Labor

Chop from the top

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Chop from the top

rebeccab@sfbg.com

At the Oct. 23 groundbreaking ceremony for the rebuild of San Francisco General Hospital, Mayor Gavin Newsom sang the praises of the public hospital’s staff.

"To all the men and women who work in this remarkable place that changes people’s lives each and every day … every time I come here, I realize you’re not just saving patients, you’re taking care of families," the mayor said. "It’s so difficult to see someone in pain. But to see the smile and the pride their loved ones have because of the job you guys have done is something magical."

Yet some health care workers, marked by their signature purple and yellow T-shirts, clearly weren’t feeling the magic. As Newsom waxed poetic onstage, they stood clustered in the audience displaying a banner proclaiming, "Keep Public Health Healthy." It was meant as a reminder that SEIU Local 1021, the union that represents certified nursing assistants (CNAs) and clerical workers facing significant slashes in pay in the wake of a city budget cuts, is still pushing to have their salaries restored.

On Sept. 15, 500 CNAs and clerical workers received notice that they would be laid off, although some would be reclassified at lower-paying positions, effective Nov. 15. For the CNAs being demoted, the reductions amount to an average of $15,000 annual reduction in pay. For the clerical workers facing downgrades, the cuts reflect an average loss of $5,000.

It wasn’t the first time SEIU workers turned out at one of Newsom’s public appearances. Beginning in August, union members began vocally characterizing the layoffs and demotions as a civil ights issue because they disproportionately affect women and people of color. According to a Department of Public Health assessment, 96 percent of the affected employees are people of color and 79 percent are women.

Mayoral Chief of Staff Steve Kawa insisted this wasn’t an attack on the city’s comparable-worth policy, which guarantees equal pay for work done primarily by women. "We would not do anything against comparable worth, " Kawa told the Guardian. "Even with the change in status in the wage, these workers will be making 18 percent above market."

But Sup. John Avalos framed it differently. "These people are some of the lowest paid frontline workers in the city," he pointed out a recent Board of Supervisors meeting. "I have spoken to many of them in my district. They’re often single women who are raising children, who don’t know how they’re going to survive."

After angry SEIU members made a series of boisterous appearances at Newsom’s gubernatorial campaign events, the mayor finally agreed to meet with them in talks that were mediated by San Francisco Labor Council head Tim Paulson.

"[Newsom] complained at some length during the first meeting about us attacking him," noted SEIU member Ed Kinchley. "We responded that we’re really not attacking him. What we were criticizing was a policy that goes after classifications filled predominantly by women and people of color."

The ongoing flap took a new twist at the Oct. 22 Board of Supervisors meeting, when Sups. Avalos and Chris Daly each announced plans to find funding to restore the public health workers’ salaries. Avalos proposed skimming some excess from management positions, which have swelled in recent years.

"Before cutting vital city services … we should first look to those who have the most, not to those who have the least," Avalos noted. He said he plans to ask the city controller to draft an annual salary ordinance that would reclassify top management positions in order to free enough funding to stop the demotions and wage reductions for the CNAs and clerical workers.

According to a report issued by the city controller, citywide management positions have grown from 739 in budget year 1998-99 to 1,075 in 2008-09, a 68 percent increase. Some individuals were promoted with salary increases ranging from $20,000 to $40,000 annually.

"I don’t know how one does that," Kawa said when asked about Avalos’ proposal. "It doesn’t make any sense to me."

Daly, meanwhile, noted that Department of Public Health Chief Financial Officer Gregg Sass had highlighted a preliminary projection for an $8 million DPH budget surplus in a Sept. 15 memo. Daly announced that he plans to request the money be flagged to go back into the department to stave off deskilling of frontline workers.

When asked if this money was available to fund the CNAs and clerical workers, Sass responded, "I don’t think it is." Emphasizing that it’s a preliminary figure, he added that "any additional funding, should it exist, is a component of the city’s overall ability to stay on budget this year and offset any shortfalls in city revenue … and address the large projected deficit for next year. I don’t see how it could be seen as ‘available’ until the city has better projections of [other tax revenue]."

The union had planned for a lengthy session with mayoral staff to continue negotiations on the same day of the supervisors’ meeting. But when Kawa learned about Avalos’ proposed legislation, he got angry and walked out, according to one SEIU member.

Asked if proposed legislation detracted from the negotiations, Kawa told us that "it made the last one difficult because it was somewhat of a surprise. And usually when you’re in good-faith negotiations, you share with the other folks the activities you’re up to so that you know that they’re actually there to negotiate in good faith."

Back at SF General after the groundbreaking ceremony, Newsom posed for photos with top public health officials, scooping shovels full of loose dirt with golden spades. The giddy atmosphere dissipated when the mayor turned around to find himself ringed by a group of reporters vying for a chance to pepper him with questions. He responded to most of their queries in typical loquacious fashion. But when the Guardian asked him to comment on Avalos’ proposed legislation, his face darkened slightly. "I don’t have any comment," he responded gruffly. Then he was whisked away for more photographs.

The lesson of California

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The lesson of California

news@sfbg.com

Much of the right-wing agenda that has thrown this nation into economic chaos can be traced back to what was once called the Golden State.

The tax revolts that started here under Gov. Ronald Reagan and continued to sweep the country and the world under President Reagan never abated. Indeed, they have only been strengthened by the big business power that created and benefited from them.

But now that California is showing signs of being the country’s first failed state — caught in fiscal freefall and mired in political gridlock as a generation’s worth of neglected problems surge to the surface — this state has become a cautionary tale for that anti-government ideology.

Trends in America tend to start out west, and the economic and political disaster that California has become contains critical lessons for the rest of the country.

Lewis Uhler — president and founder of the National Tax Limitation Committee — speaks candidly and proudly of his key early role in helping build a conservative movement to limit the size of government and do battle with those who want the public sector to actively promote social and economic justice.

Uhler, a UC Berkeley Boalt Hall School of Law graduate who did legal work for conservative causes in the 1960s, was tapped by then-Gov. Reagan in 1970 to be the director of the Office of Economic Opportunity, a federally-funded legal assistance program created as part of President Lyndon Johnson’s war on poverty.

While that may seem like a strange role for an avowed conservative and former member of the John Birch Society, Uhler says Reagan basically brought him in to wreck the program and fight the feds. “I was asked to put my money where my mouth was for my conservative philosophy,” Uhler told the Guardian. “OEO was set up to ensure conflict and confrontation … The mission of legal services was to change public policy through lawsuits they decided to file. I thought it was a corruption of the legal system.”

At the time, public-interest law and liberal economic and social policies were on the rise in California and spreading to the rest of the nation. So the Reaganites fought back.

Rather than helping poor plaintiffs file environmental, consumer protection, equal rights, or other types of lawsuits designed to level the playing field with powerful interests, Uhler blocked lawsuits brought by attorneys he calls “ambulance-chasers” and gutted the program. “Ultimately,” he said, “we vetoed funding for California Rural Legal Assistance.”

And for his efforts, Uhler was rewarded with a cabinet-level position: assistance secretary of the Health and Welfare Agency. Again, his role wasn’t to make the agency more effective, but to make it less effective in a realm where he believes government was too big and too active.

“The problem was uncontrolled state and local spending,” Uhler said. “Intuitively, everyone who gathered around Reagan shared the same philosophy that government doesn’t really contribute anything to economic growth.”

In 1972, Reagan gave Uhler the opportunity to work more directly on the mission of cutting taxes and shrinking the size of government, naming him chair of the Governor’s Tax Reduction Task Force. It was, in many ways, the beginning of the vast right-wing conspiracy.

“I asked to be given the chance to go across the country and find the best free market minds in the country to develop these policies,” Uhler said, explaining that he wanted to borrow the liberal strategy of giving an academic veneer to their ideas, as presidents Kennedy and Johnson had done in the realm of foreign policy. “Our side had never really done that.”

Uhler’s first stop was the University of Chicago School of Economics, where he met with noted free market economists Milton Friedman, James Buchanan, and George Stigler, who were brought into the cause.

Today’s vast network of conservative think tanks didn’t exist at that time, so Uhler tapped conservative thinkers from the American Enterprise Institute and the Hoover Institute at Stanford University, as well as other conservative economists such as Peter Drucker from Claremont McKenna College.

“There were 35 people who helped us design the first effort at a constitutional initiative in California to limit year-over-year growth of the state’s general fund,” Uhler said. “All of us as free market enthusiasts and economists all shared the belief that government beyond a certain level eats the seed corn of the nation and doesn’t produce anything.”

While voters narrowly rejected their group’s first effort to cap government growth — Proposition 1 on the November 1973 ballot — the ground had been prepared and the seeds had been sown for the tax revolts that would sweep the country in the late 1970s, with many of the campaigns coordinated by Uhler and the organization he formed for that purpose in 1975, the National Tax Limitation Committee, and a rapidly growing network of similar, interconnected organizations.

As Uhler worked with Reagan to weaken California’s government from within, his fellow travelers were developing national and international strategies to create aggressive, coordinated, well-funded campaigns to attack government and spread the free market dogma.

In August 1971, Lewis Powell — a conservative corporate attorney who President Richard Nixon had just nominated to the U.S. Supreme Court (where he served from 1972-87) — wrote a confidential memorandum to the leadership of the U.S. Chamber of Commerce titled “Attack on the American Free Enterprise System.”

He sounded the alarm that the ascendant environmental and consumer movements were going to destroy capitalism in the country unless corporate America aggressively fought back in a coordinated fashion, which he spelled out in great detail.

He called for all major corporations to develop aggressive legal and public relations strategies for fighting the left, creation of a network of think tanks and media outlets to push the conservative message, manipulation of the legal system, and sponsorship of university programs to study conservative ideas and incubate future leaders — which all came to pass in the coming decades.

“American business [is] ‘plainly in trouble’; the response to the wide range of critics has been ineffective and has included appeasement: the time has come — indeed, it is long overdue — for the wisdom, ingenuity, and resources of American business to be marshaled against those who would destroy it,” Powell wrote.

Part of that strategy involved having the federal government promote and popularize free market economic theories being developed by Friedman and his colleagues at the University of Chicago, a movement that is well-documented by journalist Naomi Klein in her book The Shock Doctrine: The Rise of Disaster Capitalism.

In 1971, Friedman and his colleagues began working with rich conservatives in Chile who were allied with Gen. Augusto Pinochet, who in turn were conspiring with the CIA to overthrow and assassinate the democratically elected, leftist President Salvador Allende, which they successfully did on Sept. 11, 1973.

Friedman’s economic theories called for a radical restructuring of society — slashing taxes and social spending; removing most regulation and trade restrictions; crushing labor unions; promoting economic growth at any cost — and Pinochet executed the strategy in brutal fashion, ordering the death of at least 3,200 of his political opponents, including the car-bomb assassination of economist Orlando Letelier in Washington, D.C., in 1976.

Friedman and Pinochet consulted openly and shared a basic disdain for social programs and progressive taxation. “The major error, in my opinion,” Friedman wrote in a letter to Pinochet in 1975, referring to the government antipoverty programs Pinochet dismantled, was “to believe that it is possible to do good with other people’s money.”

The model Pinochet and Friedman developed in Chile would eventually go global — promoted by its top cheerleaders, Reagan and British Prime Minister Margaret Thatcher — and be implemented (with disastrous results for most citizens but creating huge profits for wealthy individuals and corporations) in Indonesia, Bolivia, Argentina, Peru, Russia, Poland, South Africa, Japan, and elsewhere.

But with the corporate media and conservative opinion-shapers focused mostly on economic growth — ignoring persistent poverty and the brutal tactics used to suppress the popular movements that tried to resist Friedman’s “economic shock therapy” — Friedman had become a sort of free-market prophet by the time he died in 2006.

“In the torrent of words written in eulogy to Milton Friedman, the role of shocks and crises to advance his worldview received barely a mention,” Klein wrote. “Instead, the economist’s passing provided an occasion for a retelling of the official story of how his brand of radical capitalism became government orthodoxy in almost every corner of the globe.”

California’s fiscal shackles have been in place since 1978, when Proposition 13 and subsequent measures capped property taxes and required an undemocratic two-thirds vote to either raise taxes or pass the annual budget.

A Republican landlord lobbyist named Howard Jarvis charged onto the field that Reagan, Uhler, and their team had prepared and took advantage of a gaping hole in political leadership to set off a movement that would cripple the United States of America.

There was some logic to it then. Times were good in California in the 1970s, good enough that people were flocking to the state by the millions. That was driving up property values — and thus property taxes.

Jarvis bought his home for $8,000 in 1946; 30 years later, it was assessed at $80,000. In fact, inflation was running at close to 10 percent a year in California. Homeowners were getting huge tax hikes each year, and tenants were getting huge rent hikes at a time when state government had a budget surplus.

Homeowners saw millions of dollars sitting in the coffers in Sacramento while they couldn’t pay their tax bills. Yet nobody in the Legislature or governor’s office came up with a solution.

So when Jarvis showed up with petitions to roll back property taxes and prevent future increases, he found a broad base of support. Even tenants went along — Jarvis and his gang promised that property-tax cuts would be passed on to tenants and would mean the end of the escautf8g rent hikes.

Jarvis collected signatures for a radical measure that essentially blocked all property tax increases and allowed new assessment only when a parcel sold. It was, in the end, a huge tax giveaway to major corporations. Since commercial property turned over far less often than residential property (and since commercial sales could be hidden as stock transfers), big businesses wound up paying far less of the state’s tax burden. Corporations used to pay about two-thirds of the state’s property taxes, and individuals one-third; now that is reversed.

It didn’t help tenants, either. Few of the landlords who saw the benefits of Prop. 13 passed the money along to their renters. Most just kept it. San Francisco activist Calvin Welch likes to say that Howard Jarvis was “the father of rent control.”

The campaign against Prop. 13 warned of the dangers of cutting local government; police and fire chiefs appeared in ads opposing it. But the No on 13 folks never talked about the huge windfall big corporations would get from the measure, or the huge disparities in wealth that would be created by defunding government and dereguutf8g corporations.

If the goal was to skew the concentration of wealth in the state, it worked brilliantly. According to the California Budget Project (CBP) of the Franchise Tax Board, recent data taken before the current economic recession illustrates an ever-widening chasm between the wealthiest taxpayer and the working-class person.

The total adjusted personal income for Californians rose by nearly $64 billion in 2006-07 — with approximately three-quarters of that increase going to the top fifth of wealthiest taxpayers, and 30 percent going to the top 1 percent. That left only $19 billion for everyone else.

“The average taxpayer in the top 1 percent experienced a $128,261 increase in AGI [adjusted gross income] between 2006 and 2007, which was more than three times the total AGI of the average middle-income taxpayer in 2007 ($36,115),” stated the June 2009 report.

This continues a long-term trend in which the wealthy continue to leave the average income-earner behind in a trail of dollar-sign dust. From 1995 to 2007, income gains for that top 1 percent come to a whopping 117.3 percent increase — nearly 13 times more than the gains of the middle-income taxpayer.

The nation’s income gap has reached a “level higher than any other since 1917,” according to a paper by University of California, Berkeley economic professor Emmanuel Saez. According to Saez’s analysis of census data, there’s been a steady increase in the income gap since the 1970s, rising 20 percent over the years.

Yet even today, the defenders of Prop. 13 continue to sound the same consistent themes. “Those who are directly involved in government are a militant special interest,” Howard Jarvis Taxpayer Association executive director Kris Vosburgh told us. “They don’t like anything that limits their revenue stream.”

While that last statement could be applied equally to corporations or other private sector enterprises, as Vosburgh reluctantly admitted when asked, he continues to imply malevolence to those who defend government. He said the state’s current fiscal collapse can only be solved by slashing government expenditures.

“It is not valid to be talking about revenue-side solutions,” he said. “Our position is the state has enough money to accomplish its goals.”

People have never liked paying taxes, but the antitax movement is about far more than just that basic individual desire to hold onto our money.

The attacks were well planned, carefully targeted, and part of a much larger effort aimed at maintaining corporate and conservative power, undermining the New Deal, reducing taxes on the rich, and radically reducing the size and scope of the public sector.

As Powell called for, corporations have aggressively challenged, in legal courts and those of public opinion, every significant progressive advance — from San Francisco’s attempt at universal health care to California’s tentative first steps to address global warming.

With a level of discipline unheard of on the left, conservative opinion-shapers pound their talking points and enforce party unity through mechanisms like the “no new taxes” pledge that every Republican in the California Legislature has signed and heeded, under the very real threat of recall.

Opposition to taxes is now so deeply embedded into the psyche of the California electorate, and such a core tenet of today’s Republican Party, that elected officials who tout fiscal responsibility allowed the state’s debts to go unpaid (destroying its credit rating in the process) and its education and transportation systems to be decimated rather considering new revenues.

Gov. Arnold Schwarzenegger’s spokesperson Aaron McLear told us, “He believes we ought to live within our means and pay for only the programs we can afford.”

That simple talking point gets repeated no matter how the question is asked, or when we point out that it means we’re being forced to live within historic lows this year. But they claim the people support them.

“We had tax increases on the May ballot and they were rejected by a 2-1 margin. We should listen to the will of the voters,” McLear said.

Never mind that this regressive, dishonest package of temporary tax hikes was opposed by the Guardian and a variety of pro-tax progressive groups. McLear wouldn’t even admit that point or respond to it honestly.

And he’s certainly right that most polls show a majority of Californians don’t want new taxes. But these polls also show that people want continued government services, more investment in our neglected state infrastructure, and a whole bunch of other contradictory things.

That’s why newspapers and analysts around the world are looking at California, the world’s eighth largest economy, and wondering (as the Guardian of London headline asked Oct. 4): “Will California become America’s first failed state?”

In many ways, it already is. The question now is whether we’ll try to learn from and correct our mistakes. Ryan Riddle contributed to this report. ———–

THE CONSERVATIVE RELIGION

When I asked Lewis Uhler, one of the architects of the Reagan revolution, what Americans believed in these days — where the people he likes to talk about who hate the government (but are also admittedly disillusioned with Wall Street) turn — he answered simply: religion.

It should come as no surprise that many religious fundamentalists tend to side with the free market conservatives — both ideologies require a leap of faith and ignoring certain troubling facts, such as increasing disparities of wealth, natural resource depletion, and global warming.

Their arguments mostly make sense — until these inconvenient truths come up.

Certainly, turning over more public resources to free market capitalists, cutting taxes, and slashing government regulation will spur private sector economic growth, just as advocates claim.

But that growth has a cost. The wealth won’t be shared by everyone. Indeed, poverty has persisted even through even the economic boom of the 1990s — but almost everyone will be affected by underfunded road, education, public safety, and other essential systems.

As the conservative movement has successfully limited taxes and cut regulation over the last 40 years, working class wages have stagnated as the rich have gotten richer. Many of the world’s oil reserves have peaked and gone into decline, and rapidly increasing carbon emissions have collected in the atmosphere and caused global warming.

So how do conservatives respond to these realities as they argue for the continued dismantling of government, which is the only entity with the scope and incentive to deal with these problems? They simply deny them.

Uhler decried the “pseudoscience of climate change” as hindering economic progress and claimed that there’s actually been a global cooling trend in the last 10 years. (Actually the last 10 years have been some of the hottest on record, causing glaciers around the world to melt, according to data and observations from a consensus of the world’s climate scientists, including NASA, the Union of Concerned Scientists, and the United Nations Climate Change Conference.)

It’s the same story with the consolidation of wealth, which hurts the free market fantasy that letting the super-wealthy keep more money will eventually trickle down to benefit us all. Uhler simply denied the growing disparity of wealth, saying the “movement between quintiles is significant.”

He was talking about people’s ability to go from poor to rich with a little hard work and initiative, the core idea of free market conservatives. But data from the U.S. Census Bureau and many other entities indicate that median wages have been stagnant for decades (which wouldn’t be true if there was lots of upward mobility) and that most of the wealth created in the U.S. over the last 40 years has pooled with the top 1 percent.

In fact, when it comes to measuring social impacts, Uhler has simply one metric: “Governments at all levels are twice the size they should be to maximize economic growth.” (Steven T. Jones)

 

Events listings

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Events listings

Events listings are compiled by Paula Connelly. Submit items for the listings at listings@sfbg.com.

WEDNESDAY 21

Distribution Workshop Artists’ Television Access, 992 Valencia, SF; festival@atasite.org. 7:30pm, free. Gain insight into the world of experimental film exhibition and distribution at this workshop and panel discussion featuring Joel Bachar from Microcinema International, filmmaker Jonathan Marlow from SFcinemateque, filmmaker Maia Carpenter from Canyon Cinema, filmmaker Craig Baldwin from Other Cinema, and associate editor and producer of Wholphin, Emily Doe.

Root Division Auction Root Division, 3175 17th St., SF; (415) 863-7668. 7:30pm, $35. Support artists and arts education at this community auction and benefit for local emerging artists and Root Division’s after school art program for Bay Area youth.

FRIDAY 23

Art in Storefronts 989 Market, SF; www.sfartscommission.org/storefronts. 5pm, free. Enjoy live music and pick up a map at the opening party for the Art in Storefronts program, where participating storefronts along central Market and Taylor streets will display original window installations done by San Francisco artists.

Crush It! The Booksmith, 1644 Haight, SF; (415) 863-8688. 6pm; $22, includes book. Meet Gary Vaynerchuk, host of the popular daily webcast The Thunder Show on tv.winelibrary.com, and get a copy of his new book Crush It! Why now is the time to cash in on your passion, a guide on how to turn your interests into businesses.

Haunted Haight Walking Tour Starts in front of Coffee to the People, 1206 Masonic, SF; (415) 863-1416. Fri., Sat., and Sun throughout October, 7pm; $20 advanced tickets required. Discover neighborhood spirits and hunt ghosts with a real paranormal researcher on this haunted tour which includes chances to win spooky prizes and a guidebook.

Leon Panetta Intercontinental Mark Hopkins, 999 California, SF; (415) 869-5930. 11am, $30. Hear CIA director and California native Leon Panetta discuss the current challenges facing national security. Attendees may be subject to search.

SATURDAY 24

BYOQ Music Concourse, Golden Gate Park, 55 Hagiwara Tea Garden Drive, SF; www.byoq.org. Noon, free. Come dance and play at the Bring Your Own Queer music and arts festival featuring bands, DJs, performances, art, fashion, and more.

Passport 2009 Mission Playground, Valencia between 19th and 20th St., SF; (415) 554-6080. Noon, $25 for booklet. Pick up a map and purchase a "passport" at Mission Playground and begin your adventure to various locations around the Mission to collect artist-made stamps that will personalize your Passport 2009 journey.

Save City College Sale Parking area of the Balboa Reservoir across from the San Francisco City College Ocean Campus Science Hall, 50 Phelan, SF; www.ccsf.edu/saveccsf. 9am-2pm, free. Help restore canceled classes at the City College of San Francisco for the Spring 2010 semester at this Save City College garage sale and flea market.

Opera Costume Sale San Francisco Opera Scene Shop, 800 Indiana, SF; sfopera.com. Sat. 11am-5pm, Sun. 11am-4pm; free. Get a last minute Halloween costume at the San Francisco Opera’s warehouse sale featuring hats, masks, fabrics, shoes, and handmade costumes for women, men, and children.

Potrero Hill History Night International Studies Academy, 655 De Haro, SF; (415) 863-0784. 5:30pm; free program, $6 for BBQ. Enjoy BBQ from Potrero Hill restaurants and music by the Apollo Jazz Group, followed by a performance by the I.S.A. Community Choir, and ending with interviews of unique long-time residents.

Walk for Farm Animals Ferry Market Plaza, meet behind the Vallicourt Fountain in Justin Herman Plaza, SF; 607-583-2225. Noon, $20. Help expand awareness of the unnecessary suffering that farm animals endure and help raise funds for Farm Sanctuary, a farm animal rescue, education, and advocacy organization.

BAY AREA

Exotic Erotic Ball Cow Palace 2600 Geneva, Daly City; (415) 567-BALL. 8pm, $79. Attend the 30th anniversary of the Exotic Erotic Ball, a lingerie, fetish, and masquerade celebration of human sexuality and freedom of expression featuring live music, DJs, and costume contests.

SUNDAY 25

BAY AREA

Sister of Fire Awards Oakland Asian Cultural Center, 388 9th St., Oak; (510) 444-2700. 11am, $50-5,000. Help honor four remarkable women: Civil rights and immigration advocate Banafsheh Akhlaghi, Colombian indigenous rights advocate Ana Maria Murillo of Mujer U’wa, employment and labor rights advocate and author Lora Jo Foo and Tirien Steinbach of the East Bay Community Law Center. Featuring brunch and live music.

MONDAY 26

Ghosts of City Hall SF City Hall, meet at South Light Court, through Polk street entrance, 1 Dr. Carlton B. Goodlett Place, SF; (415) 557-4266. 6:30pm, free. Hear stories of disinterred remains, assassinations, and other ghostly lore, like the little-known fact that a cemetery once covered Civic Center. Allow time for security check.

In Mexico, a bitter battle over electricity

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By John Ross

MEXICO CITY — During the first week of October, the increasingly unpopular government of Felipe Calderon stepped up its ongoing war of words against the Mexican Electricity Workers Union (SME), one of the nation’s oldest labor organizations founded at the apogee of the landmark Mexican Revolution in 1914 when workers repeatedly shut down the Canadian-owned Mexican Light & Power Company. Now, with the centennial of the Revolution on deck in 2010, the SME’s survival as a union is in jeopardy and it may never make it to the birthday party.

Following the nationalization of electricity generation and distribution under President Adolfo Lopez Mateos in 1960, the SME (“Esmay”) won collective bargaining agreements for the newly created Luz y Fuerza Del Centro that distributes about a fifth of the nation’s energy to Mexico City and four surrounding states. Mexico’s second power utility, the Federal Electricity Commission (CFE) services the rest of the country and its workers are represented by a “charro” (company) union under the thumb of the Institutional Revolutionary Party (PRI) that ran the lives of Mexicans from the cradle to the grave for 71 years until it was displaced from power by Calderon’s rightist PAN in 2000.

Although the SME had longstanding ties to the PRI, it maintained a modicum of critical independence. Communists and Trotskyists wielded influence in union circles and decorated the walls of the union headquarters with proletarian murals. The Sindicato Mexicano de Electricistas has always been good for 40,000 boots on the ground when it comes to social protest. After the 1985 Mexico City earthquake that took up to 30,000 lives, SME workers rescued victims trapped in the rubble of fallen buildings and worked tirelessly around the clock to restore power in working class colonies. In contrast, the PRI-run government abandoned “los de abajo” (“those down below”) to their own fate.

Three years ago, after hotly contested presidential elections, the SME cautiously lined up with Andres Manuel Lopez Obrador (AMLO) after Calderon was awarded victory over the leftist leader in fraud-marred balloting. Calderon has never forgiven the union’s 66,000 members – 44,000 active workers and 22,000 pensioners – for this partisan sin.

Endorsements

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Endorsements

San Francisco is facing the worst budget crisis in modern history. More than 1,000 employees, mostly front-line workers in the Department of Public Health, have been laid off, and the red ink continues. Yet the only measure on the November ballot that would raise any money for the city is Sup. Bevan Dufty’s plan to sell off naming rights for Candlestick Park.

That’s pathetic. During the summer budget discussions, Mayor Newsom vowed to work with business, labor, and the supervisors to come up with a reasonable plan to bring in some new cash for the city. But that collapsed — largely because state law would have made it hard to raise taxes this fall without a unanimous vote of the supervisors. And while eight members were willing to put a revenue measure on the ballot, the three supervisors closest to the mayor — Sean Elsbernd, Carmen Chu, and Michela Alioto-Pier, all Newsom appointees — refused to go along. And the mayor made only a weak effort to change their minds.

So while Democrats everywhere decry Gov. Arnold Schwarzenegger’s insistence on a cuts-only budget, the Democratic mayor of San Francisco has forced essentially the same approach on this city. The only revenue increases we’re seeing are fees, like Muni fare hikes, that amount to taxes on the poor.

That’s the state of San Francisco as we head into what will almost certainly be a low-turnout election. Only two elected officials are on the ballot, and both are unopposed. Five ballot measures — several fairly significant — round out the local ballot. And with no big-name races at the top, they will win or lose on the votes of a small majority.

That’s too bad, because the issues matter. Vote Nov. 3 — and let’s hope next year’s ballot actually includes some new, progressive taxes.

OUR RECOMMENDATIONS


City Attorney

Dennis Herrera

San Francisco hasn’t always had a good track record with city attorneys. George Agnost, who ran the office in the 1970s and 1980s, was a dour, secretive, conservative lawyer who let downtown call all the shots. Louise Renne, who took over from Agnost, ran the office in the 1990s as if it was a wholly-owned subsidiary of Pacific Gas and Electric Co. Herrera, who took over in 2001, has been a major improvement. He’s turned the office into a modern operation, professionalized the administration, and taken on an activist role on consumer, environmental, and public-interest issues. He’s been a big supporter of marriage equality and of the city’s landmark health-care legislation. On his own initiative, he sued to end gender rating in health insurance and crack down on predatory payday lenders. He also moved to enforce health codes in housing and has been out front going after corrupt landlords like Skyline Realty.

We have some concerns about Herrera. Although he’s been far more sunshine-friendly than his predecessors, open-government activists are still sometimes forced to sue the city to get access to records. He won’t use his power as city attorney to enforce the Raker Act and bring public power to San Francisco. And during the current budget crisis, he cut the number of city attorney hours the supervisors can use to draft legislation.

And if, as rumored, he wants to run for mayor, Herrera needs to start taking public stands on major issues — like the unfairness of the local tax code and the need for new revenue.

But we’re happy to endorse him for another term.

Treasurer

Jose Cisneros

The incumbent treasurer is running unopposed, and we see no reason not to endorse him. He’s done some very positive things: Cisneros worked to get the big downtown law firms and other partnerships to pay their fair share of city taxes. He closed a tax loophole exploited by the big airlines that put up flight crews in local hotels.

He also convinced local banks and credit unions to accept consular identification cards to allow immigrants to open accounts and has pushed those institutions to offer "second-chance banking" to people with past credit problems. During his tenure, more than half of the 50,000 households in the city that lacked bank accounts have been able to get away from predatory check-cashing outfits and open legitimate accounts.

As an elected official, however, he could be doing a lot more. The city still keeps all its short-term accounts in one bank — Bank of America, which isn’t even local. Cisneros has promised to open that deal up to competitive bidding, but doesn’t have a timeline. And although nobody knows better than the treasurer how unfair and regressive the city’s tax codes are, he has never spoken out or offered any solutions. Cisneros says he wants his office to be apolitical, but city money is, by its nature, a political issue, and we’d like to see a little more leadership from the person who handles it. But overall, he’s a professional money manager who’s done a decent job and deserves another term.

Proposition A

Budget process

YES

We’re a little nervous about Prop. A, which would institute a two-year budget cycle for the city. Sup. Chris Daly, who opposes it, points out that the city controller’s budget projections are often wrong — badly wrong — and trying to plan 24 months ahead when economic conditions (and thus the city’s revenue stream) can change so quickly and unpredictably is a dangerous game.

But on balance, the approach in Prop. A makes sense. The budget debates would still take place every year, and the supervisors would still have to approve an annual budget — although the budget would be a rolling two-year projection. So next year, the board would approve a budget for 2010 and 2011, the following year for 2011 and 2012, and so on — leaving plenty of room for adjusting to meet economic changes. And two-year cycles might make it easier for nonprofits that rely on city funding to do some serious long-term planning.

Equally important, Prop. A requires the police and firefighters to negotiate their union contracts the same time the other unions do — before the budget deadline. The current system allows those unions to make demands that are unrelated to — and often outside — the current year’s budget realities.

Every progressive on the board except Daly supports this, and Sups. Alioto-Pier, Elsbernd and Chu oppose it.

Proposition B

Board of Supervisors aides

YES

This one’s a no-brainer. The City Charter mandates that each supervisor be allowed to hire two aides. The requirement dates back to a long-ago era when city budgets were far smaller, problems were less pressing and complex, and the supervisors worked part-time. It makes perfect sense to take such an archaic law out of the City Charter and allow the supervisors to set their own budgets — and staffing levels — the same way the mayor does. Vote yes.

Proposition C

Candlestick Park Naming Rights

NO

You have to give Sup. Bevan Dufty, the author of Prop. C, credit for trying. He’s looking for any angle he can use to help keep the 49ers in town, and allowing a corporate sponsor to pay for naming rights might possibly help cover the immense cost of substantially renovating aging Candlestick Park. And, like Prop. D (see below), this measure has a nice beneficiary: part of the money from naming rights would go to save the jobs of recreation directors, many of whom have faced budget-driven layoffs.

We agree that rec directors play a crucial role, particularly in neighborhoods with large numbers of at-risk youth. And we wish the Chamber of Commerce, Sup. Elsbernd, and other supporters of Prop. C were willing to accept some progressive tax hikes to fund those jobs.

But this isn’t a good deal. The city owns the stadium; the taxpayers financed its construction and spent 30 years paying off the bonds. But the 49ers, a private outfit owned by a very wealthy family, would get half the money from any naming deal. And the money that would come in would be radically short of what the team would need to rebuild the ‘Stick. Vote no.

Proposition D

Mid-Market special sign district

NO

Again: credit for the effort. David Addington, who owns the Warfield Theater and several other properties on mid-Market Street, accurately notes that the city’s main thoroughfare, between Fifth and Seventh streets, is rundown, ignored, and badly in need of an economic boost. He argues that allowing new digital billboards would create something of a Times Square in San Francisco, attracting tourists and turning mid-Market into a thriving theater district. Nothing else the city has done has worked — why not give this a try?

We aren’t necessarily opposed to digital billboards and we’d love to see mid-Market reinvigorated. But Prop. D would give too much authority to an unelected, unrepresentative group. It would amount to privatizing city planning and set a terrible precedent.

Under the measure, the Central Market Community Benefits District, a private group of property owners, organizations, and residents, would be authorized to approve new general advertising billboards as large as 500 square feet. The ads would have to meet city codes, but the Planning Department and supervisors would have no ability to block new installations. And the money — potentially millions of dollars a year — would go entirely to the property owners and the CBD, which would decide how to distribute it.

Yes, like Prop. C, this measure would help a worthy group: some of the new money would go to youth programs in the Tenderloin. But the process this measure describes isn’t at all democratic. The CBD board selects its own members, and the only oversight the city has is the ability of the Board of Supervisors to abolish the agency and start over.

We’re open to new ideas for central Market Street. We’re open to lights and ads and maybe even billboards. But we’re not willing to turn over zoning and public finance decisions to a private group. Vote no.

Proposition E

Advertisements on city property

YES

Proposition E, written by former Sup. Jake McGoldrick, would freeze new commercial billboards and ads on street furniture at 2008 levels and outlaw advertising on public buildings. It’s an extension of existing city policy, which seeks to limit the increasing blight of commercial ads in public space. Vote yes.

Dick Meister: Young workers and our future

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One of every five U.S. workers aged 18 to 25 live below the official poverty line. More than one third of U.S. workers under 35 are living with their parents because they can’t afford to live on their own.There are solutions.

By Dick Meister

(Dick Meister, former labor editor of the SF Chronicle and KQED-TV’s Newsroom, has covered labor, politics, and other matters for a half-century.)

These are exceptionally painful economic times for the young Americans who will shape our future.

The Democrats wild night

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By Tim Redmond

Well, I’m really sorry I missed the Democratic Party gala Wednesday night. Apparently it was quite a show. Brian Leubitz has a great report at Calitics on the unexpected appearance of Gov. Schwarzenegger and the overwhelmingly negative response by the attendees, including Assemblymember Tom Ammiano, who stood up and shouted “You Lie!”

“It was political theater of the type we love,” Ammiano told me.

Seriously, though: Former Mayor Willie Brown apparently told the guv that the event was happening, and since Schwarzenegger was in the same hotel for a President’s Cup event, he decided (perhaps at Brown’s invitation, it’s not entirely clear) just to drop by. And everyone was supposed to act all nice and pretend that they’re aren’t real, serious issues in Sacramento and that the governor isn’t really, really screwing up the state and hurting a lot of people.

“This wasn’t the Legislative Chambers, where you have to put up with this shit,” Ammiano said.. “It’s like this guy just showed up and took a big dump in my living room.”

Labor folks weren’t happy, either, and a bunch of them walked out. Then Ammiano (and we should all give thanks that he’s in the Legislature, reminding everyone what San Francisco stands for) accepted an award and made a speech:

And then he proceeded to bludgeon the Governor’s record. He questioned why he was holding bills hostage to get a bad water deal. He questioned why a Governor who has vetoed the Harvey Milk Day bill would stand up in front of a room that was at least 25% LGBT. He politely asked Mayor Brown to send a message to the governor to sign the bills already.

And finally, Senator Mark Leno closed the proceedings for the evening. Leno took a different tack than Ammiano’s passion. He simply stated the facts. He said that the events of this evening were all funny and stuff, but the fact is that this Governor had cut state workers salaries by 15% with the furloughs. This Governor wanted to cut IHSS salaries to minimum wage. This Governor illegally used the line item veto to slash funding for domestic violence shelters. And that he, and the Senate Democrats, were going to fight him tooth and nail.

And to a loud applause, Leno stepped off the stage and the crowd began to thin. And everybody was saying, “um, wow.”

The other thing Ammiano said in his speech was that Democrats have gotten a little lax on standing up for their friends — and he mentioned both ACORN and Kim-Shree Maufas, and both times was met with huge applause.

And, of course, the Chron’s Carla Marinucci focused her reporton Willie Brown’s comments about how inappropriate this all was and how everyone needed to make nice to poor Arnold. But there are serious issue here that aren’t just fun and games, and when the stakes are as high as they are here, I’m glad to see them Democrats (or at least some of them) deciding not to play so nice with a governor who is smiling while he drives the state into bankruptcy and despair.

PS: Ammiano told me that when Marinucci called him, she seems astounded that he had said “kiss my gay ass” while walking out of the governor’s speech. “I told her, I don’t remember, but I probably did say that,” Ammiano said. “After all, it’s safe sex.”

Half and half

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Half and half

le.chicken.farmer@gmail.com

CHEAP EATS At a pretty good restaurant in a small town, other side of the mountains, we were greeted and seated by a small boy, age 9, 10, 11 tops. We looked at each other, looked at the kid, looked at each other, shrugged, and followed him to our table.

"Can I get you anything to drink?" he said.

We had just emerged from Death Valley, where the heat was intense and the scenery surreal, and milk was the last thing on our minds.

"Um, what kind of lemonades do you have?" I said, scanning the menu very quickly. It was an inside joke between me and me — one of my specialties.

Romeo ordered a beer. He lives in Germany, and his favorite brew is Sierra Nevada Pale Ale.

Well, we were doing it. Setting up camp together, if not house. After a few days of cooking on fires, sleeping in tents, squatting in the bushes, and not washing at all, Romeo said he felt like he had got to meet Dan Leone. He said he liked him OK, but maybe we should get a motel room for one night.

I agreed. It was weird to be cut in half like that and, though I have never been one to run from weirdness, I do prefer speaking of myself in the first person. A bath seemed like a very good idea.

A bath, a pluck, a night of mattressousness, change of clothes in the morning, and I would be myself again. But first, while I was still Dan Leone, I had to order a buffalo burger with bacon, cheese, barbecue sauce, and chili on it, because … I mean, come on, were we or were we not a couple of smelly cowboygirls just in from a roundup?

Of course we were. The more interesting question is what was the fuck re: the fourth- or fifth-grade waitchild. Sixth-grade tops. Do we have child labor laws here? My German wanted to know. I think so, I thought, but maybe they don’t apply to family-run restaurants in tiny middle-of-nowhere towns. Clearly that was what this was, a family. There was a strong resemblance between the kid, a slightly older kid also waiting tables, a slightly-older-than-that kid, and the cat in charge, their father, who seemed too young to have three kids, including at least one teenager, so maybe he was the oldest brother, I don’t know.

Anyway, it was a school night.

And I still can’t decide if the whole thing was cute or creepy, so I’ll just tell you that the burger was great. Even though it may well be mean, unfair, and irresponsible of me to tell you so, according to a whole pile of e-style mail waiting for me upon my return to civilization.

Apparently a popular restaurant that I slagged a couple weeks ago is run by a positive force in the community, and so therefore I shouldn’t say anything bad about their carne asada. Which sucked. But most of the people who called for my resignation, apologies, do-overs, and so forth, admitted that they were vegetarians, and so presumably have never had the carne asada (which sucks) at their favorite restaurant.

Really, I doubt I’ll like the vegetarian food there either, because the rice and beans didn’t impress me and the salsa was even worse than the meat, but I am nothing if not a good sport. I will re-review the Sunrise, and I will order something vegetarian this time, provided one of the vegetarians calling for my head/job/apology agrees to a) pay for it, and b) sit across from me and eat carne asada.

You’ll get your do-over, and I’ll get to watch a vegetarian eat meat. Which is one of my favorite pastimes.

Just so you know though: I’ll say exactly what I think about anything I eat, I don’t care if Jesus Hisself runs the joint. I calls ’em like I tastes ’em, and if I don’t like His bread and wine, or carne asada …

Oh, but I did like that buffalo burger, very much. What a shame, that a child labor law scofflaw and/or mean dad can be a better cook than a sweetie-pie.

Cruel world!

MOUNT WHITNEY RESTAURANT

Daily: 6 a.m.–9 p.m.

227 S. Main, Lone Pine

(760) 876-5751

Beer & wine

MC/V

L.E. Leone’s new book is Big Bend (Sparkle Street Books), a collection of short fiction.

Bay writes

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Bay writes

culture@sfbg.com

WRITERS We asked Guardian readers to contribute stories or poems that reflected their Bay Area experiences. The catch? Each entry had to be exactly 123 words. So many excellent submissions poured in. Unfortunately, we could only pick 10 winners, which are printed below. The writers will receive a gift certificate to Books, Inc.

ECLIPSED

Her fantasy

revolved around how wonderful it would be to die in an

earthquake that killed her at the exact moment

she was looking up at the shelves in the Macy’s women’s department.

The handbags were being swept into the air and

were floating down towards her. A

set of Moschinos fell like giant colorful raindrops

and her hands were extended towards them, like a desiccated cave-woman about to

experience

the end of a drought. This moment

would be captured as her afterlife when a glass sliver

slipped between her eye and eyelid and gracefully penetrated her brain. She wanted the perfection

of the leather satchels, which she had no hope of ever owning, to eclipse all

the

other moments of her life.

— Hunter Stern

LESSON PLAN

i take the book you made out for coffee, walk along clay until it crests over hyde and i can smile again, weave past grace cathedral, 40s and shorts on the swing set and i fall in love with you at Front Porch drinking drinks with kumquats and rum, flicks of salt disappearing, lips pressed to mason jars, wrappers leftover from japanese candy, 111 minna, some girl’s gold necklace, lamp light reflecting, gray goose and art galleries, thick throated and insecure, while north beach vomits strip clubs and boutiques, scares away hipsters, and at 3am i make a home for you in the space between my breasts, mismatched fabrics hanging over head, cork board alley smiles and

what’s your name again?

— Gabrielle Toft

LABOR DAY 2009

I slip on my pants like a fireman, quick, with practiced determination. I careen my head toward the window. Watch daybreak bang the gray sky back. The closed Bay Bridge arches towards darkness, towards Frisco. I have never seen it without cars lights.

I shuck the sheets off you.

Up, I demand, a drill sergeant.

I snap my bra on, twist it around. I can smell myself, fecund, moist pits. Nervous like a mother. I hate myself.

I ball my shirt up; hurl it at you.

You look up.

What?

I’m going to be a mom, I spit. Taste the implication on my tongue.

You hoist yourself up.

Where you going?

To bike that bridge. What can they do? They can’t stop me

— Tomas Moniz

BEFORE LIGHT CHANGES

Pick a hill. Jump between vantage points. You can spring the entire city, like a kinged checker, or a queen. Morphing like Mad Magazine, folding corners B to A, bending time.

A pharmacy goes BBQ. Sushi boats drift through your unconscious. You got dragged aboard, then woke with a craving. Across, in that park: you’ve tasted heartbreak, and smelled funny dancing, and shot hoops with crumpled resumes, and been winded by a jog.

The city gasps for air just before rush hour, after running all day, breathing hard. Cue the fog. Now it’s dim: the ‘Sco does twister yoga, or the funky gargoyle, gone buck or cupcakin’. A sushi float parades the bay, always revolving, barely perceptible; you’re on board, and circling too.

— Joe Cervelin

TOOTH TALE

Mother wanted me to be the dentist to the stars. I wanted to be the next Hemingway. Mother insisted writers were alkies and wife abusers. I could write prescriptions. Graduated NYU Dental in 1959. Only mention that Al Pacino and John Travolta were patients because I’m a namedropper. For the next 20 years, I inhaled tons of toxic mercury vapors, was bombarded with enough stray radiation and nitrous oxide to turn my toenails and my mien black. After my second wife left me, I fled to San Francisco. Bought a restored Victorian at 164-166 Castro with my cousin, Hal Slate. Hal owned the Cauldron bathhouse and sang in the Gay Men’s Chorus. Hal lived upstairs and I was on the bottom.

— Dr. Stanley Finkelstein


THE SEAWALL

Just a cougar by the seawall. Summer, errr, autumn in the Sunset, she stole a boy from the surf shop. He literally lived in the surf shop.

Gawky girl, watched him get amateur tattoos. Watched him sell pot to Trouble. Bought him pizza. Bought a phone, learned to text.

Kisses and secrets pressed against the seawall. Realize: nothing is lost by getting older.

Ocean Beach is not made of fog, just ghost lovers and culture clashes. Wu Tang Clan and Elliott Smith. Office girls and Rastafarian skate rats. Wearing rings and gangsta players. Foodies and shysters.

She returns home with sand in her highlights and guilt on her sleeve. Then makes love with two men, one by the shore, one as a whore.

— Sadie Craft

NAILS

I always smell coffee when I cross the Bay Bridge.

Mom would point out the Hills Brothers building on the right. "Grandpa

used to work for them."

He kept nails in a red coffee tin. Every summer, my parents would send

me back to the city to live with my grandparents for a bit. He’d get me

to pull nails out of old planks and save the good ones.

Years later, my wife and I came to clear out their house. She rattled a

tin full of rusty nails.

"It’s a real mess. I guess people who lived through the Depression saved

everything."

The old factory is gone, but I still smell coffee on the Embarcadero.

And think of honest work.

— Dominic Dela Cruz

A PAINFUL CASE

Outside of a Shattuck Laundromat a form appeared and paused. I could see just above the pages of my book a squat mass.

— You like Joyce?

There waited a gray-haired wheelchairbound woman, her thin puppetlegs below a square, dense torso.

— Yes.

She spoke about Finnegan’s Wake, about her triptoirelandfathersdeathlovers53disabledlesbianconvertedjewsuicide

life —

conjuring Linnaeus to lift herself from the gelid human sea.

I politely cut her off.

There were three women alongside me folding laundry. A man watching clothes tumble behind a porthole. Two coeds umlike trying to use a machine. The TVfixed attendant stood folding underwear. Eight people in a small room and no one spoke to the other.

I turned my gaze toward the street vainly hoping to tell Shewhospoke

Iamalmostthirtyunemployeduneducatedconfused

my life.

— Carolyn Rae Allen

UNTITLED

Ice cream is my observation food.

I’m sitting on the curb by the Castro Station, watching a nighttime exodus of dapper gay couples and catching snatches of passerby dialogue between bites of an It’s-It.

I listen to them talk about things I know nothing of, though I still strain to hear. Each person walking by, I realize as I munch, is their own story, their own person, and I feel a strange urge to follow them around.

Instead, I look up at the city lights and semi-starry sky, both of which frame a giant flapping flag, whose wind-aided whipping is just audible above the sounds of cars and people.

My snack drips, I wolf it down, and then descend into the station’s glow. — — arim Quesada-Khoury

AN UPLIFT

There are people in this city whom even God does not love. I have spoken to many of them (phoning from the safety of my SOMA office) about diminished social services and life’s decline. The most wretched of San Francisco’s sick, discouraged, and deprived tell me they keep living for one reason alone: their pets. When every last lover’s tolerant embrace has turned cold, dogs and cats do not waiver in their devotion. I only remember to feed myself because Josie needs to be fed, too. She knows I’m sick and ugly, but she loves me nonetheless. Oh Lord, because your charitable light sometimes eludes man through the Bay’s perpetual fog, please lift up this city’s pets and help them do your work.

— Ryan Goldman

Meister: The endless censoring of labor

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Dick Meister runs down some important labor stories that the mainstream press has ignored and in effect censored

By Dick Meister

(Dick Meister, formerly labor editor of the SF Chronicle and KQED-TV Newsroom, has covered labor, politics and other matters for a half-century.)

Did you know about the Bush administration’s rotten treatment of the air traffic controllers whose work is essential to air safety? That controllers were forced to work long, fatiguing shifts with little time to rest? That many quit because of that? Were you aware of the great potential for serious accidents that posed?

Did you know that President Obama’s appointees to the Federal Aviation Agency stepped in to rescind the onerous conditions imposed by Bush’s FAA appointees and end the controllers’ long struggle for decent treatment?

Well, you wouldn’t know about those vital developments if you relied solely on mainstream media. The Bay Guardian ran my column on the subject, but to most mainstream outlets, certainly including all Bay Area outlets, it was just another labor story to be ignored another labor story to be in effect censored.

Newsom agrees to meet with Local 1021

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By Tim Redmond

The members of SEIU Local 1021 have agreed to stand down for a day, suspend their unfair labor practices claim and hold off on sending protesters to Mayor Gavin Newsom’s campaign events — and he’s agreed to meet with the union tomorrow (Tuesday) morning to discuss their grievances.

Larry Bevan, a Local 1021 shop steward who works as a site tech at Laguna Honda Hospital, told me that Labor Council director Tim Paulson has agreed to mediate the discussion.

“I am told that the mayor will be there personally,” Bevan said. “Going through intermediaries doesn’t seem to be working.”

The union wants to challenge the mayor to live up to his promise during budget season — that he’d work to find a way to raise new revenue this fall so that 600 union members, most of them women of color, most of them front-line service workers in the Department of Public Health, wouldn’t face layoffs.

It’s too late for a ballot measure to raise new revenue. That plan fell apart when it became clear that the supervisors would not unanimously declare a state of fiscal emergency — a move that would have allowed a revenue measure to pass with a simple majority of the vote. WIthout all 11 supervisors, any attempt to raise taxes would require an insurmountable two-thirds majority.

The Oakland City Council agreed unanimously to seek new revenue, but in San Francisco, Supervisors Sean Elsbernd, Michela Alioto and Carmen Chu refused. All three were originally Newsom appointees.

Elsbernd told me that the mayor’s office tried to get him on board, but he refused to bend. The reforms that the mayor was proposing weren’t strong enough to get the relatively conservative supervisor to drop his opposition to new taxes. “Oh, they tried, all right,” Elsbernd said. “But the reform was bogus. I said no.”

But I have to wonder how serious Newsom was: He never picked up the phone and called Elsbernd personally. His chief of staff, Steve Kava, did that job.

Sorry, Mr. Mayor — when there are millions of dollars and hundreds of jobs on the line, if you actually want to get a reluctant supervisor who owes his career to you on your side, you talk to him personally. It still might not have worked — but sending an aide over with the message was clearly doomed to fail. It almost seems as if Newsom was fine with that.

At any rate, the unions will try to get Newsom’s support for a new fee on alcoholic beverages, money that could go directly to DPH. Maybe he’ll go along; maybe he’ll drag his feet. Still, Local 1021 got him to the table, which these days, with this mayor, is quite an accomplishment.

Obama to decide Healthy San Francisco’s fate?

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By Steven T. Jones

The US Supreme Court has delayed a decision on the Golden Gate Restaurant Association’s legal challenge to the Healthy San Francisco program, instead asking for the Obama Administration’s opinion on whether the required employer contributions that fund the universal health care plan violate federal law.

The GGRA suit contends the employer mandate violates the Employee Retirement Income Security Act (ERISA), a view that was supported by the Bush Administration but opposed by the city and the Ninth Circuit Court of Appeals, whose ruling against GGRA the Supreme Court is deciding whether to hear, a decision that had been expected today. President Barack Obama has publicly cited Healthy San Francisco as a model for health care reform and City Attorney Dennis Herrera has personally lobbied the administration to reverse the previous administration’s position, and now the court wants a formal opinion from Obama’s Solicitor General Elena Kagan.

“The Bush Labor Department’s position was not simply wrong as a matter of law, it was wrong for fundamentally ignoring the urgent need for health care reform,” Herrera said in a public statement. “I am hopeful that the new administration will not take such a knee-jerk position, but will instead thoroughly review the legal and policy implications of the case.”

Meister: Justice at last for air traffic controllers

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Obama’s FAA rescinded the onerous and dangerous work rules imposed by Reagan and Bush appointees and signed a new agreement that went into effect Oct. l.

By Dick Meister

(Dick Meister, formerly labor editor of the SF Chronicle and KQED-TV’s Newsroom, has covered labor, politics and other matters for a half-century)

The long struggle of the nation¹s air traffic controllers for decent treatment appears to be finally over ­­ the struggle that began in 1981, when President Reagan fired 11,000 controllers for striking and which resumed full force during George Bush¹s presidency.

The controllers aren¹t the only ones involved. Millions of airline passengers and employees and many fliers who pilot their own aircraft have faced serious threats to their safety because of what was done by the Bush
appointees who ran the Federal Aviation Administration (FAA).

Newsom goes ballistic at SEIU

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11

By Tim Redmond

The mayor is getting a wee bit sensitive about a flier from SEIU local 1021 that accuses him of breaking his word during contract talks. And he’s clearly getting more and more angry at the 1021 activists who are following him to fundraising events and making noise about his labor record. (The union plans to appear in Los Angeles Oct. 5 when Newsom holds a gala with Bill Clinton)

In fact, on Sept 28th, around 6:45 p.m., union member (and certified nurses assistant) Evalyn Morales approached the mayor at a Filipino Americans for Progress event and handed him a copy of the flier (PDF). It charges that the mayor had cut a deal with the union that he hasn’t kept:

“The deal was that city workers would make $38 million in concessions to help with the city’s half-billion budget deficit if the city would let the workers keep their jobs long enough (5 more months) for government, business and city workers to put a revenue measure on the Nov. 2009 ballot. …. Suddenly, the deal’s off … Newsom and his board allies prevented a revenue measure from reaching the ballot.”

And it notes that 600 union workers have received layoff notices — and virtually all of them are women of color.

(They’re also mostly lower-level jobs — the Management Employees Association hasn’t faced any real layoffs, and the mayor’s staffers — including five people in the press office — continue to be well compensated.)

Newsom, according to Morales, was furious to see the flier. And apparently he lost his shit. Here’s her account of the interaction, taken from a sworn statement she filed with the union:

“He said ‘this is a lie,’ referring to the flier. “I don’t want to do anything to deal with the union. I hate Robert [SEIU organizer Robert Haaland]. What you’re doing now is hurting me …. I hate Robert. I don’t want to do anything for the union.”

Harsh.

In fact, Local 1021 is planning to file a complaint with California’s Public Employee Relations Board citing the mayor’s statements as intimidation and harassment.

Now: I can’t speak to the legality of what the mayor did under labor law, but I can say that it fits in with something we’ve seen all too much over the years: Newsom loses his temper over little stuff. He can’t take a punch; the minute you go after him he gets all pissy and says stupid stuff (like “I hate Robert.” How statesmanlike and gubernatorial.)

Nathan Ballard, his press secretary, isn’t exactly conciliatory, either. Here’s what he sent me when I asked him about the incident:

The inside outsider

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news@sfbg.com

A private-sector engineering and construction consultant has worked for years out of the San Francisco Department of Public Works (DPW) offices for free, using public resources and having inside access to top department officials, a status gained through a questionable competitive bidding process, a Guardian investigation has revealed.

Andrew Petreas, senior project manager for Environmental and Construction Solutions, Inc. (ECS), which has done contract work for DPW since 2004, has a city e-mail address. Petreas and his assistant both work on the fourth floor of DPW’s Bureau of Construction Management (BCM) building on Mission Street, in close proximity to bureau manager Donald Eng.

According to documents obtained by the Guardian earlier this year, ECS is providing construction and consultation services for various DPW projects, including repairs to the building where he works, trying to bring it in line with the city’s Green Building Ordinance, a project that is still going three months after its scheduled completion date of June 2009.

Because of the city’s competitive bidding process for using outside consultants on DPW projects — such as construction, repairs, and construction management on all city-owned buildings and maintenance of city streets and sewers — Petreas’ inside access raises questions of fairness among competing bidders and could pose a conflict of interest. DPW officials confirm the working arrangement, but deny that there’s anything improper about it.

DPW spokesperson Christine Falvey told us that Petreas’ occupancy is necessary to "improve the flow of communication between staff and consultants" and "deliver the project more efficiently." She also said Petreas will vacate the premises once his contract has expired. But insider sources and department documents indicate that Petreas has been in the department for many years, beginning as an employee under Don Todd Associates, which first began consulting for DPW in the early 1990s. And because of questionable contract extensions, there seems to be no end in sight for the department’s relationship with Petreas or his great deal on office space.

No other contractor appears to receive this kind of advantage, and all are subject to the same competitive bidding process for obtaining contracts. City Attorney’s Office spokesperson Matt Dorsey told the Guardian that "it makes sense in some cases to co-locate," but he couldn’t provide specific guidelines that regulate such arrangements.

When the Guardian requested all correspondence directed to and from Petreas’ city e-mail account, we were given e-mails dating only as far back as July 2008. We were further stonewalled by DPW when we asked how long Petreas has had a working relationship with the department.

Frank Lee, executive assistant to the director of the DPW, told us via e-mail: "I do not know the exact length of time that Andrew has worked for our department, but the e-mails that were forwarded to you were the only e-mails that we currently possess." He further told us that five e-mails were withheld in accordance to California Evidence Code Section 1152, which essentially states that public records can be withheld if it contains information about a money dispute between the city and a contractor. Lee would not say if the disputing contractor was Petreas or his firm, but did tell us that the matter is in litigation and the content is about "litigation strategies."

Earlier this year, ECS completed work on the department’s Materials Testing Lab, a project that initially began in March 2008 with a two-month timeline, but was given a 15-month extension. The firm also has been contracted to train DPW staff to estimate the cost of DPW projects, a contract worth $102,000, which is just below the $114,000 threshold for inviting competing bidders.

The documents also show that in the 2007-08 fiscal year, the department funneled additional money to ECS on top of its initial contract amount for "multidisciplinary construction management services" — essentailly retainer services — when other contractors on retainer had not yet fulfilled their contracted amount. ECS received an additional $500,000 on top of its contracted $1 million when the other contracted consultants (AGS, Inc., CPM/TMI Joint Venture, and PGH Wong Engineering, Inc.) had spent less than 50 percent of its $1 million contracted amount.

It’s not that ECS is better qualified or cheaper than these other private consultants. Consulting firms for the four open retainer slots are selected by the city’s Human Rights Commission for a two-year period through a competitive request for proposals (RFP) bidding process. For the last two periods, the commission ranked ECS in third place; before that, it came in second, but got a contract anyway.

Yet Petreas continues to be the only consultant who enjoys city e-mail privileges, not to mention a rent-free, roomy office in the city-owned building, with a view from the fourth floor. But if fairness among competing private contractors is an issue, the other contenders aren’t complaining, perhaps out of fear of not being awarded future contracts by DPW or other city agencies.

When asked whether the RFP process was even-handed and if Petreas’ insider status gives him an advantage, Jack Wang, principal engineer for AGS, Inc., hesitated to speak with us, saying that he didn’t want to get in trouble and that he "can’t comment on undue influence." He also told us that Petreas’ augmented contract amount and time extensions were "not enough for me to be alarmed about." He later added that "the industry is small. It’s very competitive."

When the Guardian took a look at all contract agreements between the department and ECS, as well as with Don Todd Associates, we discovered an employment gap that coincided with public scrutiny of the arrangement. Shortly after a September 1999 article by Peter Byrne ("It Ate City Hall") in SF Weekly reporting that Don Todd Associates had been paid $6 million over the course of nine years, some of it in apparent violation of city policies, its contract agreement ended and was never renewed or extended. But Petreas reemerged in 2004 under ECS, where he and his wife are the current owners.

The department offered no explanation for Petreas’ ongoing good fortune or his relationship with Eng, who did not return calls from the Guardian. Instead it diverted inquiries to public information officers. Several attempts were made to contact Petreas and other ECS representatives, but our calls were not returned.

So is it fair to say that there are no guidelines or oversight for the length of time a private consultant may provide services to the city and that it is wholly up to the discretion of the department manager? When we brought up this opportunity for cronyism and corruption — a big loophole in city labor law — to Deputy City Controller Monique Zmuda, she told us that "there’s no prohibition on the city contracting with one entity for a long time."

Earlier this year, ECS completed yet another round of contract negotiations with the city and signed a new master agreement for multidisciplinary services for the next five years, in which it will be paid out $1 million for as-needed services.

Censored!

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news@sfbg.com

Peter Phillips, director of Project Censored for 13 years, says he’s finished with reform. It’s impossible, he said in a recent interview, to try to get major news media outlets to deliver relevant news stories that serve to strengthen democracy.

"I really think we’re beyond reforming corporate media," said Phillips, a professor of sociology at Sonoma State University and director of Project Censored. "We’re not going to break up these huge conglomerates. We’re just going to make them irrelevant."

Every year since 1976, Project Censored has spotlighted the 25 most significant news stories that were largely ignored or misrepresented by the mainstream press. Now the group is expanding its mission — to promote alternative news sources. But it continues to report the biggest national and international stories that the major media ignored.

The term "censored" doesn’t mean some government agent stood over newsrooms with a rubber stamp and forbid the publication of the news, or even that the information was completely out of the public eye. The stories Project Censored highlights may have run in one or two news outlets, but didn’t get the type of attention they deserved.

The project staff begins by sifting through hundreds of stories nominated by individuals at Sonoma State, where the project is based, as well as 30 affiliated universities all over the country.

Articles are verified, fact-checked, and selected by a team of students, faculty, and evaluators from the wider community, then sent to a panel of national judges to be ranked. The end product is a book, co-edited this year by Phillips and associate director Mickey Huff, that summarizes the top stories, provides in-depth media analysis, and includes resources for readers who are hungry for more substantive reporting.

Project Censored doesn’t just expose gaping holes in the news brought to you by the likes of Fox, CNN, or USA Today — it also shines a light on less prominent but more incisive alternative-media sources serving up in-depth investigations and watchdog reports.

Phillips is stepping down this year as director of Project Censored and turning his attention to a new endeavor called Media Freedom International. The organization will tap academic affiliates from around the world to verify the content put out by independent news outlets as a way to facilitate trust in these lesser-known sources. "The biggest question I got asked for 13 years was, who do you trust?" he explained. "So we’ve really made an effort in the last three years to try to address that question, in a very open way, in a very honest way, and say, these are [the sources] who we can trust."

Benjamin Frymer, a sociology professor at Sonoma State who is stepping into the role of Project Censored director, says he believes the time is ripe for this kind of push. "The actual amount of time people spend reading online is increasing," Frymer pointed out. "It’s not as if people are just cynically rejecting media — they’re reaching out for alternative sources. Project Censored wants to get involved in making those sources visible."

The Project Censored book this year uses the term "truth emergency."

"We call it an emergency because it’s a democratic emergency," Huff asserted. In this media climate, "we’re awash in a sea of information," he said. "But we have a paucity of understanding about what the truth is."

The top 25 Project Censored stories of 2008-09 highlight the same theme that Phillips and Huff say has triggered the downslide of mainstream media: the overwhelming influence of powerful, profit-driven interests. The No. 1 story details the financial sector’s hefty campaign contributions to key members of Congress leading up to the financial crisis, which coincided with a weakening of federal banking regulations. Another story points out that in even in the financial tumult following the economic downturn, special interests spent more money on Washington lobbyists than ever before.

Here’s this year’s list.

1. CONGRESS SELLS OUT TO WALL STREET


The total tab for the Wall Street bailout, including money spent and promised by the U.S. government, works out to an estimated $42,000 for every man, woman, and child, according to American Casino, a documentary about sub prime lending and the financial meltdown. The predatory lending free-for-all, the emergency pumping of taxpayer dollars to prop up mega banks, and the lavish bonuses handed out to Wall Street executives in the aftermath are all issues that have dominated news headlines.

But another twist in the story received scant attention from the mainstream news media: the unsettling combination of lax oversight from national politicians with high-dollar campaign contributions from financial players.

"The worldwide economic meltdown and the bailout that followed were together a kind of revolution, a coup d’état," Matt Taibbi wrote in "The Big Takeover," a March 2009 Rolling Stone article. "They cemented and formalized a political trend that has been snowballing for decades: the gradual takeover of the government by a small class of connected insiders who used money to control elections, buy influence, and systematically weaken financial regulations."

In the 10-year period beginning in 1998, the financial sector spent $1.7 billion on federal campaign contributions, and another $3.4 billion on lobbyists. Since 2001, eight of the most troubled firms have donated $64.2 million to congressional candidates, presidential candidates, and the Republican and Democratic parties.

Wall Street’s spending spree on political contributions coincided with a weakening of federal banking regulations, which in turn created a recipe for the astronomical financial disaster that sent the global economy reeling.

Sources: "Lax Oversight? Maybe $64 Million to DC Pols Explains It," Greg Gordon, Truthout.org and McClatchey Newspapers, October 2, 2008; "Congressmen Hear from TARP Recipients Who Funded Their Campaigns," Lindsay Renick Mayer, Capitol Eye, February 10, 2009; "The Big Takeover," Matt Taibbi, Rolling Stone, March 2009.

2. DE FACTO SEGREGATION DEEPENING IN PUBLIC EDUCATION


Latinos and African Americans attend more segregated public schools today than they have for four decades, Professor Gary Orfield notes in "Reviving the Goal of an Integrated Society: A 21st Century Challenge," a study conducted by UCLA’s Civil Rights Project. Orfield’s report used federal data to highlight deepening segregation in public education by race and poverty.

About 44 percent of students in the nation’s public school system are people of color, and this group will soon make up the majority of the population in the U.S. Yet this racial diversity often isn’t reflected from school to school. Instead, two out of every five African American and Latino youths attend schools Orfield characterizes as "intensely segregated," composed of 90 percent to 100 percent people of color.

For Latinos, the trend reflects growing residential segregation. For African Americans, the study attributes a significant part of the reversal to ending desegregation plans in public schools nationwide. Schools segregated by race and poverty tend to have much higher dropout rates, more teacher turnover, and greater exposure to crime and gangs, placing students at a major disadvantage in society. The most severe segregation is in Western states, including California.

Fifty-five years after the Supreme Court’s Brown vs. Board of Education ruling, Orfield wrote, "Segregation is fast spreading into large sectors of suburbia, and there is little or no assistance for communities wishing to resist the pressures of resegregation and ghetto creation in order to build successfully integrated schools and neighborhoods."

Source: "Reviving the Goal of an Integrated Society: A 21st Century Challenge," Gary Orfield, The Civil Rights Project, UCLA, January 2009

3. SOMALI PIRATES: THE UNTOLD STORY


Somali pirates off the Horn of Africa were like gold for mainstream news outlets this past year. Stories describing surprise attacks on shipping vessels, daring rescues, and cadres of ragtag bandits extracting multimillion dollar ransoms were all over the airwaves and front pages.

But even as the pirates’ exploits around the Gulf of Aden captured the world’s attention, little ink was devoted to factors that made the Somalis desperate enough to resort to piracy in the first place: the dumping of nuclear waste and rampant over-fishing their coastal waters.

In the early 1990s, when Somalia’s government collapsed, foreign interests began swooping into unguarded coastal waters to trawl for food — and venturing into unprotected Somali territories to cheaply dispose of nuclear waste. Those activities continued with impunity for years. The ramifications of toxic dumping hit full force with the 2005 tsunami, when leaking barrels were washed ashore, sickening hundreds and causing birth defects in newborn infants. Meanwhile, the uncontrolled fishing harvests damaged the economic livelihoods of Somali fishermen and eroded the country’s supply of a primary food source. That’s when the piracy began.

"Did we expect starving Somalians to stand passively on their beaches, paddling in our nuclear waste, and watch us snatch their fish to eat in restaurants in London and Paris and Rome?" asked journalist Johann Hari in a Huffington Post article. "We didn’t act on those crimes — but when some of the fishermen responded by disrupting the transit-corridor for 20 percent of the world’s oil supply, we begin to shriek about ‘evil.’"

Sources: "Toxic waste behind Somali piracy," Najad Abdullahi, Al Jazeera English, Oct. 11, 2008; "You are being lied to about pirates," Johann Hari, The Huffington Post, Jan. 4, 2009; "The Two Piracies in Somalia: Why the World Ignores the Other," Mohamed Abshir Waldo, WardheerNews, Jan. 8, 2009

4. NORTH CAROLINA’S NUCLEAR NIGHTMARE


The Shearon Harris nuclear plant in North Carolina’s Wake County isn’t just a power-generating station. The Progress Energy plant, located in a backwoods area, bears the distinction of housing the largest radioactive-waste storage pools in the country. Spent fuel rods from two other nuclear plants are transported there by rail, then stored beneath circuutf8g cold water to prevent the radioactive waste from heating.

The hidden danger, according to investigative reporter Jeffery St. Clair, is the looming threat of a pool fire. Citing a study by Brookhaven National Laboratory, St. Clair highlighted in Counterpunch the catastrophe that could ensue if a pool were to ignite. A possible 140,000 people could wind up with cancer. Contamination could stretch for thousands of square miles. And damages could reach an estimated $500 billion.

"Spent fuel recently discharged from a reactor could heat up relatively rapidly and catch fire," Robert Alvarez, a former Department of Energy advisor and Senior Scholar at the Institute for Policy Studies noted in a study about safety issues surrounding nuclear waste pools. "The fire could well spread to older fuel. The long-term contamination consequences of such an event could be significantly worse than Chernobyl."

Shearon Harris’ track record is pocked with problems requiring temporary shutdowns of the plant and malfunctions of the facility’s emergency-warning system.

When a study was sent to the Nuclear Regulatory Commission highlighting the safety risks and recommending technological fixes to address the problem, St. Clair noted, a pro-nuclear commissioner successfully persuaded the agency to dismiss the concerns.

Source: "Pools of Fire," Jeffrey St. Clair, CounterPunch, Aug. 9, 2008

5. U.S. FAILS TO PROTECT CONSUMERS AGAINST TOXICS


Two years ago, the European Union enacted a bold new environmental policy requiring close scrutiny and restriction of toxic chemicals used in everyday products. Invisible perils such as lead in lipstick, endocrine disruptors in baby toys, and mercury in electronics can threaten human health. The European legislation aimed to gradually phase out these toxic materials and replace them with safer alternatives.

The story that has gone unreported by mainstream American news media is how this game-changing legislation might affect the U.S., where chemical corporations use lobbying muscle to ensure comparatively lax oversight of toxic substances. As global markets shift to favor safer consumer products, the U.S. Environmental Protection Agency is lagging in its own scrutiny of insidious chemicals.

As investigative journalist Mark Schapiro pointed out in Exposed: The Toxic Chemistry of Everyday Products and What’s at Stake for American Power, the EPA’s tendency to behave as if it were beholden to big business could backfire in this case, placing U.S. companies at a competitive disadvantage because products manufactured here will be regarded with increasing distrust.

Economics aside, the implications of loose restrictions on toxic products are chilling: just one-third of the 267 chemicals on the EU’s watch list have ever been tested by the EPA, and only two are regulated under federal law. Meanwhile, researchers at UC Berkeley estimate that 42 billion pounds of chemicals enter American commerce daily, and only a fraction have undergone risk assessments. When it comes to meeting the safer, more stringent EU standard, the stakes are high — with consequences including economic impacts as well as public health.

Sources: "European Chemical Clampdown Reaches Across Atlantic," David Biello, Scientific American, Sept. 30, 2008; "How Europe’s New Chemical Rules Affect U.S.," Environmental Defense Fund, Sept. 30, 2008; "U.S. Lags Behind Europe in Reguutf8g Toxicity of Everyday Products," Mark Schapiro, Democracy Now! Feb. 24, 2009

6. AS ECONOMY SHRINKS, D.C. LOBBYING GROWS


In 2008, as the economy tumbled and unemployment soared, Washington lobbyists working for special interests were paid $3.2 billion — more than any other year on record. According to the Center for Responsive Politics, special interests spent a collective $32,523 per legislator, per day, for every day Congress was in session.

One event that triggered the lobbying boom, according to CRP director Sheila Krumholz, was the federal bailout — with the federal government ensuring that the lobbyists got a piece of the pie. Ironically, some of the first in line were the same players who helped precipitate the nation’s sharp economic downturn by engaging in high-risk, speculative lending practices.

"Even though some financial, insurance and real estate interests pulled back last year, they still managed to spend more than $450 million as a sector to lobby policymakers," Krumholz noted. "That can buy a lot of influence, and it’s a fraction of what the financial sector is reaping in return through the government’s bailout program."

The list of highest-ranking spenders on Washington lobbying reads like a roster of some of the most powerful interests nationwide. Topping the list was the health sector, which spent $478.5 million lobbying Congress last year. A close runner-up was the finance, insurance, and real-estate sector, spending $453.5 million. Pharmaceutical companies plunked down $230 million; electric utilities spent $156.7 million; and oil and gas companies paid lobbyists $133.2 million.

Source: "Washington Lobbying Grew to $3.2 Billion Last Year, Despite Economy," Center for Responsive Politics, Open Secrets.org

7. OBAMA’S CONTROVERSIAL DEFENSE APPOINTEES


President Barack Obama’s appointments to the Department of Defense have raised serious questions among critics who’ve studied their track records. Although the news media haven’t paid much attention, the defense appointees bring to the administration controversial histories and conflicts of interest due to close ties to defense contractors.

Obama’s decision to retain Robert Gates, Secretary of Defense under President George W. Bush, marks the first time in history that a president has opted to keep a defense secretary of an outgoing opposing party in power.

Gates, a former CIA director, has faced criticism for allegedly spinning intelligence reports for political means. In Failure of Intelligence: The Decline and Fall of the CIA, author and former CIA analyst Melvin Goodman described him as "the chief action officer for the Reagan administration’s drive to tailor intelligence reporting to White House political desires." Gates also came under scrutiny for questions surrounding whether he misled Congress during the Iran-contra scandal in the mid-1980s, and was accused of withholding information from intelligence committees when the U.S. provided military aid to Saddam Hussein during the Iran-Iraq war.

Critics are also uneasy about the appointment of Deputy Defense Secretary William Lynn, who formerly served as a senior vice president at defense giant Raytheon Company and was a registered lobbyist for Raytheon until July 2008. Lynn, who previously served as Pentagon comptroller under the Clinton administration, came under fire during his confirmation hearing for "questionable accounting practices." The Defense Department failed multiple audits under Lynn’s leadership because it was unable to properly account for $3.4 trillion in financial transactions made over the course of several years.

Sources: "The Danger of Keeping Robert Gates," Robert Parry, ConsortiumNews.com, Nov. 13, 2008; "Obama’s Defense Department Appointees- The $3.4 Trillion Question," Andrew Hughes, Global Research, Feb. 13, 2009; "Obama Nominee Admiral Dennis Blair Aided perpetrators of 1999 church Killings in East Timor," Allan Nairn, Democracy Now! Jan. 7, 2009; "Ties to Chevron, Boeing Raise Concern on Possible NSA Pick," Roxana Tiron, The Hill, Nov. 24, 2008


8. BIG BUSINESS CHEATS THE IRS


The Cayman Islands and Bermuda are magnets for Bank of America, Citigroup, American International Group, and 11 other financial giants that were the beneficiaries of the federal government’s 2008 Wall Street bailout. It’s not the balmy weather that inspires some of America’s wealthiest companies to open operations in the Caribbean archipelago: the offshore oases provide safe harbors to stash cash out of the reach of Uncle Sam.

According to a 2008 report by the Government Accountability Office, which was largely ignored by the news media, 83 of the top publicly-held U.S. companies, including some receiving substantial portions of federal bailout dollars, have operations in tax havens that allow them to avoid paying their fair share to the Internal Revenue Service. The report also spotlighted the activities of Union Bank of Switzerland (UBS), which has helped wealthy Americans to use tax schemes to cheat the IRS out of billions.

In December 2008, banking giant Goldman Sachs reported its first quarterly loss, and promptly followed up with a statement that its tax rate would drop from 34.1 percent to 1 percent, citing "changes in geographic earnings mix" as the reason. The difference: instead of paying $6 billion in total worldwide taxes as it did in 2007, Goldman Sachs would pay a total of $14 million in 2008. In the same year, it received $10 billion and debt guarantees from the U.S. government.

"The problem is larger than Goldman Sachs," U.S. Representative Lloyd Doggett, a Texas Democrat who serves on the tax-writing House Ways and Means Committee, told Bloomberg News. "With the right hand out begging for bailout money, the left is hiding it offshore."

Sources: "Goldman Sachs’s Tax Rate Drops to 1 percent or $14 Million," Christine Harper, Bloomberg News, Dec. 16, 2008; "Gimme Shelter: Tax Evasion and the Obama Administration," Thomas B. Edsall, The Huffington Post, Feb. 23, 2009

9. U.S. CONNECTED TO WHITE PHOSPHOROUS STRIKES IN GAZA


In mid-January, as part of a military campaign, the Israeli Defense Forces fired several shells that hit the headquarters of a United Nations relief agency in Gaza City, destroying provisions for basic aid like food and medicine.

The shells contained white phosphorous (referred to as "Willy Pete" in military slang), a smoke-producing, spontaneously flammable agent designed to obscure battle territory that also can ignite buildings or cause grotesque burns if it touches the skin.

The attack on the relief-agency headquarters is just one example of a civilian structure that researchers discovered had been hit during the January air strikes. In the aftermath of the attacks, Human Rights Watch volunteers found spent white phosphorous shells on city streets, apartment roofs, residential courtyards, and at a U.N. school in Gaza.

Human Rights Watch says the IDF’s use of white phosphorous violated international law, which prohibits deliberate, indiscriminate, or disproportionate attacks that result in civilian casualties. After gathering evidence such as spent shells, the organization issued a report condemning the repeated firing of white phosphorus shells over densely populated areas of Gaza as a war crime. Amnesty International, another human rights organization, followed suit by calling upon the United States to suspend military aid to Israel — but to no avail.

The U.S. was a primary source of funding and weaponry for Israel’s military campaign. Washington provided F-16 fighter planes, Apache helicopters, tactical missiles, and a wide array of munitions, including white phosphorus.

Sources: "White Phosphorus Use Evidence of War Crimes Report: Rain of Fire: Israel’s Unlawful Use of White Phosphorus in Gaza," Fred Abrahams, Human Rights Watch, March 25, 2009; "Suspend Military Aid to Israel, Amnesty Urges Obama after Detailing U.S. Weapons Used in Gaza," Rory McCarthy, Guardian/U.K., Feb. 23, 2009; "U.S. Weaponry Facilitates Killings in Gaza," Thalif Deen, Inter Press Service, Jan. 8, 2009; "U.S. military resupplying Israel with ammunition through Greece," Saed Bannoura, International Middle East Media Center News, Jan. 8, 2009.

10. ECUADOR SAYS IT WON’T PAY ILLEGITIMATE DEBT


When President Rafael Correa announced that Ecuador would default on its foreign debt last December, he didn’t say it was because the Latin American country was unable to pay. Rather, he framed it as a moral stand: "As president, I couldn’t allow us to keep paying a debt that was obviously immoral and illegitimate," Correa told an international news agency. The news was mainly reported in financial publications, and the stories tended to quote harsh critics who characterized Correa as an extreme leftist with ties to Venezuelan President Hugo Chavez.

But there’s much more to the story. The announcement came in the wake of an exhaustive audit of Ecuador’s debt, conducted under Correa’s direction by a newly created debt audit commission. The unprecedented audit documented hundreds of allegations of irregularity and illegality in the decades of debt collection from international lenders. Although Ecuador had made payments exceeding the value of the principal since the time it initially took out loans in the 1970s, its foreign debt had nonetheless swelled to levels three times as high due to extraordinarily high interest rates. With a huge percentage of the country’s financial resources devoted to paying the debt, little was left over to combat poverty in Ecuador.

Correa’s move to stand up against foreign lenders did not go unnoticed by other impoverished, debt-ridden nations, and the decision could set a precedent for developing countries struggling to get out from under massive debt obligation to first-world lenders.

Ecuador eventually agreed to a restructuring of its debt at about 35 cents on the dollar. Nonetheless, the move served to expose deficiencies in the World Bank system, which provides little recourse for countries to resolve disputes over potentially illegitimate debt.

Sources: "As Crisis Mounts, Ecuador Declares Foreign Debt Illegitimate and Illegal," Daniel Denvir, Alternet, November 26, 2008; "Invalid Loans to Ecuador: Who Owes Who," Committee for the Integral Audit of Public Credit, Utube, Fall 2008; "Ecuador’s Debt Default," Neil Watkins and Sarah Anders, Foreign Policy in Focus, Dec. 15, 2008

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OTHER STORIES IN THE TOP 25

11. Private Corporations Profit from the Occupation of Palestine

12. Mysterious Death of Mike Connell—Karl Rove’s Election Thief

13. Katrina’s Hidden Race War

14. Congress Invested in Defense Contracts

15. World Bank’s Carbon Trade Fiasco

16. US Repression of Haiti Continues

17. The ICC Facilitates US Covert War in Sudan

18. Ecuador’s Constitutional Rights of Nature

19. Bank Bailout Recipients Spent to Defeat Labor

20. Secret Control of the Presidential Debates

21. Recession Causes States to Cut Welfare

22. Obama’s Trilateral Commission Team

23. Activists Slam World Water Forum as a Corporate-Driven Fraud

24. Dollar Glut Finances US Military Expansion

25. Fast Track Oil Exploitation in Western Amazon

Read them all at www.projectcensored.org

How an online newspaper can succeed

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EDITORIAL Dave Iverson, host of KQED’s Friday Forum show, introduced the Sept. 25 program with a pretty obvious comment: "Conversations about the future of journalism, and newspapers in particular, are rarely optimistic affairs." He went on to describe the new effort by Warren Hellman, KQED, and the UC Berkeley journalism school to create a new media outlet in San Francisco (a story that broke first in the Guardian‘s politics blog).

The guests, including Neil Henry, dean of the j-school; Carl Hall, the former San Francisco Chronicle reporter; and Jeff Clarke, president of KQED; talked in vague platitudes about the big new plans — and then spent much of the time defending and lauding the Chronicle, which one guest called "a great paper."

But that’s not how the callers saw it — and not how much of the Bay Area perceives San Francisco’s major daily newspaper. And therein is a critical lesson for the new journalistic effort.

For the record: we would hate to see the San Francisco Chronicle fail. A daily newspaper plays a crucial role in urban life, politics, and society. No number of part-time bloggers and citizen journalists will ever be able to perform the watchdog role of a fully-staffed newspaper.

And we welcome the new effort by Hellman and his crew. With the dramatic decline in the Chron‘s fortunes, there’s less and less coverage of crucial news in the city, and an aggressive new outlet could be very good news for San Francisco.

But the people who manage the new venture need to understand that the problems the Chronicle faces are not entirely due to the economy and changes in the newspaper business. Frankly, the Chron has consistently spurned, ignored, trivialized, and sought to discredit the entire progressive movement and a wide range of progressive issues. It’s been a conservative newspaper in one of the nation’s most liberal cities. It’s been a cautious publication, wary of serious challenges to the city’s power structure. There’s not a single liberal or progressive columnist at the paper. Opinion writers like C.W. Nevius seem to disdain everything about San Francisco and urban life in general. The political coverage tends to treat the left as something to be mocked. There’s no real labor reporting any more, no aggressive consumer reporting, little pursuit of big structural corruption issues.

It’s little wonder then that a significant percentage of San Franciscans (in particular, younger people) see no reason whatsoever to pick up the San Francisco Chronicle. And KQED (which gets big donations from some of the city’s biggest corporations and the social and political elite) is hardly the voice of young, progressive San Francisco. (Pacific Gas and Electric Co., for example, is one of the greatest corporate criminals in San Francisco history — and also a major KQED donor.)

As one local media observer told us, this new Web-based publication "can’t just be about getting the old band back together for another tour."

If a new online city newspaper is going to succeed, it’s going to have to take San Francisco — with all its diverse communities — seriously. It’s going to have to be willing to offend the big-business power structure. It’s going to need a strong, independent, editorial voice that includes, rather than marginalizes, the progressive point of view. And it’s going to have to attract writers who are interested in communicating to a generation that has abandoned the Chron.

That means Hellman and the gang have to hire a respected editor — and vow not to interfere if the stories and editorials don’t support the agendas of the members of the nonprofit board.

The nonprofit model is tricky for newspapers: foundations and big donors have their own interests, and they often want the organizations they bestow their largesse upon to behave in ways that are antithetical to good journalism. If this new group can make it work (and produce a locally- operated product — unlike the Chron, which is owned by Hearst Corporation in New York) we’re all for it. But a new model of journalism in San Francisco will require more than a new publishing technology. That’s going to be the hardest part.

Dick Meister: Here come the women!

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Women now hold half the country’s jobs and will hold more than half by year’s end

By Dick Meister

(Dick Meister, former San Francisco Chronicle labor editor and labor reporter for KQED-TV’s “Newsroom,” has covered labor and politics for a half-century as an author, reporter, editor and commentator.)

Good news for women: Despite the recession – or because of it women workers will very soon outnumber male workers for the first time in U.S. history.

After many, many years of minority status, many years of generally being paid less than men and otherwise treated as second-class workers by male bosses, women now have the numbers to more effectively combat workplace discrimination.

New data from the Federal Bureau of Labor Statistics show that at mid-year, women held half the country’s jobs and undoubtedly will hold more than half by year’s end.

Remembering Don Fisher

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By Steven T. Jones

It’s rude to speak ill of the recently deceased, but as I read the laudatory obituary of Don Fisher in today’s San Francisco Chronicle, it seems appropriate for us to say a few words about the legacy of a man long criticized by the Guardian for his sponsorship of right-wing and corporatist causes.

Most of what Fisher is now being praised for is how he spent his vast fortune, accumulated through The Gap clothing chain he created. Some of those expenditures (such as children’s programs and buying great art, which he arranged days before his death to have SFMOMA display) were good and many of those expenditures we opposed.

But the point to consider now is why US tax policy has allowed the Don Fishers of the world to keep so much of the wealth they accumulated – in this particular case, largely through exploitive sweatshop labor around the world — and to use it to attack the public sector and empower corporations.

As we praise the philanthropy and generosity of Don Fisher, it’s worth asking whether the billions of dollars that he was allowed to keep (money the federal government would have appropriated for public use up until the late ‘70s, when the tax rate on top earners was as high as 90 percent) might have been better spent by our elected leaders.

Dick Meister: The steelworkers’ bloody battle

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In September of 1919, angry steelworkers launched one of the most fierce, most bloody, and most important
of the many battles that created the American labor movement

By Dick Meister

(Dick Meister, former San Francisco Chronicle labor editor and labor reporter for KQED-TV’s “Newsroom,” has covered labor and politics for a half-century as a reporter, editor, author, and commentator.)

It was 90 years ago this month – September of 1919 – that angry steelworkers launched one of the most fierce, most bloody and most important of the many battles that created the American labor movement.

Just 10 months earlier, the United States and its allies had emerged victorious from World War I. The steelworkers whose labor had contributed much to the war effort — and much to their employers’ huge profits – had set out to organize a union, so as to gain some control over their working lives and increase their miserly share of the profits their work brought employers.

Found Footage Fest: “Hold the phone, is that from Eddie’s Bar Mitzvah?”

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By Caitlin Donohue

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Er ….

Rejoice, ye public access hosts, ye corporate training stooges, ye home movie starlets, for thy hour is nigh. No longer will your tapes be the viewing delight of a happenstance few. Film collagists Nick Pruehler and Joe Pickett have vaulted you into a slightly more middling level of obscurity. The fruit of their labor, The Found Footage Festival, makes its way to the Red Vic Movie House for a two night run starting Friday, October 2, bringing with it the panorama of American G-list treasures that Pruehler and Pickett have been discovering ever since a fateful trip to the back room of a McDonald’s in 1991. Discovering, scavenging, stealing — don’t get bogged down in semantics, people, it’s all part of the creative process. We recently interviewed Pruehler to discuss the profound joy produced by combining the FFF with Bay Area cush, as well as his deep-seated man love for Mr. T.

Found Footage Festival trailer

San Francisco Bay Guardian: How renegade are we talking here in terms of your video collecting techniques– do you ever dumpster dive for the tapes, or is that something you have “people” to do for you these days?
Nick Prueher: We’re not afraid to get our hands dirty and root around through garbage cans and dusty bargain bins at thrift stores in search of VHS gems. We’ll take risks to get videos. A few weeks ago, we were in a FedEx office picking up a package and happened to see a set of three VHS training videos behind the counter. When the clerk went back to grab the package, Joe snuck behind the counter and grabbed the tapes. Unfortunately, they were all pretty boring.

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Celluloid scavengers Joe Pickett and Nick Pruehler

SFBG: Has anyone from the home movies ever gotten sassy on you because you put them in a showcase?
NP: Without fail, whenever we’ve met people in the videos we’ve found, they’ve been universally flattered by the fact they’ve become unintentional cult heroes of sorts. This footage that they’ve long since forgotten about is now bringing joy to hundreds of people across the country. The one close call we had was with Jack Rebney, a guy we dubbed “The World’s Angriest R.V. Salesman.” We cut together some outtakes of this guy going nuts during a promotional video for Winnebago R.V.s and it became a big hit from our first show. Then Jack found out about it and, believe it or not, was pretty pissed off. But we somehow convinced him to appear with us at a show at the Red Vic last year. He came out to a standing ovation and regaled the audience with hilarious stories from that disastrous shoot, then signed autographs for a half hour afterward. At the end of the night, we actually hugged the man.

Dick Meister: Obama, labor, and FDR

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Obama is well on his way to becoming the most pro-labor president since Franklin Delano Roosevelt

By Dick Meister

(Dick Meister, former San Francisco Chronicle labor editor and labor reporter for KQED’s TV’s “Newsroom,” has covered labor and politics for a half-century as a author, reporter, editor, and commentator.)

It¹s clear that Barack Obama is well on the way to becoming the most pro-labor president since Franklin D. Roosevelt – clear that he’s firmly committed to strengthening the vital union rights that FDR secured for U.S.
workers seven decades ago.

Consider Obama’s address to the AFL-CIO’s national convention in Pittsburgh on Sept. 15. Yes, the president was speaking to a friendly audience, saying what the convention delegates wanted him to say and promising them what they wanted him to promise. But his were not empty words.

Environmental review, Inc.

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rebeccab@sfbg.com

Michael Cohen, director of San Francisco’s Office of Economic and Workforce Development, called us from the back of a taxi on a recent Thursday afternoon and complained that he was feeling "perplexed" by all the negative attention aimed at a plan his office helped design.

Perplexed? Maybe — but the concept of having a private consultant take over some planning work during the environmental review of major development projects was never going to happen without a fight.

No sooner had Cohen, OEWD Development Advisor Michael Yarne, and Planning Department Director John Rahaim publicly floated the idea than it was roundly criticized by a host of opponents who called it a danger to public jobs and an invitation for conflict-of-interest nightmares.

The controversy was triggered by a draft request for qualifications (RFQ), released jointly by OEWD and the Planning Department, to hire a private consultant to help the city’s environmental review of major development projects. The consultant would be hired on the developers’ dime. The idea, Cohen said, was to do something about the long backlog in city planning’s Major Environmental Analysis division. Developers often complain that environmental review takes too long, and delays cost money.

"MEA doesn’t have enough resources to do all the work," Cohen told us. "Our simple suggestion is to require private development projects to pay to provide extra resources to the department." The RFQ states in an underlined font that the private consultant would work under the supervision of city staff, and that final policy decisions would remain with public employees. Cohen emphasized that if it goes forward, "not a single planner will lose their job."

Nonetheless, the RFQ was lambasted in a letter sent to Rahaim on behalf of IFPTE Local 21, a union representing about 250 city planners. The letter charges that it could undermine city jobs and allow developers to essentially purchase an environmental analysis that would pave the way for project approval.

Under the current system, a developer who requests a permit to build, say, a condominium high-rise must hire a private consulting firm to write a report describing how the new condos would affect the existing landscape. That report then gets forwarded to the Planning Department for review by MEA staff, a time- and labor-intensive process.

The RFQ would make it possible for a large-scale developer who desired a speedier environmental review to shell out more money for the private consultant, who would do much of the legwork of reviewing the environmental impact report. While city staff would still have the final say, the environmental review process for those projects would consist largely of a consultant overseeing a consultant.

And nearly all the consultants in the environmental-review field make their money from developers.

A source close to city planning told the Guardian that Yarne drafted the RFQ, and that the impetus behind it was to remedy delays encountered by the Treasure Island and Lennar Corp. Hunters Point Shipyard projects.

A critic who spoke on condition of anonymity told the Guardian that there’s a lot of skepticism surrounding the idea since it comes from a former developer. Yarne was a principal at development firm Martin Building Co. until 2007, and he publicly complained about the slow environmental review process while in that role.

"The only deficiencies that we have been informed of have been relayed to us by Michael Yarne in the Mayor’s Office," the Local 21 letter notes. "His primary observation has to do with the expediency by which these reviews have turned around. We do not believe that outsourcing these services addresses the problems he expressed to us." On the contrary, the letter states, "in-house staff would have to review a second consultant’s work, which would prolong rather than streamline the environmental review process."

Rahaim, the planning director, told us that "the idea was to look for ways to help the staff out," and stressed that he viewed it as "augmenting as opposed to outsourcing" city jobs. However, he added that it’s "not something I’m sold on as the only way to do this."

Rahaim seemed receptive to the union’s concerns, said Adam Gubser, president of the Planner’s Chapter of Local 21. But union members remain universally opposed to the proposal as it stands. "There are serious flaws that need to be addressed," Gubser said. "We’re very concerned about contracting out, so any proposal is held under a microscope."

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