Dr. Martin Luther King, Jr. was assassinated on April 4, 1968 in Memphis, Tenn., where he traveled to support AFSCME sanitation workers fighting for fair wages and recognition of their union: AFSCME Local 1733.

Dr. King did not live to see the full realization of his dream. Nonetheless, the cause of equality and economic justice to which he dedicated his life remains as relevant today as it was four decades ago.

Our country has made definite progress toward ensuring the doors of the American Dream are open to all. As Pres. Barack Obama said in his inaugural speech, this is “why a man whose father less than 60 years ago might not have been served at a local restaurant can now stand before you to take a most sacred oath.”

But the fact of the matter is this: when it comes to completely fulfilling Dr. King’s dream of an America with abundant opportunity and shared prosperity and when it comes to making sure the American Dream really is in reach for all, this nation still has a lot of work to do.

When 47 million Americans lacking health insurance and those who have it see their premiums skyrocket beyond their means, it’s clear that we need quality, affordable health care for all.

When national unemployment stands at 8.5 percent, we need to stop layoffs and ease the burden on state and local governments so they can keep providing vital public services in times of need.

When the middle class continues to get squeezed out of existence, and more than half of U.S. workers – 60 million – say they would join a union if they could, we must give them this possibility. We need the Employee Free Choice Act to restore the freedom to bargain for better wages, benefits and working conditions without harassment from employers.

In other words, we must create an America that lives up to its ideals – the ideals expressed in Dr. King’s dream.

AllianceBernstein, Ameriprise, Barclays and Columbia Top List of Mutual Funds Supporting Excessive CEO Pay

New Report Examines Mutual Fund Proxy Voting Patterns on CEO Salaries

Full report here (PDF)

Washington, DC — A new report reveals that mutual funds have contributed to excessive executive compensation by voting in favor of management proposals that increase executive pay packages and voting against shareholder proposals that seek to align pay with performance.  In the wake of outrage over the millions of dollars financial firms such as AIG and Merrill Lynch have distributed to top executives despite poor performance, the report makes several recommendations, including a call for the Securities and Exchange Commission to require mutual funds to distribute a Plain English report on proxy voting to investors.

In a report released today, "Compensation Accomplices: Mutual Funds and the Overpaid American CEO," the American Federation of State, County and Municipal Employees (AFSCME), The Corporate Library and the Shareowner Education Network (SEN) analyzed mutual fund voting patterns on compensation issues in 2007 and 2008. The report found that mutual funds are increasingly supportive, as a group, of management positions on proposals dealing with executive pay.

"Given the performance of many companies, investors in mutual funds should be outraged that their assets are being used to prop up CEO pay that is too often undeserved and unearned," said AFSCME International President Gerald W. McEntee. "The worst ranked funds are accomplices in the overpayment of CEOs.  They should be protecting the assets of their clients by demanding that CEOs get paid for performance, rather than supporting runaway pay."

The mutual fund industry's four consistently worst "pay enablers," judged most complicit in consistently enabling runaway CEO pay, are AllianceBernstein, Ameriprise Financial, Barclays Global Investors and Columbia Management.  According to the AFSCME/The Corporate Library/Shareholder Education Network analysis, AllianceBernstein was the worst offender, supporting management compensation proposals over 90 percent of the time while its support for shareholder proposals decreased to 2 percent.

Templeton, T. Rowe Price and Schwab consistently came out at the top of the ratings as most likely to vote to constrain pay. These funds voted for shareholder proposals designed to constrain executive compensation at an average of 78 percent. They also voted against directors on compensation committees at pay offending companies at a higher rate than other funds.

The report found that the average level of support for management proposals on compensation issues was 82 percent in 2007 and 84 percent in 2008, a steady increase from 75.8 percent in 2006. The average level of support for the categories of compensation-related shareholder proposals was 42 percent in 2007 and 40 percent in 2008, a significant decrease from the 46.5 percent in 2006.  Mutual funds did show they were more willing to withhold votes from directors over compensation issues, increasing the average level of withheld support for certain directors from 42 percent in 2007 to 52 percent in 2008.

 "The Shareowner Education Network is pleased to be part of this effort to inform the retail shareholder market about mutual fund voting patterns on pay issues," said Shareowner Education Network director John Wilcox. "The mutual fund industry plays a critical role in protecting the retirement security of America's citizens. Retail investors choosing mutual funds for their 401Ks and pension assets need to understand how these assets are being affected by mutual fund policies and proxy voting decisions."  Wilcox added, "One of the first projects we are undertaking for the SEN website is to give public access to the proxy voting records of mutual funds on CEO pay and provide a link to register concerns."

"It was surprising to see mutual funds becoming more supportive of management positions, given the uproar over outsized executive pay and distorted incentives," noted Beth Young, Senior Research Associate at The Corporate Library, "though one bright spot was the willingness of mutual funds to withhold votes from directors associated with irresponsible compensation practices."  Ms. Young added, "Despite hints that the SEC might require more standardized formatting of the N-PX filings, that has not come to pass, making it much more difficult than it should be to extract and analyze this data.  The SEC should take action to make this important information more accessible to investors by requiring mutual funds to issue a plain English report on their corporate governance philosophy and voting record each year."

 "Compensation Accomplices: Mutual Funds and the Overpaid American CEO" examined the voting records of 26 of the largest mainstream mutual fund families on executive compensation-related proposals at corporate annual meetings from July 1, 2006 to June 30, 2007 and from July 1, 2007 to June 30, 2008. The report used data that the mutual funds are required to disclose to the Securities and Exchange Commission in their N-PX filing. The report ranked the fund families according to how they voted in director elections, on management compensation proposals, and on shareholder compensation-related proposals in several different categories including performance-based equity compensation, shareholder advisory votes on CEO pay, and caps on severance payments. 

The Report offers four action recommendations:

1. Mutual funds that are the "pay enablers" should revise their proxy voting policies to ensure that they promote responsible compensation programs.
2. Mutual funds should have clear mechanisms for establishing and communicating their view of pay to compensation committee directors.
3. Retail investors in mutual funds should evaluate how their mutual funds vote on pay issues and hold those funds accountable for votes that enable pay abuses.
4. The SEC should require funds to distribute a Plain English report on proxy voting to their investors and revise and improve the N-PX data disclosure. 

This is the third report produced by The Corporate Library and AFSCME examining mutual fund proxy voting patterns and CEO pay. Now in its tenth year, The Corporate Library is the leading independent source for corporate governance and executive compensation research and risk analysis. A copy of the report is available in The Corporate Library's online store at http://www.thecorporatelibrary.com.  AFSCME is the largest union for workers in public service with 1.6 million members nationwide. AFSCME members' retirement assets are invested by public pension systems, with combined assets totaling more than $1 trillion. For the second time, this report is also being co-sponsored by the Shareowner Education Network, a nonprofit organization dedicated to educating and promoting patient, long-term investment strategies for retail investors and the financial institutions that serve them. An interactive copy of the report is available on SEN's website at http://www.shareowners.org.

(Jefferson City, MO) Dozens of State Employees represented by AFSCME Council 72 came together in Jefferson City to begin organizing for upcoming contract negotiations with the State of Missouri. While in Jefferson City AFSCME leaders and activist focused on building the union’s strength in three key areas: contract negotiations, organizing members, and political action.

Bargaining a strong contract 

AFSCME leaders outlined a plan of action for negotiating a fair and strong contract with the State of Missouri. Members focused on negotiating policies that will allow them to deliver quality public services in a safe work environment. During the hours of discussion and planning the members identified several high priority areas; recognizing the value of workers with seniority and experience, the ability of workers to use sick leave and compensatory time free of management harassment, binding arbitration of grievances, controlling members health care costs, the choice of compensatory time or payment for overtime worked, and improving the safety standards for workers and clients.

Building Our Strength in the Shop

Leaders developed strategies for increasing union strength and membership in the workplace. Over 30 of the participants signed up as Volunteer Member Organizers (VMO) to help build power in the workplace and increase union membership in every local union.

Taking Political Action

As part of AFSCME Council 72’s expanding Political Action program Missouri State Workers debriefed the 2008 General Election, and looked towards 2010. Members discussed  AFSCME’s successes in 2008 including the landslide victory of AFSCME Council 72’s top targeted candidate Governor Jay Nixon.

Members also identified their top political priorities for expanding AFSCME Council 72’s influence in the political arena. AFSCME leaders identified multiple priorities for their political program including having State Legislators make visits to the worksite to see the quality services AFSCME members provide.  Leaders recognized the need for a large presence at our April 22^nd state-wide lobby day as a top priority and stepped up with 30 commitments to attend. Leaders also made commitments to bring their co-workers to the capital and advocate for the services AFSCME members provide.

For IMMEDIATE RELEASE

Monday, March 02, 2009

"A Great Choice"

Statement of AFSCME President Gerald W. McEntee on the Nomination of Governor Kathleen Sebelius to be Secretary of Health and Human Services

"President Obama has made a great choice with Kathleen Sebelius to head the Department of Health and Human Services.  She understands health care from top to bottom.  AFSCME has worked closely with Governor Sebelius in Kansas and we know that she has the talent and commitment to lead the fight for affordable, quality health care for all.  She's earned her reputation for working closely with both parties to get real results for people.  We look forward to working with her in the months ahead as we fight to win health care once and for all."

AFSCME's 1.6 million members provide the vital services that make America happen. With members in hundreds of different occupations - from nurses to corrections officers, child care providers to sanitation workers - AFSCME advocates for fairness in the workplace, excellence in public services and prosperity and opportunity for all working families.

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American Federation of State, County
and Municipal Employees, AFL-CIO
1625 L Street, N.W. Washington, D.C. 20036-5687
Telephone (202) 429-1145
Fax (202) 429-1120

One day after Missouri’s new Governor, Jeremiah “Jay” Nixon took the oath of office, the newly elected officers and trustees of Local 3820, North Kansas City School District, raised their right hands and were sworn into office.  “Now it’s someone else’s turn to run things,” jokingly stated out-going president Shirlean Burt. She then completed her last official act of her presidency and welcomed the newly elected president Ron Yount. Shirlean Burt is not going far though. She was elected vice-president by acclimation.

“We are all looking forward to the next two years.” stated Ron Yount, “It ‘s been rough lately.” Yount was referring to the break down in contract negotiations between the union and the North Kansas City school district. “What our members don’t know yet, is that I’ve received a letter from the district wanting to re-open negotiations. I think with our new officers and with a new Rep. [Business Representative] from Council 72, things just might turn around for us.”

Local 3820 is making plans to elect a negotiating team and go to the negotiating table as soon as possible so that they have an opportunity to make recommendations for salary and other economic issues for the districts upcoming budget cycle. “We know that things are tough in the economy right now. Every-one is making sacrifices. But if one group of employees is getting a raise then we should all be considered.” said Yount, “Our union will do whatever we can help to help the district get funds. It’s better for every-one if we work together.”   

AFSCME Local member Tom Barngrover, employed by Shawnee County Refuse in Topeka, Kansas, was terminated on October 28, 2008 after 27 years with the Department. The Employer alleged that Mr. Barngrover had acted in a non-professional manner and committed “acts detrimental to the County” while on his regular route. Immediately, Local 1294 Chief Steward Ralph McMasters became involved filed a grievance for unjust termination and disparate treatment.

On December 10, 2008 a grievance meeting was held In Topeka with Representatives of the Employer and Mr. Barngrover was represented by Council 72 Staff Representatives Eric Moore and Roger Levings and Local 1294 Stewards Ralph McMasters, Marco Adams and Howie Cummings. The Union’s position was that Mr. Barngrover had a good work record along with his 27 years of dedicated service to the County. Also, Mr. Barngrover was treated differently than other employees have been in the past in similar situations.

            The Local grievance committee had decided that if Mr. Barngorvers’ grievance was denied there was no alternative but to take this case to arbitration. On January 2, 2009 the Union received a grievance settlement offer from the Employer that stated in part that Mr. Barngrover could return to work immediately if he agreed to waive his back pay and seniority. The Local held their ground and refused the offer and a counter offer was made in which Mr. Barngrover would serve a short suspension and otherwise be made whole. On January 15, 2009 the agreement was reached between the Employer and the Union and Brother Barngrover returned to work on January 20, 2009.

            Brother Barngrover stated “I’m proud to be part of this Union and the representation I have received during this ordeal.” Staff Representative Eric Moore added “The quick response and investigation by Steward Ralph McMasters was the clincher in this process. I was also impressed with the way the membership rallied around Brother Barngrover, this is the type of solidarity that makes AFSCME a force to be reckoned with.”

(Jefferson City) On March 12, 2009 the newly formed union for Missouri home care attendants submitted petition cards signed by thousands of attendants to hold an election for union representation. Missouri’s Consumer Directed Home Care program provides vital services to tens of thousands of Missourians with disabilities, allowing them to continue living at home. Though the program – and the attendants who assist the consumers – saves the state millions of dollars by allowing consumers to remain in their homes and not go to nursing facilities, attendants barely make minimum wage and have no benefits. An array of issues face consumers and attendants which and will be better addressed through collective bargaining.

This is made possible by the last November’s passage – with 75% of the vote -- of Proposition B, the Missouri Quality Home Care Act, which sets up the Missouri Quality Homecare Council. Missouri’s two largest unions representing home care attendants – the American Federation of State, County and Municipal Employees and the Service Employees International Union – have formed an alliance to represent Missouri attendants. A union representation election by attendants, conducted by the state Board of Mediation, is expected later this spring.

(Jefferson City, MO)- As part of their ongoing fight for union representation members of the Home Care Union, a joint project of AFSCME Council 72 and SEIU Missouri State Council, held their first of many political actions.

Home Health Care workers from across Missouri called their State Senators and demanded that they fight to restore $350,000 of funding for the Home Care Council included in Governor Jay Nixon’s proposed State Budget. This funding was slashed to nothing by the proposed budget cuts of the Missouri House of Representatives.

In addition, the workers made commitments to continue their advocacy with a petition drive back home. “It is important for all Home Health Care workers to speak with one loud and united voice, and that is exactly what they did today and will continue to do in the future. Today Home Health Care workers sent the message that it is unacceptable for the state to shortchange the needs of its most vulnerable citizens and their caregivers.” said Don Zavodny, Director of AFSCME Council 72. “The people receiving in home health care deserve to know they have a fully funded Home Care Council overseeing their care.”