Suburban Chicago Firefighters Suspended Over Refusal to Remove American Flag Decals

Four Illinois firemen have been relieved of duty after refusing to comply with a department-wide directive that prohibited stickers and decals on their helmets and lockers.

A representative from Service Employees International Union Local 73, which represents the firefighters, met for an hour with Chief Bronaugh Tuesday afternoon, with the union hoping Chief Bronaugh would modify his order. Instead, he ordered the firefighters sent home immediately, pending disciplinary action.

Union spokesman Adam Rosen said he is “shocked” that an agency of first responders would enforce such an order the week of Sept. 11.

The four firefighters said they were told that the order was issued because of racial discord on the department. The four, who include two white firefighters, a black firefighter, and a fourth firefighter who is a Cuban émigré, said no such problems exist.

Instead, they trace it back to a decision by several firefighters to replace a tattered American flag last month in one of Maywood’s firehouses. The new flag mysteriously disappeared early Aug. 23. The order on decals was issued last week.

Maywood has had no such order in the recent past. One of the four firefighters, Dave Flowers Jr., inherited his locked from his father when his father retired from the Maywood Fire Department and has stickers dating back several decades that Rosen calls “irreplaceable.” One is a U.S. Marine Corps insignia issued to Vietnam veterans.

The Maywood fire chief told CBS 2 the order rose out of a need to banish inappropriate messages and gave an example of a photo that could be seen as racist.

The image in question was reportedly a picture of a chimpanzee smoking, which town officials could be construed as racist. However, that picture had been removed nearly 8 years ago by a firefighter that has since retired. Former Maywood firefighter Michael Hess said put up the picture to 'jam up' a colleague who was smoking.

Quickie Sports Chowdah Update- Bruins Shut Out Hawks After Win Streak Snapped; Bills Owner Ralph Wilson Passes Away; NLRB Rules Northwestern Football Players Can Unionize

NHL- Well, the impressive win streak came to an end on Monday night when the Montreal Canadiens won by a 2-1 final in a shootout at the TD Garden- altho' the Bruins point streak remained intact for the time being. Monday night's loss marks the first loss for the Bruins since March 1st when the Capitals doubled them up by a 4-2 final at DC's Verizon Center.

Three captains: Toews, Chara and HOFer Johnny Bucyk post before the game. #CHIvsBOS pic.twitter.com/i0waap6S1d

— Chicago Blackhawks (@NHLBlackhawks) March 28, 2014

On Thursday night, Boston would host the defending Stanley Cup Champion Chicago Blackhawks- the first time the Hawks had visited the Garden since their Series-clinching Game 6 at the end of the 2013 season.



Patrice Bergeron got the Bruins on the board with 8:10 to go to open up the scoring on a very crisp and free-flowing game. After a scoreless second period, the Bruins managed to score two goals less at 13 seconds apart from Carl Soderberg and Patrice Bergeron to give the Bruins a 3-0 lead early in the 3rd. That seemed to change the tempo of the game and the Bruins would go on to win by a 3-0 final. Tukka Rask turned aside all 28 shots he faced while Cory Crawford stopped 20 of 23 shots.

Part of the reason the game seemed so brisk and open was that there were only three penalties throughout Thursday night's game- the Blackhhawks went 0 for 2 while the Bruins went 0 for 1.

The Bruins hit the road once again this weekend for back to back games. On Saturday afternoon, they'll return to Washington DC's Verizon Center to take on the Capitals. Puck is scheduled to drop at 12:30 PM and the game will be televised on NESN. On Sunday, the Bruins will travel up to Philadelphia for a 12:30 game that will be nationally televised on NBC.

NFL- Ralph Wilson, the sole owner of the Buffalo Bills, has passed away at age 95 in his Grosse Pointe Shores, MI home. Wilson, who grew up in Detroit and attended the University of Michigan law school before enlisting in the US Navy in WWII. After the end of the war, Wilson took over his family's successful insurance and invested in manufacturing and mining throughout Michigan and was a minority stakeholder in the Detroit Lions.

In 1959, Wilson reportedly got wind of the oilman Lamar Hunt's plans to establish the American Football League to compete with the NFL and wanted in. The Buffalo Bills officially became an AFL team in October 1959 and have remained in Buffalo ever since. Wilson reportedly even lent money to the Patriots and Raiders in the early years of the AFL, ensuring that the none of the organizations in the AFL folded between its 1959 inception and the 1969 merger with the NFL.

Wilson was also something of a pioneer- as early as 1972, he begrudgingly allowed the naming rights to the Orchard Park, NY stadium the Bills called home to be leased to Buffalo-based Rich Foods. When the agreement lapsed in 1998, the stadium was simply referred to as Ralph Wilson Stadium

Although considered a 'small market' team, the Bills had their heyday in the 1990s when they won four straight AFC titles- only to lose four straight Super Bowls. The team's poor performance in recent years coupled with Wilson's ailing health and playing one 'home' game a season in Toronto's Rogers Centre starting in 2008 led to speculation that the team was preparing to move north of the border and become Canada's first NFL franchise. In 2009, Wilson was elected to the pro-football Hall of Fame as one of the founding members of the AFL, although he was notably absent from an October 2009 ceremony during halftime between the Bills and Browns where he was to receive his Hall of Fame ring.

However, even though Wilson left no clear heir apparent, Wilson made arrangements to extend the team's lease on Ralph Wilson stadium through at least 2019.


ELSEWHERE IN THE AFC EAST- The New York Jets and free-agent QB Michael Vick have agreed to a 1-year $5 million contract. Vick and last season's starter Geno Smith are expected to compete for the starting spot after the Jets cut former 1st round draft pick Mark Sanchez. Vick had finished the 2013 campaign for Philly on the bench with 7 TDs, 3 INTS and 1,215 yards in 7 games. Interestingly, shortly after the Jets announced the signing of Michael Vick, the Eagles announced that they had signed Mark Sanchez to a 1-year, $4 million contract.

One of the top draft picks of the NFL's 2001 draft, Vick spent the first five years of his NFL career with the Atlanta Falcons until his name came up in a narcotics and dogfighting investigation in Virginia. In 2007, Vick pleaded guilty to charges of operating an illegal dogfighting operation on his property and spent 23 months in a federal penitentiary. In 2009, the Philadelphia Eagles gambled and signed a recently-released Vick who would go on to lead the Eagles to the playoffs as well as leading the NFC in a number of offensive categories.


NCAA FOOTBALL- In a decision that will likely send shockwaves throughout NCAA Football, the Chicago office of the National Labor Relations Board ruled that football players for Northwestern University can unionize. District director Pete Sung Ohr ruled that because of the time commitment required and on-field performance being tied to some of the scholarships the university awarded.

The ruling contradicts a number of case laws in which courts have established that student-athletes are not considered employees in the eyes of the law. However, the scope of the NLRB's ruling is somewhat limited, applying to only 17 of the more than 100 universities they compete against. Not only does this week's NLRB ruling seem to establish a different set of rules for private colleges with a football program than public ones, many of the arguments made in favor of unionization directly contradict the rationale behind why scholarships aren't taxed, ESPN's Darren Rovell points out. Assuming the NLRB's decision does in fact survive an appeal, this means that the tax implications alone could make unionization unfeasible.

Look for the Union Label- NLRB Accuses Longshoreman's Union of Threatening to Rape Family Members of Grain Terminal Manager; Buffalo Area Union Boss Found Guilty of Racketeering

The National Labor Relations Board has accused striking dockworkers from the International Longshoreman and Warehouse Union of assaulting security guards hired by United Grain at the port of Vancouver, WA and in at least one instance, locked out ILWU workers had threatened to sexually assault the daughter of a United Grain manger during a yearlong lockout.

The most shocking accusations are contained in Hooks’ case against International Longshore and Warehouse Union Local 4 in Vancouver.

After investigating charges filed by the company, Hooks alleged longshore picketers shone spotlights into vehicles entering and exiting United Grain’s terminal, blocking drivers’ vision and causing permanent eye injury to a security officer. Hooks alleged locked-out workers recklessly pursued company vans, threatened to harm Columbia River pilots and pinned a security officer’s leg under a moving vehicle.

Hooks alleged that Local 4 members “threatened to rape the daughter of one of the employer’s managers,” and implied threats to harm a manager’s children by telling him they would “see his children at school” and asking, “are (his) children okay today?”

Perhaps the most surprising aspect of this is not that members of the international Longshoreman and Warehouse union were capable of this, but the accusations come from a NLRB board perceived by critics as being packed with individuals far more sympathetic to labor bosses than business.

This would not be the first time in recent years an ILWU Local in Washington state resorted to threats, extortion and intimidation during a contract dispute. In 2011, members of the ILWU Local 21 in Columbia, WA blocked trains, cut air lines and dumped grain from rail cars, vandalized vehicles belonging to non-union employees at the port and threatened security guards with baseball bats and axe-handles during a dispute with EGT Grain in Longview. A federal judge issued a temporary restraining order against ILWU Local 21 and the Cowlitz County Sheriff's Department arrested more than 100 workers on various charges. The Longshoreman's Union then attempted to launch a recall campaign against Cowlitz County Sheriff Mark Nelson, which went absolutely nowhere.

Meanwhile, on the other side, the president of the International Union of Operating Engineers Local 17 in Buffalo, NY was found guilty in a federal court of running a criminal enterprise out of the IUOE Local.

Prosecutors claim the criminal conduct by Operating Engineers Local 17 touched many of the region’s biggest construction projects, including Roswell Park Cancer Institute and Ralph Wilson Stadium, and added millions of dollars to the cost of those projects.

The verdict, which came after a six-week trial featuring 80 witnesses, ends a prosecution that began with the indictment of 12 union members in 2008.

Most of those defendants eventually pleaded guilty, but five elected to stand trial, and four of those five were found not guilty Friday.

At the heart of the case was the allegation that a “Local 17 Criminal Enterprise” operated from 1997 through 2007 with the intention of forcing construction companies into hiring its members and punishing those that refused.

The defendants were accused of vandalizing work sites by pouring a sandlike abrasive into the engines of heavy machinery and throwing sharp metal objects called “stars” under the tires of trucks.

In one instance, a Local 17 member, Michael J. Caggiano, was accused of stabbing the president of a local company in the neck with a knife.

The verdict followed a trial in which the prosecution painted Local 17 as a union knee-deep in corruption.

Dozens of contractors and former union members, many of them testifying as part of plea deals with the government, took the witness stand to tell stories of threats, fear and vandalism.

In the end, the jury found Kirsch, the union’s longtime president and business manager and a well-known figure in government and political circles, responsible for much of the wrongdoing.

They also found him to be part of a racketeering conspiracy that prosecutors claim existed at Local 17

The FBI, which also played a major role in the investigation, said the verdict is simply the last chapter in a story of how Local 17’s “pompous attitudes and violence-riddled acts had a tremendous impact on this city.”

“The union members who pleaded guilty and were found guilty in this case made honest working people go to work in fear of being stabbed or assaulted, even more so than I do as a law enforcement officer,” said Brian P. Boetig, special agent in charge of the FBI in Buffalo.

Kirsch will be sentenced at a later date- the charges carry a maximum of 20 yeears.

Tennesee VW Workers Vote to Reject UAW Representation

The United Auto Workers designs on expanding their reach into southern Right to Work states was dealt a blow last week when workers at Volkswagen's Chattanooga, TN plant decided to reject UAW representation in a close vote.

What made this vote unusual was that Volkswagen didn't oppose the UAW's efforts to organize, allowing the union to distribute flyers and talk to workers inside the factory while locking out groups opposed to the UAW setting up shop in the Volunteer state. The final vote tally was 712 against and 626 in favor.

The UAW's attempt to set up shop in Chattanooga was opposed by Republican officials like governor Bill Haslam and US Senator Bob Corker- a former Chattanooga mayor who was in office when VW opened up the Tennessee facility. A number of right-to-work groups set up billboards on highways adjacent to the plant reminding workers in the predominantly Republican state that the UAW funnels union dues into the campaign coffers of liberal politicians who support 0bamacare, gun control and abortion.

Meanwhile, the UAW has accused Corker, Haslam and groups like the National Right to Work Legal Defense Foundation of influencing the decision with public comments opposing UAW expansion before the vote. However, a number of the anti-union activists who hosted townhall meetings and Q&A sessions offsite included current and former employees of the VW Chattanooga plant.

Republican officials and right to work supporters were concerned that a UAW local in Chattanooga would be used as a beachhead to unionize additional foreign automaker's facilities in the predominantly Right to Work southeast. Other right-to-work proponents point to Detroit and US automakers' declining fortunes that the UAW played a role in as well as widespread corruption within the United Auto Workers itself. A recent Associated Press reports that although membership in the UAW is slightly up, dues have declined sharply- making the union's attempts at expansion out of its traditional rust-belt stronghold a financial necessity. This reportedly has US automakers worried- setting up a 'devil you don't know' since a declining UAW could end up being absorbed by a more hostile labor union.

German corporate management practices includes something called 'co-determination', which allows employee representation a seat on the board of directors through the labor union. This explains in part why VW didn't object to UAW's attempt to organize in Chattanooga and why the UAW has been concentrating their efforts on German automakers in the south such as the Mercedes Benz plant in Vance, AL or the BMW facility in Spartanburg, SC.

While the UAW has taken their accusations of political meddling to the NLRB, Bernd Osterloh- Volkswagen's top labor representative- implied that the outcome of last week's UAW vote would adversely affect the company's decision to expand operations in the US Southeast. Osterloh himself had openly expressed support for unionization in a 2013 visit to the Chattanooga facility.

Officials From Philly Ironworkers Union Local Arrested on Racketeering Charges

FBI agents arrested ten officials with Ironworkers Local 401 in Philadelphia on charges of racketeering amd arson that targeted contractors in the Philadelphia area who used non-union labor. Prosecutors claim that longtime Local 401 head Joseph 'Doc' Dougherty orchestrated a campaign of assaults and intimidation against business owners, contractors and laborers and projects using nonunion labor and sabotaging those projects.

According to the 49-page indictment, Dougherty, 72, coordinated the campaign of sabotage and extortion, urging members to picket, threaten, and destroy the property of contractors who ignored threats against hiring nonunion employees.

At the meetinghouse work site, prosecutors said, three union members cut steel beams and set fire to a crane in December 2012, setting the project back weeks and costing the contracting firm, E. Allen Reeves Inc. of Abington, more than $500,000.

At the time, Local 401 business agent Edward Sweeney told reporters that he knew nothing about the fire, saying only that he had asked the company to hire union workers.

Authorities said Tuesday that Sweeney ordered the attack.

Dougherty and others in the Ironworkers 401 were also politically active and enjoyed connections with state and local officials [all of whom likely knew of Local 401's violent tactics- NANESB!] to further their goals. While publicly disavowing violence as a negotiating tactic, members of the Local 401 reportedly referred to themselves as The Helpful Union Guys (i.e. THUGs) and promotion within the ranks was said to rely upon participation of attacks on nonunion workers at jobsites. The Ironworkers Local 401 also reportedly earned the ire of other area unions for 'poaching' lucrative contracts away from them.

Like in many labor strongholds, the tactics used by unions like the Ironworkers 401 were viewed as part of the status quo and the price of doing business in the city. In recent years, however, labor's influence in the Philly are has been on the wane. Beginning in 2012, a pair of Philadelphia-area developers began posting surveillance videos of union workers attacking contractors and nonunion workers from their jobsites online.

Instead of cowering or capitulating, the Pestronks used batteries of video cameras to record the activities of picketing union members, which they posted online at YouTube and a website they dubbed “phillybully.com.” And the effect was galvanic.

For many years, Building Trades has been criticized—usually in fearful whispers—for stifling development and economic growth, shutting out new investors, and undermining this city’s entire political process. But the videos shot and posted by the Pestronks provided something to go with all those allegations: evidence. Footage of leering, chuckling union men spitting profanities—so afraid of losing what they have, they can’t see what they’ve become.

Since the first videos went up in spring, the tide of public sentiment has turned, and the Pestronks won a court order restricting the picketers’ behavior

Investigators say that the 2012 Quaker meeting house jobsite sabotage involved intruders using torches cut through steel beams and torched a crane causing $500,000 in damages. Members of the Local 401 are also accused of smashing windows and slashing tires on the cars of contractors and nonunion workers, forming picket lines to block deliveries of equipment, throwing caltrops in front of vehicles, gluing locks shut and pouring oil in front of construction site entrances.

[Hat tip- Support Your Local Gunfighter; Friends of Ours]

Iron Horse Roundup For July/August 2013

AFP Photo

MONTREAL, MAINE & ATLANTIC- In the wake of last month's deadly runaway train wreck that devastated the southern Quebec town of Lac Megantic, Hermon, ME-based Montreal, Maine & Atlantic filed for Chapter 11 bankruptcy in federal bankruptcy court in Bangor, ME.

The MM&A has also petitioned Canadian civil courts for relief under that country's Companies’ Creditors Arrangement Act. The company appears to have set aside nearly $786,000 as “indemnification and/or contribution in connection with wrongful death litigation and other claims,” according to a listing of the company’s 20 largest creditors.

MMA still owes $27.5 million of a $35 million loan it received from the Federal Rail Administration in 2005, according to Gardner’s affidavit. The railroad also has a $6 million line of credit with the Wheeling & Lake Erie Railway Co. issued in June 2009. That company has sought to protect its security interest, the affidavit said.

Other creditors include JD Irving subsidiary New Brunswick Southern, a subsidiary of San Antonio, TX-based Valero energy [NYSE- VLO], Minneapolis, MN-based Flex Leasing LLC and the Canadian Pacific railroad [NYSE- CP; TSX- CP].

Although a federal bankruptcy judge ruled that the MM&A could continue to operate under Chapter 11 reorganization, the line through Lac Megantic is still closed, effectively severing the Montreal, Maine & Atlantic in two. At the end of July, Maine state officials had entered into talks with four other unnamed railways to continue service in anticipation of the MM&A shutting down.

The MM&A laid off 79 workers in the wake of the Lac Megantic disaster. Meanwhile, Canadian officials have raised the death toll in Lac Megantic to 47 during the July 6th derailment.

Xoan Soler- La Voz de Galicia

SPAIN- The driver of a train that derailed and killed 78 passengers in northwestern Spain has been provisionally charged with multiple counts of negligent homicide, although he wasn't required to post bond or sent to jail because he wasn't considered a flight risk.

Garzon was questioned for almost two hours at the court in Santiago de Compostela, the northwestern town near where the accident occurred.

Garzon was driving the train carrying 218 passenger in eight cars that hurtled far over the 80-kph (50-mph) speed limit into a high-risk curve on Wednesday evening, tumbling off the tracks and slamming into a concrete wall, with some of the cars catching fire.

The Spanish rail agency has said the brakes should have been applied four kilometers (2.5 miles) before the train hit the curve

However, a local resident who rushed to the scene of the accident said in an interview broadcast Sunday that minutes after the crash Garzon had told him he had been going fast and couldn’t brake.

The resident, Evaristo Iglesias, said he and another person accompanied the blood-soaked Garzon to flat ground where other injured people were being laid out, waiting for emergency services to arrive.

“He told us that he wanted to die,” Iglesias told Antena 3 television. “He said he had needed to brake but couldn’t,” Iglesias said. He added that Garzon said “he had been going fast.”

In its report about the accident, Antena 3 television showed a photograph of Iglesias in a pink shirt and cap helping to carry the driver after the train accident. The station also aired television footage of Iglesias working beside the wrecked train to help other survivors.

Garzon was reportedly on the phone with an agent at the next station to determine which track his train was to come in on. While in the USA, train crews are now prohibited from talking on the phone while operating the train, Spain's state-run RENFE uses what's referred to as 'tren-tierra' or train to land lines to communicate between stations and crew. Shortly before the accident, the train passed from an area where computers control most of the train's functions to one where the driver has to brake and accelerate accordingly. It's believed that Garzon may have missed this transition point while he was on the phone.

ARGENTINA- Transportation officials in Argentina's capital of Buenos Aires have released in-cab CCTV footage of engineers reading, napping or playing on their phones while the train is in motion.

In one clip, the driver is seen stepping up to the camera in his train cabin, attempting to obscure the lens so his activities cannot be seen. Other drivers are more overtly distracted, with some taking a nap, reading a book or playing on their mobile phone.

Argentina's Interior and Transport Minister Florencio Randazzo has since vowed to lead a crackdown on dangerous train drivers.

He plans to ban phone calls and unauthorised people in the cab

Mr Randazzo has introduced daily medical checks on all drivers to gauge their fitness to drive and to reduce the risk of them falling asleep at the controls.

Under the new system, all those caught distracted on camera will either be disciplined or fired.

The release of the footage comes more than a year after a commuter train plowed into a terminal in Buenos Aires, killing 49 and injuring hundreds.

FRANCE- Investigators in France believe a faulty switch system was to blame in a deadly derailment that killed six passengers at a station south of Paris last month.

After leaving the tracks, the train crashed into the station at Bretigny-sur-Orge.

A passenger speaking on France's BFM television said the train was going at a normal speed and was not meant to stop at Bretigny-sur-Orge.

He described children unattended in the chaotic aftermath, and swarms of emergency workers at the scene.

Two train cars, numbers 3 and 4, initially derailed, then knocked the other cars off the track, SNCF chief Guillaume Pepy said.

"Some cars simply derailed, others are leaning, others fell over," he said

A spokesman for the French state-run railway- SNCF- said the train was carrying an estimated 350 passengers when it derailed at 5:15 PM local time at Gare Bretigny sur Orge. The official death toll from the accident was 7 with more than 20 injured.


CALIFORNIA- Governor Jerry Brown has ordered a 60-day 'cooling down' period between San Francisco's Bay Area Rapid Transit and workers threatening to strike over an expired contract with the transit agency.

Last month, a 4-day strike had left Bay Area commuters scrambling for alternate transportation. It was the first strike for BART since 1997.

Prior to Brown's announcement, both the Service Employees International Union and Amalgamated Transit Union were hoping the looming deadline of Sunday, Aug 11th would be sufficient to pressure BART management to agree to a renewed contract on the union's terms. Prior to Brown's intervention, the unions had threatened to resume their strike after this weekend.

The two month delay would take away some leverage from unions representing BART employees as it would allow the agency time to recruit replacement workers from out of retirement. An odd clause in the contract originally signed in 1979 would have prevented BART from hiring replacement drivers until the workers actually went on strike, and even then the replacement workers would only after completing a 15 week training course.

Reuters/Denis Balibouse

SWITZERLAND- Transportation officials in Switzerland are investigating the cause of a head-on collision between two passenger trains in the western part of the country. The crash killed the driver of one of the trains and injured at least 35 passengers.

The two Swiss Federal Railways regional passenger trains collided with one another head-on at Granges-Marnand in the Vaud Canton outside of Lucerne on July 29th. Although some press outlets have speculated that one of the trains left the Granges-Marnand station too early and collided with an incoming train, officials have yet to determine the exact cause of the crash and are moving both wrecked train sets to another location to closer examine the wreckage.

SOO Line SD60 #6053 leads an SD60M over county highway G38 outside of Washington, IA with a northbound Kansas City-St Paul manifest freight train on June 2012. Eric Rasmussen photo.

CANADIAN PACIFIC- In a surprise move, the Canadian Pacific Railroad announced that they are seeking bids for more than 40 former Soo Line SD60s and SD60Ms. The solicitation comes as the CPR is more than halfway through an extensive rebuild of their SD60 fleet. Some of the units are being stored at CP's St Luc yard in Montreal. All of the overhauled units have been rebuilt to Tier 0+ EPA compliance and feature AESS Locomotive Automatic Engine Start/Stop and Positive Traction Control in compliance with an upcoming PTC mandate expected to take effect starting in 2015- several more are supposed to undergo rebuilding at Montreal's CADRAIL facility.

The Soo Line ordered the SD60s from EMD in 1987 and with CP Rail's takeover, the burly 3800 HP six axle EMDs could be found anywhere from the Canadian Rockies to upstate New York although they were (and still are) outnumbered by CP Rail's far more prolific fleet of SD40-2s.

Canadian Pacific has also started putting up their fleet of former Milwaukee Road GP40s for sale- Respondek Rail Corp and United States Sugar Corp have already purchased a pair.

With the arrival of rebuilt GP20C-ECO and SD32C-ECO from Caterpillar [NYSE- CAT] subsidiary Progress Rail, Canadian Pacific returned their only two Gensets to National Railway Equipment in Illinois in July. The two Gensets- #2100 and #2101- were largely paid for by a province of Ontario 'green energy' intiative.

Labor Unions Start Turning Against Obamacare

In a letter to Senate Majority Leader Harry Reid (D-NV) and House Minority Leader Nancy Pelosi (R-CA), leaders of three major unions say that the health benefits of their members are now in peril thanks to the implementation of 0bamacare.

The leaders of three major U.S. unions, including the highly influential Teamsters, have sent a scathing letter to Democratic leaders in Congress, warning that unless changes are made, President Obama’s health care reform plan will “destroy the foundation of the 40 hour work week that is the backbone of the American middle class.”

If that’s not bad enough, the Affordable Care Act, if not modified, will “destroy the very health and wellbeing of our members along with millions of other hardworking Americans,” the letter says.

The union leaders point out that the employer mandate incentivizes companies shifting full time employees to part time status by cutting an employees hours to less than 30 a week. A number of employers have already announced they would be cutting back on employees' hours to avoid increased costs under President Obama's healthcare act. The reduced hours also mean reduced pay for the affected employees, who still have to purchase their healthcare under 0bamacare's individual mandate.

Further implementation of the plan will adversely affect group healthcare coverage between union labor and multiple companies within an industry, Teamsters president Jimmy Hoffa claims.

Multi-employer plans, also called Taft-Hartley plans, are health insurance benefits typically arranged between a labor union in a particular industry, such as restaurants, and small employers in that industry. About 20 million workers are covered by these plans; 800,000 of Joseph Hansen’s 1.3 million UFCW members are covered this way.

Taft-Hartley plans, they write, “have been built over decades by working men and women,” but unlike plans offered on the ACA exchanges, unionized workers will not be eligible for subsidies, because workers with employer-sponsored coverage don’t qualify.

Obamacare’s regulatory changes to the small-group insurance market will drive up the cost of these plans. For example, the rules requiring plans to cover adult children up to the age of 26, the elimination of limits on annual or lifetime coverage, and the mandates that plans cover a wide range of benefits will drive premiums upward.

But the key problem is that the Taft-Hartley plans already provide generous and costly coverage; small employers now have a more financially attractive alternative, which is to drop coverage and put people on the exchanges, once the existing collective bargaining agreements are up.

Somehow, I suspect Hoffa and the other union presidents knew that 0bamacare would be the massive trainwreck they're saying it is, but were banking on some sort of carve-out or exemption for the unions written into the law. After lobbying tirelessly since 2009 for its passage and implementation and pouring hundreds of millions of dollars into the campaign coffers of President Obama and liberal politicians who helped get the law passed, they're just now finding out there is no immunity for them for the law that they so vociferously backed. This leads me to wonder how well squandering hundreds of millions of dollars and years of political capital are going over with the union's rank-and-file workers.

Earlier this month, the White House announced a delay in enforcing the employer mandate provision of the healthcare law. Critics point out that the one year delay is technically illegal and the timing was suspect, pushing the mandate back until after the 2014 mid-term elections. The delay also applies only to businesses, the individual mandate is still intact.

Last month, Health and Human Services Kathleen Sebelius announced that the White House was in talks with the NFL and NBA to promote the upcoming 0bamacare rollout. By the end of  June, however, the National Football League announced that they would not be promoting 0bamacare. Spokesmen from the NHL and Major League Baseball also confirmed they were contacted by the administration regarding promoting enrollment in the healthcare law, but had yet to meet with any HHS officials.

Foreign Manufacturers Expressing Renewed Interest In Opening Shop in the USA

Reversing a decades-long trend of offshoring manufacturing, foreign companies have recently started to set up facilities in the United States- taking advantage of a productive workforce, a cheaper dollar and proximity to their largest customer base.

The trend is similar to foreign automakers who have been opening up plants over the last 30 years throughout the United States- primarily in right to work states in the southeast and Texas. However, this time around, these include foreign companies that specialize in electronics, aerospace, chemicals and energy.

In 2011, British-based Rolls-Royce began making engine parts here in Virginia and shipping them to Europe and Asia to be assembled in jet engine factories. That same year, Siemens, a German company, started making power-plant turbines in Charlotte, N.C., most of which it's shipping to Saudi Arabia and Mexico.

Faced with rising demand from airlines worldwide, Rolls-Royce decided to build a new factory in Virginia to make jet engine discs and ship them across the Atlantic rather than expand similar plants in the U.K. A big reason was to be closer to its customers in the Southeast. Boeing began making 787 Dreamliners in Charleston, S.C., in 2011 and Airbus is building its first U.S. assembly plant in Mobile, Ala.

CEOs of those companies "can see that you're making quality parts in super-modern facilities with the best working practices," says William Powers, chief financial officer of Rolls-Royce North America.

The company's gleaming, $170 million factory in rural Prince George employs 100 and looks nothing like the labor-intensive textile, tobacco or furniture plants that were the region's economic lifeblood decades ago. On a sprawling, spotless white factory floor, rows of hulking computerized machines cut and shape discs that cost $25,000 to $75,000 apiece. Workers are scarce. Two can operate eight machines at a time and 12 make up a shift.

Rolls-Royce is planning two more factories on the Prince George County site.

While automation is part of the story, the Southeast also offered Rolls-Royce a flexible work environment. In Virginia and other southern right-to-work states where union representation is low, factory employees typically can both set up and operate a machine, as well as run multiple machines.

By contrast, in the U.K. and elsewhere in Europe, collective bargaining agreements often limit workers at Rolls-Royce and other companies to single, repetitive tasks, increasing labor costs, Powers and Sirkin say. Partly as a result, from 2005 to 2010, worker productivity increased much faster in the U.S. than in western Europe.

Also contributing to faster U.S. productivity gains: The country was hit harder by low-cost competition from Asia, forcing manufacturers here to cut waste and do more with fewer employees.

The kicker is that many of these products aren't even destined for customers in the USA. For example, turbines made at Siemens' Charlotte, NC plant are usually destined for Mexico or Saudi Arabia. The engine blades made at the Rolls Royce facility in Virginia are used aircraft like the Airbus A-380.

It isn't just European or British conglomerates getting in on the action. China's Golden Dragon Precision Copper Tube- one of the world's largest specialty producers of copper tube for air conditioning and small engines- opened up a $100 million plant in Thomasville, AL employing as many as 300 people back in 2011.

The deadly March 2011 Japanese tsunami has also factored into various companies' decision to shift production. The widespread devastation the earthquake, tsunami and nuclear meltdown triggered snarled the supply chain for the automotive industry. Months after the tragedy, Bridgestone Corporation announced an expansion of their Aiken County, SC plant. However, Bridgestone isn't the only tire manufacturing company in the Palmetto state to expand their footprint- French competitor Michellin broke ground on a $750 million plant in Anderson, SC last year. The plant will make tires for heavy equipment such as earthmovers.

Because One Wasn't Enough- Second Iron Horse Roundup for May 2012

East Erie Commercial GE 85-tonner bringing brand-new VLI (Valor Logistica Integrada) BB40-9Ws from General Electric's Erie plant to the CSX interchange in April 2012. The units are destined for one of VALE mining's railroads in Brazil.
BurghMan photo

GENERAL ELECTRIC- General Electric announced plans to cut as many as 950 jobs at their Erie, PA plant in April. Production will be shifted to GE's new facility in Ft Worth, TX.

The reductions are slated to start in six months pending a 60-day period of talks with union leaders, said Lorenzo Simonelli, head of GE's transportation unit. The new plant in Fort Worth, also the headquarters for Warren Buffett's Burlington Northern Santa Fe railroad, is about 20 percent more efficient than the Erie plant, which is more than 100 years old.

The Fairfield, Conn.-based company is the world's largest builder of locomotives.

Simonelli said production of Evolution-series locomotives will be increased in Fort Worth, along with wheels for mining equipment, as output in Erie is reduced. About 10 percent of the work now handled at the Pennsylvania site will be moved to Mexico and third-party manufacturers, he said.

About 200 of the Erie job cuts, more than 20 percent, are linked to declining coal demand, Simonelli said. GE's railroad customers have parked about 3,000 locomotives as utilities that once relied on coal carried by trains to produce electricity began switching to cheaper natural gas from shale formations.

Although the move would put GE closer to major customers such as Union Pacific, BNSF and Kansas City Southern, critics point out that GE is moving from a union facility in Pennsylvania to a right-to-work state where labor costs are lower. In 2011, the National Labor Relations Board issued an injunction that blocked Boeing from shifting production of their 787 Dreamliner from Washington state to South Carolina- a move similar to what General electric CEO Jeffery Immelt is doing by shifting GE production from Pennsylvania to Texas. However, its worth pointing out that Immelt was appointed to President Obama's short-lived 'Jobs Council' in early 2011.

Freshly repainted Massachusetts Central GP38-2 #1750 is seen at Mid America Car in Kansas City, MO on May 25th. The #1750 and #1751 are awaiting relettering before heading east to Massachusetts. Matt Mauner Photo.

MASSACHUSETTS CENTRAL- The Mass Central is expected to take delivery of a pair of  repainted GP38-2s. The units were repainted into a McGuinness style 1960s-era Boston & Maine inspired paint scheme.

Currently the Mass Central operates freight service on 26 miles of a former Boston & Albany branch between Palmer, MA and South Barre, MA. The railway began operations in the mid 1970s after purchasing the current line from Penn Central and motive power includes a GP9, a former Milwaukee Road GP20 and an extremely rare 1947-built ex-Southern NW5 that's been with the Mass Central from the beginning.

Interestingly, while the Boston & Maine did roster GP38s at one point, they were painted a more basic blue and white paint scheme with the notable exception of B&M #200, which was painted red, white and blue colors in 1975 for America's bicentennial.

Former McCloud River ALCo 2-6-2 is seen with a photo freight on the Oregon Coast Scenic railroad on May 4th. The line was severed from the rest of the country by a December 2007 storm. Thomas R Schultz photo

OREGON- The Oregon Coast Scenic railroad reached an agreement in 2012 with the Port of Tillamook Bay to operate excursions between Tillamook, OR and the Salmonberry River Canyon- some 46 miles.

After performing repairs and maintenance on a section of the line that has been out of service for more than five years, the Oregon Coast Scenic ran a test train from Garibaldi, OR to the mouth of the Salmonberry River and current end of the line in April.

The excursion also measured how long the trip would take, Thompson explained, and was an opportunity to shoot photos and video of a train on the track for future promotional footage.

“The last time a steam engine passed through Salmonberry was 1953 – 60 years ago,” Thompson said.

A total of 55 people made the trip, most of them OCSR volunteers and their families and friends. A family with young children that had been ogling the train when it stopped at Wheeler were invited to join the tour. Thompson conducted trip, riding the caboose at the end of the train and manually checking road crossings for traffic.

The 95-mile Port of Tillamook Bay Railroad between Hillsboro and Tillamook, OR was knocked out of service by numerous washouts and landslides during a December 2007 storm, causing an estimated $50 million in damage. Using a fleet of former Southern Pacific and Burlington Northern SD9s, the POTB hauled lumber and forestry products between the Hillsboro and Tillamook. Since then, the POTB and Oregon Coast Scenic have been isolated from the rest of the nation's rail network.

Freshly repainted GP30M #2402 seen in transit on the Union Pacific on the Union Pacific outside of Livingston, IL on April 19th. Kevin Sies photo

ARKANSAS-OKLAHOMA RAILROAD- The Arkansas-Oklahoma railroad has acquired a quartet of former BNSF GP30M's from Larry's Truck and Electric of MacDonald, OH. In addition to the four GP30M's, the A-OK has also acquired a former Idaho Northern & Pacific (ex Wheeling & Lake Erie, nee Southern) ALCo-trucked GP35. The EMD's are expected to replace five former Conrail B23-7s that have been on the railroad since 2005.

The A-OK runs between McAlester and Howe, OK and leases a 36 mile former Union Pacific branch between Shawnee and Oklahoma City. Commodities handled include coal, frac sand, wheat, plastic, corn, acid, aggregates, lumber and feed. The 118 mile former Rock Island line between Shawnee and McAlester had been dormant for several years due to an unstable bridge over the North Canadian River. The AOK has been working to restore service between McAlester and Shawnee, and progress was made at the end of 2012 when the AOK successfully reopened the bridge over the North Canadian River.

Florida East Coast SD40-2 #714 is seen with Jacksonville-bound intermodal freight #226 as it crosses the San Sebastian River in St Augustine, FL on March 10th.
Bob Pickering photo

FLORIDA EAST COAST- The Florida East Coast has begun repainting units in a red and yellow scheme reminiscent of the line's early diesels. This would not be the first time the FEC has painted a unit in what has been referred to as Flagler or Champion colors- more than a decade ago, GP40 #2000 was painted in similar colors as a one off.

FEC's motive power fleet consists of GP40s in a dark blue and white scheme, SD70M-2s painted in colors closely copying the Alaska Railroad (blue and gold) or Rail America (red white and blue) and former Union Pacific SD40-2s that have been operating in UP's Armour Yellow for years. So far, the colors have been applied to the former UP SD40-2s.

The move is likely an effort to boost the railroad's corporate image ahead of an anticipated increase of intermodal traffic that is expected to coincide with the widening of the Panama Canal. The massive project is expected to be completed in 2014 or 2015 and the FEC has been working with the Port of Miami and Port Everglades to include on dock rail facilities as part of their expansion plans.

The Florida East Coast was acquired by Fortress Investment Group [NYSE: FIG] in 2007- they also owned a stake in Rail America until their 2012 sale to Genesee & Wyoming. Although the FEC was largely operated independently of other Rail America properties, some of the new SD70M-2s were delivered in Rail America colors (while still lettered for FEC) and Rail America subsidiary New England Central received GP40s and SD40-2s from Florida East Coast beginning in 2009 before they were relettered for the NECR in 2011.

Painted in Delaware & Hudson-inspired colors, Saratoga & North Creek B39-8 #8524 is seen trundling through the golf course at Stony Creek, NY with the railroad's first revenue freight train on February 11th. John Sesonske photo

SARATOGA & NORTH CREEK- It was a short, one car train- reminiscent of a bygone era for shortlines in the Northeast- but Iowa Pacific is hoping this could be just the beginning.

A lone boxcar carrying garnet bracketed by a Saratoga & North Creek B39-8 and Delaware & Hudson painted bay window caboose left North River, NY on Feb 11th in what was the first freight movement over the former Delaware & Hudson branch in more than 25 years.

“We’re open for business,” Iowa Pacific President Ed Ellis said Wednesday. “We’ve broken the ice here. We’re thrilled that Barton is working with us. We’re hopeful this means we’ll be moving a lot more different things moving forward.”

Lumber, logs and rock tailings from an old mine in Tahawus are other possibilities.

In Corinth, officials are optimistic that freight service will lure new industry to the former International Paper Co. site.

“This is what we’ve been waiting for, not just passenger service,” Supervisor Richard Lucia said.

A rail spur goes to the former International Paper property, whose large old buildings have been razed. In addition to rail service, however, the location has ample water, a waste treatment plant, landfill and a new million-dollar electric substation.

“I still feel this is the best heavy industrial site in eastern New York,” said Jack Kelley, director of economic development for Prime Companies, an Albany-based realty firm. “Freight service makes it even more desirable for someone to move in.”

Most recently, an Italian solar panel manufacturer expressed interest, but plans never moved forward.

Kelley said he believes anything from wood products to natural gas power generation make sense for the site, or perhaps an intermodal facility similar to one in Mechanicville where products could be unloaded for transport by truck to their final destination.

“There aren’t an awful lot of places in this area where trains can sit while they’re loaded and unloaded,” Kelley said.

Barton’s facility in North River is at the south end of a recently reopened 30-mile stretch of track from North Creek north to Tahawus. Barton’s garnet abrasives are used around the world for waterjet cutting, coatings removal and other special uses such as surface preparation.

At the north end of that line, in Tahawus, NL Industries owns a former ilmenite mine that was used to make titanium during World War II. The line sat idle for many years until Iowa Pacific readied it for re-use last year, despite objections from environmental groups.

A portion of track runs through Adirondack Forest Preserve.

Ellis said a large market exists for waste rock to be used in road building and similar large-scale construction jobs. NL Industries has hired a firm to find potential buyers, he said.

“I believe there will be stone moved in 2014,” he said, adding that freight revenue should account for about half the railway’s revenue within two years.

The dormant line was purchased by Warren County in the 1990s and the Upper Hudson Railroad operated excursions over a portion of the line until 2010. In 2011, Iowa Pacific was awarded the contract to operate the entire 57 mile line and began operating passenger excursions between North Creek and the Canadian Pacific interchange in Saratoga, NY in July 2011. The line also directly interchanges with Amtrak's Ethan Allen and Adirondack passenger service as well.

Amid Violent Protests, Michigan Becomes 24th Right to Work State

Michigan State Police in riot gear and LIUNA protesters in Lansing, MI. Mike Mulholland- Mlive.com

With the stroke of a pen, first-term Michigan governor accomplished what was once considered unthinkable in a state with strong ties to the nation's organized labor movement and signed into law legislation that made Michigan a right-to-work state.

At about 5:45 p.m., Snyder announced publicly that he signed the historic right-to-work legislation in private - hours after the bills won final approval in the House and five days after he joined with GOP legislative leaders to announce their plan to enact the controversial law.

"This is a major day in Michigan's history," he said during a news conference in the Romney building not long after signing the legislation. "Again, I don't view this as anti-union at all. I believe this is pro-worker."

The signings came as thousands of protesters and union members descended on Lansing, obstensibly to urge a veto of the legislation once it reached Gov. Snyder's desk. Union protestors also tore down a tent belonging to pro right-to-work group Americans for Prosperity- with people inside- and at least one protestor in an IBEW jacket was videotaped shoving and punching FOX News contributor Steven Crowder outside the collapsed tent. Apologists for the various union thugs laughably attempted to explain away both videotaped events as being 'provoked' by Americans for Prosperity or a 'false flag' where they sabotaged their own tent [shorter Union: "They totally deserved to have their tent wrecked, even though they did it to themselves!"- NANESB!].

[12/12 UPDATE- Not satisfied with simply tearing down a tent and assaulting Crowder, the braying mob apparently focused their energies on destroying a hot dog cart and hurling racial slurs at the cart's owner, Clint Tarver. Tarver was catering to the Americans for Prosperity tent that was ripped down to hoots and applause from the union crowd. The media also described the rampage protests as 'mostly peaceful'.]

Earlier in the day, state representative Doug Geiss [D- Taylor] promised on the floor of the State House that "there will be blood" if right-to-work was passed. The Michigan State House Democrats twitter account would later tweet Geiss' threat before deleting it. On Monday, President Obama slammed the state's right-to work legislation as he was speaking in Michigan to try and gain support for his proposed tax hikes, falsely claiming the two seperate bills making their way through the State House would eliminate collective bargaining altogether. Earlier this year, President Obama ripped right-to-work in a speech before big labor leaders like Trumka and Hoffa, but his supporters and economic team were all to willing to take credit for the jobs created in right-to-work states.

One commenter on Mlive.com succinctly charachterized Michigan's new right-to-work law as follows

Unions will now have to view their members as customers instead of just treating them as a revenue stream. That's about the only thing that changed today. Unions still exist. Employees can still organize. Employees can still engage in collective bargaining.

Gov Snyder's move came about 10 months after Indiana Gov. Mitch Daniels signed right-to-work into law, making the Hoosier state the first 'rust belt' state to have right-to-work laws in more than 40 years. Snyder reportedly wanted to make Michigan as competitive as Indiana, which has added an estimated 43,000 jobs since the state passed right-to-work.

Growing up, we got a cursory introduction to the labor movement in the history books at school while unions like the Teamsters murdered 96 people at the DuPont Plaza hotel in Puerto Rico or various New England chapters of the Laborers International Union of North America maintained cozy relationship with the Patriarcha crime family out of Providence, allowing mobsters to engage in laor racketeering while raiding the union's pension fund.

Many of the unions protesting in Madison, WI last year lost much of their credibility when despite AWOL lawmakers and activist judges, laws limiting collective bargaining in Wisconsin were passed by Gov. Scott Walker despite massive, continuous protests on the grounds of the state capitol building. However, despite dire predictions of public employee unions like AFSCME or SEIU, the sky didn't fall and Wisconsin didn't turn into Mogadishu overnight.

Moreover, even without Tuesday's violent tantraum in mind, I have zero sympathy for unions that do things like help themselves to money from families of disabled people. I'm not certain it this is limited to Michigan, but hopefully this practise is dismantled ASAP.

The law will likely face a number of challenges and I would be very surprised if an activist judge somewhere along the way didn't attempt to overturn it by judicial fiat. Still, wouldn't it be ironic if after the rough years the auto industry has had lately, the new right-to-work law started bringing the auto industry back to its 'home' in Michigan?

Union-Sponsored Wal Mart Employee Black Friday Walkout 'Mostly a Fizzle'

A threatened Black Friday nationwide walkout by Walmart employees sponsored by Moveon.org, Occupy Wall Street and labor unions reportedly has done nothing to crimp the mega-retailer's sales on the busiest shopping day of the year.

Protests did take place at some stores, with SEIU members, MoveOn.org and Occupy Wall Street activists making noise, The Blaze reported, but very few Wal-Mart employees participated nationwide.

The Associated Press said that "nine people, including three employees, were arrested shortly after noon for blocking the street" outside the store in Paramount, Calif., but "more than 1,000 people" blocked traffic outside the store at one point in the protest.

"A union-backed group called OUR Walmart has said that it is holding an estimated 1,000 protests in 46 states. The exact number is unclear. Wal-Mart has refuted that estimate, saying the figure is grossly exaggerated and that the protests involved few of its own employees," the AP added.

Wal-Mart said that only 50 employees participated in the protests, but the United Food and Commercial Workers union disagrees, the Washington Examiner reported.

"It said 'hundreds and hundreds' joined in at events across the country," Sean Higgins wrote, but that number could not be verified.

"Even assuming the UFCW figure is correct, that is pretty small given that Wal-Mart is the nation’s largest employer, with 1.4 million people working at its stores," Higgins added.

A number of retailers, including Wal Mart [NYSE- WMT], didn't even wait for midnight on Thanksgiving to open their doors to hundreds of shoppers hoping to score Black Friday deals. Despite the threatened walkout sponsored by the United Food and Commercial Workers (UFCW) or SEIU, Wal Mart reportedly had their best ever Black Friday with an increasing number of transactions taking place online.

A number of both online and brick and mortar retailers such as Amazon, Wal Mart, Best Buy, Sears are expecting 'Cyber Monday'- the Monday the weekend after Thanksgiving- to be the single busiest online shopping day of the year.

That's the Way the Twinkie Crumbles: With Hostess Shutdown, Twinkie the Kid's Salvation May Come From South of the Border

Growing up, I was more of a Little Debbie kind of guy, but this still sucks.

After more than 82 years in business, Hostess Brands, the maker of such iconic confections as Twinkies, Wonder Bread and Donettes, announced on Friday that they were closing their doors forever in the wake of a bankruptcy filing and protracted labor dispute.

The specter of liquidation has loomed large since the bankruptcy case, Hostess's second in recent years, kicked off in January. From the start, the company has warned that labor cuts were its only chance to survive in the marketplace and said the only other possible outcome was a full shutdown of the business. Both Hostess and its largest union, the International Brotherhood of Teamsters, have long agreed a widespread strike would spell the end of the company.

The shutdown and liquidation of Hostess is expected to leave as many as 18,500 employees at 36 plants throughout the country jobless right before Thanksgiving. Although the Teamsters union had agreed to wage and benefit concessions that was part of the Hostess restructuring, but the Bakers, Confectionery, Tobacco and Grain Miller's Union balked at any such concessions on their end and refused to return to work by a 5 PM deadline on Thursday. Apparently this wasn't an ill-conceived bluff on the part of the BCTGM, as the leadership was well aware Hostess didn't have the means to weather a prolonged strike by their workers [interestingly, while the BCTGM's website was offline with an "exceeded bandwidth" message throughout the weekend, it returned Sunday night with a slew of 'It's not OUR fault Hostess shut down!' articles- NANESB!]

With liquidation on the horizon, a number of potential bidders for Hostess' assets and trademarks have come forward. According to analysts, potential suitors include private equity firm and current Pabst Blue Ribbon owner C. Dean Metropoulos & Co, Kellog Company [NYSE: K], Kraft Foods spinoff Mondelez International [NASDAQ: MDLZ], Campbell's Soup [NYSE: CPB] and the largest baking company in the world, Mexico's Grupo Bimbo [BMV: BIMBOA].

In September 2011, Grupo Bimbo had completed their acquisition of Illinois-based Sarah Lee Corporation's baking unit and may be looking to further expand their market share in the USA with the purchase of Hostess' assets.

Trouble in Electric City? Pennsylvania Mayor Slashes Police And Firefighter Salaries to Minimum Wage

Does anybody remember how the Democrats and public employee unions were warning people prior to last month's Wisconsin recall election that if Gov. Walker retained his office, it would give licensce to all sorts of drastic cuts among public sector employees salaries and benefits?

Recently added Scranton Police Department prisoner transport.

It turns out they were at least half right- only it seems as though its Democrat officeholders who are taking a chainsaw to the wages of cops and firemen.

Local 60 of the International Association of Firefighters, Fraternal Order of Police E.B. Jermyn Lodge 2 and International Association of Machinists and Aerospace Workers Local 2305 filed an injunction against Scranton, PA mayor Chris Doherty slashed the wages of nearly 400 city employees to the federal minimum wage of $7.25 an hour.

The unions each have separate contracts with the city, the mayor cannot unilaterally slash pay outside the bounds of contracts and without any negotiations, and his decision is legally unfounded, according to the lawsuit filed in Lackawanna County Court by the unions' attorney, Thomas Jennings of Philadelphia.

The lawsuit also claims the unilateral action violates state Act 111 and other labor laws. The suit claims that if the pay cuts stand, they would have a "devastating immediate impact" on workers by creating their inability to feed their families or maintain any semblance of a decent standard of living; pay medical bills and other expenses; pay for child care in some cases, particularly for single parents, thus making it impossible for them to work; and pay mortgages, loans and other bills that would destroy their credit ratings.

Doherty, a Democrat elected to his third term in 2009, made the decision to unilaterally drastically slash wages last month in part to help secure a $16 million loan. According to some reports, the city of Scranton had less than $5000 in the bank last week.

In addition to the salary cuts- including his own- Doherty has also proposed implementeing a hike on property taxes by as much as 78% over the next three years. The Scranton City Council has rejected Doherty's tax hike on multiple occasions. The IAFF Local 60 reports that in 2011, the city shut down two Scranton Fire Department Engine companies. The city of Scranton has a Democrat in the mayor's office for the last 22 years.

Some morbid speculation on my part, but if this persists how difficult do you think its going to be to bribe a police officer who's making minimum wage? This blog's most recent Borderline Psychosis entry highlighted a pair of Texas deputies who were making more than their counterparts in Scranton, yet were willing to escort drug shipments for payments of $500 each. This is not to impugn the integrity of the current officers of the Scranton PD, but Mayor Doherty made it that much more difficult for them to pay their bills. While I suspect a number of officers would seek employment with another agency or take retirement, one would have to wonder about the quality of their replacements if the minimum wage situation is prolonged in any way in Scranton.

With a population of over 76,000, the northeastern Pennsylvania city is the 6th largest in the Keystone state and is perhaps best known for being the setting of the fictional Dunder-Mifflin Paper Company in the American version of The Office- even though most of the show's scenes are filmed in Hollywood.

A trolley from Scranton's Electric City Trolley Museum unloads passengers as a charter train with Pennsylvania E-8s arrives at Steamtown National Historic Site in 2007. Christopher Blaszczyk photo.

Dubbed the Electric City for its early status as the leader in mining relatively clean burning anthricite coal, Scranton is also home to Steamtown National Historic Site and the adjacent Electric City Trolley Museum. The Lackawana County seat also remains an important transportation crossroads in the region with I-81 passing through the city while also serving as the northern terminus for the Northeast Extension of the Pennsylvania Turnpike and western end of I-84. In addition to the rail and trolley museums highlighting Scranton's past, the Electric City remains a fairly active railroad hub with freight service provided by the Canadian Pacific, Norfolk Southern, Delaware-Lackawana, Reading & Northern and Luzerne & Susquehanna.

[Hat tip- Support Your Local Gunfighter]

Effort to Recall Michigan Governor Abandoned After Walker's Wisconsin Win

Less than a week after Wisconsin governor Scott Walker handily survived a union-backed recall campaign, a group seeking to recall Michigan's Republican governor has abandoned their effort after coming up well short of the required 807,000 signatures.

This is actually the second time a liberal organization called Michigan Rising had attempted to reall Gov. Rick Snyder. Like Scott Walker, Snyder was elected to office with the backing of the Tea Party that saw a number of conservative candidates winning US House seats and governor mansions.

"It has become abundantly clear that Michigan Rising was not going to accomplish its goal," Fealk said.

The group will continue work to stop "the corporate takeover" of Michigan and plans to develop a progressive think tank and leadership development organization, he said

Meanwhile, teachers unions in Louisiana have begun circulating petitions to try and force a recall of Republican governor Bobby Jindal and a number of state lawmakers who backed the governor's statewide school voucher program.

The Louisiana Association of Educators Board of Directors unanimously voted Saturday to endorse the effort to recall Gov. Bobby Jindal.

Recall organizer Lee Barrios told the board she also is seeking endorsements from the Louisiana Federation of Teachers and the AFL-CIO.

She said a number of teachers signed the recall during a rally on the Capitol steps during the legislative session.

Barrios said there was some talk of dropping the recall because of insufficient signatures by the September deadline, but organizers decided to "double our efforts" and branch out and try to bring in organizations.

"We want it to look successful," Barrios told the LAE board.

In addition to Gov. Jindal, the Louisiana recall effort is targeting State Speaker of the House Chuck Kleckly- a Republican representing Lake Charles in Baton Rouge- as well as St Tammany Parrish GOP state representatives Kevin Pearson and Greg Cromer.

Badger State Beatdown- Scott Walker Becomes First US Governor to Survive Recall; Obama's Bad Week Continues

Wisconsin governor Scott Walker surivived Tuesday night's union-backed recall effort by a considerable margin. The results marked the first time that a sitting governor had survived a recall- a campaign that was about 18 months in the making and gained national attention for possible nationwide implications. Walker had earned the ire of organized labor and the left for legislation introduced curtailing the collective bargaining rights of public employee unions like the SEIU and AFSCME in 2011- prompting Democrat state senators to flee the state to prevent a quorum on such legislation.

Interestingly, the network who's 'personalities' were the most emotionally invested in seeing Walker unseated were the first ones who called the race for Walker. Less than an hour after the polls closed in the Badger State, MSNBC called the race for Scott Walker.



In the week prior to the election, the consensus among the media and punditocracy was that it would be an extremely close contest with Milwaukee mayor Tom Barrett reportedly closing a significant gap with Walker. However, when the polls closed on Tuesday night, the results of the recall wasn't anywhere near as close as anticipated.



Not only did Walker handily surivie the recall effort, but Republican Lt. Governor Rebecca Kleefisch retained her office by a similar margin against challenger Mahlon Mitchell. Kleefisch is the first ever Lt Governor in the USA to face recall.

Yay Wisconsin!

Three of the four state senators (all Republicans) also successfully held off challengers from the Democrat party in their respective state Senate districts. GOP State Senator Van Wanggaard [Senate District 21, which covers most of Racine county aloing the Illinois state line- NANESB!] was unseated by Democrat challenger John Lehman, giving the Democrats the majority in the Wisconsin State Senate. However, that majority would only be theoretical and may be short-lived- the Wisconsin State Senate has already adjourned for the year and the seat is up for re-election in November of this year- before the Senate re-adjourns. It's possible Lehman could serve out his entire term without the Senate ever being called into session.

Not surprisingly, some organizations did their best to spin the outcome in their favor, despite overlooking the agonizingly obvious in the process.

Win or lose, Scott Walker has joined ignominious company in suffering the humiliation of a recall election. 3rd ever. #wiunion
— AFL-CIO (@AFLCIO) June 6, 2012

Many of the same pundits, media figures and politicians who were emotionally invested in seeing Walker voted out of office before completing his first term could only point to the exit polls showing President Obama leading over presumptive GOP nominee Mitt Romney as a bright spot. However, these same exit polls showed that the race between Walker and Barrett was a dead heat- so their reliability is suspect at best.

Perhaps one of the most intruiging breakdowns of the recall is that Walker recived more than ⅓ of the vote from union households. Even before the polls closed, prominent Democrats such as former President Bill Clinton and White House Press Secretary Jay Carney began circulating the talking point that the only reason Walker could win was because of out-of-state support from the Tea Party and wealthy donors such as the Koch Brothers [rather conventiently ignoring the $20 million unions and Democrats spent on the recall, the margin which candidate Obama outspent candidate McCain in 2008 or President Obama's lavish Hollywood fundraisers this year- NANESB!].

I pointed out that Obama was conspicuously absent from Wisconsin just days before the recall voting despite fundraising in neighboring Illinois and Minnesota- one of the first bad omens for the Barrett campaign. Despite recent GOP gains in the Badger State, Obama was still considered a favorite to win Wisconsin in the November 2012 presidential campaign until Tuesday night. However, if the Obama camp decided to stay away from the Wisconsin recall as a pre-emptive means of damage control, it didn't do them any good.

Walker’s win prompted Democratic and Republican strategists to reassess Wisconsin’s political landscape and the role the state will play in the presidential race. Until earlier this week, target states listed by President Barack Obama’s campaign didn’t include the state, which has voted Democratic in the past six presidential elections, albeit narrowly at times.

In a campaign video released June 4 -- the day before the recall -- Obama campaign manager Jim Messina listed Wisconsin as “undecided,” along with Colorado, Florida, Iowa, Ohio, North Carolina, New Hampshire and Virginia.

So not only would Obama be facing an energized Republican base in Wisconsin come November, but a demoralized liberal and union base who won't forget that he had abandoned just before to the recall.

If that wasn't enough, the same day Walker cruised to an easy win, Bill Clinton questioned Obama's economic proposals of allowing the Bush-era tax cuts to expire.

Incredibly, Bill Clinton – the man the White House sent to represent the President during the election – compounded the result by admitting that the country was in a recession and by urging Congress to extend the Bush tax cuts. That makes him the most senior liberal in the nation to cast doubt on Obama’s economic strategy.

In recent weeks, prominent Democrats such as Clinton, former Pennsylvania governor Ed Rendell, Massachusetts governor Deval Patrick and Newark, NJ mayor Corey Booker have cautioned the Obama camp that they should back off their attacks on private equity as a means of attempting to attack Mitt Romney's tenure at Bain Capital.