strikes

By Joe DeManuelle-Hall - Labor Notes, February 2, 2022

Contract negotiations covering 115,000 rail workers in the U.S. are expected to heat up in 2022.

Workers are seething over the impact of extreme cost-cutting measures. Rail unions are escalating through the slow steps of negotiations under the Railway Labor Act—toward a resolution, a strike, or a lockout.

Rail remains one of the most heavily unionized industries in the country, and rail workers maintain the arteries of the economic system.

In 2018, U.S. railroads moved 1.73 trillion ton-miles of freight, while trucks moved 2.03 trillion. (One ton-mile is one ton of freight moved one mile.) A slim majority of rail freight consists of bulk commodities, ranging from grain to mined ores to automobiles; slightly less is made up of consumer goods.

COST-CUTTING FRENZY

In the flurry of reporting on what’s slowing down the supply chain, little has been said about one contributing factor—the years-long squeeze that major railroads have put on their operations and workforces.

Precision Scheduled Railroading is a nebulous term that has come to cover many measures aimed at cutting costs and increasing profits. (Although the name refers to trains operating on a set schedule, that’s just one piece.) All the railroads engage in elements of it.

PSR is basically the railroad version of lean production—the methodology of systematic speedup and job-cutting that caught on in manufacturing in the ’80s and spread to many industries.

The railroads have done it by cutting less-profitable routes; closing and consolidating railyards, repair barns, and other facilities; running fewer, longer trains; and laying off tens of thousands of workers while demanding the remaining workers do more.

Class I railroads—the companies with annual revenues over $900 million—employed fewer workers this January than any month since 2012, falling below even the early-pandemic slump.

Railroads have cut as many as 35 percent of workers in some titles over the past several years. Overall there were 160,795 Class I rail workers in December 2015, and only 114,499 by December 2021.

At the same time, individual freight trains were hauling, on average, 30 percent more tonnage in 2020 than in 2000.

But all these practices add up to a system that doesn’t function well under pressure—the pressure of a global pandemic, or even just the pressure of normal operations. In stretched-out, just-in-time supply chains with no room for error, delays cascade into more delays.

By Max Alvarez and Jeff Kurtz - Real News Network, February 1, 2022

By Marisol Cantu, et. al. - Richmond Progressive Alliance, January 31, 2022

By Amal Ahmed and Emily Pontecorvo - Grist, January 31, 2022

A union is warning Texas officials not to give Exxon money for carbon capture until it fixes its labor problems.

In Beaumont, Texas, working at one of Exxon Mobil’s plants has long been a way to earn steady wages and support a family in this industrial corner of the Gulf Coast. “We take care of more than just our immediate family,” said Darrell Kyle, the president of the local United Steelworkers chapter, the union representing workers at the plants. “We’re the uncles and aunts,” he said, who help “the struggling nieces or nephews who need a couple hundred dollars to get by, to pay a bill.” 

But for the past nine months, about 600 union employees at Exxon’s refinery and other plants have been struggling to pay their own bills: They have been locked out of their jobs because Exxon has been unable to come to an agreement with the union over a new contract. Kyle said that the company is refusing to honor protections for senior workers that have been in place for decades, while the union is demanding that those protections remain in place. At the end of last April, without a contract finalized and with the threat of a union strike pending, the company began escorting employees out of the complex, the Beaumont Enterprise, a local newspaper, reported. The company stated that the provisions the union was asking for were “items that would significantly increase costs and limit the company’s ability to safely and efficiently operate.”

Some workers, willing to take the deal Exxon was offering, began a campaign to decertify the union, which would end union representation at the plants. The United Steelworkers union believes that Exxon illegally assisted the campaign and has filed complaints with the National Labor Review Board. 

But in addition to using this legal channel to try to protect their union, the Steelworkers tried a different tactic. They started their own campaign to pressure Exxon into a deal — by undermining the company’s push for public money to build a $100 billion carbon capture hub in nearby Houston.

By Marisol Cantu, et. al. - Richmond Progressive Alliance, January 24, 2022

By Sarah Jones - Intelligencer, January 20, 2022

Over the last ten months, Brian Kelly has traveled, twice, from his home in Alabama to New York City. Kelly, along with roughly 900 of his co-workers, has been on strike since April 2021, a lengthy ordeal they pin on their employer Warrior Met Coal’s lackluster proposals for a new contract. In an unusual move for a labor strike, he and hundreds of workers came to protest the three hedge funds that own Warrior Met and pressure them to pressure the company’s management. It hasn’t been easy: Last November, the NYPD arrested Kelly and several others in front of the headquarters of BlackRock, the largest shareholder in Warrior Met.

A third-generation coal miner, Kelly worked for Warrior Met’s predecessor, Walter Energy, for two decades until it filed for bankruptcy protection in 2015. That’s when a judge allowed the private equity firms that took it over, including Apollo Global Management, Blackstone, and KKR, to reject prior labor contracts with Kelly’s union, the United Mine Workers of America, as the Financial Times previously reported. Miners accepted a pay cut of $6 an hour to keep their jobs. Health-insurance costs increased. “Then they forced us to work seven days a week, up to 16 hours a day,” Kelly recalled. “Overall, we made a sacrifice during that time.” The firms say they saved jobs; instead, miners say private equity prospered from their suffering. Though private equity no longer owns the company, the strike is arguably their legacy.

“All told, we estimate that this conglomerate of private equity firms realized about $1.1 billion in savings coming out of the bankruptcy court just over the past five years, that were essentially taken out of the pockets of workers,” said Phil Smith, a spokesperson for the United Mine Workers. A bigger payday was still to come. “Before its initial public offering in 2017, Warrior paid them a $190m dividend from cash on hand,” the Financial Times reported. “A few months later it paid a $600m dividend funded with cash as well as a $350m debt offering.” Austerity for some can be a windfall for others.

In statements, Apollo, Blackstone, and KKR all emphasized that they are no longer intertwined with Warrior Met. “Our former investment in Warrior Met saved the company’s mining operations from the brink of collapse, allowed the company to deleverage and invest in its business and preserved more than a thousand high-paying jobs in Alabama,” a spokesperson for Apollo said. “During the time of Apollo’s investment until our ultimate exit in 2019, the company thrived — its stock price increased, they had positive relations with its workforce and the representative union, and employees, who rank among the top earners in Alabama, received significant pay increases and bonuses.”

That likely won’t persuade Smith or the miners who make up his union. Smith calls the firms “vulture capitalists,” which he explained in detail. “What the vultures do is they see something lying down on the ground and they come and they eat it, right?” he said. Warrior Met’s predecessor, Walter Energy, “was lying dead in bankruptcy court,” he explained, when private equity swooped in. “They’re preying on distressed and dead companies and figuring out ways to extract more money for themselves and for their investors from the bones and the remains of those companies,” he added.

By Marisol Cantu, et. al. - Richmond Progressive Alliance, January 16, 2022

By various Russian anarcho-syndicalists and anarchists - International Workers Association, January 13, 2022

Statement by Russian anarcho-syndicalists and anarchists on the situation in Kazakhstan

We, Anarcho-syndicalists and Anarchists of Russia express our full and complete solidarity with the social protest of the working people of Kazakhstan and send them our comradely greetings!

The current explosion of social protest in Kazakhstan, one of the most outstanding and brightest since the beginning of the new century, has become the apogee of the wave of the strike struggle of oil workers and other categories of workers in the country, which has not stopped since last summer.

The working people of Kazakhstan gradually recovered from the terrible massacre of the proletarians, organized in 2011 by the dictatorial regime of Nazarbayev, and began to consistently seek higher wages and the ability to create trade unions and other workers' associations. The poverty of the majority of the population, the cruel exploitation of labor, the rise in prices, daily oppression and lack of rights made the position of the working person unbearable and forced him to rise to protest actions.

The last straw was the layoffs of tens of thousands of oil workers in December 2021, the introduction of a "sanitary" dictatorship under the pretext of "fighting the pandemic" and a draconian increase in gas prices. On January 3, a general strike of workers began in the Mangistau region, which soon spread to other regions of the country. In the former capital of Kazakhstan, Almaty, clashes erupted between protesters and repressive forces; there are tens or even hundreds of people killed and wounded. During the protests, disadvantaged people, primarily young unemployed and internal migrants, committed acts of popular expropriation, destroying many large shopping centers, shops and bank branches. In a number of cases, the troops refused to open fire on the rebels.