labor

AUTONOMOUS PROFITEERING: CORPORATE NETWORKS ENLIST BOSTON TO HELP THEM SELL SELF-DRIVING CARS … AND ELIMINATE JOBS

September 18, 2016

BY JASON PRAMAS @JASONPRAMAS

When seemingly random things happen in city government, they’re always worth a second look. Which was certainly the case last week when Mayor Marty Walsh announced a new partnership between the City of Boston, the World Economic Forum, and the Boston Consulting Group to test self-driving cars—aka autonomous vehicles—on city streets.

The stated goal is “a year-long engagement focused on creating policy recommendations and supporting on-street testing of autonomous vehicles … to advance the safety, access and sustainability goals identified by the public during the Go Boston 2030 transportation planning process.”

The rationale—“building on prior World Economic Forum research into Personal Mobility and Self-Driving Vehicles, conducted in partnership with The Boston Consulting Group, and the Future of Cities”—is framed primarily in terms of ending urban traffic congestion, reducing carbon emissions linked to global warming, and reducing poverty.

Sounds like a worthy endeavor, right? Perhaps in a better world. But not the way this technology is being rolled out. Or, more precisely, the way it’s being shoved down the public’s throat. Despite being one of the least-mentioned transit options by residents participating in the aforementioned Go Boston 2030 process—appearing with similar frequency to waggish questions like, “When can I fly around the city like the Jetsons?”—it’s suddenly a policy priority.

Put bluntly, this plan has all the makings of yet another corporate boondoggle. This time on an international scale with profound implications at the local level. Think Boston 2024 on steroids. A passing glance at the players tells the tale.

The World Economic Forum is an extremely powerful network of the global capitalist elite. They work hand-in-glove with the leaders of every major industry to ensure that the rich and powerful get ever more rich and powerful—and democracy be damned. The Boston Consulting Group is a multinational “management consulting firm” that is one of the architects of the “race to the bottom.” Where companies are encouraged to move jobs to countries with the cheapest labor costs and worst human rights standards in the quest for ever larger profits. Its recent accomplishments include flacking for charter schools and the privatization of public education worldwide. Then there’s the junior partner, the City of Boston, that takes virtually all of its major policy cues from corporate think tanks and foundations. A pattern established by a series of mayors since the 1950s. Most notably, the late Tom Menino.

Such corporate networks and organizations have the money and connections to turn their priorities into the priorities of hapless government officials like Mayor Walsh—who always seems to be chasing after bragging rights for Boston being a “global city,” or a “city of innovators” or whatever—even when the resulting policy prescriptions directly attack his core grassroots constituencies. As we’ve seen with the GE Boston Deal debacle.

For example, Walsh is known as a labor mayor. Someone who was put into power by local unions. Yet when considering this particular policy issue—self-driving cars—in that light, a number of serious potential problems for Boston area workers immediately present themselves.

To focus on the most obvious one, switching over from our existing fleet of cars and trucks to self-driving cars and trucks—in the service of expected mega profits to the auto, energy, and technology industries—will likely result in massive job loss to a huge number of professional drivers. Many of whom are taxi drivers and limo drivers whose jobs are already under threat of destruction by mostly unregulated “online transportation network companies” like Uber and Lyft. And many people who hold those professional driving jobs—like truck drivers or MBTA bus and train drivers—are members of labor unions like the Teamsters and the Boston Carmen’s Union that are already threatened by technologies being developed for private interests. Not for the public good.

What are the plans to help workers displaced by self-driving cars? Apparently the usual corporate non-plans. A September 2015 report by the Boston Consulting Group put it this way: “Rather than wage a doomed battle against progress, affected incumbents might be better advised to use the current ‘calm before the storm’ to adapt their business models to this new technology and position their businesses to profit from a new era of mobility. That is the key message that [vehicle manufacturers], dealers, and suppliers must convey while they work with governments on good-faith efforts to mitigate the impacts on those most negatively affected.”

The report’s most specific suggestion is that governments should provide: “job-retraining and placement services and compensation for income losses from unemployment.”

Anyone who has ever seen what actually happens in instances of mass layoff knows exactly what will follow in practice. In the best possible scenario, some affected workers—not all—will qualify for extended unemployment, and receive some training for job markets that don’t have enough openings to make up for the jobs being destroyed. After unemployment runs out—and even extended unemployment typically runs out in one-to-two years depending on the program—the displaced workers who have not managed to find new jobs are screwed.

And as shown above, the industries and “consultants” doing the damage to the affected workers will not have to pay a cent for any of the havoc they wreak. The burden of such “externalities” as the immiseration and dislocation of thousands of professional drivers in Boston alone is to be borne by already overwhelmed and underfunded public programs—where they have not already been eliminated by the ongoing corporate onslaught against the public sector led by those same industries and consultants.

On those grounds, the city should pull out of this incipient arrangement and pursue only those future transit options purpose-built to help working people rather than harm them. Self-driving vehicles could be of great benefit to humanity depending on how they’re produced and deployed. But shadowy corporate networks like the World Economic Forum and the Boston Consulting Group—given their long history of looting public goods for private profit—are absolutely the wrong institutions for municipal governments to be partnering with on such a critical project as the introduction of a major new technology.

Apparent Horizon is syndicated by the Boston Institute for Nonprofit Journalism. Jason Pramas is BINJ’s network director.

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STREET FIGHT: STUDENTS DISSATISFIED WITH POLITICS AS USUAL WILL FIND PLENTY OF GRASSROOTS ACTION IN BOSTON

September 6, 2016

BY JASON PRAMAS @JASONPRAMAS

Are you a student? New to Boston? Want to fight for social justice, but not sure where to plug in? Well, this will hardly be a comprehensive list, but here are some local activist organizations and campaigns that are worthy of your consideration. I’m only including groups that I’ve written about (and that I agree with in broad strokes) for the sake of brevity. But, rest assured, there are activist organizations for people of every political disposition hereabouts.

A few tips are in order for people new to grassroots political activism. Seek organizations that are open and welcoming, have a democratic internal process, play well with other groups, and treat students as equals regardless of age or experience. Avoid organizations that look at students as free labor, seem focused on hitting people up for money, don’t work with other groups, and have a very undemocratic internal process run by a small ruling clique. Also avoid outright cults masquerading as political activist groups. They exist. You’ll know you’ve run into one when you meet people whose entire lives seem to be directly controlled by their organization and who will not stop trying to recruit you even after you say “no.” In general, listen to your gut instinct when checking out an activist organization, and you’ll be fine.

Here’s the list.

Black Lives Matter

One of the most important and vibrant American political movements today. Leading the biggest fight against entrenched structural racism in decades. In the wake of an ongoing series of police shootings of Black people around the country. Different local nodes of the activist network have varying membership requirements. But if you can’t be a core member, BLM periodically calls for allies to join them in the streets. That will be your cue to step up. Just remember to check your privilege. Chapters in Boston and Cambridge.

http://www.facebook.com/BlackLivesMatterBOS/

http://www.blmcambridge.org/

350 Mass for a Better Future

If you’re down to stop global warming, this group has got you covered. It’s organized on the state, national, and international levels and doesn’t shy away from civil disobedience or legislative action. Its current big campaign is the Clean Money for Climate Pledge, asking “candidates running for state, federal and municipal office in Massachusetts [to] commit not to accept campaign contributions from executives, in-house lobbyists and others employed by the top ten climate-disrupting corporations.” Including BP, Chevron, ExxonMobil, and Shell.

http://www.betterfutureaction.org/

Save Our Public Schools

Do you believe education is a right—not a privilege—in a democracy? Do you think that charter schools are a total scam designed to siphon public money into a variety of private pockets, and destroy public schools in the process? Well there’s an active fight against Question 2, an upcoming state ballot measure backed by very well-funded supporters determined to expand the number of charter schools in the Commonwealth. It’s called Save Our Public Schools (a.k.a. the “No on 2” campaign) and it’s spearheaded, as ever, by teachers unions—in this case, the Mass Teachers Association.

http://saveourpublicschoolsma.com/

Make GE Pay

Since the City of Boston and Commonwealth of Massachusetts announced their plans to dump at least $270 million on General Electric—one of the largest and nastiest multinational corporations in the world—in exchange for moving its world headquarters to the Hub, there’s been been a good deal of discontent brewing in communities around the state. Largely in opposition to local and state government handing huge wads of public cash to a tremendously wealthy company with plenty of skeletons in local closets—in a period of savage budget cuts to critical social programs. The Make GE Pay coalition formed last spring to try to stop the deal, and is looking to get in gear this fall after some early public actions.

http://www.facebook.com/makegepay/

encuentro 5

Can’t decide which campaign excites you the most? Why choose? This movement building space right off the Park Street T stop has a mission to get social justice activists “better networked, better resourced, and better organized.” Home to several important nonprofits, and a regular meeting place for dozens of activist groups, if you can’t find a campaign that interests you here then you may wish to reconsider your aspiration to be politically active.

http://www.encuentro5.org/

That’s enough to get you started. Have fun. Fight the power. And be careful out there.

Full Disclosure: 350 Mass is a member of my organization’s Community Advisory Board, and encuentro 5 was launched by colleagues at my former nonprofit, Mass Global Action.

Apparent Horizon is syndicated by the Boston Institute for Nonprofit Journalism. Jason Pramas is BINJ’s network director. Copyright 2016 Jason Pramas. Licensed for use by the Boston Institute for Nonprofit Journalism and media outlets in its network.

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GE BOSTON DEAL: THE MISSING MANUAL, PART 7

May 11, 2016

BY JASON PRAMAS @JASONPRAMAS

General Electric tries to cheap out on cleaning up its PCB apocalypse on the Housatonic River

In 1929, Swann Chemical Company began commercially producing polychlorinated biphenyls for industrial use as an electrical insulator and as a coolant. PCBs were immediately a huge success, and Monsanto bought Swann six years later. From 1932 to 1977, the big General Electric plant in Pittsfield, Mass used large quantities of the chemical in manufacturing electrical transformers and other products. According to the Environmental Protection Agency, as much as 600,000 pounds of PCBs was dumped into the adjacent Housatonic River and the surrounding soil over that time. In 1979, the EPA banned PCBs as a definite animal carcinogen and a probable human carcinogen. One which can take hundreds of years to naturally degrade to nontoxic levels.

As GE finished winding down its Pittsfield operation over the next couple of decades—ultimately eliminating 13,000 mostly unionized jobs, and driving a spike through the economic heart of the Berkshires—state agencies and the EPA initiated a number of regulatory actions culminating in a 1997 proposal by the EPA to add the Housatonic site to the Superfund National Priorities List. After long negotiations, the company managed to stop the site from being tarred with the Superfund designation and in 1999 agreed to what the EPA called a “Consent Decree” to cleanup PCBs in the Housatonic from the former site of GE’s Pittsfield plant to a couple of miles downriver in a first phase that has since been completed. And then to cleanup what was termed “Rest of River” in a second phase.

Having spent $100 million on the first phase (as part of the initial Consent Decree settlement), GE is now fighting to be able to cheap out on cleaning up the rest of the river. Mainly by trying to save the estimated $250 million cost of shipping PCB-contaminated river sediment and surrounding soil by rail to a huge toxic waste storage facility in Texas, as demanded by the EPA’s current “Rest of River” plan, via an alternative proposal for three new dumps in Western Mass. Two of which are right near the Housatonic. Yet are somehow expected to store a chemical infamous for its ability to leech out of dumps, spread miles underground—possibly right back to the river it was dredged from—and also evaporate and travel long distances in the air. GE appealed the EPA’s plan last October. A move that could land the whole affair in the US Court of Appeals in Boston, and drag a process that will take at least 13 years to complete out even longer.

Local communities are understandably furious, and river advocates have started holding protests at the proposed GE dump sites. It should be understood that the effects of PCBs on the environment are dire. And that so-called Rest of River cleanup is meant to fix some (but nowhere near all) of the damage done up to 140 miles downstream through Western Mass and Connecticut into Long Island Sound. PCBs—found in the Housatonic at levels far above the EPA safety threshold—not only raise cancer risks in humans and animals alike, but also cause direct immune, reproductive, endocrine, and neurological effects. With children being the most vulnerable human population.

But even the planned EPA approach to Rest of River cleanup on the Housatonic—which activists think is woefully insufficient—is still too expensive for GE’s taste at an estimated $613 million. The corporation won’t rest until it knocks at least $250 million off the top. And damn the environmental consequences.

Meanwhile, it remains to be seen whether—given the buzz coming from Western Mass—there might be a connection between the Housatonic situation and the $270 million in public funds, services, and tax breaks that Gov. Charlie Baker and Boston Mayor Marty Walsh have agreed to lavish on GE to induce them to move their headquarters to the Hub. But one has to wonder—in light of the recent investigation by the International Business Times showing that GE employees and the employees of GE’s lobbying firms donated nearly $1 million to the NY Congressional delegation over last three election cycles—why so many Empire State pols just happened to stand down from the fight to stop EPA approval of GE’s halting its dredging of PCBs in the Hudson River Valley last year? And if a scheme like that could happen one state over, why couldn’t it happen here?

Apparent Horizon is syndicated by the Boston Institute for Nonprofit Journalism. Jason Pramas is BINJ’s network director.

ECONOMIC VIOLENCE: VERIZON CUTS OFF HEALTH CARE BENEFITS TO STRIKERS AND THEIR FAMILIES

VERIZON PIC

May 6, 2016

BY JASON PRAMAS @JASONPRAMAS

As the Verizon strike enters its fourth week, the 39,000 union members on picket lines up and down the East Coast—and now taking their campaign nationwide—are continuing to hold fast for a better contract than the giant corporation has thus far been willing to offer. But a strike is no walk in the park. Not in the America of 2016. On May 1, International Workers’ Day, Verizon cut off health care benefits to the strikers and their families—an estimated 110,000 people overall. And while the two unions organizing the strike—Communications Workers of America (CWA) and the International Brotherhood of Electrical Workers (IBEW)—have socked away millions to pay strike benefits, helped members file for expensive stopgap COBRA health insurance, and even offered to pay medical expenses for members outright in the case of CWA, many people with chronic conditions are being put at serious risk of having their medical care disrupted. With potentially dire consequences.

Yet it’s difficult to find mentions of this vicious move by Verizon in the major American press. Coverage of the issue has been spotty at best. Despite it being a great example of why working families need proper national healthcare. Almost like it was not news at all. Even in centers of strike activity like Boston.

That’s a problem. When there are big layoffs by large companies owned by extraordinarily wealthy people, when wages are slashed, when huge numbers of jobs are outsourced to countries with even worse labor standards than our diminishing protections here in the US, much of the news media treats these tremendous crises for working people as mere footnotes to the much more important coverage of corporate bottom lines.

If any criticisms are raised—usually in passing and rhetorically—they are generally dismissed with easy answers. As with the 12,000 workers currently being laid off by microchip titan Intel. A recent and very typical article in The Oregonian, the Pacific Northwest’s newspaper of record, discusses the 2150 expected layoffs in their state matter-of-factly—explaining that Intel is “Oregon’s largest private employer and pays some of the state’s best wages.” So the loss of so many good paying jobs is really going to hurt the regional economy. But the piece then goes on to say that “Intel is a hugely profitable company—and a growing one.” It has other exciting divisions doing lots of whiz-bang things. Sure, those divisions are not necessarily in Oregon or even in the US—Intel being yet another multinational with robust manufacturing operations in low-wage countries like India—and it’s not at all clear that workers in those other divisions will make money as good as the laid-off American chip workers made. Nonetheless, the basic message of such articles is that “the market will take care of it.” Jobs will be lost here, but gained back elsewhere. Then all will be well and right with the world again.

But “the market” doesn’t take care of working families. It takes care of owners and top executives and big investors. Who use their massive and growing profits in this New Gilded Age to rig the political and economic systems to focus on their interests. Not everyone else’s.

That’s why Verizon’s union workers are on strike. It’s gotten to the point where they have no choice. In large part because the company has been doing its level best to wipe out its unions since its formation in 2000. To remove the last obstacle to allowing its management the freedom to do what so many non-unionized American companies are able to do to their workforces with impunity: ship many once-decent jobs abroad, and turn the rest into part-time, contract and temp jobs. Hiring people when they need them, and getting rid of them with impunity when they don’t. With no promise or expectation of good wages, benefits or job security.

All of these corporate moves are best described as economic violence. Because they destroy lives. And for all the criticism that labor gets for being unreasonable on the still-too-rare occasions that it mounts more than symbolic protests, unions like CWA and IBEW are remarkably restrained in the face of that ongoing violence. Hands tied by decades of anti-labor legislation, they limit their responses to those allowed by law: withholding their labor for as long as possible, picketing Verizon properties, “mobile picketing” (following scabs to worksites and talking to consumers about the strike), encouraging the public to boycott Verizon Wireless, and gamely waging PR battles in an often dismissive pro-corporate press. Trying to win enough hearts and minds to convince Verizon management that settling with the union is cheaper than letting the strike drag on.

Which might work this time as it has in several past strikes. But it’s getting harder for unions like CWA and IBEW as the years go by and their membership continues to shrink at the hands of mercenary profit-hungry companies like Verizon. They’re in a very difficult situation. But there’s one thing that readers can easily do to help expedite Verizon union workers’ herculean task of defending what they have while fighting to expand the labor movement back to some semblance of its former strength: When you hear about economic violence by bosses against workers, spread the word. Tell your friends, family and workmates. Don’t let atrocities like cutting health care benefits on striking workers remain a footnote in the national discourse. Make some noise. Then do the same at your own workplace when things get tough. Learn from Verizon’s unions. Fight back however you can. And in a few years, labor conditions might start finally improving for American workers again.

Readers who would like to support the Verizon strikers should visit standuptoverizon.com

Apparent Horizon is syndicated by the Boston Institute for Nonprofit Journalism. Jason Pramas is BINJ’s network director.

STRIKE MATTERS: VERIZON’S UNION EMPLOYEES FIGHT FOR THE FUTURE OF THE AMERICAN WORKING CLASS

Photo by Jason Pramas

April 22, 2016

BY JASON PRAMAS @JASONPRAMAS

BOSTON – From the St. James Avenue side of Copley Square on Thursday afternoon, passers-by could be forgiven for wondering what the group of 300 people in red T-shirts opposite them was cheering about. If they were told that they were seeing the front lines of a desperate battle for the future of the American working class, they wouldn’t believe it. But the Communications Workers of America and International Brotherhood of Electrical Workers members and their families did not turn out for a nice day in the sun. They were there to fight.

The general public may be aware that 39,000 unionized Verizon workers (out of a total of 178,000) have been out on strike for a few days—including many here in Boston. But the vast majority of onlookers don’t understand the stakes.

Verizon (officially Verizon Communications, Inc.) is no ordinary company. Rather it’s a vast telecommunications conglomerate that has benefited hugely from government tax breaks, subsidies, and a favorable regulatory climate since it was created in 2000 out of the merger of Bell Atlantic (which had only recently merged with fellow “Baby Bell” NYNEX) and GTE.

It has two major businesses: its traditional wireline service, based on the old copper wire phone system and the newer fiber optic FiOS service (weirdly coming soon to Boston six years after Verizon said it would stopping building it out in any new cities). That’s where virtually all of the company’s 39,000 unionized workers are employed. Then it has Verizon Wireless—which was originally a joint venture of Bell Atlantic and the British telecom Vodafone, bought outright by Verizon in 2014. Only a handful of its wireless employees are currently unionized.

Photo by Jason Pramas

Basically, Verizon leadership wants to focus on its extremely profitable wireless division and cut back its wireline service. The numbers show why. According to Fortunemagazine, “Wireless now brings in the vast majority of the company’s sales and profits. Last year, for example, the wireless unit brought in revenue of $91.7 billion, up 5% from a year earlier, and an operating profit of nearly $30 billion. The older wireline unit, which also includes wired video and Internet service, brought in revenue of only $37.7 billion, a 2% decline from the year before, and an operating profit of just $2.2 billion.”

Unfortunately, Verizon—like so many companies these days (our “new Boston neighbors” at General Electric spring to mind)—is a world class tax dodger and loves soaking the government for free handouts. According to the nonprofit Citizens for Tax Justice, between 2008 and 2013, the corporation made over $42 billion in profits, received a $732 million tax break (an effective federal tax rate of -2 percent), and paid almost $1.3 billion in state taxes (an effective state tax rate of 3 percent). In the same period, it made almost $4 billion in foreign profits and paid $274 million in taxes (an effective foreign tax rate of 7 percent). And this year? In the first quarter of 2016, Verizon has made $4.31 billion in profits.

According to the nonprofit Good Jobs First, Verizon has also received about $149 million in state and federal subsidies. Free money. And about $1.5 billion in federal loans, loan guarantees, and bailout assistance. Almost free money.

The nonprofit Americans for Tax Fairness adds: “Verizon also reported $1.9 billion in accumulated offshore profits in 2012, on which it paid no U.S. income taxes … Verizon raked in $956 million in federal contracts in 2011, according to the federal government. It also recently landed a new nine-year government-wide contract worth up to $5 billion to provide communications services and equipment to federal agencies.”

So Verizon is filthy rich with help from its friends in the government. Just like its predecessor, AT&T, in the days of “natural monopoly” before its 1984 breakup into regional Baby Bells. Unlike the old AT&T, though, Verizon is not interested in putting up with a unionized workforce in exchange for what are approaching monopoly profits in markets it and the handful of other remaining telecoms dominate. It has eliminated thousands of unionized jobs since 2000. How many? There were 85,000 unionized Verizon workers on strike in that year. There are 39,000 now. Do the math.

Photo by Jason Pramas

This brings us to the central issue of the strike. Verizon wants to convert lots of decent jobs—unionized and ununionized—to contract jobs. Many of them abroad. Union leaders recently told CNN Money: “Verizon has outsourced 5,000 jobs to workers in Mexico, the Philippines, and the Dominican Republic.” The company is also “hiring more low-wage, non-union contractors.” Increasing wages, minimizing out-of-pocket health costs, preserving job security, keeping traditional pensions, and stopping forced out-of-state work transfers are all very important issues, too. And certainly worthy of more discussion in these pages. But, as ever, contingent work is a dagger pointed at the throat of organized labor. According to Computerworld, the Trade Adjustment Assistance forms that workers losing their jobs due to outsourcing file with the US Department of Labor show that offshoring jobs is indeed proceeding apace at Verizon—despite management denials.

Once jobs have left the US, it’s highly unlikely they’re coming back. And if it’s hard for unions to organize units like Verizon Wireless now, it’s nearly impossible to organize workers transnationally. Similarly, once “regular” full-time jobs with benefits have been replaced with lousy part-time, contract and other contingent jobs, it’s very difficult to convert them back. And it’s extremely difficult to organize contingent workers into unions or other types of labor organizations.

That is why this strike matters to all American workers. If well organized and militant union members at Verizon—who have gone on strike against the company and its predecessors in 1983, 1986, 1989, 1998, 2000, 2004, 2011 and now—can’t stop the outsourcing and destruction of decent jobs, unorganized workers spread across the planet in industries like telecommunications will find the task insurmountable.

Yet that’s where we’re heading. The end of traditional labor unions. The end of decent jobs. The war of all against all. This is where latter day capitalism is taking us. Unless we help good unions like CWA and IBEW win this strike, and start expanding the labor movement again. This isn’t about “the dignity of labor,”as the Boston Globe would have it. It’s about class war. Working people didn’t start it. But we sure as hell had better finish it. Before it finishes us.

Readers who would like to support the Verizon strikers should visit standuptoverizon.com

Apparent Horizon is syndicated by the Boston Institute for Nonprofit Journalism. Jason Pramas is BINJ’s network director.

GE BOSTON DEAL: THE MISSING MANUAL, PART 6

Photo by Derek Kouyoumjian

April 8, 2016

BY JASON PRAMAS @JASONPRAMAS

General Electric brass, pols celebrate government giveaway while public opposition grows

While General Electric CEO Jeffrey Immelt, Massachusetts Gov. Charlie Baker, and Boston Mayor Marty Walsh cavorted with assorted political and business glitterati on the 33rd floor of the 60 State Street tower this week—celebrating the seeming fruition of the deal they cut last fall with zero public oversight— about 75 activists representing 36 community organizations picketed outside in the driving snow to criticize the $270 million-plus in state and city tax breaks, direct aid and services being lavished on the $117 billion multinational in exchange for moving its headquarters to Boston.

According to one of the organizers, Eli Gerzon of Jewish Voice for Peace-Boston, the reason for the rally was simple, “This GE deal is a clear example of supporting abusive corporations instead of human beings … The idea that it will help everyday people is just the same old trickle-down economic logic that has failed us over and over. We’re not falling for that again. We need our budget and public funds to support human beings: public transportation, local good paying green jobs, schools, and housing. We don’t want to invest in a company that pollutes rivers in Massachusetts, dodges taxes, and builds warplanes used against Palestinians and other people of color around the world.”

Meanwhile, GE leadership thought it was appropriate to show a video at their event lauding the city’s “bold innovative thinkers” by calling out Malcolm X, Phillis Wheatley, Susan B. Anthony, Ralph Waldo Emerson, and Walt Whitman. Famous radical agitators and intellectuals who probably would have all joined the protesters had they been alive.

Photo by Derek Kouyoumjian

In the March 25 installment of this Missing Manual, I predicted that the inevitable GE charm offensive aimed at attempting to placate increasingly perturbed locals would begin by spreading some money around town. And said that nonprofit organizations should refuse to take funds from a criminal corporation that ruined the lives of tens of thousands of poor families by selling them subprime mortgages, helped cause the 2008 financial collapse by selling toxic derivatives based on said mortgages, got bailed out by the feds (who changed the rules just for them), stole untold millions in a years long municipal bond scam, and avoided paying billions in taxes by—among other tricks— offshoring their profits (just like those nice Russian gentlemen we’ve been hearing about in the Panama Papers scandal). A position I stand by.

True to form, this week’s festivities began with the announcement of GE’s plan to donate $50 million to Boston schools, community health centers, and job training programs. But not all at once. Over five years. So, roughly $10 million a year. Looking under the hood of the official press release announcing the minor allotment from the company’s huge and growing PR budget—$393 million in 2014 according to AdAge, over $50 million on digital media alone in 2015 according to Kantar Media—the funds will likely benefit GE more than anyone else.

Here are a few illustrative quotes followed by my commentary:

Boston Public Schools (BPS): GE will reach 100 percent of Boston Public Schools high school students each year through our career labs, computer science courses, and high school design experience to prepare tomorrow’s workforce, by committing $25 million. The donation will provide students the opportunity to explore college and career possibilities, and to understand the skills necessary for future employment. GE will also create “GE Brilliant Career Labs” with both physical and virtual locations to allow students a unique hands-on experience with advanced manufacturing technology and software to assist them through career planning and internships. GE will also assist 100 percent of STEM high school teachers, to better prepare students for college and their future careers.

All roads here lead to GE polishing its tarnished image. The company’s goal being to look like it supports public education while donating less to BPS over the next five years than the $32 million the city is cutting from its budget next fiscal year alone. And at the end of the day, they’re not actually promising BPS students training that will lead to jobs at GE. Just the opportunity “to understand the skills necessary for future employment.” Which means what exactly? Understanding that you’ll either need to be a manufacturing robot in some zero regulation foreign Export Processing Zone, or a white, wealthy, Ivy League-trained manager in the Boston HQ to have a job with GE in the future? Sad.

Boston Community Health Centers (CHC): GE will commit an additional $15 million to developing, and expanding the skills of health care providers at critical Community Health Centers in underserved communities. This will include training in the use of technology, leadership skills, and increased access to specialty care, in order to deliver better treatment for common, complex medical conditions like cardiovascular disease and addiction. The Developing Health Boston program will initially support 22 Boston area CHCs and will provide skills training to more than 75 percent of CHC leaders, health care providers, and staff. As well, GE Foundation partners will help to develop next generation health care workers.

“Next generation health care workers?” More robots. Maybe they’ll revolt like in The Matrix or something. Regardless, it’s frankly insulting to talk about “expanding the skills of health care providers at critical Community Health Centers in underserved communities.” In Boston. Which has some of the best medical training programs in the world. What’s needed is for GE and corporations like it to pay the taxes they owe; so that Community Health Centers—and the US health system in general—no longer have to struggle for needed funds to provide top flight medical care to everyone. Preferably through a new national health program that expands Medicare to cover the entire US population.

Building the Diversity Pipeline: GE has also pledged $10 million to increase the capabilities and outcomes for our diverse students. GE will leverage its employees and leaders to provide training, access to manufacturing labs at GE Garages, and externships for underserved populations outside of the Boston Metro area, including Lynn and Fall River.

Result? GE will fail to provide jobs for “diverse students” from the cities and towns they screw over by not paying taxes.

And what of all those new jobs GE recently claimed would materialize in Boston because of their presence here?

According to an economic impact study conducted by Oxford Analytic, GE’s move adds 4,000 new jobs in the Boston area, between temporary construction jobs and permanent GE employees and vendors ….

This explains why the construction unions predictably haven’t uttered a peep of criticism of the deal—nor have any unions except the ones that used to have lots of members at the plants that GE shut down over the last few decades. As GE Lynn union leader Pete Capano presciently stated after the announcement of the GE Boston deal in January, “There will be more … donations to charity, that allows them to lay us off without looking bad.” Many of the “4,000 new jobs” will be short-term (and presumably unionized) construction jobs building the new HQ. Which could be seen as a fat paycheck for Marty Walsh’s supporters in the Boston Building Trades Council. The rest will be some new jobs at any GE facility in the “Boston area” (i.e., Massachusetts), and some “vendors”—a category which can include any number of low-wage jobs like delivery people. Not very impressive.

BINJ_GE Press Conference_040416_DSC_2937_©2016 Derek Kouyoumjian

Photo by Derek Kouyoumjian

After the press release, the dog-and-pony show began in earnest.

Just before the big soiree, Immelt told the Boston Herald, “Let’s say we’re here for another 40 or 50 years in Boston. Whatever we got in incentives, no one remembers. This is really about the vibe. It’s really about being part of a vibrant community, us adding to the community. So if you don’t feel that when you come, it’s bad to bet on that happening at some point down in the future.”

Ah yes, “the vibe.” GE isn’t coming to Boston because of “incentives” like potentially not having to pay rent on the buildings the Boston Redevelopment Authority is buying on its behalf. Perish the thought. It’s “really all about being part of a vibrant community.” And about the public forgetting such “incentives.” And not guaranteeing that GE HQ will stay in Boston for any specific length of time.

The 60 State Street event featured much more of the same kind of airy rhetoric. But Immelt felt it necessary to nod to the protestors, as recounted in CommonWealth magazine. Perhaps because he found himself on the defensive regarding the public giveaways in nearly every interview he’s given lately.

“ … I empathize with the people that are outside, particularly today. They have to be dedicated.”

The protesters, as the early voice of rising public discontent with the GE Boston deal, were having none of it—issuing a clear warning to the politicians who brokered it over the heads of area working families. Horace Small of the Union of Minority Neighborhoods, who emceed the street rally, said, “Mayor Walsh and Governor Baker needs to understand they need to support people not rich white guys and corporations.”

True that.

Apparent Horizon is syndicated by the Boston Institute for Nonprofit Journalism. Jason Pramas is BINJ’s network director.

GE BOSTON DEAL: THE MISSING MANUAL, PART 5

Copy of NEW WEB HEAD TEMPLATE

Image by Kent Buckley

March 25, 2016

BY JASON PRAMAS @JASONPRAMAS

General Electric’s Boston charm offensive presents dilemma for Boston nonprofits, others

General Electric is back on top of the Boston news cycle again. CEO Jeffrey Immelt made the rounds of pressers in person this week, starting with the announcement of a new 2.5 acre GE headquarters site—to be purchased from Procter & Gamble and carved out of their 44 acre Gillette campus. Right on the Fort Point Channel across from South Station and the main Boston post office. After refurbishing two former NECCO buildings on the site and erecting a new third building in the current parking lot, the company expects to spend $80-100 million on the complex.

However, the plot of the GE Boston Deal has thickened once again. It turns out that part of the promised $145 million in tax breaks and direct aid to the company from Boston and Massachusetts will only be possible because the Boston Redevelopment Authority plans to purchase the NECCO buildings and lease them back to GE. Neat trick for a much-hated neighborhood-destroying planning agency that only just got a six-year lease on life from the Boston City Council on Tuesday. Over the protests of the three councilors with any spine on the issue: Tito Jackson, Ayanna Pressley and Josh Zakim. No word yet about why Boston needs to spend an additional $100 million to repair the Old Northern Avenue Bridge at GE’s behest now that the multinational will be sited right near two perfectly functional bridges further up the channel. Or why the state has to throw in another $25 million to make the area around the new headquarters plot more pretty. But Mayor Marty Walsh and Gov. Charlie Baker will no doubt be able to explain that to us in the near future. Or perhaps not.

On Thursday, Immelt gave a speech to the Boston College Chief Executives Club at the Boston Harbor Hotel. Which raised more questions than it answered. Some of his more noteworthy offerings follow:

“This move for GE is all about the next 40 years. What do we want the company to look like, how do we want the company to be challenged?” [Reuters] So does that mean that GE’s HQ will be staying in Boston for at least 40 years? Probably best not to hold your breath on that one.

“And we think by the time it’s all said and done there should be, you know, let’s say 4,000 jobs around the ecosystem in Boston.” [WCVB video] OK, so we know that 800 jobs that will be sited in the new headquarters will be almost entirely white collar and many jobs will simply be transplanted from GE’s current headquarters in Fairfield, Conn. So what are the other 3,200 jobs that will be conjured into existence by the company’s presence? To the extent that any new jobs are being created at all, since Immelt is careful not to provide any specifics or make any explicit promises. But let’s think: cleaners, counter staff, delivery people, baristas, clowns, and office temps generally make lousy money and get no benefits. Bartenders, servers, dealers, muscle, and high-class sex workers do rather better financially. But again no benefits. And what with their proposed helipad, many of the GE execs probably aren’t going to stick around at night anyway. So it’s not clear that there are going to be many decent jobs created in this apocryphal “ecosystem” Immelt keeps mentioning. After all, this is a corporation that has destroyed tens of thousands of good working class jobs in Massachusetts in the last few decades. But fingers crossed, one supposes.

“We’re going to give back to the community. Just take my word for this. We’re going to give back, for any dollar that you think was invested in GE being here—and there are a lot of places we could have gone other than here—you will get back a thousand fold.” [WCVB video] Take his word for it? Let’s do the math. So, $145 million in the main state and city giveaway. Another $125 million or so in the “Make Fort Point Super Awesome for GE” package, again from the state and city. That’s over $270 million. Times 1,000. Then we can expect $270 billion for Boston and Massachusetts out of this deal?! From a company that screwed federal and state governments out of billions in taxes for years? A company that destroyed the lives of tens of thousands of families in the subprime mortgage scandal that helped crash the US economy in 2008, then got bailed out with $90 billion in cheap credit by dint of the feds changing the rules on their behalf? A company that rigged municipal bond markets to steal untold millions from cities and towns around the US? And got away with all of it? Under Immelt’s watch?! They’re giving back the money our busted local politicians are handing them “a thousand fold”?! Sweet!!! Will that be cash or credit?! No checks though. Not from these characters.

“More recently we’ve worked on community health and even more recently we’ve focused on employability. We like to do things where it’s more than money. You’ll have hundreds of GE people that are mentoring in schools …” [BBJ] Yeeeeeah … General Electric absolutely does not like to do things where it’s “more than money.” They like to make money. And more money. And screw anyone that stands in their way. Lovely attitude to instill in school kids, right? Ask Connecticut how everything worked out down there to get a good idea of Boston’s future with this deal.

Still, this brings up an interesting discussion. Even before the impressive walkout of Boston Public School students a couple of weeks back, GE must have been perfectly well aware that Massholes across the political spectrum are furious about the millions in free public money being shoveled into their coffers. And they’re also well aware that Boston, where they are just setting up shop, is a city that rose up to smash the deal for the Boston 2024 Olympics—a very similar boondoggle—last year.

So we can be sure that Immelt and his crew are going to start spreading money around to local community nonprofits. Especially social justice organizations that are likely to spearhead the fightback against the GE Boston Deal.

Seems like they haven’t been doing much philanthropic giving in the Boston area in recent years either. Other than money to universities like MIT that are going to produce researchers and upper management for them. Looking at the 2013-2014 annual report of United Way of Massachusetts Bay and Merrimack Valley, GE is listed as giving in the $500,000 – $749,999 category in a region that covers eastern Mass and southern New Hampshire. Yet GE didn’t make the Boston Business Journal list of corporations that donated more than $100,000 to Boston charities for either 2013 or 2014. Meaning Boston wasn’t a place they were trying to buy friends until it lately became necessary.

Given that GE will certainly increase its local donations, that presents a moral dilemma to Boston area nonprofits: Will they take this tainted money? Will they accept funds from a multinational corporation that is quite literally part of the reason that we have such an unequal society with so much poverty and immiseration? Money that many organizations must certainly need badly in these difficult times, but that will merely be a fraction of the PR line for a known corporate criminal with a $117 billion operating budget this year. Are they willing to sell themselves so cheaply?

Moreover, are Boston-area residents willing to continue to work with nonprofits that would be willing to take money from GE?

One way to find out is to shine the light of public attention on the matter and see what transpires. So if you hear about a Boston area nonprofit that knowingly took money from GE—directly, or through a front group—drop me a line at jason@binjonline.org. If your info checks out, I’ll add the organization to a public list. Let’s call it a Naughty List. And then we’ll see how much its community continues to support it. By the same token, if you know about an area nonprofit that did not take money GE offered them, definitely contact me and I’ll put it on a Nice List.

Now that I think about it, I can add politicians to the Naughty List and the Nice List, too. And business leaders. And academics. And journalists. I tell you, it’ll be like Christmas in July. Just not for the collaborators.

Welcome to Boston, GE.

Apparent Horizon is syndicated by the Boston Institute for Nonprofit Journalism. Jason Pramas is BINJ’s network director.

GE BOSTON DEAL: THE MISSING MANUAL, PART 4

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February 29, 2016

BY JASON PRAMAS @JASONPRAMAS

In May 2012, three former GE executives were imprisoned after being convicted on multiple charges of conspiracy to commit wire fraud and defraud the United States. Dominick Carollo, Steven Goldberg and Peter Grimm had all worked for GE Capital—the financial division that operated as a semi-legal “shadow bank,” and that accounted for about half of its parent corporation’s profits until the global financial collapse it helped precipitate began in 2007. Between 1999 and 2006, the trio conspired to skim millions from municipal bond investment contracts. With the full approval of their bosses.

According to Rolling Stone’s Matt Taibbi, the scam worked as follows for the company that Marty Walsh, Charlie Baker and cheerleaders like the Boston Globe have welcomed to Boston with open arms: Municipal governments commonly partner with big banks to sell bonds to pay for significant capital costs—like building schools. The banks invite investors to buy the municipal bonds and deposit the resulting funds in tax-exempt accounts from which all necessary project expenses can be paid. However, since all the bond money does not get spent at once, municipal governments typically hire brokers to find major financial institutions to invest it for them through a public auction process. In general, it is legally required that brokers get bids from at least three financial institutions—and the one that offers the highest annual rate of return wins the contract to invest the spare cash from a given bond fund.

But for GE Capital—and a host of other major financial institutions—the process was rigged from top to bottom. In the case of GE’s Carollo et al, the defendants conspired with executives at the brokerage CDR and financial institutions like Bank of America, JPMorgan Chase, Wells Fargo, and Morgan Stanley to divvy up investment contracts for municipal bond funds. CDR would drum up business with local politicians around the country—often bribing them with various kinds of campaign donations and gifts. The pols would then reward CDR with contracts to invest unspent funds from municipal bond issues, while CDR would work with the GE Capital—in concert with the other major financial institutions—to illegally decide which corporation would win which auction for such investment contracts in advance. The “winner” of each auction would collude with the other bidding financial services companies on the bid rate to ensure that the “winning” bid was as low as possible. The agreed upon rate was usually lower than a fair market rate by just a few tenths of a percent. But that was enough to make a killing.

For example, if a fair bid in an auction might have been that GE Capital would invest a municipal government’s unused bond funds at a 5.04 percent annual rate of return, CDR would coach the company to only offer 5 percent. The other bidders would purposely offer lower rates, losing in exchange for winning future rigged auctions. GE would then pocket the .04 percent windfall. A municipal bond fund that might have $200,000,000 to invest in its first year would return around $80,000 extra to GE in that fashion. Which doesn’t sound like much. But such bond funds would be invested by GE Capital for years until they were spent down fulfilling their original purpose to build schools and the like. And GE Capital and CDR colluded on huge numbers of such illegal arrangements, pouring vast sums into GE’s coffers. While depriving municipal governments of that same money. GE Capital then kicked back some of its take to CDR as “fees.”

Given the complexity and ubiquity of this practice, no one knows exactly how much was stolen. But since fines paid by large corporations to governments at various levels for such crimes tend to be vanishingly small, it’s possible to get an idea of the scale of the crime. According to the Securities and Exchange Commission (SEC), GE paid a $70 million coordinated settlement in 2011 to the SEC, Department of Justice, Internal Revenue Service, and a coalition of 25 state attorneys general. The SEC alleged that “from August 1999 to October 2004, [GE Capital] illegally generated millions of dollars by fraudulently manipulating at least 328 municipal bond reinvestment transactions in 44 states and Puerto Rico.”

GE committed yet another massive crime against the public interest. And got away with it. In November 2013, Carollo, Goldberg and Grimm were freed on appeal. The reason? The government had taken too long—ten years—to build its case against the former GE executives.

Apparent Horizon is syndicated by the Boston Institute for Nonprofit Journalism. Jason Pramas is BINJ’s network director.

GE BOSTON DEAL: THE MISSING MANUAL, PART 3

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Image by Kent Buckley

February 15, 2016

BY JASON PRAMAS @JASONPRAMAS

Returning to our ongoing look at General Electric’s recent and inconvenient history of violating the public trust, in part 2 of this “missing manual” the corporation got out of the subprime housing loan market just in time to avoid destruction in late 2007. But it could not escape from the consequences of an economy based on selling toxic home loans to poor people who were defaulting in vast numbers by 2008.

That year, everything began to unravel for GE—as it did for all other large interlocked financial services companies that derived a substantial percentage of their profits from predatory loans in the same period.

According to Fortune magazine, after reporting an unprecedented first quarter loss of $700 million, GE’s stock price began spiraling downwards in April 2008. Failing to sell off its light bulb, appliance, and private-label credit card businesses over the summer due to the worsening economic climate stopped the corporation from making typical course corrections to get back on its feet.

In September 2008, GE’s stock price crashed after Lehman Brothers—a financial services titan—collapsed on the heels of Bear Stearns’ disintegration that March. The company became starved for operating funds. But the private credit markets were frozen in terror.

On September 30, GE made two desperate moves. At 7:30 am it sold $3 billion in preferred stock to billionaire investor Warren Buffet’s Berkshire Hathaway Inc. on very bad terms. At 1:44 pm, GE announced its deal with Buffet and said it would sell $12 billion of common stock the next day at prices far lower than it had paid to buy back $15 billion of its own stock over the preceding year. Meaning it was selling the stock at a huge loss in exchange for ready cash.

The next day, the coup de grace: Word spread throughout the markets that GE would be unable to cover billions in regular payouts to holders of its commercial paper. Basically a kind of I.O.U., commercial paper is a kind of short-term promissory note that big corporations like GE are able to issue on an ongoing basis to raise money to cover things like daily expenses. There is no collateral behind commercial paper. Only the good name—and, ideally, top-flight credit rating—of the company issuing it. In normal times, it’s a far cheaper way to borrow money than a line of credit with a commercial bank. But 2008 was not a normal time. At one point that year, GE had over $100 billion dollars out in commercial paper as it tried to stay afloat.

Executives clearly knew their company was doomed unless the government bailed it out. Already on September 30, a GE spokesperson “e-mailed the media with a message that Congress must act ‘urgently’ on the pending financial bailout package.” But the company didn’t wait for congressional action. Since it was not a traditional bank, GE did not qualify for a significant direct cash infusion under the infamousTroubled Asset Relief Program (TARP). So it spent the next few weeks brokering a backroom deal with the Federal Deposit Insurance Corporation (FDIC).

According to the New York Times, on November 12, 2008 the FDIC announced that it would back GE’s commercial paper for up to $139 billion under the Temporary Liquidity Guarantee Program (TLGP). A program that the federal government changed overnight to allow GE to qualify—just as TARP was changed to benefit Goldman Sachs et al—according to Pro Publica and the Washington Post. GE had “joined major banks collectively saving billions of dollars by raising money for their operations at lower interest rates.” The company was able to sell $74 billion in government-backed commercial paper and longer-term notes by Spring 2009.

And how did GE survive the period between its early October 2008 financial collapse—when it was still short on funds despite the precipitous sale of $15 billion of its stock—and its November 2008 bailout by the TLGP program? In 2010, Pro Publica reported that Federal Reserve Board documents released that year showed that GE had effectively borrowed $16 billion more dollars at that time by selling commercial paper through the Fed’s Commercial Paper Funding Facility (CPFF).

So General Electric was saved by two government programs that provided it with upwards of $90 billion dollars of cheap credit. According to the corporation’s own September 30, 2009 10-Q filing to the Securities and Exchange Commission, GE paid only $2.3 billion in fees for its participation in the TLGP and CPFF programs. Meaning that GE got unbelievably good loan terms—the equivalent of a flat 2.56 percent interest rate. Less than the rates that Americans pay on most any other loans. Including the housing loans that wrecked the economy in 2007-2008. And the student loans that could very well lead to another financial catastrophe before this decade is out.

That is how GE got to survive the recession it helped create. By gaining access to a massive pool of public funds totally unavailable to its tens of thousands of subprime housing loan victims. The same company under the same leadership that Massachusetts officials are paying $270 million to bring to Boston. Excelsior!

Coming soon in part 4: GE’s municipal bond scandal and other amusements.

Apparent Horizon is syndicated by the Boston Institute for Nonprofit Journalism. Jason Pramas is BINJ’s network director.

MANCHESTER DIVIDED: SEIU ‘FIGHTS FOR $15’ IN NH WHILE ITS CANDIDATE FIGHTS FOR $12

Photo by Derek Kouyoumjian

February 8, 2016

BY JASON PRAMAS @JASONPRAMAS

The “protest pit” outside the Republican Presidential Debate at Saint Anselm College in Goffstown, New Hampshire on Saturday evening was a fenced-in area in a field about a quarter mile down the road from the main entrance to the campus.

Bumper to bumper traffic ran in front of the pit. Odd given that NH State Police were letting few cars onto the campus. Most were told to turn around. No one that Republican leadership didn’t want in was getting anywhere near the Carr Center where the debate was taking place.

Powerful lights shone down on the scene from one side—lending it an eerie cast. Behind the fence facing the road were a couple hundred supporters for a few of the Republican candidates. But that was just the first layer. Behind them were about 500 activists with the Fight for 15 campaign—organized andbankrolled for $30 million as of last August by the Service Employees International Union (SEIU). Whose leaders had bused in SEIU staff and members; student activists; and allies from other unions and immigrant organizations from around the region. At least 13 busloads from southern New England overall, according to the campaign’s registration form for the event.

A respectable showing, if not the “massive crowd of underpaid workers” that SEIU’s press release had promised.

So there they were. Supporters of a $15 an hour federal minimum wage. A fairly diverse group. Standing in a snowy field on a back road, enthusiastically waving banners—some quite creative, cylindrical and glowing from within like Japanese lanterns—and periodically trading chants with the mostly white right-wing activists in front of them.

Photo by Derek Kouyoumjian

Their presence was part of SEIU’s current tactic to raise the profile of the Fight for $15 campaign byprotesting presidential debates and other high profile events like the Super Bowl in recent months. Which makes sense as far as it goes.

What doesn’t make sense is why SEIU pulled out 500 people onto a chilly windswept hill in suburban New Hampshire to protest for a laudable reform that their chosen presidential candidate, Hillary Clinton, absolutely does not support.

Clinton, like Barack Obama, has come out in favor of a $12 an hour minimum wage. Bernie Sanders, the only candidate whose politics are in line with labor unions like SEIU, is also the only candidate who publicly supports the Fight for $15 campaign’s main goal—a $15 an hour minimum wage. Barely a living wage at all in many parts of the country. Hardly the huge ask that opponents make it out to be. Especially given the wage freeze imposed on most Americans by corporations and our political duopoly since the 1970s.

Photo by Jason Pramas

Yet the leaders of the 1.9 million member SEIU backed Clinton last November. Joining the heads of a number of other large American unions in supporting the candidate with a proven record of pushing policies completely antithetical to union demands. Like the insurance industry scam known asObamacare instead of “Medicare for all.” And they have alreadypumped millions to Clinton Super PACs over the heads of their largely voiceless members.

In response, a coalition of progressive unions and activist union members has formed Labor for Bernie to win as many union endorsements for Sanders as possible. Even as Sanders hasamassed a $75 million warchestfrom mostly small donations—without the truckloads of cash that labor unions have traditionally lavished on Democratic candidates over the past few decades.

With Sanders doing very well in the NH polls as of this writing, and clearly capable of staying in the race all the way to this summer’s Democratic National Convention, it appears that SEIU leadership made a serious miscalculation this election. And the fallout from that miscalculation is already playing out in the very state where they organized the standout for their Fight for $15 campaign over the weekend.

Two New Hampshire SEIU locals—560 (Dartmouth College workers) and 1984 (NH State Employees’ Association)—broke ranks with SEIU leadership last fall and backed Sanders for President. Both locals were present in Goffstown on Saturday.

Whether Bernie Sanders wins the nomination and election or not, current SEIU leadership—and the leadership of every union marching in lockstep with the worst elements of the Democratic Party—is going to face increasing pressure from its rank-and-file members to stop supporting pro-corporate anti-labor candidates like Clinton. Likely culminating in major grassroots insurgent campaigns aimed at removing union leaders perceived as sellouts—as has happened on many occasions in labor history. It remains to be seen whether such internal reforms will happen before the major unions collapse under the death of a thousand cuts being inflicted on them by their traditional political enemies and their erstwhile allies alike.

SEIU and less democratic unions like it could forestall the looming civil war in their own ranks—and increase the American labor movement’s chance of survival—by learning from the more democratic practices of the 700,000 member Communication Workers of America (CWA)—whose leadership stepped aside last year and let their members directly decide: a) If they should endorse any candidates for POTUS, and b) Which candidate they should endorse.

CWA members, some 30 percent of whom are Republicans, voted to back Sanders in December.

This article is syndicated by the Boston Institute for Nonprofit Journalism — and stands in for this week’s Apparent Horizon column. Jason Pramas is BINJ’s network director. He has been a member of three SEIU locals (925, 285 and 888) over the past 17 years, and helped lead a successful union drive with SEIU Local 509 last year at the cost of his job.