Workers’ Rights Dishonored Again by the Supreme Court’s Conservative Majority

May 29, 2018

Once again, President Trump’s nominee to the Supreme Court demonstrates the Court’s and the president’s hostility to worker rights. In cases testing whether companies can require their employees to sign agreements that abandon any right to go to court or bring class actions, Gorsuch’s opinion for the Court sides with the companies. That prevents employees from pooling their resources when contemplating expensive litigation.

The Norris-LaGuardia Act, passed in 1932, protects workers’ right to collective action on labor issues:

the individual unorganized worker is commonly helpless to exercise actual liberty of contract . . . , wherefore, . . . it is necessary . . . that he shall be free from the interference, restraint, or coercion of employers . . . in … concerted activities for … mutual aid or protection . . . .

The National Labor Relations Act, passed and signed in 1937, reaffirms that

[e]mployees shall have the right . . . to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection.

Both statutes were passed with the understanding that “the individual unorganized worker is commonly helpless” against employers. But the Court held that the Federal Arbitration Act, passed and signed in 1925, protects arbitration agreements. Usually, later statutes are held to overrule or limit earlier ones, not the other way around. So the Court decided that the later statute didn’t mean to limit the Arbitration Act. Of course, Gorsuch and the Court didn’t and couldn’t know that. What they threw at us was pure preference – anything that helps companies against their employees fits their labor policy. Gorsuch and this Court doesn’t read the law, as they like to claim; they make it. And they have been consistently turning against workers’ rights.

There was a time in this country when workers were completely dependent on their employers. They were required to live in company homes, buy from company stores, and were paid in scrip that was only honored by the company. Thus any attempt to leave left employees bereft of everything.

This Court will not be satisfied until workers have to sign away their right to seek better jobs, leave town, or buy their goods anywhere but the company store. There is a term for that, serfdom, and it is still practiced in some countries. When the Tsar of Russia freed the Russian serfs, the change there rivaled the end of slavery here. We needn’t go into all the other rights that serfdom gave the masters, like the right to violate the women. Serfdom stank. The claim that employers can get anything they want by putting it into a contract shreds all our rights.

We’ve been seeing that lately in the sexual abuse claims that have been made since the Harvey Weinstein revelations. Employers didn’t put those claims into the contracts but their right to reject applicants or fire people at will worked for a long time.

Law exists to protect people – except that the U.S. Supreme Court with Gorsuch solidifying its position doesn’t think ordinary people deserve any rights. In my view, it’s the Court that deserves none.

— This commentary was broadcast on WAMC Northeast Report, May 29, 2018.

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On Corporate Privilege – Have They No Shame?

April 21, 2015

In a legal system which holds corporations responsible for virtually nothing, corporate power, hypocrisy and the wall of corporate shame keep growing.

Corporations put clauses in consumer contracts that make suing them useless and impossible. They make us sign those contracts for most of what we buy from the modern economy. The Supreme Court says OK on the fiction that we don’t have to sign the so-called agreements. As far as the Court is concerned, all we have to do is opt out of the economy and then no corporation can bother us.[1] If a dispute ever gets to a hearing, it is heard by arbitrators chosen by the corporate sellers.

Industry groups repeatedly argue that they have to put such abusive provisions in their contracts or they couldn’t give us a good deal. In other words, when people are down, their mortgages underwater, corporations should just keep kicking – they’re really just doing it for us.

That’s bad enough for people who are just trying to be treated fairly. But corporations have been getting the privilege of trashing rules protecting us from toxins and pollutants in favorably disposed forums. These are so-called investor-to-state dispute settlement or ISDS clauses in international trade agreements. Corporations can attack any rules that will cost them money, which of course means all regulation is vulnerable. Like the domestic arbitration clauses that the U.S. Supreme Court has blessed, “These challenges are not heard in a normal court but instead before a tribunal of private lawyers,” as the Alliance for Justice and many prominent attorneys have told Congress.[2]

There’s already an ISDS clause in the North American Free Trade Agreement, or NAFTA.[3] Corporations are trying to keep the ISDS mechanism in trans-atlantic agreements that multi-nationals will use against food and environmental laws here and in Europe, claiming they restrict free commerce.[4] Cecilia Malmstrom, the European Union’s trade commissioner, responded “We want the rule of law, not the rule of lawyers.”[5]

Describing the terms of the 12-nation trade accord for a Trans-Pacific Partnership for which Congress is considering fast track authority for President Obama, Jonathan Weisman wrote in the Times that it would “allow foreign corporations to sue the United States government for actions that undermine their investment ‘expectations’ and hurt their business,” using the business friendly ISDS procedure.[6] Once again that is poised to protect multinational corporations from food, health and environmental regulation.

In D.C., the coal industry is trying to convince the U.S. Supreme Court to block the Environmental Protection Agency from going ahead with procedures for strengthening rules preventing toxic emissions of mercury.[7]

Here at home, toy industry groups are suing against efforts of Albany County to ban the sale of toxic toys, with such poisons as lead, mercury and arsenic, claiming it’s a violation of the Constitution and federal statutes.[8]

Business repeatedly claims regulation isn’t necessary because they are honorable and we can trust them and the economy. But their choice of legal targets make clear what they really believe.

No one has the right or privilege to put toxins in us, in our air, water, or our kids’ toys. Have they no shame? It’s time we had a government, all of whose branches respected the rights of the rest of us.

— This commentary was broadcast on WAMC Northeast Report, April 21, 2015.

[1] See American Express Company v. Italian Colors Restaurant, 133 S. Ct. 2304, 2313 (2013) (Kagan, dissenting); Buckeye Check Cashing, Inc. v. Cardegna, 546 U.S. 440 (2006).

[2] Letter over the signature of many well-known law professors and sent by the Alliance for Justice to congressional leadership, available at http://org2.salsalabs.com/o/6539/p/dia/action3/common/public/?action_KEY=19342.

[3] NAFTA ch. 11.

[4] REUTERS, EU Seeks Solution to Keep Arbitration in U.S. Trade Deal, March 18, 2015, 12:22 P.M., http://www.nytimes.com/reuters/2015/03/18/business/18reuters-eu-usa-trade.html.

[5] Id.

[6] Jonathan Weisman, Trade Pact Seen as Door for Suits Against U.S. New York Times, March 26, 2015, at B1, available at http://www.nytimes.com/2015/03/26/business/trans-pacific-partnership-seen-as-door-for-foreign-suits-against-us.html.

[7] Editorial, Dirty Coal at the Supreme Court, New York Times, March 23, 2015, at A20, available at http://www.nytimes.com/2015/03/23/opinion/clean-air-act-and-dirty-coal-at-the-supreme-court.html?emc=edit_tnt_20150323&nlid=47098180&tntemail0=y.

[8] Matthew Hamilton, Industry contests toxic toys ban, Albany Times Union, April 17, 2015 at A1.


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