Big Tech’s Purple Cheerleaders

SEIU’s Andy Stern and David “Mini Me” Rolf are facing more criticism for partnering with Uber executives.

Jay Youngdahl -- a civil rights attorney and journalist -- says Rolf and Stern have become “cheerleaders” and “circus barkers” for Uber and other tech firms pushing poverty jobs on millions of US workers. 

The companies, says Youngdahl, use “an 18th-century business model dressed up for the 21st century.” (Jay Youngdahl, “Poverty's 'Progressive' Cheerleaders,” East Bay Express, March 14, 2018.)

Even as Rolf and Stern appear to be hypnotized by the glare of their iPhones and the tech companies’ vast wealth, Youngdahl reminds us of the story of drivers like Douglas Schifter.

Last month, Schifter -- who worked for 30 years as a livery driver in New York -- shot himself to death in front of New York City Hall to protest the economic ruin brought on by Uber, Lyft and other companies. According to the New York Times, Schifter…

was now sometimes forced to work more than 100 hours a week to survive… He had lost his health insurance and accrued credit card debt… preferring, he said, to die in hope that his sacrifice would draw attention to what drivers, too often unable to feed their families now, were enduring.

(Ginia Bellafante, “A Driver’s Suicide Reveals the Dark Side of the Gig Economy,” New York Times, February 6, 2018.)

Here’s a recent segment from Democracy Now about Schifter and the impact of Uber and Lyft on drivers.

Youngdahl writes:

[H]onest analyses show that profits for gig economy companies come from not paying for employee health care, pension, and paid leave, as well as foregoing outlay for governmental safety net benefits such as social security, workers' compensation, and unemployment insurance.

To protect their cash flow and flawed business model, these new economy capitalists have assembled a group of "progressive" circus barkers to shape public opinion so the companies can continue, as one driver leader recently wrote, an 18th-century business model dressed up for the 21st century.

Schifter's post on Facebook at the end of his life

Led by former Obama and Clinton strategists, think tanks desperate for operating revenue, foundation-financed nonprofits, and a few past and present Service Employee International Union officials with wealthy benefactors, these companies have constructed a marketing campaign that puts Mad Men to shame. The cast of characters, preaching a rosy "Future of Work," appear in media outlets throughout the land. They have been described as a progressive "Brain Trust," by New Yorker writer Nathan Heller.

Apparently terrified of worker power and solidarity, they oppose traditional unionization and extol company-controlled worker organizations. They promise pie-in-the-sky future benefits and "freedom" and "flexibility." But they're unwilling to face what life is like today for these workers. The "freedom" they're extolling is, as Janis Joplin sang, "just another word for nothin' left to lose."

At least one official inside SEIU is critical of Rolf’s and Stern’s handiwork in support of Uber, the $48 billion startup. In additional comments, Hector Figueroa, the President of SEIU 32BJ in New York, told BuzzFeed:

This isn't just a matter of Washington state. Washington is opening the door for something we believe is harmful for workers. So we’re going to oppose it, even though a sister union is actively involved.

(Caroline O'Donovan, “Uber’s Latest Concession to Drivers Could Spell Trouble for Gig Workers,” BuzzFeed News, January 26, 2018.)

One day after Rolf recently co-signed a letter with Uber’s CEO Dara Khosrowshahi and a venture capitalist, Figueroa posted a statement on his union’s website that says in part:

“We… we don’t support the plans being pushed by Uber and other companies to classify workers as independent just to avoid the responsibilities that employers have to their employees under labor law. All workers, whether they are considered employees or self-employed, should have meaningful health and retirement benefits, paid leave and sick days and enough income to support themselves and their families. They should also have the right to bargain collectively with their employers... We are deeply suspect of Uber’s intentions given their track record of misclassifying, underpaying, harassing and exploiting workers and opposing worker organization and we will judge them and others by their actions, not their words.”

Figueroa and Rolf both serve on SEIU’s International Executive Board.

SEIU’s David Rolf Joins Andy Stern in Pimping for Uber

Andy Stern and Andy's "Mini-Me" David Rolf

Remember when SEIU President Emeritus Andy Stern began working as a consultant for Airbnb, Handy, and other tech firms to help them try to undermine gig-economy workers’ right to be treated as regular employees?

Well, another SEIU official is now following “Handy” Andy’s lead.

Last month, SEIU Local 775 President David Rolf (a.k.a. Andy Stern’s “Mini-Me”) signed an open letter with Uber CEO Dara Khosrowshahi and venture capitalist Nick Hanauer. 

The letter calls on “business, labor and government in Washington state to join us” in an effort to push state legislation that reportedly would consign gig workers to a second-class status as independent contractors without the right to overtime pay, unemployment insurance, disability insurance, Social Security, meal and rest breaks, etc.

For years, Uber drivers and other gig-economy workers have been fighting to force tech companies to treat them as regular employees. They’ve filed class-action action lawsuits seeking millions of dollars in back pay. And in Seattle, Uber drivers and Teamsters Local 117 successfully passed a law allowing Uber drivers to unionize.

Uber executives have been aggressively fighting workers’ organizing efforts in the courts as well as by launching an anti-union campaign in Seattle consisting of TV ads, online ads, text and e-mail blasts to drivers, anti-union meetings, and even an anti-union podcast.

And, in case workers are successful, Uber is also trying to do an end-run around workers’ efforts by trying to pass state laws that would permanently legislate gig workers into “independent contractor” status and create a second tier of so-called “portable benefits” for them.

That’s where Stern and Rolf come into the story.

In 2016, the tech companies hired Andy Stern as a lobbyist to help them try to pass such a bill in the New York legislature. Fortunately, that effort stalled due to opposition.

Following their failure in New York, the tech companies are now trying their luck in Washington State… with the help of David Rolf and Andy Stern. According to Uber’s website:

Last year, Uber approached David Rolf with SEIU 775 and entrepreneur Nick Hanauer about working together on the creation of a portable benefits system in Washington state… Following several productive discussions, we developed a joint letter calling on business, labor, and government to work together to address this important problem.

On January 23, 2018, Uber published a letter signed by Uber’s CEO, SEIU’s Rolf, and the venture capitalist. At the top of the letter is Uber’s logo alongside SEIU’s.

So, how are people responding to Rolf’s so-called “innovative” deal with Uber?

Here’s a sample, according to Bloomberg. (Josh Eidelson, “Uber-Union Proposal on Benefits Met With Skepticism From Labor,” Bloomberg, January 25, 2018).

New York Taxi Workers Alliance Director Bhairavi Desai told Bloomberg: “Selling out to the bosses is not innovative—it’s as old as capitalism."

Desai continued: “This type of bogus agreement only gives them [tech companies] cover for exploitation.”

Damn right!

In fact, Rolf has even been criticized by an official inside his own union, according to Bloomberg:

“This is just a facelift by Uber to be able to look like they actually care about the people who they hire for the services they provide,” said Hector Figueroa, who is president of SEIU’s East Coast property services affiliate and serves with Rolf on the international union’s executive board. “I just cannot comprehend how today, as a labor leader, I would be encouraging the spread of ‘independent’ work.”

Interesting, right?

Why is Rolf’s help so important to Uber?

First, Rolf’s union is one of the largest in Washington state and he's developed lots of relationships with politicians. If Uber is successful in passing its legislation in one state, it can then push similar legislation nationally, says Bloomberg’s Eidelson.

Uber hopes working with Rolf and Hanauer to pass legislation in Washington will change the national conversation on these issues, showing how benefits can be decoupled from traditional employee-employer status, and opening a less adversarial phase in the debate over how laws should treat gig-economy workers, a spokesperson said.

The trio, and whichever additional allies they can muster, will try to get a first-of-its-kind system passed into law in Washington state, which is Rolf and Hanauer’s home as well as one of the few places where Democrats have unified control of government and legislation on the issue is already being debated.

While the letter is light on details, the spokesperson said Uber wants to gather additional stakeholders and formulate a proposal that could be introduced in next year’s legislative session. Among the things a bill should do, the spokesperson said, is make clear that workers like Uber drivers are not employees.

Uber drivers protesting low pay

Meanwhile, Stern is working other channels to help Uber and tech companies permanently relegate their workers to independent-contractor status.

In December 2016, Stern co-authored a proposal with Eli Lehrer (President of the right-wing “R Street Institute” in Washington DC) calling on the Republican-controlled U.S. Congress and White House to grant “waivers” to states to allow them to escape the requirements of federal labor laws. The waivers would be a boon to tech companies, which Stern calls “sharing-economy companies” with “innovative business models.”

Stern, a master of deception and disinformation, entitled his proposal: “How to Modernize Labor Law.”

Does SEIU have no shame?

SEIU Convention Resolution on Democratizing U.S. Presidential Endorsement Process Is Sent to SEIU's Circular File

At SEIU’s 2016 convention in Detroit, SEIU members raised concerns about union democracy inside SEIU… which were quickly quashed by a committee headed by members of SEIU’s International Executive Board.

Here’s what happened.

SEIU Local 1021 -- which represents 45,000 public-sector workers in Northern California -- presented a convention resolution that would have given rank-and-file union members a say in determining SEIU’s endorsement of US presidential candidates instead of simply allowing SEIU’s International Executive Board (IEB) to make the decision.

Local 1021’s resolution follows months of criticism directed at SEIU’s endorsement of Hillary Clinton.

On November 17, 2015, SEIU’s IEB endorsed Clinton even though large numbers of SEIU members had submitted petitions requesting a postponement of any endorsement due to support for Bernie Sanders.

A Politico article published in late 2015, “SEIU Battles over Bernie,” summarized the developments this way:

Fearful that the powerful labor union could soon endorse Hillary Clinton, supporters of Vermont Senator have petitioned top leaders to hold off on endorsing a candidate.

In another sign of discontent, SEIU Local 1984 -- which represents public-sector workers in the state of New Hampshire -- announced its endorsement of Sanders just two days after SEIU International endorsed Clinton ("New Hampshire SEIU Branch Backs Sanders”).

This recent history appears to be what caused SEIU Local 1021 to propose “Resolution 223” to the SEIU convention in Detroit, which ended earlier this week. The resolution reads in part as follows (full copy is below):

Clinton at SEIU's 2016 Convention in Detroit

Whereas: the democratic tradition in our nation and in our labor movement is founded on the idea that every person, every voice, every voter has a right to be heard; and…

Whereas: there is a crisis in government and voting with many feeling that the system is rigged, that their vote does not count and their voices not heard in the electoral process; and…

Whereas: the institution of the union must trust and engage the rank and file to discuss, debate and vote on their endorsement recommendation for President of the United State; and

Whereas: the union must demonstrate to the candidates for President of the United States the importance of being accountable to working people and our families by creating a process for endorsement for President of the United States that is democratic, inclusive, and accountable to the rank-and-file;

Therefore be it resolved that: SEIU International will develop a direct system of voting where all members may cast a vote for their preferred candidate for President of the United States using technology or another tool for vote casting and counting; and

Therefore be it further resolved that: the SEIU International will develop a committee of members from throughout the country to create an endorsement process and timeline, and the necessary infrastructure for direct member feedback on issues and endorsements for the President of United States and a process for the 2020 election cycle.

So what happened to the resolution?

It never saw the light of day.

Under SEIU’s rules, only resolutions approved by a small committee of SEIU officials are permitted onto the convention floor for debate and voting by delegates.

In this case, SEIU’s 19-person “Resolutions Committee” -- headed by SEIU IEB member Hector “AirBnB” Figueroa and including IEB members Meg Niemi and Marge Faville Robinson -- refused to send the resolution to the convention floor and instead “referred” it to the IEB for future discussion.

Translation?

It was sent to the circular file.

  SEIU Convention Resolution 223 on Democracy and Member Voices: May2016

SEIU Caught While Attempting to Ink Sweetheart Deal with Airbnb

SEIU's Stern and Henry

This week, journalists outed top SEIU officials as they tried to seal a backroom deal with Airbnb, a $25.5 billion company headquartered in San Francisco, Calif. 

By week’s end, the deal had exploded in flames after facing an “intense backlash” from housing advocates, elected officials, and unions, according to the London Guardian.

The week’s events were accompanied by jaw-dropping revelations including that SEIU President Emeritus Andy Stern is pulling down a fat paycheck as an Airbnb consultant. (Nice way to grease the wheels inside the Purple Palace, right?)

Meanwhile, it turns out that SEIU President Mary Kay Henry’s former speechwriter and Chief Communications Aide -- Christopher Nulty -- is now a corporate exec at Airbnb, where he played a role in the unsuccessful deal. This week, Nulty served as Airbnb’s main spokesperson regarding its negotiations with his former employer, SEIU.

Christopher Nulty of SEIU/Yahoo/Airbnb

(Who's Nulty? From 2010-2013, he worked inside the Purple Palace where he wrote hundreds of speeches and op-eds for Mary Kay Henry, according to his LinkedIn page. He left SEIU to work as the Senior Corporate Communications Manager for Yahoo’s CEO. Next, he jumped to Airbnb, where he serves as the Public Affairs Lead for the eastern half of North America.)

Here’s a quick sum-up of this week’s events:

On Monday, the London Guardian and the Washington Post broke the news that SEIU was trying to ink a secret deal with Airbnb. The news provoked an angry backlash from elected officials, housing organizations, and unions.

Airbnb CEO Brian Chesky: "I'm worth $3.3 billion."

Why?

As CNBC notes, critics say Airbnb “displaces long-term tenants as some people convert scarce rental property into essentially motels and hotels for travelers — all without paying local hotel taxes, or meeting regulations as required for the hospitality industry.” 

And as tenants are displaced and neighborhoods gentrified, Airbnb’s execs and its venture capital investors pocket billions.

Brian Chesky, Airbnb’s 34-year-old CEO, is worth $3.3 billion.

On Monday, UNITE HERE -- the union of hotel workers whose jobs are being undercut by Airbnb -- issued this statement to the press:

We are appalled by reports that SEIU is partnering with Airbnb, a company that has destroyed communities by driving up housing costs and killing good hotel jobs in urban markets across North America.

Airbnb has shown a blatant disregard for city and state laws, has refused to cooperate with government agencies, and turns a blind eye to the fact that its business model exacerbates the affordable housing crisis. A partnership with SEIU does little more than give political cover to Airbnb. It doesn’t strengthen workers, and in fact undercuts the standards we’ve fought so hard to build for housekeepers in the hospitality industry.

UNITE HERE is not SEIU’s only critic. According to the London Guardian:

The Manhattan borough president, Gale Brewer, 18 members of the New York state senate and assembly, three New York City council members and 20 local housing organizations sent a letter to the SEIU president expressing concern with the deal and requesting a meeting.

“We find it troubling that SEIU is exploring entering into an agreement with Airbnb – a company whose business model displaces the very people you are seeking to represent and protect from their homes and communities,” the letter states. “Such a partnership would lend credence to Airbnb’s illegal manipulation of the housing market, and give the worst actors … a legitimate platform to conduct their illegitimate and harmful business activities.”

Other critics took to Twitter, the media, and online petitions to attack SEIU. In a tweet, UNITE HERE called SEIU’s pact a “sweetheart deal.”

After SEIU 32BJ President Hector Figueroa tweeted support for SEIU’s backroom deal with Airbnb, UNITE HERE’s Hotel Trades Council responded with this tweet:

SEIU’s Andy Stern re-tweeted Figueroa’s message, which prompted the following hilarious tweet from the San Francisco Tenants Union: “Have you read a newspaper lately?”

SEIU’s action even spawned a hashtag (#DontSellOutSEIU), an online MoveOn petition, and a letter from the tenants' union to Mary Kay Henry and Figueroa with statements like this one (see complete letter below):

You cannot build a national movement to improve working conditions for low-wage workers by engaging in backroom deals with a law-flouting corporation and selling out your natural allies.

On Tuesday, SEIU and UNITE HERE met in Las Vegas “to resolve escalating tensions,” according to Politico. After the meeting, SEIU pulled the plug on its sweetheart deal with Airbnb.

UNITE HERE issued this statement:

Earlier this week, we had a productive meeting with SEIU representatives, and it is our clear understanding that SEIU will not have a deal with Airbnb to represent housekeeping services. We will continue to work with SEIU to ensure that workers across the hospitality industry have opportunities to have a voice at work and provide for their families. We are encouraged by their commitment to stand with us and coalition partners to advocate for affordable housing initiatives and better jobs in cities across North America. Unite Here will continue to vigorously oppose any efforts by Airbnb to expand and push for commonsense laws to mitigate the devastating impact this company has had on our communities.

Yesterday (April 21), SEIU issued a statement that read:

Tuesday, representatives from SEIU and Unite Here met and have agreed to find a common approach to protect and expand the stock of affordable housing in all communities across the country and to protect and preserve standards for workers in residential and hotel cleaning while also growing opportunities for these cleaners to improve their lives.

So what was Airbnb’s motive for cutting a deal with SEIU?

Just like Andy Stern’s embrace of Wal-Mart in 2007, an SEIU partnership with Airbnb would have helped Airbnb weather the political headwinds that are hindering its expansion across the nation. 

Here’s how the Washington Post describes it:

The deal would give San Francisco-based Airbnb, which has raised $2.3 billion and is privately valued at $25.5 billion by venture capitalists, new ammunition for its myriad political battles. In cities across the country, opponents of Airbnb have argued that the 8-year-old start-up is accelerating gentrification by reducing the supply of available housing units that would otherwise go to locals if they weren’t being rented out on Airbnb.

The agreement with SEIU allows the company to make the claim that it is creating good jobs for local residents. That’s one prong in a wider strategy to endear itself to local governments.

Earlier this year, the company’s policy chief, a former Bill Clinton aide named Chris Lehane, met with hundreds of mayors at the U.S. Conference of Mayors to make the argument that cities benefit from Airbnb homeowners’ tax contributions.

Finally, here’s a question that's still unanswered:

How much money is Andy Stern pocketing in exchange for pimping for Airbnb?

According to journalists, SEIU spokesperson Sahar Wali has declined to comment.