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Did Opponents of Employee Free Choice Break the Law?

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by Seth Michaels, Feb 26, 2009

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Last year, major opponents of the Employee Free Choice Act took part in a conference call, organized by a giant banking institution that was set to receive taxpayer bailout funds, in which they insisted that CEOs and industry contribute to anti-Employee Free Choice Act candidates for public office. That violates the law, says a complaint filed this morning by the AFL-CIO and Change to Win.

The complaint against the Center for Union Facts and the Marcus Foundation alleges that their leaders, Richard Berman and Bernie Marcus, took part in the call organized by Bank of America last year. Marcus and Berman were organizing corporate donors to fight the Employee Free Choice Act and solicited donations to Berman’s organization and to specific candidates hoping to influence the election and prevent passage of the Employee Free Choice Act, a bill that would protect workers’ freedom to form unions and bargain.

The center and the foundation, two of the key corporate front groups operating an anti-worker campaign of misinformation and scare tactics, operate under a portion of the tax code that forbids direct participation or intervention in elections. In their desperate panic to fight pro-worker candidates and block workers’ ability to bargain for a better life, these groups, the complaint alleges, broke the law.

The complaint states in part:

…principals of the Center and the Foundation, while acting on their behalf, participated in a teleconference during which they explicitly endorsed Republican Party candidates for the United States Senate and solicited contributions to support their election, including, specifically and repeatedly, to the Center itself as a means to elect them. These activities warrant revocation of these charities’ tax-exempt status and the imposition of appropriate taxes and penalties.

The teleconference consisted a substantial part of a discussion about how to support the Republican Party and specific Republican candidates for the United States Senate in 2008 who opposed the Employee Free Choice Act.

The tax status of the center and the foundation is dependent upon them not taking part in political campaigns. According to U.S. tax law, this exemption is:

…lost by participation in any political campaign on behalf of any candidate for public office. It need not form a substantial part of the organization’s activities.

The complaint notes that these organizations are breaking the law if they use funds, facilities, staff and other resources as part of an effort to influence elections.

Marcus and Berman have gone all out to solicit big-dollar donations from CEOs and lobbyists to mislead elected leaders, the press and the public and to prevent workers from bargaining for better health care, pensions and fair wages. It’s time to hold them accountable.

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4 Comments

  1. reality1 on 26.02.2009 at 13:06 (Reply)

    I believe a big increase in fines and penalties is appropriate for the violation of any labor law. Put the money into more enforcement.

    Jim

    1. FraternalOrder on 26.02.2009 at 22:31 (Reply)

      These guys have little regard for money. They can always raise more from corporate sources, which in turn will simply increase the cost of the goods or services that they provide. In this manner these “increased fines,” once fully extrapolated, would be paid by the consumers of their goods and services; in other words…us.

      Put them in jail and throw away the key! Liquidate their personal property to cover the costs associated with their trial and incarceration.

  2. tjbrady on 26.02.2009 at 15:00 (Reply)

    THE PRESIDENT OF OUR COUNTRY EARNS $400,000.00 A YEAR, MANY CEO’S TAKE HOME MUCH MORE THAN THAT. THESE SAME CEO’S DO NOT WANT UNIONS TO EXIST, YET THEY WOULD NOT EVEN THINK OF WORKING WITHOUT A CONTRACT AND A GUARANTEED GOLDEN PARACHUTE, NOT TO MENTION BENEFITS THAT ARE BEYOND SCANDALOUS. IT IS TIME FOR US TO LEVEL THE PLAYING FIELD AND PASS THE EMPLOYEE FREE CHOICE INTO LAW.

  3. SPFPAUNIONYES1@AOL.COM on 26.02.2009 at 15:09 (Reply)

    The Coalition for a Democratic Workplace Newest PR Lie about The Employee Free Choice Act

    BEWARE OF UNION-BUSTING LIES about The Employee Free Choice Act by The Coalition for a Democratic Workplace and the Alliance for Worker Freedom (AWF)

    By: Employee Free Choice Act Now .org

    Corporate Front Groups Like The Coalition for a Democratic Workplace and the Alliance for Worker Freedom (AWF) continue to Spread Lies about the Employee Free Choice Act.

    Their Newest PR Lie they want you to believe:

    Pro-Worker Senate and House Members Introduce Secret Ballot Protection Act

    –New legislation will protect workers’ privacy and stop worker intimidation

    http://www.marketwatch.com/news/story/pro-worker-senate-house-members-introduce/story.aspx?guid=%7B8070CEED-A8E1-4568-9D69-33E16ED85356%7D&dist=msr_5

    How it Should Read is this : Pro-EMPLOYER Union-Busting Republican Senators and Pro-EMPLOYER Union-Busting House Members Introduce Secret Ballot Protection Act and other Union Busting State Legislation.

    –New legislation will Protect EMPLOYERS’ Right to a Secret Ballot Election While Guaranteeing Employers the Right to continue their Anti-Worker Fear and Intimidation Union Busting Tactics.

    Last update: 10:55 a.m. EST Feb. 26, 2009

    WASHINGTON, Feb 26, 2009 /PRNewswire-USNewswire via COMTEX/ — On Wednesday, U.S. Sens. Jim DeMint (R-SC), Chairman of the Senate Steering Committee, and Mike Enzi (R-WY), Ranking Member of the Health, Education, Labor and Pensions (HELP) Committee, joined U.S. Rep. Tom Price (R-SC), Chairman of the Republican Study Committee, Buck McKeon (R-Calif.), Ranking Member of the House Education, and Labor Committee and Rep. John Kline (R-Minn.) to introduce the Secret Ballot Protection Act.

    BEWARE OF UNION-BUSTING LIES about The Employee Free Choice Act by Such Groups as The Coalition for a Democratic Workplace and the Alliance for Worker Freedom (AWF).

    Here is Their Newest Lie

    The Coalition for a Democratic Workplace: Big Labor Ignores Worker Rights … Again

    http://www.earthtimes.org/articles/show/coalition-for-a-democratic-workplace,730861.shtml

    What it should read: The Coalition for a Democratic Workplace A Corporate Front Group: Continues to Spend Hundreds of Thousands of Dollars on Phony PR Press Releases, TV,Newspaper and Video Ads, Phony Corporate Front Group Websites, in their attempt to Deceive the General Public about the true facts about the Employee Free Choice Act.

    For more information on Employer Intimidation and Union-Busting Tactics press Below

    http://efcanow.blogspot.com/2009/02/just-say-no-to-employee-free-choice-act.html

    For More Information on EFCA please visit our websites and blog

    http://www.employeefreechoiceactnow.org

    http://efcanow.blogspot.com/

    http://efcaunionbustingclub.blogspot.com/

    http://www.FreeChoiceActNow.Org

    http://www.LaborUnionResources.Org

    Tags: Employee Free Choice Act, Free Choice Act, EFCA,Employee Free Choice Act News,Employee Free Choice Act Bill, Secret Ballot Protection Act, Card Check, Alliance for Worker Freedom (AWF), The Coalition for a Democratic Workplace, Corporate Front Groups, Republicans, Senators, Congress, House of Representatives, Rep. Howard P. “Buck” McKeon, Rep. Tom Price, Sen Jim DeMint, Sen Mike Enzi(R-WY), Rep. John Kline (R-Minn.)Union Busting, Union Buster, Union Avoidance, Anti-Union, Anti-Worker

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