Alternative title: Dicke E Dauch, More Evil Day by Day

Welcome to the world that has become the United States Labor market.

It's filled with companies that pay CEO's hundreds of thousands of dollars and into the multimillions of dollars.

From the American Red Cross' Multi-Billion dollar Blood Business to Wal-Mart's sticking it to folks like Debbie Shank (and yes, they were well within their legal right to do so), but what Dick E Dauch did and continues to do, well, it just kind of makes me ill, to the nth degree.

Why you might ask, well, I think the Detroit News kind of figured that one out:

Since American Axle was spun off from General Motors and reconstituted in 1994, the union negotiates with American Axle, not GM, and does not get the sweetheart deal other UAW workers will get. In fact, Local 235 went on strike for three months last year and lost. It was a cold, bitter dispute, complete with fires in the oil drums. The unionized workers, numbering nearly 2,000 at the time, gave in to deep wage cuts, in some cases from $28 an hour to $14, in exchange for keeping their jobs. Apparently it was not enough. Fewer than 300 union members were working in the plant Monday.

In the meantime, Dick Dauch, the CEO and chairman of American Axle, was given an $8.5 million bonus by his board of directors after the strike and gave assurances to the workers and the city of Hamtramck that he would keep production here.

Yes, emphasis is mine.

I followed the strike. I was a bit obsessive about it.

I posted pictures like that of a 60 year old woman in an officer's chokehold. Or how Republican staffers who were meeting with UAW members about the bridge loans to the auto industry had NEVER heard of American Axle or their 11 week strike.

I followed one of my favorite workers Jerd0708, and cross referenced worker pay and executive pay, an issue that resinates with workers from Wal-Mart to the American Red Cross to the guys and gals on the docks. It's the Entitlement Mentality of the highest levels of executives that seals the fate of so many of us who simply want to work. Folks who just want to put in an honest day of work for an honest day of pay.

More than ever, I believe in the power of unions, but we need stronger labor laws to make it possible for union workers to rebuild the middle class. We need to pass the Employee Free Choice Act to make it possible for more workers to sign a union card and join a union. Together maybe we can start holding boards of directors, CEOs and other executives accountable for their actions when they give an $8.5 million bonus to Dick E Dauch (I said BONUS here) just for the hell of it.

One other thing:
We as a nation need to do a better job of ensuring that companies can't just flee one jurisdiction to go to another because somewhere, down the road, doing so might be cheaper (think of what American Axle is doing in moving jobs to Mexico or Kongsberg Automotive moving production into Poland) in terms of labor costs and environmental costs. Again, from the Detroit News:

Chris Son, the director of communications at American Axle, called late Wednesday to say that the layoffs are "fallout from the GM and Chrysler shutdowns." He also confirmed that the Mexicans will continue to work as the Americans are out on the street.

"For logistical reasons, a level of production will continue in Mexico," said Son. "At the same time, there will be lower production requirements in Detroit. Other than that, I have no further comment on that matter."

Logistical reasons, right. Chris and Dick, if American workers can't buy cars produced with your parts, what's the point in moving to Brazil, Poland or continuing operations in Mexico? If we can't buy these cars, who will? Oh wait, I know the answer, guys like you, right?

45% of the US blood supply comes from the American Red Cross. 45%, that's a huge amount from a single source.

Blood is collected through donor blood drives. And the blood is then handled or transported by phlebotomists, drivers, RNs, LPNs, technicians (in the lab, product management, and apheresis departments), and one mechanic.

These are front line workers for the collection and processing of blood.

These front line workers set up blood drives all over the country.

When you think of a blood drive, think of the work as equivalent to the set up and break down of an event like a small circus, carnival or maybe a convention.

And these are safe events, or at least intended to be safe events through the regulation of blood as a "drug" but the FDA. Yep, these events are FDA regulated.

Front line American Red Cross workers follow FDA guidelines, yet since 1993, the FDA has fined the American Red Cross more than $21 million for violation of blood safety laws and regulations. In fact, the American Red Cross has been under a Consent Decree

The 2003 consent decree settled charges that the Red Cross had committed "persistent and serious violations" of federal blood safety rules dating back 17 years.

So, what does all of this mean?

What all of this means is that BLOOD is BIG BUSINESS. Blood is, as the New York Times noted after the FDA announcement of a $5+million fine:

The Red Cross has struggled for years to get its multi-billion dollar blood business, by far its biggest money-maker, into compliance with federal rules.

The American Red Cross makes MULTI-BILLIONS of dollars on donated blood.

Let me repeat that

They make Billions of dollars based on all of our volunteer blood donations.

So, the Red Cross makes billions and billions on supplying 45% of the nation's blood, but is now fighting unions representing front line blood drive event workers. These are the same workers who put on these blood drive events, make them safe and then do it all over again at another location. These workers provide reading material, documentation throughout the blood drive, ask health history questions of donors, perform mini physical exams for donors, take blood, care for the donor afterward donation, pack up the blood, break down the event, and bring it back to the lab for processing and testing, only to do it again the next day or week, depending on their schedule.

And the fines? Are they based on the work of the front line workers? The ones primarily handling the blood, well, according to NPR's All Things Considered, not so much, it is a "management problem".

So, we have a multi-billion dollar business, management problems, FDA fines, and now, they're crying broke as they sit at bargaining tables with 9 different unions as they negotiate front line worker agreements.

So, the unions got together and told the American Red Cross just what they thought of their anti-union, anti-worker negotiation tactics and I got to meet some of these workers on Friday on E street in Northwest DC.


These are the workers who make our blood supply safe, and they have been reduced to marching on Washington for getting what they deserve, a fair negotiation with the American Red Cross.

The request for massive concessions and pay freezes across the board has been covered in a number of local papers, like the New Haven Register who noted something interesting which really got me thinking:

The union claims that the Red Cross is demanding pay cuts for workers, as well as staffing changes that would replace some workers with management representatives.

“They’re not licensed. They’d be making medical decisions, based on what?” asked Crystal Guimaraes, a registered nurse from Naugatuck. She said workers at blood drives need to know what to do in the event of medical complications, physical reactions or seizures.

Would these be the same managers who were at the heart of the fines to the American Red Cross in 2006? Are they part of the "Management Problems" that NPR reported?

And, what about the response from the American Red Cross:

In a statement released Friday, Donna M. Morrissey, spokeswoman for American Red Cross Blood Services Northeast Division, said the Red Cross blood supply “has never been safer, and the American Red Cross is committed to the health and safety of every blood donor who volunteers to roll up their sleeve and every patient who receives blood.”

Morrissey said the pay and benefits package offered to union members is “consistent” with pay and benefits provided to nonunion employees. The Red Cross also has frozen salaries for nonunion workers for the next year and made changes to its retirement programs for all staff.

What I notice in this comment is something big that's been in the news lately and was oddly unaddressed:

What about BONUSES?

So, I went hunting and found that the American Red Cross pays "incentives", from the American Red Cross website:

Donor Recruitment Representative (Great Lakes Region-Flint/Saginaw/Bay City/Midland, Michigan) American Red Cross Blood Services, Ohio/Michigan Division; Salary: $35,000 +Incentive; Benefits: TBA; FAX: (517) 484-0374; Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it ; Please send resume via email; Posted: 3/2/2009.

Incentive pay sounds like a bonus to me, and this is only at a volunteer recruiter level. What about higher levels like the CEO level (which has been a virtual revolving door since Bernadine Healy left in 2001) or directors and regional levels? And for an organization with more than 30 CEO's, can you imagine the kind of money we're talking about when we're talking about a multi-billion dollar business?

Take the Director of Collections in Connecticut who received a sizable un-reported bonus (the size is unknown because it's not being reported by the American Red Cross and is not being provided to the unions during the negotiations). And why would this blood collections director receive a huge incentive? Well, it's for introducing the MCS machines to the region.

I suppose I'm way more concerned today than say a year ago about how big companies hide their payments to employees. After the issues with AIG bonuses and all the banks that got money from the government for sinking their companies, well, would you really blame me for being suspicious?

Let's take the case of Theresa Bischoff, American Red Cross CEO for New York. In 2005, based on Red Cross records, she earned a salary of $315,656. And performance bonus of $60,000. And this is on the American Red Cross web site.
There's also Christopher Lamb who received a retention bonus of $132,600 and Douglass Loock who received his retention bonus of $105,215. And these three folks all work in areas related to plasma and blood.

If in 2005, when the Red Cross was going through turmoil due to their response to Katrina, they were also handing out retention bonuses of $100k to some of their top executives, and these are only reported on the top 5 paid non officers. If during turmoil they were handing out this kind of money, what are they doing now? Clearly, what they're doing now is trying to get out of negotiating with people like Christine Holschlag (she's the one with the mega phone). And for a Congressionally chartered non-profit like the American Red Cross, that's just not acceptable.

The American Red Cross does answer to a higher power, they answer to all of us donors. We make it possible for you to make volunteer blood donation into a MULTI-BILLION DOLLAR business. It's time for you to negotiate in good faith with the unions representing the folks who make our blood supply safe. Until you do, you won't be getting checks from me or my blood. I'm just not comfortable with your profiting on the backs of folks making our blood supply safe. It's time for you to do the right by your workers and not so much your CEO's. I think you can put down the AIG play book now, don't you?