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Does Silicon Valley Need More Labor Unions? (salon.com)

Salon recently talked to Jeffrey Buchanan, who two years ago co-founded a labor rights group "that highlights the plight of security officers, food-service workers, janitors and shuttle-bus drivers in the region." An anonymous reader quotes their report: The situation among Silicon Valley's low-wage contract workers has become so perilous that in January, thousands of security guards working at immensely profitable companies like Facebook and Cisco followed the shuttle-bus drivers and voted to unionize in an effort to collectively bargain for higher wages and better benefits. The upcoming labor contract negotiations between the roughly 3,000 security guards (represented by SEIU United Service Workers West) and their employers is one of the biggest developments in Silicon Valley labor organizing to happen this year. Buchanan says there's also a broader push this year to get tech companies to be proactive in ensuring these workers can make ends meet, even if these companies have to pay more for the services they procure...

A paper published last year by University of California at Santa Cruz researchers Chris Brenner and Kyle Neering estimates between 19,000 and 39,000 contracted service workers are employed in the Valley at any given time... An additional 78,000 workers are at risk of becoming contract employees, according to the study, a number which includes administrative assistants, sales representatives and medium-wage computer programmers. This is part of a larger societal shift in which salaried workers are converted to contractors -- a transition that benefits business owners, in that they don't have to pay benefits and can hire and fire contractors at will.

Buchanan's group represents contractors typically earning "as little as $20,000 a year." But Salon's headline argues that "programmers may be next" in the drive to organize contractors.

29 of 187 comments (clear)

  1. What silicon valley needs by Anonymous Coward · · Score: 5, Insightful

    Is more housing projects so that prices sink to a bearable level.

    1. Re:What silicon valley needs by nbauman · · Score: 3, Informative

      I know someone who came from the housing projects in Brooklyn.

      He said that during WWII, they needed housing for the shipyard workers, so the federal government hired contractors (I think) to build the projects. It was good housing, and a good community built at a time where everybody was working at a good salary. After the war, the projects attracted a lot of middle-class working people, such as teachers and salesmen.

      Then some politicians turned the projects into welfare housing. If the projects had 5% unemployment, the unemployed could plug into the network and get jobs. But if they had 50% unemployment, full of people on welfare, the projects would decline. Some projects are well-maintained and highly desirable with long waiting lists, while others are not.

  2. Re:What silicon valley needs - House Boats! by Anonymous Coward · · Score: 2, Funny

    Lots and lots of house boats. When the bay is full of house boats, cloud boats! That's right, in the cloud, literally! And when the cloud is full, contract out to Amazon! They house you right in the warehouse!

  3. Convince the sheep they are wolves by Anonymous Coward · · Score: 5, Insightful
    Dev and IT folks are convinced that it's all a meritocracy until their jobs get outsourced to India or they find themselves being let go for being born before 1977 (or next year, 1978). But it's okay because those younger not yet outsourced or retrenched folks are convinced that they are different and that those guys that were let go or made redundant simply didn't have what it takes to succeed and that outsourcing or age related discrimination *won't happen to them*.

    In the employers favor there are endless new people fresh willing to get sucked in to replace those that figure out that a lot of silicon valley these days is a venture capitalist money laundering scheme. The recent book Chaos Monkeys draws the argument out in stark detail. Convince IT and Dev folks that they are wolves and only that sheep need collectivism. Keep up the illusion and that way you can keep fleecing them.

    1. Re:Convince the sheep they are wolves by Applehu+Akbar · · Score: 5, Interesting

      It's too bad the conventional union system has nearly all the rot and inefficiency of government. It gives it such a bad name that it's easy to see why so many IT workers see it as a turn for the worse.

      Union management got its culture from the nature of the businesses whose workers it organized in its days of growth and greatness: steelmakers, cab drivers, longshoremen, and mostly in large Eastern cities where graft is a way of life. Today's tech workers see this as old-fashioned and irrelevant.

      A Silicon Valley union would have to arise from its own culture and be run in a way that appeals to local workers. Give it some California name like Bargaining Coop, and you're off and running.

    2. Re:Convince the sheep they are wolves by nbauman · · Score: 5, Informative

      It's too bad the conventional union system has nearly all the rot and inefficiency of government.

      I'd like to see the data.

      I don't know of any (non-anecdotal) evidence that unions generally or even government generally has rot and inefficiency. I think there are good and bad unions and government agencies.

      First, government. I once did a study of nuclear power plants, in which I interviewed engineers and managers in the best-run nuclear power plants around the country. (Nuclear power plants have well-defined, clear-cut criteria for good management, starting with minimum down time and good safety.) Some power plants are run by the federal or local governments; others are run by private corporations. Some of the best-run plants were government (Tennessee Valley Authority), and others were private (Commonwealth Edison). There was no correlation between government/private ownership and good management. I found the same pattern in other industries. (Despite what the Koch brothers would like you to believe, the Veterans Health Affairs system has among the best outcomes for major diseases like heart disease, if you believe in peer-reviewed literature.)

      Second, unions. There are good and bad unions throughout the U.S. I haven't studied them so I can't tell you definitively which ones are good. But the first goal of a union is to negotiate wages, and union wages are about 50% higher than non-union wages in comparable jobs. Unions also negotiate working conditions, such as job security and safety. (If somebody has published a study I'd like to see it.)

      I think economists generally agree that middle-class wages have remained static or declined since about 1980, and one of the major factors was the loss of unions.

      One of the interesting comparisons is between American non-union jobs and union jobs in Europe, particularly Germany and Scandanavia, where salaries are about twice U.S. rates.

      In the 1950s, corporate management, government agencies, and unions cooperated in many industries, like the aircraft industry. This led to the greatest expansion in wealth and industry that the world has ever seen. It seemed to work.

    3. Re:Convince the sheep they are wolves by nbauman · · Score: 2

      There's also the question of just who is incompetent, and by what standard? Do you just fire people, or train them and develop competence?

      There were lots of programmers in their 40s and 50s who worked on COBOL when their employers converted to %newlanguage%. They could have been retrained but their employer decided to just fire them and hire new (often cheaper) programmers.

      In the 1980s, I think, there were a lot of age discrimination lawsuits with expert testimony and subpoenaed internal documents that examined the situation in great detail. The employees argued that they could have been retrained.

      Older workers often have different skills. They remember organizational history and what worked before.

      A lot of non-union corporations had policies of strong job security. If a worker was "incompetent," they figured out what was wrong and retrained him.

    4. Re:Convince the sheep they are wolves by nbauman · · Score: 2

      "One of the interesting comparisons is between American non-union jobs and union jobs in Europe, particularly Germany and Scandanavia, where salaries are about twice U.S. rates."

      I have to ask your data because I find it hard to believe.

      http://www.forbes.com/sites/fr...
      How Germany Builds Twice as Many Cars as the U.S. While Paying Its Workers Twice as Much
      Frederick E. Allen
      12/21/2011
      In 2010, Germany produced more than 5.5 million automobiles; the U.S produced 2.7 million. At the same time, the average auto worker in Germany made $67.14 per hour in salary in benefits; the average one in the U.S. made $33.77 per hour. Yet Germany's big three car companies-BMW, Daimler (Mercedes-Benz), and Volkswagen-are very profitable.
      How can that be? The question is explored in a new article from Remapping Debate, a public policy e-journal. Its author, Kevin C. Brown, writes that "the salient difference is that, in Germany, the automakers operate within an environment that precludes a race to the bottom; in the U.S., they operate within an environment that encourages such a race."
      There are "two overlapping sets of institutions" in Germany that guarantee high wages and good working conditions for autoworkers. The first is IG Metall, the country's equivalent of the United Automobile Workers. Virtually all Germany's car workers are members, and though they have the right to strike, they "hardly use it, because there is an elaborate system of conflict resolution that regularly is used to come to some sort of compromise that is acceptable to all parties," according to Horst Mund, an IG Metall executive. The second institution is the German constitution, which allows for "works councils" in every factory, where management and employees work together on matters like shop floor conditions and work life. Mund says this guarantees cooperation, "where you don't always wear your management pin or your union pin."
      Mund points out that this goes against all mainstream wisdom of the neo-liberals. We have strong unions, we have strong social security systems, we have high wages. So, if I believed what the neo-liberals are arguing, we would have to be bankrupt, but apparently this is not the case. Despite high wages . . . despite our possibility to influence companies, the economy is working well in Germany.
      At Volkswagen's Chattanooga plant, the nonunionized new employees get $14.50 an hour, which rises to $19.50 after three years.

      http://www.remappingdebate.org...
      A tale of two systems
      By Kevin C. Brown
      Remapping Debate
      Dec. 21, 2011
      American autoworkers are constantly told that high-wage work is an unsustainable relic in the face of a hyper-competitive, globalized marketplace. Apostles of neo-liberal economic theory - both in the public and private sectors - have stressed the message that worker adaptation is necessary to survive....
      But the case of German automakers - BMW, Daimler, and Volkswagen - tells a different story. Each company produces vehicles not only in Germany, but also in "transplant" factories in the U.S. The former are characterized by high wages and high union membership; the U.S. plants pay lower wages and are located in so-called "right-to-work" (anti-union) states. ... the UAW has made significant concessions on wages, especially through the creation of a permanent "Tier 2" level for all new employees. Whereas incumbent "Tier 1" workers earn about $28 an hour, all new UAW hires at the GM, Ford, and Chrysler earn around $15 per hour.

      There have been other stories about this in the New York Times, as I recall.

      Anyway comparing US to EU unions is an apples-to-oranges exercise. In EU you don't have a union for a single company but more like a party across the cou

  4. Stupid Question by Maclir · · Score: 4, Insightful

    Anyone who is not senior management needs to be in a union. Don't expect your bosses to be concerned about what is in your best interest - the sole function of a private business in a capitalist society is to return the maximum amount of money to the company's investors (stockholders). You, as a mere worker drone, are just fodder

    1. Re: Stupid Question by JaredOfEuropa · · Score: 2

      Maybe it's the other way around: the least competent employees have most to gain from their union, so they are the most active in making sure unions enforce FIFO rules and the like.

      --
      If construction was anything like programming, an incorrectly fitted lock would bring down the entire building...
    2. Re: Stupid Question by Reverend+Green · · Score: 2

      Also, it seems that many younger programmers have been propagandized into a useful delusion. They sincerely believe that if they enthusiasticallyâ cooperate with abusive labor practices and kiss enough ass, someday they will graduate from running dog to capitalist. Never mind that winning the startup lottery has little correlation with individual work performance and very very rarely lifts one from the working class to the owning class.

  5. Re: I will never belong to a union by Anonymous Coward · · Score: 5, Informative

    What does keeping bad employees to do with unions? Union are there to ensure companies cannot fight competition by lowering wages, but have to be innovative.

    We have strong unions in Germany and the productivity of our car companies is way better than those in the US. Also we have 30 days paid vacation, healthcare and a general retirement system. All things unions fought for in the past.

  6. Re:I can't afford to live in Beverly Hills by Anonymous Coward · · Score: 5, Insightful

    Imagine if actors couldn't live in Beverly Hills, that's what's happened. Greedy landlords think x% of someone's salary belongs to them as rent. If programmers can't live in Silicon Valley, what's the point of Silicon Valley?

  7. You ate wrong by Anonymous Coward · · Score: 3, Informative

    Just have a look at European countries (not the UK, real Europe). Labour rights protect people from abusive management. They even help to improve company performance.

  8. Re:I will never belong to a union by BarbaraHudson · · Score: 3, Insightful

    You've swallowed the purple flavor-aid. Union members don't like slackers any more than anyone else. Nobody wants to have to work harder to make up for lazy turds riding on their coat-tails. Union members are no exception.

    --
    "Transparent" is a shit show that trades on every stereotype going. A man in drag is NOT a transsexual.
  9. Re:Unionize you stupid shits by KermodeBear · · Score: 2, Insightful

    I work in a Canadian government (unionized) position. My pay is double, my hours are halved [...]

    No wonder Canadian taxes are so high.

    --
    Love sees no species.
  10. Re:I will never belong to a union by Chaos+Incarnate · · Score: 3, Interesting

    As someone who was a union member about a decade ago, you sure couldn't tell it by my union's actions.

    --
    Benford's Corollary to Clarke's Law: "Any technology distinguishable from magic is insufficiently advanced."
  11. $55k by 110010001000 · · Score: 4, Funny

    I earn $55k doing IT in Silicon Valley with bonuses. I am doing pretty well.

  12. Re: I will never belong to a union by gerf · · Score: 2, Informative

    I work in the US for a German company that is partially unionized in the EU. The US unions are nothing like the German ones. People sleep on the job, sabotage production, and generally don't care about their job or the company. They have no repercussions because the union protects them.

  13. Re:I can't afford to live in Beverly Hills by TWX · · Score: 5, Insightful

    Maybe it's time to consider that proto-companies that generate no profitability shouldn't have to be established in some of the most expensive cities in the world.

    Maybe it's time to consider that mid-sized companies that are in pretty strong competition in order to remain profitable don't need to be located in some of the most expensive cities in the world.

    Maybe it's time to consider that large companies that are continually looking for ways to reduce costs don't need to retain the vast majority of their operations in some of the most expensive cities in the world.

    There seems to be a point where a city has gotten so expensive that it is not possible for workers in the service jobs needed to afford to live there, or to even live within reasonable commuter distances. In theory this should lead to a natural cap on the cost of living or a natural floor to wages simply because cities need workers in these jobs, but as has been pointed out in this thread that doesn't mean that landlords won't look for ways to increase their profits, or that the numbers of people that need these unskilled jobs can readily find work closer to where they can easily afford to live.

    If the service workers decide to unionize, fine. Good for them.

    --
    Do not look into laser with remaining eye.
  14. Re:I will never belong to a union by Anonymous Coward · · Score: 5, Insightful

    Coming from a decidedly not communist country where labor unions are de rigueur, no it isn't.

    What is more capitalist than negotiating a fair and equitable price for a service? Individuals negotiating with companies are almost always at a massive disadvantage: they generally need the job more than the company needs them; they don't usually have information on what other people at the company or in the industry make; they aren't aware of the future plans that their management might have; they have no real say in corporate direction. All of these are ameliorated by collective bargaining.

    We have our share of bad employees here too, and a lot of them are in unions. The union makes sure the company follows the law and its own disciplinary procedures - that's it. If the company is doing something harmful in the long term for short term gain (like off-shoring IT to a developing nation) the union will make a fuss and maybe call a strike. The union has no interest in destroying the company; if anything they have more at stake in the long-term health of the firm than the managers, who may come and go within a few years.

    It seems to be that Americans in skilled jobs almost all believe that they are irreplaceable superstars and will receive above average treatment from their employers. It doesn't phase you that your colleagues are getting screwed, but when it happens to you it's a ridiculous injustice that will surely doom the company.

  15. Re: Unionize you stupid shits by KermodeBear · · Score: 2

    Don't know about California, I'm based out of Ohio. Do software work remotely. Definitely don't pay 40% in income taxes but I wouldn't be surprised if people did in California.

    Do you know what I did when I was getting paid crap and was working too many hours? I told my employer that I was going to quit and find work somewhere else. One of two things happened: I got a raise / better conditions, or I found a better job.

    In more populous states and in the cities especially, it's very easy to find work. Let the free market do its thing. If a company wants better workers, pay more and treat them better. If your employer is crap, leave. It actually does work.

    --
    Love sees no species.
  16. Three reasons to form a union by gurps_npc · · Score: 4, Interesting

    1) Low pay/benefits.
    In some situations, Silicon Valley will offer low pay and no benefits, but only to new hires. This is particularly common in start ups. Competent, Experienced people get god pay and can demand their own benefits. But new people have the right to reasonable pay.

    2) Dangerous working conditions.
    Silicon Valley does not do this.

    3) Ridiculous hours/work.
    Silicon Valley is known to do this consistently.

    That is two out of three for new/bad workers. Yes, Silicon Valley needs Labor Unions.

    --
    excitingthingstodo.blogspot.com
  17. Re: I will never belong to a union by Dorianny · · Score: 5, Informative

    I work in the US for a German company that is partially unionized in the EU. The US unions are nothing like the German ones.

    People sleep on the job,.

    I guarantee you that there isn't a single Union labor contract in history that doesn't explicitly list "sleeping on the job" as a valid reason for termination.

    sabotage production,

    Forget Union contracts, you are decidedly in criminal law territory on this one

    and generally don't care about their job or the company.

    Trust and respect is not a given, it must be earned both by people and Corporations

    They have no repercussions because the union protects them.

    The contract signed between the Corporation and the Union requires that sufficient proof be provided for alleged infraction. If it comes to a managers word against a worker then figuring out who is telling the truth is impossible without resorting to a gut-feeling based judgment call

  18. Re: I will never belong to a union by Dorianny · · Score: 2, Informative
    The contract between the DOE and the teachers Union requires them to prove in arbitration their allegations against the teachers. If it fails to do so then the teacher goes back to work. Under autocratic mayor Bloomberg, the DOE devised a diabolical scheme where instead of being returned to their regular duties these teachers where placed in these "rubber rooms" for the purpose of forcing them to resign by wearing down their mental state.

    FYI: the NY Post is owned by Rupert Murdoch's, News Corporation and like FOX news and many of their other holdings, it is highly biased and closely aligned with Murdoch's political ideology

  19. You are right, and completely wrong. by Anonymous Coward · · Score: 5, Informative

    As a person who works in IT and teaches, I am in a union (former president) in one world, but not in the other. The wisdom that I can share with you is this:

    The first and foremost benefit to being in a union is collective bargaining. This not only determines wages and benefits, but also creates an equitable system for minorities. If you are wondering why there is a lack of women and black people in IT it is because they are systematically undervalued and discriminated against.

    The second benefit of being in a union is due process. Contrary to popular belief, this does not protect bad workers. It does, however, guarantee a fair process when applying discipline up to termination.

    The third benefit of being in a union is insurance and legal access. In the education world, when a principal threatened the employment of my wife for not volunteering to stay after school hours because she was lactating and needed to feed our child, the lawyer stepped in. Strangely enough, the school had been violating State mandated workplace time rules that the lawyer had actually written. His fees were paid for through insurance paid for with member dues.

    Now, to dispel any FUD about unions:

    Unions are prohibited, by law, from spending any dues money for political purposes. They do, however, solicit contributions for political purposes.

    Unions do not prevent employers, such as GM from closing manufacturing facilities and moving production to other countries.

    Unions are a victim of their own success. When asking yourself what have unions ever done for the general public, consider laws passed regarding:

    maternity leave
    overtime pay
    40 hour work week
    minimum wages
    workers compensation
    employer based healthcare / healthcare for all (ACA in U.S., Universal in other countries)
    sick days
    outlawing discrimination
    child labor
    workking conditions
    OSHA
    whistleblowers

    People take these things for granted now, but businesses are either trying to weaken these laws or move labor to parts of the world that do not have these laws. Unions are therefore not a thing of the past, but something that are always needed to secure the future.

    The bottom line is that H1B visas would not be an issue if IT workers had strong unions. IT workers would not always be on call or working 60 hour weeks if they had strong unions. IT workers would not suffer age discrimination if they had strong unions.

    Last year, I filed 5 W-2 forms and a Schedule S (IT Consulting) on my taxes. I have the opportunity to work with lots of employers, including some that outsource work to India. I have perspective, and agree that IT workers are sheep who are convinced they are wolves.

    The reality is that IT workers have no protection, and are blind to the fact that they need it until it is too late. With experience comes wisdom. Unfortunately, your colleagues are replaced before they acquire it. Don't be stupid. Unionize your workplace before you are replaced too.

  20. As an another Ohioan LF work, that doesn't. by sethstorm · · Score: 2

    In more populous states and in the cities especially, it's very easy to find work.

    Ohio isn't exactly friendly to (re-)entry-level IT/CS work. Southwest Ohio, even moreso with the myriad of staffing agencies from whoknowswhere in the I-75 corridor.

    Should one be in the Dayton metro area and also is looking for IT/CS work that doesn't involve Wright-Patt or some onerous certification requirements (IAT 8570, I'm looking at you!), good luck. You'd have to bankrupt yourself to find somewhere willing to take you on.

    If you're wondering, I've interviewed as far out as Columbus.

    Let the free market do its thing. If a company wants better workers, pay more and treat them better. If your employer is crap, leave. It actually does work.

    If you don't have an employer, what then? Kind of hard to quit something you never had.

    As noted above, southwest Ohio is a huge counter-example to your argument. The market is broken here.

    --
    Twitter supports and protects racists - by smearing their critics with the "Hate Speech" label.
  21. Re: I will never belong to a union by BarbaraHudson · · Score: 2

    I was in the steelworker's union as a trucker, and that didn't stop me from fixing a thieving slacker's wagon. Didn't need to go through the union, but being part of it meant that when I took direct action, I was protected and he was fired. A helper stealing from customer loads makes all of us, but especially the driver, look bad.

    It's the thief who was incompetent, short sighted, and greedy, not me. Try to screw me over to hide your actions, I owe you nothing. This applies in a lot of life's situations.

    --
    "Transparent" is a shit show that trades on every stereotype going. A man in drag is NOT a transsexual.
  22. Re:I will never belong to a union by Anonymous Coward · · Score: 2, Interesting

    if shareholders are allowed to form a co-op in order to retain workers; why shouldn't workers form a co-op in order to negotiate?