So Bill,,,,are you trying to say that I can't get a decent wage "without" unions??? I would also like to know if the above post is referring to illegal workers? If not,,,,then the employers SHOULD be put out of business for hiring illegals.
Since 30% of the population works for a State,or the Federal Government, your probably right. However, the potential fines or lawsuits that can be encountered by risking a contract worker or payroll employee in a job hazard are simply not worth it. That has nothing to do with the union, it is governed by OSHA and other safety laws. 98% of the rest of the nation is non union, yet you see few job site hazard lawsuits or fines. Moot point. In our state, any contract worker has to have their own OSHA safety plan filed with the State. Evidently, Iowa is behind the national curve.
Founded in 1935, the United Auto Workers Union has just under 600,000 members and represents workers from the “Big Three” automotive companies—General Motors, Ford and Chrysler, as well as workers in the aerospace and agricultural industries.
Over a 50% Decline in Membership
The United Auto Workers Union membership has crashed from its previous high of 1.5 million in the 1970s, to its current total of under 600,000 members.
Some Local branches have suffered an even more dramatic hemorrhaging of members: Local 599 in Flint, Michigan has seen its membership atrophy from a peak of 28,000 to a mere 2,500 members today.
<i>The "contract" workers are people who are hired under the table so to speak. Paid in cash or some other deceitful way.</i>
Not in my experience. I've hired contractor workers, and have had many report to me. It's a way of paying for a service (an employee), but not accepting all of the liability that goes along with it. The employee may earn (or be paid, not always the same), $25/hour. But the contract house that has provided the employee (the employee's actually employer) may be paid $70 an hour, as they cover any medical insurance, unemployment benefits, etc. that the employee may be provided.
Under the table cash paid employees are something entirely different. And to my knowledge this is a federal crime with serious penalty. cls
Delbert,I seen the word Bailout.I thought this was a loan.
Can you set this issue straight?Seems you know everything.
One more thing was the Bankers in New York a Bailout or loan?
Please set the records straight.By the way,did they double the Unions top brass wages?
Now,you want some of my wisdom? We are in a world of deep $hit.
Your money in the bank is safe.
Not many know if the bank goes tits up it will take up to 36 months for the Feds. to give you the money you lost.So you dam well better have some cash on
hand. No this did not come from a newspaper.It came from a Banker friends mouth.
So can you live up to three years on no money in the bank?
Notice I did say up to.This would be the worst case.
I live in a town of 800 people in the heartland or bread basket of the US.
All flat black farm land.The bank now has 7 homes,a three plex,and four plex,They have forclosed on.
So go ahead and down the Union.First place this money did not come out of the tax payers pocket.Which you don't seem to understand.
The money to the bankers is out of your pocket.
The Big Three are going to go down the drain.When this happens so will the union.
You will have at least 2.5 million out of work many with no choice but to go on Welfare.
So sleep good and sound tonight and don't let the bed bugs bite knowing your money is safe in the bank.
l-t-s, If you are self employed....you better know the business laws of your state and the Feds, including safety. If you are my employee, it's my job to make sure your informed, through MANDATORY training. Either way, there is a "responsible person" to blame. You've been brain washed. This stuff is common knowledge.
I believe that the term "contract" worker, as used here would define an individual who is "hired" by an employer to do a certain job. The employer attempts to classify the employee as a seperate entity (a contractor), and claims that as a seperate contractor, this individual is now personally liable for payment of withholding taxes, work comp, etc. This scheme tends to unravel when tax time rolls around, and the individual learns that he is on the hook for the taxes. I have read of instances where the IRS then goes after the employer to make him prove that the individual was indeed a contractor (or subcontractor), or was he really just an employee, and the employer was trying to pull a fast one. I believe that Bill is correct in this instance.
Contract workers most commonly are hired by a company for a specific period of time, for a specific job, and a specific wage. The company is responsible for withholding all appropriate taxes (Income, FICA, state, etc.). The company is also responsible for remitting the tax payment to the appropriate agency. The contract employee falls under typical workplace regulations. This often happens when retired employees are "called back" for special projects, or some specific expertise. My father did some contract work after he retired.
Contract employees are a way to get instant expertise, and get around having to re-hire someone, redo pensions, etc.
Another type of "contract" employee works out of an agency. The host company pays the agency, and the agency is responsible for paying the employee and handling all the "HR"-type of tasks - taxes, insurance, unemployment taxes, etc. These are commonly referred to as "agency" employees. Their work is usually temporary, specific, and less cost than a regular employee. The agency who contracts with the employer handles the fit, i.e., the employee qualifications, etc. Engineers, computer programmers, and accountants at tax time or year-end, are most common. Occasionally, we hired temps, but most often, the contract with their agency forbid this.
Two weeks ago, I told you about the UAW’s gold-plated golf course. Now, the rest of the story. As required by federal law, unions must file yearly disclosure documents with the Labor Department. I looked up the LM-2 form for the UAW’s 2007 annual report (No. 000-149). My syndicated column today shares some choice morsels from the annual report and reviews the union bosses’ long history of pilfering workers’ dues for their personal enjoyment and gain — including moronic investments in a doomed airline, doomed radio network, and doomed Palm Springs resort. Thanks to George Bush and the bipartisan bailout enablers, what the UAW did do its own workers it will now do to taxpayers. We’re porked.
What a way to ring in the New Year, huh? Make sure your congressional reps know about this. Here’s how to write them.
The UAW’s money-squandering corruptocracy
by Michelle Malkin
Nero fiddled while Rome burned. The UAW golfed. While carmakers soak up $17 billion in taxpayer bailout funds and demand more for their ailing industry, United Auto Workers bosses have wasted tens of millions of their workers’ dues on gold-plated resorts and rotten investments. The labor organization’s money-losing golf compound is just the tip of the iceberg.
Earlier this month on my blog, I noted that the UAW owns and operates Black Lake Golf Course — a “championship caliber” course opened in 2000 that’s part of a larger “family education center” and retreat nestled in 1,000 acres of property in Onaway, Michigan. Spearheaded by former UAW president Steve Yokich, the resort also includes “a beautiful gym with two full-sized basketball courts, an Olympic-size indoor pool, and exercise and weight room, table-tennis and pool tables, a sauna, beaches, walking and bike trails, softball and soccer fields and a boat launch ramp.” Like everything else we’re subsidizing these days, the UAW’s playground is a money pit. The Detroit Free Press reported earlier this year that the golf course (valued at $6 million) and education center (valued at $27 million) have together lost $23 million over the past five years. While membership in the union has plummeted, the UAW retains assets worth $1.2 billion.
Curious about how the UAW will be spending my money and yours, I sifted through the union’s most recent annual report filed with the U.S. Department of Labor (which you can find at unionreports.gov). Who knew hitting the links was so central to the business of making cars?
In May and November 2007, the UAW forked over nearly $53,000 for union staff meetings at the Thousand Hills Golf Resort in Branson, Missouri. In September 2007, the UAW dropped another $5,000 at the Lakes of Taylor Golf Club in Taylor, Michigan and another $9,000 at the Thunderbird Hills Golf Club in Huron, Ohio. Another bill for $5,772 showed up for the Branson, Missouri golf resort. On Oct. 26, 2007, the union spent $5,000 on another “golf outing” in Detroit. In May and June 2007, UAW bosses spent nearly $11,000 on a golf tournament and related expenses at the Hawthorne Hill Country Club in Lima, Ohio. And in April 2007, the UAW spent $12,000 for a charity golf sponsorship in Dearborn. In August 2007, the UAW paid nearly $10,000 to its for-profit Black Lake golf course operator, UBG, for something itemized as “Golf 2007 Summer School.” UBG had nearly $4.4 million worth of outstanding loans from the union. Another for-profit entity that runs the education center, UBE, had nearly $20 million in outstanding loans from the union.
Perhaps, the union bosses might argue, they need all this fresh air and exercise to clear their heads in order to make wise financial decisions on behalf of their workers. If only. UAW management has proven to be a money-squandering corruptocracy with faux blue-collar trim. Former UAW head Yokich, who built the Black Lake black hole is also responsible for bidding $9.75 million of workers’ funds in a botched bid to purchase the gated La Mancha Resort Village in Palm Springs. The 100-room walled resort with spas, poolside massages, and a “croquet lawn lit for night use” was on the verge of bankruptcy with $5.2 million in debt. Despite outrage from rank-and-file union members who thought one gold-plated golf resort was quite enough, leaders defended the La Mancha bid because, as union spokesman Paul Krell put it, “‘You can never tell if you are going to become snowbound.” Always putting the workers first!
That deal didn’t go through, but the UAW’s quixotic dalliance with a failed airline did. In February 2000, the union poured $14.7 million into Pro Air, a Detroit start-up airline that, well, didn’t get off the ground. Plagued by safety problems, the feds shuttered the company less than a year later. The union didn’t fare much better in its venture with a liberal radio network. In 1996, union heavies got the bright idea to invest $5 million in United Broadcasting Network, a left-wing precursor to Air America that the UAW hoped to use to spread its corporate-bashing propaganda. They shelled out for a $2 million, state-of-the-art studio in Detroit and incurred years of losses of a reported $75,000 a month before closing the network down in 2003.
And while the UAW and carmakers cry poor, they’ve operated massive joint funds for years that have paid for lavish items such as multi-million-dollar NASCAR racer sponsorships and Las Vegas junkets. The dire economic downturn hasn’t changed the behavior of profligate union bigs at the front office or the shop floor. Local Detroit TV station WDIV recently caught local UAW bosses Ron Seroka and Jim Modzelewski — both of whom make six-figure salaries — on tape squandering thousands of hours of overtime on such important labor security matters as on-the-clock beer runs and bowling tournaments.
At least the groveling Big 3 CEOs gave up their corporate jets. Where’s the public flogging for the greed-infested UAW fatcats reaching into our pockets to keep them afloat?
Postscript I. Here’s more on the UAW golf course and its deadbeat UAW managers. Local county official Dennis Lennox e-mailed the following press release yesterday detailing how the union has avoided taxes on its tony resort:
UAW gets around paying fair share of taxes for lakeside resort
FOR IMMEDIATE RELEASE
CHEBOYGAN, Mich. (Dec. 29, 2008) — The United Autoworkers Union has repeatedly tried to get around paying the assessed property taxes on a $33 million private resort for members and their families in recent years, which has impacted funding for education and other basic public services in rural Northern Michigan.
Public records indicate the union has challenged Cheboygan County’s Waverly Township in the state Tax Tribunal – forcing multiple reductions over the past four years. The legal challenges come at a time when Cheboygan County struggles to fund cash-strapped schools, which rely heavily on property tax assessments.
“Shame on the UAW for not paying its fair share towards educating Cheboygan County’s next generation,” said County Drain Commissioner-elect Dennis Lennox (R-Topinabee). “The UAW is using its $1.2 billion net worth to get around the system and its responsibility to pay the same taxes that hard-working families pay without dispute.”
Published reports indicate the resort – formally known as Walter and May Reuther Family Education Center – has lost $23 million over the past five years. The UAW covers costs of the resort by using the interest it earns on the strike fund, according to tax documents, but massive losses in the past five years have forced the union to make heavy loans to keep the center afloat.
Appealing assessments to the Tax Tribunal is perfectly legal, though few local governments can afford to mount a defense against the UAW’s legion of lawyers in today’s bleak economic climate.
The situation in Waverly Township was made worse by the inaction of former UAW lawyer-turned-County Commissioner Leonard Page (D-Grant Township), who has avoided helping Waverly Township despite assurances at County Commission meetings that he would help end the long-standing dispute.
Postscript II. Didn’t have room in the piece to get into the notorious nepotism/extortion case involving UAW Local 594. Here’s the 2007 DOJ press release announcing the sentencing of two union thugs found guilty in the scandal:
Two top former union officers from southeastern Michigan were sentenced to terms of probation on charges of conspiracy to demand from General Motors Corporation (GM), the authority to amend the terms of the national labor agreement between GM and the United Auto Workers (UAW) when they were not authorized to do so; and in conjunction with that, conspiracy to extort from GM, skilled trades positions of employment for two specified non-GM and non-UAW individuals whom the union officers knew were not qualified or entitled to those positions, United States Attorney Stephen J. Murphy announced today.
Murphy was joined in the announcement by Federal Bureau of Investigation Special Agent in Charge Andrew G. Arena, of the Detroit Division, and James Vanderberg, Special Agent in Charge, United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
Sentenced today by United States District Judge Nancy G. Edmunds were:
Donny G. Douglas, 65, of Holly, Michigan, on both counts, to two years probation with six months home confinement on electronic tethering, in addition to 100 hours of community service, and a $4,000 fine. At the time of the offenses, Douglas was employed as a UAW International Servicing Representative.
Jay D. Campbell, 65, of Davisburg, Michigan, on both counts, to two years probation with six months home confinement on electronic tethering, in addition to 100 hours of community service, and a $4,000 fine. At the time of the offenses, Campbell was employed as the Chairman of the Shop Committee and chief negotiator for UAW Local 594.
Douglas and Campbell were found guilty on June 27, 2006, after a jury trial, of the offenses of conspiracy to violate the Taft-Hartley Act, and conspiracy to extort under the Hobbs Act.
United States Attorney Stephen J. Murphy said, “Abusive and extortionate practices increase the costs of doing business for our local employers and undermine the confidence in the integrity of our community’s essential commercial activity. Any criminal extortion activity like this, which we consider to be serious and abusive of voluntary participation in the marketplace, will be pursued with vigor, as it was in this case.”
The evidence presented at trial showed that between approximately August 1995 and August 1997, Douglas and Campbell, using their union positions, conspired to demand from GM the hiring of Campbell’s son and another individual, who was the son of a former union official, into skilled trades positions, when Douglas and Campbell knew those two individuals were not qualified for those positions and when such hiring was in violation of the normal hiring process that existed in the union contract with GM. Furthermore, these demands by Douglas and Campbell threatened to delay or prevent the settlement of various negotiations that occurred between Local 594 and GM during those three years, culminating with the threat to prolong an 87-day strike that occurred in 1997. As a result of these illegal demands by Douglas and Campbell, the two individuals were hired by GM into skilled trades positions so as to avert the continuation of the 1997 strike.
Murphy commended the work of Special Agent in Charge Jeffrey W. Dancer of the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, and Special Agent David B. Rogers of the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney James M. Wouczyna and Trial Attorney Vincent J. Falvo, Jr., from the Organized Crime and Racketeering Section, Labor Management Unit in Washington, D.C.
Rank-and-file workers furthered charged that Local 594 bosses embezzled more than $480,000 to settle a sexual harassment suit against ex-president Donny G. Douglas and to pay legal bills.
What does the UAW stand for? Unending Abuse and Waste.
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Regular View comments (81) trackbacks (16)First Emily Latella award of 2009
January 2, 2009 12:25 AM by Michelle Malkin
l-t-s; Certain labor laws are required to be posted for all employees, not done fines applies.
-Contract employees,aka Independant Contractors, are required to file with the employer, not really their employer but the person paying them, their insurance papers and other documents needed to prove independent status OR the person hiring is responsible at Annual Audit for all the insurance premiums on that individual or individuals. Their are also certain work rules that have to be met.
-In Michigan we have another layer it is called MIOSHA. They will put monitors at your job site to make sure you do things safely BEFORE an accident. MIOSHA shut the Great Lakes Grand down a few years ago before it even got started because they felt it was unsafe for kids to set trap on the old machines. Insurance compliance not as great as you assume, some companies, some indurtries MAYBE.
Ask an employer who he fears the most MIOSHA or Ins. Co.
You asked how do I know they are not taking advantage - how do you know they are??
Is there confusion between temporary workers (from a temp. agency; responsible for all the insurance, medical etc.) and casual labor? As I understand it (and I don't even play an employment specialist on TV) that a business can pay a person (not an official employee) cash to a certain amount (used to be $800 per yr. here in Ohio) under the "casual laborer" statute and not hold any taxes, fica etc. from their wages. It would be up to the casual worker to file the appropriate tax paperwork at the end of the year. Just my knowledge (or lack thereof) on the subject.
An IRS form 1099 is required if you pay anyone more than 600 dollars in a year.
It's up to the laborer to pay his own taxes. Subcontracting is another thing. The laws are abused quite frequently here in Wisconsin. Roofers, Siding guys, cement contractors have workers who are paid cash frequently.
Calling them a sub contractor can get you in big trouble, especially with the Unemployment and Worker's Comp people.
Using the subcontractor idea as a ruse to avoid the headache of being an employer is common in this layer of the economy. If you have this type of situation you need to chek the laws of your particular state.
There are all kinds of laws which cover the hiring of "casual", or temporary employees. The IRS also has a lot of regulations covering similar hirees.
For instance, if the employer provides office/work space, and certain other work-related benefits (computers, tools, etc.), they mostly are treated as employees, and they have to be issued W-2 forms. The IRS does this to prevent abuse of contract employees.
However, if you were a computer programmer, and worked out of you home office, used your own computer, telephone, etc., you could be considered a contractor and be issued a 1099. However, the employer may be mandated to witthold income taxes. The 1099 is for income, not wages. If you don't have income tax withheld on a 1099, you can be subject to fines and penalties for under-reporting taxes.
If you are self-employed, and people who are issued 1099's are, you are also required to remit the entire 15.3% of FICA to the Feds. You also get into the business of filing quarterly tax returns.
Bill - I am a retried skilled trade union member and a former union contractor. For the most part, skilled trade craftsman earn what they are paid because of their traing through apprentice programs. Times are changing. The non-union crafts are now running their own schools. My biggest gripe with most union tradesman I have been associated with like their pay scale and benefits but if they have work to do at their own property they want someone to do it "under the table" depriving union contractors of their piece of the scale they pay to be recovered. When we were in business our employees knew we would not care if they did work for family but to be caught doing it for outside pay was a terminating offense. Jimmy Borum