[Congressional Record (Bound Edition), Volume 145 (1999), Part 9]
[Senate]
[Pages 13001-13004]
[From the U.S. Government Publishing Office, www.gpo.gov]



                JUSTICE FOR WORKERS AT AVONDALE SHIPYARD

  Mr. WELLSTONE. Mr. President, I rise today in solidarity with the 
workers at Avondale Shipyard in Louisiana, who exactly 6 years ago 
exercised their democratic right to form a union and bargain 
collectively.
  They voted for a union because that was the only way they knew to 
improve their working conditions, conditions that include more worker 
fatalities than any other shipyard in the country, massive safety and 
health violations, and the lowest pay in the shipbuilding industry.
  Unfortunately, Avondale and its CEO, Albert Bossier, have refused to 
recognize the union Avondale workers voted for back in 1993. For 6 
years the shipyard and its CEO have refused to even enter into 
negotiations. According to a federal administrative law judge, Avondale 
management has orchestrated an ``outrageous and pervasive'' union-
busting campaign in flagrant violation of this country's labor laws, 
illegally firing and harassing employees who support the union.
  I met with some of the Avondale workers several weeks ago when they 
were here in Washington. What they told me was deeply disturbing. They 
told me about unsafe working conditions that make them fear for their 
lives every day they are on the job. They told me that job safety was 
the number one reason why they voted to join a union back in 1993. And 
they told me that Avondale continues to harass and intimidate workers 
suspected of supporting the union.
  In fact, it appears that one of those workers, Tom Gainey, was 
harassed when he got back to Louisiana. Avondale gave him a three-day 
suspension for the high crime of improperly disposing of crawfish 
remains from his lunch.
  The Avondale workers also told me that they are starting to lose all 
faith in our labor laws. For 6 years Avondale has gotten away with 
thumbing its nose at the National Labor Relations

[[Page 13002]]

Board, the NLRB. The Avondale workers said they are starting to think 
there is no point in expecting justice from the Board or the courts. 
And given what they have been through, I think it is hard to disagree.

       In February 1998, a Federal administrative law judge found 
     Avondale guilty of ``egregious misconduct,'' of illegally 
     punishing dozens of employees simply because they supported 
     the Avondale union. The judge, David Evans, found that 
     Avondale CEO Albert Bossier had ``orchestrated'' an anti-
     union campaign that was notable for the ``outrageous and 
     pervasive number and nature of unfair labor practices.''

  In fact, Judge Evans found Avondale guilty of over 100 unfair labor 
practices. Specifically, Avondale had illegally fired 28 pro-union 
workers, suspended 5 others, issued 18 warning notices, denied benefits 
to 8 employees, and assigned ``onerous'' work to 8 others.
  Judge Evans also found that, during public hearings in the Avondale 
case, Avondale's Electrical Department Superintendent, a general 
foreman, and two foremen had all committed perjury. He further found 
that perjury by one of the foremen appears to have been suborned, and 
he implied that Avondale and its counsel were responsible.
  Avondale's intimidation of its employees was so outrageous, so 
pervasive, and so systematic that Judge Evans came down with a highly 
unusual ruling. He ordered CEO Albert Bossier to call a meeting with 
Avondale workers and personally read a statement listing all of the 
company's violations of the law and pledging to stop such illegal 
practices. Judge Evans further ordered Mr. Bossier to mail a similar 
confession to workers at their homes.
  Finally, Judge Evans fined Avondale $3 million and ordered the 
shipyard to reinstate 28 workers who had been illegally fired for union 
activities. Pretty remarkable.
  What is even more remarkable is that Avondale still hasn't paid its 
fine, still hasn't rehired those 28 workers, and still hasn't made any 
apology. Why not? Because instead of complying with Judge Evans' order, 
Avondale chose to challenge the NLRB in court.
  Judge Evans' ruling concerned Avondale's unfair labor practices 
during and after the 1993 election campaign. A second trial was held 
this past winter on charges of unfair labor practices during the mid-
1990s. Now the NLRB has filed charges against Avondale for unfair labor 
practices since 1998, and a third trial on those charges is scheduled 
to begin later this year.
  This has been one of the longest and most heavily litigated 
unionization disputes in the history of the NLRB. After workers voted 
for the union in June 1993, Avondale immediately filed objections with 
the Board. But in 1995 an NLRB hearing officer upheld the election, and 
in April 1997 the Board certified the Metal Trades Council as the union 
for Avondale workers, once and for all rejecting Avondale's claims of 
ballot fraud.
  At this point, you might think Avondale had no choice but to begin 
negotiations with the union. But they didn't. Avondale still refused to 
recognize the union or conduct any negotiations. So in October 1997 the 
NLRB ordered Avondale to begin bargaining immediately. Instead, 
Avondale decided to challenge the NLRB's decision in the Fifth Circuit 
Court of Appeals, and has succeeded in delaying the process for another 
two years, at least.
  Safety problems at Avondale were the central issue in the 1993 
election campaign. ``We all know of people who have been hurt or killed 
at the yard,'' says Tom Gainey, the Avondale worker who was harassed 
after visiting Congressional offices several weeks ago. ``That's one of 
the main reasons we came together in a union in the first place.''
  Avondale has the highest death rate of any major shipyard. According 
to federal records, 12 Avondale workers died in accidents from 1982 to 
1994. Between 1974 and 1995, Avondale reported 27 worker deaths. The 
New Orleans Metal Trades Council counts 35 work-related deaths during 
that period. One Avondale worker has died every year, on average, for 
the past thirty years.
  It doesn't have to be that way. Avondale's fatality rate is twice as 
high as the next most dangerous shipyards. And it's more than twice as 
high as its larger competitors, Ingalls Shipyard and Newport News.
  Avondale workers have died in various ways, many from falling or from 
being crushed by huge pieces of metal. Avondale workers have fallen 
from scaffolds, been struck by falling ship parts, been crushed by 
weights dropped by cranes, and have fallen through uncovered manholes.
  Avondale's safety problems are so bad that it recently got slapped 
with the second largest OSHA fine ever issued against a U.S. 
shipbuilder. OSHA fined Avondale $537,000 for 473 unsafe hazards in the 
workplace. OSHA found that 266 of these violations--more than half--
were ``willful'' violations. In other words, they were hazards Avondale 
knew about and had refused to fix.
  Most of these violations were for precisely the kind of hazards that 
account for Avondale's unusually high fatality rate. These 266 
``willful'' violations involved hazards that can lead to fatal falls, 
and three of the seven workers who died at Avondale between 1990 and 
1995 died from falls. Didn't Avondale learn anything from these 
tragedies?
  OSHA found 107 ``willful'' violations for failure to provide adequate 
railings on scaffolding. 51 willful violations for unsafe rope rails. 
30 willful violations for improperly anchored fall protection devices. 
25 willful violations for inadequate guard rails on high platforms. And 
27 willful violations for inadequate training in the use of fall 
protection.
  OSHA also found 206 ``serious'' violations for many of the same kind 
of hazards. ``Serious'' violations are ones Avondale knew about--or 
should of known about--that pose a substantial danger of death or 
serious injury.
  This is what Labor Secretary Alexis Herman had to say about 
Avondale's safety problems: ``I am deeply concerned about the 
conditions OSHA found at Avondale. Falls are a leading cause of on-the-
job fatalities, and Avondale has put its workers at risk of falls up to 
90 feet. The stiff penalties are warranted. Workers should not have to 
risk their lives for their livelihood.''
  OSHA Assistant Secretary Charles Jeffress said, ``Three Avondale 
workers have fallen to their deaths, one each in 1984, 1993, and 1994. 
This inspection revealed that conditions related to these fatalities 
continued to exist at the shipyard. This continued disregard for their 
employees' safety is unacceptable.''
  And what was Avondale's response? True to form, Avondale appealed the 
OSHA fines. Avondale claimed that many of the violations were the 
result of employee sabotage. Avondale also tried to argue that the OSHA 
inspector was biased. In response, the head of OSHA observed that 
``it's very unusual for a company to accuse its own employees of 
sabotage, and it's very unusual for a company to attack the objectivity 
of OSHA inspectors.''
  OSHA had found many of the same problems back in 1994, the last time 
it conducted a comprehensive inspection of Avondale. In 1994 OSHA cited 
Avondale 61 times for 81 violations, with a fine of $80,000 that was 
later settled for $16,000.
  There may be more fines to come. The OSHA inspection team will soon 
finish its review of Avondale's safety and medical records. This review 
was delayed last October when Avondale launched yet another legal 
battle to prevent OSHA from obtaining complete access to its records.
  One of the Avondale workers who visited my office several weeks ago 
was there during the OSHA inspection, and told me how it happened. OSHA 
tried to inspect Avondale's Occupational Injuries and Illness logs. But 
Avondale refused complete access and, according to OSHA, ``attempted to 
place unnecessary controls over the movements of the investigative team 
and their contact with employees.''
  When OSHA issued a subpoena for the logs, Avondale stopped all 
cooperation with OSHA and told the inspectors to leave the premises. 
OSHA had to go to New Orleans district court to get an order enforcing 
the subpoena.

[[Page 13003]]

  The other main issue in the 1993 election campaign was pay and 
compensation. Avondale workers have long been the worst paid in the 
shipbuilding industry. They have the lowest average wage of any of the 
five major private shipyards. According to a survey conducted by the 
AFL-CIO, Avondale workers make 29 percent less than workers at other 
private contractors for the Navy, and 48 percent less than workers at 
the nation's federal shipyards. One Avondale mechanic, Mike Boudreaux, 
says, ``It's a sweatshop with such low wages.''
  By way of comparison, look at Ingalls Shipyard, down the river in 
Pascagoula, Mississippi. The average pay at Ingalls is higher than the 
top pay at Avondale. Or look at wages in nearby New Orleans for 
plumbers, pipe fitters, and steam fitters. Their average wage is higher 
than the top pay at Avondale.
  Avondale is also known for its inadequate pension plan. There are 
Avondale retirees with 30 years' experience who retire with $300 per 
month. And workers complain that they can't afford Avondale's family 
health insurance, which costs $2,000 per year. Avondale workers pay 
more for health care every week than Ingalls workers pay every month.
  Unlike other shipyards, Avondale has had a hard time attracting 
workers, and inferior working conditions certainly have a lot to do 
with it. Avondale has responded to this labor shortage by using prison 
labor and importing workers from other countries. It imported a group 
of Scottish and English workers who were so appalled at the working 
conditions and low pay that they quit after three days. Nearby Ingalls 
shipyard, by contrast, has never had to import foreign workers on 
visas.
  So why does Avondale pay so little? Because times are tough? Hardly. 
Avondale CEO Alfred Bossier has been doing quite well, thank you. In 
1998, Mr. Bossier's base salary and bonuses totaled $1,012,410, up more 
than 20 percent from the previous year. His benefits increased to 
$17,884, up 73 percent from the previous year. And he got 45,000 shares 
of stock options, worth up to $1,927,791. The grand total comes to 
about $3 million.
  Meanwhile, the average hourly production worker at Avondale earns 
less than $10 an hour--or around $20,000 per year. So Al Bossier brings 
home about 150 times the salary of the average hourly worker.
  The obvious question is how can Avondale get away with such appalling 
behavior? How can it be so brazen? The answer is depressing. Avondale 
gets away with it because our labor laws are filled with loopholes. 
Avondale gets away with it because the decks are stacked against 
workers who want to improve their working conditions by bargaining 
collectively.
  Avondale gets away with it because they have enough money to tie up 
the courts, knowing full well that organizing drives can fizzle out in 
the five or six or seven years that highly-paid company lawyers can 
drag out the process. When asked how Avondale gets away with it, one 
worker laughed and said, ``This is America. It's money that talks.''
  There's one other reason why Avondale gets away with it, and this is 
something I find especially troubling. They get away with it because 
American taxpayers are footing the bill. The Navy and the Coast Guard 
are effectively subsidizing Avondale's illegal union-busting campaign. 
Avondale gets about 80 percent of its contracts from the Navy for 
building and repairing ships. If it weren't for the United States Navy, 
Avondale probably wouldn't exist. This poster child for bad corporate 
citizenship is brought to you courtesy of the American taxpayer.
  This is a classic case of the left hand not knowing what the right 
hand is doing. On the one hand, the NLRB and OSHA find Avondale in 
flagrant violation of the law. On the other hand, the Navy keeps 
rewarding Avondale with more contracts. Avondale has gotten $3.2 
billion in contracts from the Navy since 1993, when the shipyard first 
refused to bargain collectively with its workers.
  To add insult to injury, Avondale is billing the Navy for its illegal 
union-busting. The Navy agreed to pick up the tab for anti-union 
meetings held on company time in 1993. Nearly every day for three 
months leading up to the union election, Avondale management called 
workers into anti-union meetings. Then they billed the Navy for at 
least 15,216 hours spent by workers at those meetings.
  Some of these meetings were the same ones where Avondale illegally 
harassed and intimidated workers, according to Judge Evans. Yet the 
Defense Contractor Auditing Agency, DCAA, approved Avondale's billing 
as indirect spending for shipbuilding. And Avondale billed the Navy 
$5.4 million between 1993 and 1998 for legal fees incurred in its NLRB 
litigation.
  When the Navy looks the other way as one of its main contractors 
engages in flagrant lawbreaking, it sends a message. When the Navy 
keeps awarding contracts to Avondale, when it pays Avondale for time 
spent in anti-union meetings where workers are harassed and 
intimidated, when it pays for the legal costs of fighting Avondale's 
workers, it sends a message. It sends the message that this kind of 
behavior by Avondale is okay.
  When Avondale continues to beat out other shipyards for huge defense 
contracts, that sends a message too. It sends a message that this is 
the way you compete in America today. You compete by violating your 
workers' rights to free speech and free assembly. You compete by 
illegally firing and harassing your workers. You compete by keeping 
your employees from bettering their working conditions through 
collective bargaining.
  And that message is not lost on other companies. They see what 
Avondale is getting away with, and they draw the obvious conclusions. 
The AFL-CIO's state director pointed to another Louisiana company that 
initially refused to recognize the union its workers had elected. 
``Part of it is they're following Bossier's lead,'' she said. ``After 
all, the guy's been at it for five years [now six] and he still gets 
all the contracts he wants.''
  Under federal regulations, the Navy is required to exercise oversight 
over the $3.2 billion in contracts it has awarded to Avondale. And the 
Navy can only award contracts to ``responsible contractors.'' The 
contracting officer has to make an affirmative finding that a 
contractor is responsible. Part of the definition of a ``responsible 
contractor'' is having a ``satisfactory record of integrity and 
business ethics.'' So the Navy has to affirmatively determine that 
Avondale has a satisfactory record of integrity and business ethics.
  Well, what exactly would qualify as an unsatisfactory record? Judge 
Evans ruled that Avondale management had orchestrated an ``outrageous 
and pervasive'' union-busting campaign consisting of over 100 
violations of labor law and the illegal firing of 28 employees. OSHA 
has found 473 safety violations--266 of them willful--and fined 
Avondale $537,000, the second largest fine in U.S. shipbuilding 
history.
  The AFL-CIO has asked the Navy to investigate Avondale's business 
practices, as a first step to determining what steps should be taken. 
That doesn't sound so unreasonable to me. In fact, it seems to me that 
the Navy ought to be concerned when its contracts come in late, as they 
have at Avondale. It ought to be concerned when a contractor's working 
conditions are so bad that it suffers from labor shortages.
  And it seems to me the Navy ought to investigate whether a company 
found to have orchestrated an ``outrageous and pervasive'' campaign to 
violate labor laws is a responsible contractor. Or whether a shipyard 
found to have willfully violated health and safety laws 266 times is a 
responsible contractor.
  The Navy says it cannot take sides in a labor dispute. But nobody is 
asking them to do that. The problem is that they already appear to have 
taken sides. When the Navy finances Avondale's union-busting campaign, 
when it pays legal fees for Avondale's court challenges, when it 
certifies Avondale as a responsible contractor

[[Page 13004]]

with a satisfactory record of integrity and business ethics, and when 
it rewards Avondale with Navy contracts, the Navy appears to be taking 
sides.
  What has happened at Avondale should give us all pause. The NLRB's 
general counsel acknowledges that the Avondale case exposes the many 
problems with the system, caused in part by budget cuts and procedural 
delays. ``It's hard to take issue with the notion that it's frustrating 
that an election that took place five years ago [now six] still hasn't 
come to a conclusion. It's something we're looking at as an example of 
the process not being what it should be.''
  Indeed, the Avondale case exposes glaring loopholes in our labor laws 
that make it next to impossible for workers to form a union and bargain 
collectively. In fact, this case provides us with a roadmap for putting 
a stop to rampant abuses of our labor laws.
  First of all, we need to restore cuts in the NLRB's budget so that 
defendants with deep pockets can't delay the process for years and 
years. But beyond that, we need to improve our labor laws so we can put 
a stop to abuses of the kind we've seen in the Avondale case.
  We need to install unions quickly after they win an election, the 
same way we allow elected officials to take office pending challenges 
to their election. Why should workers be treated any differently than 
politicians?
  In addition, we need to strengthen penalties against unfair labor 
practices such as the illegal firing of union organizers and 
sympathizers. And we need to ensure that organizers have equal access 
to workers during election campaigns, so that companies like Avondale 
are not able to intimidate their employees and monopolize the election 
debate.
  Senator Kennedy and I have introduced legislation that would do 
exactly that. Our bill--S. 654, the Right to Organize Act of 1999--
would provide for mandatory mediation and binding arbitration, if 
necessary, after a union is certified. It would provide for treble 
damages and a private right of action when the NLRB finds that an 
employers has illegally fired its workers for union activity. And it 
would give organizers equal access to employees during a union election 
campaign.
  The Avondale case sends a message to other companies and to workers 
everywhere, and it's the exact opposite of the message we should be 
sending. We should be sending a message that corporations are citizens 
of their community and need to obey the law and respect the rights of 
their fellow citizens. We should be sending a message that corporations 
who live off taxpayer money, especially, have an obligation to be good 
corporate citizens.
  Avondale is making a mockery of U.S. labor laws and of the democratic 
right to organize. Instead of rewarding and financing the illegal labor 
practices of employers such as Avondale, I believe we should shine a 
light on these abuses and put a stop to them.
  Mr. President, I yield the floor.
  The PRESIDING OFFICER. The Senator from Wisconsin.

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