing the public sector for the private. "I think transparency should always be the goal," he said. "As much information as possible." If a company doesn’t want to make its records public, he told us, "[it shouldn’t] go after public work."

THE AIDS LESSON


Privatization comes in many forms and emerges for what often seem like good reasons.

In the early 1980s gay men in San Francisco were starting to get sick and die in large numbers — and the federal government didn’t care. There was no government agency addressing the AIDS crisis and almost no government funding. So the community came together and created a network of nonprofits that funded services, education, and research.

"The AIDS Foundation was founded in response to the epidemic at a time when there wasn’t a response from the federal government," Jeff Sheehy of the AIDS Research Center at UC San Francisco told us.

At first, activists all over the country praised the San Francisco model of AIDS services. Over time the nonprofits began to get government grants and contracts. But by the 1990s some realized that the nonprofit network was utterly lacking in public accountability. The same activists who had helped create the network had to struggle to get the organizations to hold public meetings, make records public, and answer community concerns.

That, Sheehy said, shouldn’t have come as a surprise.

"There isn’t that same degree of accountability that you would have" with the public sector, he told us. "SF General is not going to turn you away at the emergency room, but nonprofit hospitals are less and less interested in running ERs."

Sheehy said he’s seen cases where difficult clients have been banned from accessing help from nonprofits. Unlike at public institutions, "the burden is not on the agency to provide the service. It is with the client to get along with the agency," he said.

Sheehy outlines other issues: nonprofits run lean and are more apt to make cuts and resist unionization, which means workers are often paid less, there can be higher turnover, and upper management is often tasked with fundraising and grant writing and distanced from the fundamental work of the group. There’s no access to records or board meetings. "If service takes a sudden downward shift, what can you do?" Sheehy asks. "You can’t go to board meetings. You can’t access records. What’s your redress?"

And that perpetuates the problem of government not stepping up to the plate. More than half of the social services in San Francisco are run by nonprofits, a trend that isn’t abating.

"When the services are shifted from the public sector to the nonprofit sector," Sheehy said, "that capacity is lost forever from government."

THE LOTTERY TICKET


When Dannin teaches her students about privatization, she uses the analogy of personal finance. "If I find my income does not meet my expenses, I can cut my expenses, but there are certain things I have to have," she said. To meet those needs a person can get a second job. In the case of the government, it can raise taxes.

But "that is not an option governments see anymore," she told us. "So the third option is to buy a lottery ticket — and that’s what privatization is."

When a publicly owned road is leased for 99 years to a private company, the politician who cut the deal gets a huge chunk of cash up front to balance the local budget or meet another need. When the new owner of the road puts in a tollbooth to recoup costs, that’s the tax the politician, who may be long gone, refused to impose. What option does the voting driver have now?

Public goods, from which everyone presumably benefits, are frequently and easily falling out of the hands of government and into the hands of profit-driven companies. In New Orleans, charter schools have replaced all but four public schools. In about 15 municipalities public libraries are now managed by the privately owned Library Systems and Services. (In Jackson County, Ore., it’s being done for half the cost, but with half the staff and open half the hours.) At least 21 states are considering public-private partnerships to finance massive improvements to aging roads and bridges. User fees have increased in the national parks as rangers have been laid off and some of the work of park interpretation is picked up by private companies, as is the case with Alcatraz Island.

Dannin also asks her students to consider who really owns a job. The easy answer is the employer. "But there is another claimant of ownership of that job," she says. "That is the public. Employers depend on roads for their employees to drive to work, a public education system to train their workers. They depend on housing, police, the court system, the system of laws. That is a huge amount of infrastructure we tend not to think about.

"We live within an ecosystem. We’re having a hard time seeing that ecosystem, that infrastructure that we’re all in. That’s what your taxes pay for."

41st Anniversary Special: Bus stop

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› gwschulz@sfbg.com

There’s a money room in the basement of 1 South Van Ness, where the Municipal Transportation Agency, which operates Muni, is headquartered. Workers literally count by hand bags of cash and coins taken in as fares from passengers throughout the day.

When Muni recently needed to pull some of those unionized bean counters away from the money room to staff kiosks around the city where transit passes are sold, its managers hoped to replace them with workers from a private contracting outfit.

The plan unsettled the Service Employees International Union Local 1021, which persuaded Muni against the idea and instead encouraged it to create 10 new full-time city positions to cover the work that was needed. But the MTA’s immediate turn to the private sector is telling.

Powerful local unions would no doubt fight it, but public-transit consultants working with the city have insisted that the outright privatization of San Francisco’s municipal transit system is worth consideration. Advisors to the Transit Effectiveness Project, first unveiled by Mayor Gavin Newsom during a 2006 speech, insist nothing is too controversial for debate.

"There’s nothing we’ve been told to take off the table," a consultant hired by the city told the San Francisco Chronicle late last year.

The Transit Effectiveness Project’s final recommendations are expected next year, when it’s likely Newsom will be starting his second and final term. Big segments of Muni have already been privatized over the years. In fact, Controller’s Office records show the MTA has privatized far more formerly public services over the past two decades than any other city department by far.

In 1983 voters passed Proposition J, authorizing the city to contract out services performed by city workers who’d passed civil service exams to prove their skills as long as the Board of Supervisors passed a resolution certifying a cost savings. The MTA issued $46.5 million worth of private contracts last year covering 689 positions, according to figures maintained by the Controller’s Office.

Muni has used private security guards since 1975, and 400 private workers handle paratransit services, which aid the disabled. Towing, janitorial, meter-collection, and citation-information services have all been privatized. In total, the MTA’s purported cost saving is as much as $20 million per year.

But that’s a sliver of MTA’s $680 million budget, and there are perennial fears of more privatization pushes. This fall’s Muni reform measure, Proposition A, nearly went to the ballot with language that could have allowed millions of dollars in new privatized work at Muni without review from civil service commissioners, but it was removed at the insistence of labor leaders.

San Diego privatized many of its transit services in the ’80s, gradually contracting out services as public employees retired. By last year about half of San Diego’s bus routes were managed by three private contractors, including Violia, an Illinois company that also runs Muni’s paratransit services. Labor leaders say service in San Diego suffered under privatization, and they oppose similar changes here.

"Whenever you contract out a department, whenever you let go of control, then you don’t have control of the product," Cristal Java, an organizer for SEIU Local 1021, told the Guardian.

Prop. A’s language was changed to preserve union jobs if new routes and lines are introduced that may otherwise have been susceptible to privatization, but there are no assurances that city officials won’t eventually point to Muni’s widely bemoaned system deficiencies and claim that further contracting out is necessary.

"We see the same operational problems, and hiring new full-time, permanent people is a way to deal with it instead of contracting out," Java said. "The unions, allies, and MTA got together to make Prop. A something that worked for everyone."

California’s tough regs reputation undeserved

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labor1.jpg

Big business loves complaining about California’s famously “tough” regulations. But if they exist mostly on paper and there’s no one around to enforce them, than what the hell is big business whining about?

The state legislature gets the best of both worlds as a result. The majority Dems can show the unions how they’re protecting workers by passing new rules on occupational safety, but their big-business donors are appeased when year after year California’s Division of Occupational Safety and Health (known widely as Cal/OSHA) is systematically de-funded and top administrative posts remain vacant.

And now it’s worse than it has been in more than a decade, writes Garrett Brown in the rag Industrial Safety & Hygiene News. (Is this really what we spend our weekends reading?) Brown is a long-time investigator for Cal/OSHA. He notes that inspections have dropped statewide by 35 percent since 1992, and actual citations have declined by 44 percent.

In fact, California has one inspector for every 84,000 workers compared with the average among nearly two-dozen other states of one for every 50,000, according to Brown. (Those Commies in Canada have one for every 10,000.) Huge percentages of violations simply go unabated, and while employers are appealing citations they’ve received – which they commonly do and which are severely backlogged statewide – no one can force them to fix the identified hazards in the meantime.

That’s kind of like allowing someone to continue breaking people’s knees with a baseball bat until they’re proven guilty of the first assault.

Fast, cheap, and out of control

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tredmond@sfbg.com

Click here for the Guardian‘s interview with Robert Reich.

The fall of the Berlin Wall in 1989 led a lot of pundits to talk about “the end of History.” The big battle of our lives, the defining philosophical and political conflict of the century, was over. Communism lost. Capitalism won.

But in the United States, the real war was just getting under way, a conflict between two visions of society: in one, the public sector, operating under a democratic system, dominated economic and political life; in the other, the central players in the game of life were private corporations. This war, which drags on today, poses a profound question: does the capitalist economy work for us — or are we slaves to its whims? The answer continues to transform almost every aspect of American life.

Clinton-era labor secretary Robert Reich, now a professor at UC Berkeley’s Goldman School of Public Policy, takes on a big piece of this epic struggle in his new book, Supercapitalism: The Transformation of Business, Democracy and Everyday Life. The cogent, well-documented, and critically important argument he makes is that the American people have prospered as consumers and investors at the expense of their role as citizens.

And in the end, we’ve been hurting ourselves.
This is the essential paradox of modern global capitalism: you can buy high-end electronics cheap, get amazing bargains at Wal-Mart, enjoy the growth of your 401(k) plan — and in the process, become poorer. Because the race to the bottom of the price chain and the top of the market has costs, and in the end, we’re all paying them. The only solution, Reich says, is a more aggressive government: more regulation, higher taxes, and, quite possibly, some consumer and investor sacrifices.

Reich goes back to what he calls the “Not Quite Golden Age,” the roughly 25 years after the end of World War II that were marked by continuous economic growth, relative prosperity, and remarkable (compared with today) economic equality. The top tax rate, for the very rich, was 91 percent (compared with 35 percent today). American industry was controlled by an oligopoly, in which a handful of businesses held the reins — and because they faced little competition, they were able to share their profits with labor. Back then, companies didn’t distribute their wealth to investors; it went to the employees.

For all the denunciation of socialism and idolization of the free market that goes on in American politics today, Reich points out that cold war America was defined by centralized economic planning. It just wasn’t the government doing that job; it was private industry.

He doesn’t contend that the model in operation back then was perfect — and anyone who has followed the postwar transformation of San Francisco, driven by secret private-sector planning, knows the painful impacts of such policies. But public resources were adequate to pay for massive infrastructure advances (the interstate highway system), gigantic educational benefits (the GI bill), and phenomenal tax breaks for home ownership. Labor unions, dealing with domestic companies that didn’t face competitors with cheaper offshore labor, were able to negotiate a division of the wealth that helped create the modern American middle class.

The gap between rich and poor was much, much smaller during that period than it is today; as Reich notes, “the potent incentive of great wealth was often absent,” so the economy was far more equitable and stable. High taxes on the rich didn’t slow a period of remarkable economic growth. And in 1964, 75 percent of the American public thought the government could be trusted to do the right thing most of the time — a statistic that seems inconceivable today.

That was, of course, before Vietnam, before Watergate, before the (first) energy crisis, stagflation, the California tax revolt, and cultural disillusion with the public sector, factors Reich doesn’t discuss in great detail.

But he does point to the changes that came in the 1980s and later: Deregulation, which transformed the banking industry, turning savers into investors. Globalization, which created a cutthroat type of capitalism promoting low prices and high returns at any cost. And government policies — such as the creation of private retirement plans and the promotion of the stock market as the central tool of investment — that encouraged Americans to focus on their own bottom line and ignore the larger issues facing society.

The result today, Reich says, is a supercapitalist world, in which you can fill your house with amazing piles of cheap stuff — but in the end those bargains wind up hurting you. “Consumers get great deals because workers get shafted,” he notes. “Ironically, they’re often the same people.”

Unlike a lot of people on the left, Reich doesn’t go around bashing big corporations and blaming them for society’s ills. In today’s ultracompetitive world, he says, corporations are simply doing what they have to do to survive: cutting costs, fighting for the bottom line, striving for the best possible returns for investors. There is no such thing as corporate social responsibility, he argues; under supercapitalism, it’s all about making money.
Instead of complaining about corporate greed, he says, we need to think as citizens and demand new rules, new laws and regulations, that force companies to do what we want them to do. We have to take back control of the American economy — and to do that, we have to reclaim democracy.

Reich places a large part of the blame on the role money has assumed in politics. He suggests that corporations, which are in reality just paper constructs, should be stripped of any rights to legal standing, any rights to participate in the public process — any rights to act as anything but pieces of paper. Campaign contributions should all be put into blind trusts: anyone could give money to a candidate, but that candidate would never be allowed to know who gave what.

Those reforms would be tough, and they might not happen anytime soon. But the value of this book isn’t in promoting any specific policy prescription. It’s about waking up and educating several generations of Americans who can’t seem to understand that you can’t have it all for free: that a decent society with universal health care, good public education, safe cities, and a commitment to protecting the environment requires some sacrifice; that the very rich (and even the run-of-the-mill well-off) among us have to pay taxes and accept responsibility for a decent nation and a decent world. That means creating a public sector we can trust — and not dismissing out of hand the notion that government has a positive role to play.

It’s the most important message anyone can impart today to the deluded, selfish population that makes up so much of modern America.

READING
Oct. 16, 7:30 p.m., free
Moe’s Books
2476 Telegraph, Berk.
(510) 849-2087, www.moesbooks.com

SUPERCAPITALISM: THE TRANSFORMATION OF BUSINESS, DEMOCRACY AND EVERYDAY LIFE
By Robert Reich
Knopf
272 pages
$25

Port tack

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› news@sfbg.com

The Oakland City Council made an unprecedented move toward environmental justice Oct. 2 by appointing Margaret Gordon to the Oakland Port Commission. It is the first time that a community activist, rather than a businessperson or a political insider, has been named to that powerful body.

The action was roughly equivalent to naming Michael Moore to the board of the National Rifle Association. For years Gordon has led an effort to hold the port accountable for poisoning the air in her neighborhood, where the American Lung Association has found that one in every five children suffers from asthma.

Gordon’s nomination, along with that of International Brotherhood of Electrical Workers business manager Victor Uno, signals a clear call for reform from Mayor Ron Dellums, who issued a prepared statement commending the council "for recognizing the importance of appointing individuals who are capable of understanding both the economic and the environmental impact of the various Port facilities."

Gordon’s appointment almost didn’t happen. Dellums withdrew his two nominees from consideration at the council’s July 17 meeting after it became clear that Gordon would have trouble winning the necessary votes. Since that time Dellums has lobbied hard for their confirmation and finally saw Uno approved unanimously and Gordon on a 7–1 vote (Councilmember Desley Brooks voted no).

"The mayor has emphatically stood behind Victor and I," Gordon told the Guardian. "He has a vision for the port. He wants it to be efficient, to grow, but not to cost people’s health. The port is supposed to make money, but it’s not supposed to make people sick."

The appointments come at a critical time. The port is now drafting a long-overdue clean-air plan, while state regulators are developing stringent clean-air requirements for ports. The Coalition for Clean and Safe Ports, a national consortium of labor and environmental activists, is also advancing a proposal at Oakland and other US ports that would radically change the way port trucking is structured.

The two appointees, who begin serving immediately, will play key roles in shaping the port’s proposal. The Port Commission could vote on a final comprehensive clean-air plan as early as December. Doug Bloch, coordinator for the Coalition for Clean and Safe Ports, told us he is "cautiously optimistic" that the seven-member Port Commission will approve his group’s proposal. "We have two votes now," he said.

The coalition seeks to clean the air by improving the sweatshoplike working conditions of port truckers, who often drive the cheapest, most polluting trucks. Its plan calls on the port to require trucking companies to maintain vehicles and hire truckers as employees. The California Trucking Association and the Pacific Maritime Shipping Association have aggressively opposed the plan, which could herald the return of the Teamsters Union. Since they are classified as independent contractors, it is illegal for truckers to join a union. As employees, they would receive benefits and have the option to organize (see "Importing Injustice," 7/18/07).

Uno told us, "Truckers becoming employees is definitely part of the solution. It is clearly one of the ways to address this issue." Asked in July if he thought a proposal could succeed without requiring trucking companies to hire truckers as employees, he said, "I do not see how that is possible, given the lack of regulations in the trucking industry. It’s a dog-eat-dog world among independent truckers."

Gordon told us she is in favor of any plan that improves air quality and truckers’ lives but is not convinced that making them employees is the only way. "All I’m worried about is that small businesses, unions, and community health organizations can work together," she said. "We have to be unified in resolving these issues."

Ray King, general manager of marine operations at the port, told the Guardian that a tentative outline of the port’s plan will be posted to its Web site in the coming weeks, after which it will accept public comments for 30 days.

City Council president Ignacio de la Fuente had been Gordon’s key opposition in July. He told the Oakland Tribune that an appointee was needed "who understands [the port’s] need to be competitive, to be efficient, and to grow. The fact is, we have the responsibility for balance." But at the Oct. 2 meeting, he called Gordon "a great asset" and said her appointment will lead to "the creation of a balanced Port Commission."

For the past year and half Gordon has sat on the cabinet-level working group appointed by Gov. Arnold Schwarzenegger that developed allocation guidelines and detailed clean-air requirements for more than $3 billion in Proposition 1B bond funds approved by California voters last year for port expansion and environmental mitigation projects. Port spokesperson Libby Schaaf told the Guardian that its success in securing these funds will play a central role in its expansion plans.

Councilmember Brooks, the sole vote against Gordon, worries that the plan could hurt the port’s fiscal viability. "This is the fourth-largest port in the US. This is the economic engine of the region. We need to ensure that we move in a direction where it will continue to grow. The port is getting ready to see some very tight times," she said at the meeting. "I told the mayor I hope he proves me wrong with this appointment."

Guards hit streets

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More than 100 security guards from more than 20 buildings in the Financial District, including the Transamerica Building, participated in a three-day unfair-labor-practices strike before returning to work Sept. 27 as contract talks resumed.

After three months of working without a contract, security guards are seeking higher wages and access to affordable health care to be able to support their families, as well as proper training for the safety of buildings and their occupants.

Service Employees International Union Local 24/7 representatives were mostly pleased with the job action, although the union had to defend three guards who were locked out as the strike ended. Universal Protection Services had planned to permanently replace security officers Robert Ravare, Kevin Coleman, and Jesusa Villena, but the issue has since been resolved, and the three employees returned to work on the morning of Sept. 28.

Abbas Emady, a security guard for Universal, told the Guardian he resents security companies for not providing adequate training for their employees, which devalues the important role guards are likely to play in a disaster. And low wages and poor benefits exacerbate the problem by creating high turnover rates for guards.

"If there’s a terrorist attack or a fire, we’re the first to go," said Bobby Randall, who works for Securitas as a security guard at the 50 Fremont high-rise. Without sufficient training, security guards may have difficulty assisting police and firefighters in an emergency, a point the local police and firefighters unions reinforced with votes of support for the strike.

Security guards risk their lives to protect multibillion-dollar properties, yet they don’t receive the same wages or health coverage as janitors, window washers, parking attendants, or operating engineers who work in the same buildings. In fact, a security guard with two and half years of experience only makes $11.85 an hour, while a janitor with the same experience makes $17.05 an hour, according to the SEIU. A union-run "Justice for Janitors" organizing campaign a few years ago helped that group make progress.

"It’s an unacceptable double standard," SEIU Local 24/7 spokesperson Gina Bowers said.

Armando Yepez, who participated in the strike, told us he works two full-time jobs as a security guard, at a downtown high-rise and at a construction site, in order to pay for housing and other expenses. Yepez commutes between his home in Richmond and his job locations in San Francisco five times a week, leaving him with less than five hours of sleep each night.

Security officers often find themselves paying for medical expenses out of their own pockets because their health insurance does not cover all of their needs and does not provide family benefits.

On Jan. 1 security guards were offered a free but severely limited health plan with Aetna, which has a cap of $4,000 for outpatients. For Sue Trayling, a security guard working for Securitas, all it took was one night in the emergency room and a couple of doctor’s appointments to max out her Aetna plan. Trayling clocks in 421/2 hours a week yet still had to dish out $2,400 in cash to pay for additional medical expenses.

According to Trayling, security guards were offered health care plans with Kaiser Permanente for $26 per month before Jan. 1. Since then, however, premiums have gone up to about $140 per month, and the copayment has doubled from $20 to $40 per visit.

The first strike among private security officers in San Francisco found some official support — the Board of Supervisors passed a resolution Sept. 25 in favor of the security guards. Sup. Tom Ammiano stood before a small crowd of workers clad in purple T-shirts on the steps of City Hall and expressed the city’s support for higher wages, affordable health insurance, and proper training.

Mayor Gavin Newsom also issued a statement saying, "I urge the involved parties to work more diligently towards a fair and reasonable settlement — one that recognizes the economic concerns of the workers while at the same time respect[ing] the employers’ need for operating flexibility within the wide range of facilities in which they provide security services."

Newsom also asked commercial-building owners and managers to involve themselves in the negotiation process with the security companies in order to set new industry standards. The Building Owners and Managers Association did not return our call seeking comment on the strike and related issues.

Sutter bleeds St. Luke’s

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› gwschulz@sfbg.com

Dr. Bonita Palmer has worked at the embattled St. Luke’s Hospital on the southwest corner of César Chávez and Valencia for 17 years.

Before a packed room of union organizers and religious leaders Sept. 12 at St. Mary’s Cathedral near Japantown, she gave a brief speech about her experiences at the beloved but financially troubled hospital.

"St. Luke’s has been struggling to stay afloat for many years," Palmer told the audience. "Under managed care, reimbursements are down, the numbers of uninsured patients are up, and the growing gap between income and cost of care stresses the health of working people."

Money woes at St. Luke’s are no secret. Its parent company, California Pacific Medical Center, an otherwise lucrative group of San Francisco hospitals owned by Sacramento’s Sutter Health, describes the losses at St. Luke’s as anywhere from $20 million to $30 million annually.

Patient advocates and unions representing St. Luke’s workers have long feared closure of the hospital and its badly needed acute-care services, which thousands of residents — the city’s poorest among them, living nearby in the SoMa, Mission, and Bayview–Hunters Point neighborhoods — often visit when they can’t get expensive medical treatment elsewhere.

The hospital continually faces cuts executed by the CPMC, from its downgraded neonatal nursery to the subacute unit, where, Palmer says, patients who require nonemergency but highly specialized care from professionals are being turned away. "Sutter scrapped its plan for a much-needed upgrade to our emergency room even as we continue to receive the overflow of patients from" San Francisco General Hospital, she said.

Staffers learned most recently that outpatient physical therapy, which had already been trimmed, will be done away with completely, while the hospital’s 36-bed inpatient psychiatric unit and outpatient clinic have already been closed. A woman in the audience confessed afterward that she was nearly brought to tears by Palmer’s tale.

The decisions only worsened Sutter’s reputation across Northern California for dwelling on its bottom line and further enraged the United Healthcare Workers–West union, which represents thousands of Sutter workers and with which the company has regularly battled for a decade.

St. Luke’s contains one of the most active emergency rooms in the city, and aside from General Hospital a mile or so away on Potrero Avenue, it serves more patients benefiting from Medi-Cal and Sutter’s version of charity care services than just about any other facility.

The CPMC, which fully merged with St. Luke’s in January, promises the hospital will be a part of the company’s future. But the CPMC also comes closer every day to beginning construction of a new $1.7 billion hospital on Cathedral Hill, closer to the city’s wealthiest neighborhoods. And critics worry that CPMC’s new bid proves not only where its priorities are but also that once-independent St. Luke’s — opened in 1871 by an Episcopal minister — will suffer death by a thousand cuts.

Sup. Tom Ammiano, who’s closely observed the fate of St. Luke’s for years, says the CPMC is slowly amputating one of the few hospitals left in the southern portion of San Francisco while paying lip service to nonprofit health outreach.

"They lie without guile," he said. "Waterboarding would be more enjoyable than dealing with these people."

Sutter initially took over St. Luke’s in 2001 as part of a settlement agreement after the hospital sued Sutter in 1999, alleging state antitrust violations in Sutter’s brokering of an exclusive contract with the Bay Area’s largest network of doctors. St. Luke’s officials claimed the contract stripped wealthier patients away from the hospital, which hurt its bottom line.

The settlement required Sutter to bankroll St. Luke’s with a series of subsidies — and included a promise of up to $20 million for needed retrofit work that doesn’t appear to have been done — while allowing the hospital to remain somewhat independent. The terms expired last year, and St. Luke’s has since been completely folded into the family of San Francisco hospitals known as the CPMC, which includes the Davies Campus, nestled between the Castro neighborhood and the Lower Haight, the Pacific Campus on Buchanan Street, and the California Campus in the opulent Pacific Heights area.

While St. Luke’s can’t complete a fiscal-year cycle without coming up short of cash, the CPMC as a subsidiary of Sutter Health earns tens of millions of dollars in net income annually, much of which is sent to Sutter’s home office in Sacramento. In 2003, for instance, the CPMC transferred $118 million in net income — the money remaining after expenses are covered, which any other business would call profit — out of the city. Other ailing Sutter-owned hospitals around the state receive inflows of money from Sacramento, such as a Santa Rosa medical center that got $16 million in 2003, according to documents Sutter must provide to the state.

"In good times, affiliates share a portion of their revenue in excess of their expenses to help strengthen the network through this shared balance-sheet approach," Sutter spokesperson Karen Garner told us. "And in times of need, our affiliates can count on the network to help ensure that those services can continue to be available to their local communities."

But Sutter has announced that it plans to close part of the money-losing Sutter Medical Center of Santa Rosa, which faces high seismic retrofit costs, fueling concerns that something similar will happen at St. Luke’s. Sutter also last year moved to sever ties with Marin General Hospital and wash its hands of a costly needed retrofit there. An acute-care facility in San Leandro that loses money may soon be closed as well, as locals there learned just this month when a Sutter employee leaked the news to the San Leandro Times.

"CPMC plans to stop serving unprofitable areas, ignoring their obligation to the community," Helen York Jones, a union steward of CPMC employees, said at a July rally outside St. Luke’s. "How can they be entrusted with a large share of the area’s health care system?"

For a supposedly nonprofit chain of hospitals, Sutter Health is very profitable, having one of its best years in 2006. Its net income from operations amounted to more than $500 million, an increase of 33 percent from the previous year, which its execs attributed to the company’s outsize investments. Sutter controls more than two dozen medical centers throughout California and one located in Hawaii.

The company’s mammoth $2 billion investment portfolio brought the company $159 million in returns last year. Sutter’s CPMC subsidiary also benefited from more than $50 million in local, state, and federal tax breaks during 2005, according to figures maintained by the San Francisco Department of Public Health.

Meanwhile, Sutter has announced plans to spend $1.1 billion fully replacing facilities in Sacramento and San Mateo. In fact, the company broke records in June when it acquired state-backed bond financing of $958 million — which essentially amounts to a low-interest, tax-free loan — which it intends to use for seismic retrofit projects at several of its hospitals across the state.

But according to state records, the company doesn’t intend to use any of the loan money for retrofitting the St. Luke’s campus, part of which the state has concluded poses "a significant risk of collapse and a danger to the public after a strong earthquake," according to state structural ratings. State law gives hospitals until 2013 to meet strict seismic standards or shut down.

"Sutter wants to use money to fuel their corporate expenses in markets that are making money or have the potential to make money," Sal Roselli, president of the United Healthcare Workers–<\d>West, said.

Roselli believes the CPMC wants to close the emergency room at St. Luke’s and more or less turn the hospital into a clinic, perhaps once the Cathedral Hill location is completed; Sutter, he said, promises to maintain community services during its hospital takeovers but often backslides on those promises within months.

CPMC spokesperson Kevin McCormack doesn’t outright deny the possibility that St. Luke’s will someday see vastly fewer ER patients.

"St. Luke’s is still going to be a vital part of anything we do in terms of providing health care in San Francisco," McCormack said. "We intend to strengthen its role — not just to keep it going, but to make it better. Because right now what happens is that a lot of people don’t have access to preventative care, so they end up using the emergency room when they have a problem with, say, diabetes or asthma."

But Ammiano remains skeptical.

"If we allow this to happen and if we can’t find alternatives," he said of the cuts at St. Luke’s, "it’s really going to not just tear a hole in the fabric of that neighborhood but also the whole southeast section."

Letters as leverage

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It’s a thin, seemingly innocuous letter. The Social Security Administration mails it when names and Social Security numbers don’t match on an employee’s I-9 form. The intent is to make sure workers receive their benefits.

But unions and immigrants have long charged that unscrupulous employers use SSA "no match" letters to harass undocumented workers and squelch union organizing efforts. Now, after a failed immigration debate in Congress, the George W. Bush administration wants to pass a regulation that would explicitly turn the letter into an immigration enforcement tool.

Activists fear this could result in massive firings and retaliation against workers organizing with unions. Employers complain it could lead to an economic slump in industries dependent on undocumented labor. A temporary injunction granted by a San Francisco judge is the only thing holding back letters across the country; it ends Oct. 1.

Bay Area activists have been national leaders at the intersection of immigrant rights and labor movements. They are now shaping national policy on this new regulation in the courts and promise wide-scale street action and workplace walkouts if it goes into effect.

A look at past and present related Bay Area organizing may shed light on the future of the national issue.

BAY AREA ORGANIZING


US companies file hundreds of millions of W-2 forms with the SSA every year. The SSA uses them to calculate how much it owes workers at retirement. When the name and the Social Security number do not match, the SSA sends a "no match" letter to the employee to clear up the discrepancy. The letters are also sent to employers who have more than 10 employees with no match. These letters have nothing to do with immigration law, and employers are not required to take any adverse action against these employees.

But under the new Department of Homeland Security regulation, no-match letters may be seen as evidence that an employer knowingly employed an undocumented worker. The letters would include a leaflet from US Immigration and Customs Enforcement informing employers that they must fire workers who cannot resolve no matches with the SSA or reverify their work authorization within 93 days. If the companies do not, they may be subject to fines or criminal charges.

The rule was drafted more than a year ago but was not announced by Homeland Security secretary Michael Chertoff until Aug 10. "The magnet that brings most economic migrants into this country is work," he explained. "And if we have worksite enforcement directed at illegal employment, we strike at that magnet."

Brooke Anderson, an organizer with the East Bay Alliance for a Sustainable Economy, told the Guardian that this is an unlikely scenario. Workers will not leave the country; they will simply be forced into underground economies, rotate through different jobs, and become even more vulnerable.

Anderson was among a delegation of more than 30 labor, faith, and community leaders that presented a letter Aug. 30 at the regional SSA office in Richmond. The letter outlined their concerns and asked that the SSA send out no-match letters only to employees, not employers.

"DHS is using an incomplete, hodgepodge system intended to ensure our economic security to implement a regressive immigration policy that Bush failed to pass in Congress," Anderson told us. "The SSA as an agency should have a spine and say no to DHS and no to the Bush administration."

If the ICE inserts do go out with no-match letters, she predicts walkouts and massive street actions.

The regulation is also being challenged in a lawsuit filed by the Central Labor Council of Alameda County. The AFL-CIO, the American Civil Liberties Union, and the San Francisco Central Labor Council have joined it. The plaintiffs claim that because the SSA’s database is full of errors, many citizens and legal immigrants could end up losing their jobs. They also argue that the DHS has exceeded its authority by seeking to use the SSA to enforce immigration laws.

US District Judge Maxine Chesney in San Francisco granted a nationwide temporary restraining order Aug. 31, blocking the SSA from sending letters with ICE inserts. The order is in effect until Oct. 1, when another federal judge here, Charles Breyer, will decide whether to grant another injunction.

"DHS is trying to create a huge terror, to give the illusion that they are doing something," Bill Sokol, a lawyer with Weinberg, Roger, and Rosenfeld, the firm representing the Central Labor Council of Alameda County, told us. "Workers are afraid, but we must dial down people’s fear and terror under our new gestapo."

He said the law will have little impact if employers understand it and do not abuse it. If employers overreact, however, the result could be disastrous. Sokol said employers are already firing employees immediately after receiving the letters.

HISTORY


Unions and immigrant workers across the country have charged that no-match letters have been used to stifle workers’ rights since the SSA began sending them to employers in 1994. Activists in the Bay Area have played a key role in resisting these efforts, setting national precedents upholding worker rights.

When a San Francisco Travelodge fired workers after they began organizing with a union in 1999, allegedly due to Social Security no matches, the terminated employees took it to court. The next year they won an arbitrator’s decision that the firing, based solely on no-match letters, was a violation of their union contract.

Local community pressure on the SSA also resulted in the inclusion of cautionary text in the letter. The no-match letter now states that employers "should not use this letter to take any adverse action against an employee…. Doing so could, in fact, violate state or federal law and subject you to legal consequences."

Activists at Oakland’s Labor Immigrant Organizers Network wrote a resolution in 1999 asking the AFL-CIO to renounce its support of the employer-sanctions provisions of the 1986 Immigration Reform and Control Act, the federal law that for the first time made it illegal for an undocumented worker to hold a job. Their agitation is credited in part for a resolution the AFL-CIO passed in 2000 calling for the repeal of sanctions and for a legalization program for undocumented workers.

The letters remained a potent tool for antiunion activity. A 2003 survey by the Center for Urban Economic Development at the University of Illinois at Chicago found that 25 percent of workers listed in no-match letters reported that their employers fired them in retaliation for complaining about inadequate worksite conditions. More than one in five workers reported that their employer fired them in retaliation for union activity.

San Francisco opposed the DHS no-match regulation when it was proposed last year. An August 2006 resolution by the Board of Supervisors said it may lead to employers "using it as a device to fire, intimidate, harass, or underpay employees." It promised that the city would defy the regulation if it received a no-match letter for a city employee.

The San Francisco Chamber of Commerce and the US Chamber of Commerce also came out against the regulation.

But some employers embraced the proposed regulation. Uniform manufacturer Cintas fired hundreds of employees across the country, allegedly responding to the proposed guidelines after receiving no-match letters during a union organizing drive. Organizers said the company targeted employees involved in the union and jumped the gun on new regulations.

The Woodfin Suite Hotel in Emeryville fired 21 housekeepers in December 2006, also allegedly due to no-match letters. The workers claim the Woodfin retaliated against them for organizing with the East Bay Alliance for a Sustainable Economy, a labor-affiliated think tank, to enforce the living-wage law (see "Calling in the Feds," 6/13/07).

A yearlong campaign targeting the Woodfin has brought the issue to a national audience.

FALSE INFORMATION


Organizers say the regulations are far less strict than the news media has portrayed them, adding to an atmosphere of hysteria and fear among employers and workers. Francisco Ugarte, a lawyer with the Oakland firm of Leonard Carder, held up several San Francisco Chronicle articles at a Sept. 13 workshop for union organizers as examples of media inaccuracies.

An employer is not required to fire an employee after 90 days, as news accounts have stated. The employer has 90 days to fix discrepancies, and the worker has three days after that to fill out another I-9 form with a new Social Security number. If it appears credible, employers must accept the new I-9, Ugarte said.

The ICE insert in the SSA letter will terrify employers, he predicted, but the rule does not create any new information sharing between the SSA and other governmental agencies. The SSA is actually prohibited by law from sharing private data with any other governmental agencies.

There are also no automatic fines assessed to employers, as news accounts have implied. ICE will only levy fines if it raids employers and finds that they did not address no-match discrepancies. It is unlikely that the DHS will be able to enforce the regulations; in announcing them, Chertoff said the agency would rely largely on self-policing.

Even if this is the case, organizers fear that the DHS’s no-match regulation will provide employers with another tool to squelch immigrant workers’ rights. Comprehensive immigration reform is still needed to reconcile employers’ demands for workers, immigrants’ needs for employment, and US immigration policy.*

Who will SEIU endorse for prez?

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Since this is one of the fastest-growing unions in one of the fastest-growing sectors of the workforce — and since it’s president, Andy Stern, is a leader in the rebel group that walked out of the AFL-CIO, this should be a fascinating choice.

Robert Haaland is there, live blogging it.

Do wi-fi right — ourselves

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OPINION Although it’s only a "declaration of policy," Proposition J (the mayor’s wi-fi initiative) is garnering a lot of opposition. Taken at face value, the initiative seems like a no-brainer: of course we should have free, high-speed wi-fi for everyone, with adequate privacy and no public money, right now. The initiative makes it sound like all we have to do is bend over and pick up the golden wi-fi network lying in the street. Like other stories about precious paving, though, the reality is considerably less shiny.

Since Mayor Gavin Newsom filed Prop. J to whip up support for his proposed EarthLink network, that company pulled out of the San Francisco deal. EarthLink also pulled out of its agreement with Houston (paying $5 million in penalties) and laid off almost all of its municipal network division staff.

Prop. J was created to rally support for a deal that doesn’t exist anymore. Should we pass it anyway? Well, the problems that Prop. J points out are real. At least a fifth of San Franciscans have no home Internet access, and many more residents have only dial-up access.

Unfortunately, Prop. J is written to make a political point, not to ensure universal Internet access. In order to make that point, it insists on two features that were part of the EarthLink deal but don’t make sense if we’re actually trying to achieve access for everyone.

First, wi-fi is almost certainly not the technology on which to base a citywide network. It’s suited to quick-and-dirty outdoor networks or to extending indoor networks to multiple rooms, but as a network that’s supposed to cover large outdoor areas and reach into buildings, it’s got serious limitations.

A smarter approach would likely use wi-fi only where it makes the most sense as part of a larger network. A truly universal network would likely utilize a combination of wi-fi, the fiber-optic line that San Francisco already owns, and possibly other technologies, like copper wires or fixed-point wireless.

Second, Prop. J specifies that the network be built as a public-private partnership. The fall of the EarthLink deal proves that the fantasy of a company coming into San Francisco and giving everyone free Internet is just that: a fantasy. Simply declaring that we want a public-private partnership is not going to conjure some unknown company out of thin air to build a universal network in San Francisco.

Although the measure is not legally binding, many of its opponents, including several unions and a number of community groups, understandably fear that it’ll be used as an excuse to rush into a bad deal. If we’ve committed to a public-private partnership and "implementing … agreements as quickly as possible," we’re not exactly staking out a great bargaining position.

The mayor seems dead set on finding a private company to build this network, whether or not that makes sense. He’s likely to use Prop. J, if it passes, as a way to ignore the likelihood that we’re better off pursuing a city-run network. If ensuring that every San Franciscan has access to the Internet is something we really feel is important, it’s something that’s worth doing right, and if we want to make sure it’s done right, we should do it ourselves.

Sasha Magee

Sasha Magee is an activist who blogs at leftinsf.com.