Debi Durham’s appointment as economic development leader was the big news of the week from Governor-elect Terry Branstad’s camp, but he and his close advisers continue to lay the groundwork for his administration.

After the jump I catch up on stories about the state budget, inauguration plans, and top Branstad donors from the past year.

What’s on your mind this weekend, Bleeding Heartland readers?

Past and perhaps future presidential candidate Mike Huckabee is in Des Moines tonight Sunday, headlining the Iowa Family Policy Center’s annual fundraiser. Other speakers include WHO talk radio personality Steve Deace and Iowa Family Policy Center Action president Chuck Hurley.

The big event is also Bob Vander Plaats’ debut as “president and chief executive officer of an umbrella group that includes the Iowa Family Policy Center, Marriage Matters and their political action committee.” The Iowa Family Policy Center endorsed Vander Plaats for governor. Huckabee came to Iowa to campaign for Vander Plaats, who chaired his successful Iowa caucus campaign in 2008.

Vander Plaats told journalists this week that his umbrella group will mobilize social conservatives and endorse a candidate for the upcoming Iowa caucus campaign. If Huckabee stays out of the presidential race, several campaigns will work hard to win the approval of Vander Plaats, Hurley and Deace. If Huckabee runs again, other candidates may as well not waste their time.

I got a robocall from Huckabee Thursday or Friday of this week, but I don’t know whether it was a fundraising call or an attempt to identify supporters. The call ended quickly after I answered “no” to the question, “Do you consider yourself pro-life?”

I’m headed to a friend’s birthday party tonight as soon as my version of Jewish noodle kugel comes out of the oven for the potluck. Quite a few Branstad voters will be in attendance (including the birthday girl), and I’m determined not to get into any arguments.

My Twitter feed is full of Republicans freaking out about Governor Chet Culver’s deal with AFSCME. A 2 percent raise for state employees, followed by a 1 percent raise, is far from excessive. Republican complaints about Culver’s lack of “courtesy” amuse me. It wasn’t too polite of Terry Branstad to spend millions of dollars on tv ads lying about I-JOBS and how Culver managed the state’s finances.

UPDATE: To clarify, the proposed contract with AFSCME involves a 2 percent across the board salary increase starting July 1, 2011, a 1 percent across the board salary increase starting January 1, 2012, another 2 percent across the board salary increase beginning July 1, 2012, and a 1 percent across the board salary increase starting January 1, 2013.

This is an open thread.

UPDATE: Kay Henderson posted a good liveblog of Huckabee’s November 21 press conference and his speech to the Iowa Family Policy Center crowd. The same post links to an audio clip of Huckabee’s comments to reporters and covers Vander Plaats’ speech to the crowd at the fundraiser.

Governor Chet Culver accepted a tentative deal today on a new two-year contract with with largest union representing state employees. The contract would increase the pay of all state workers covered by AFSCME by 2 percent in fiscal year 2012 (from July 2011 through June 2012), with another 1 percent wage increase in fiscal year 2013. Some employees would qualify for other pay increases as well.

Iowa Republicans immediately denounced the deal.

What’s on your mind this weekend, Bleeding Heartland readers?

Yesterday Stephen Colbert testified before a House Judiciary subcommittee about the need to provide more visas and better working conditions for migrant farm workers. He was in character, cracking jokes, during part of the hearing, but answered seriously when asked why he took an interest in this issue:

“I like talking about people who don’t have any power and it seems like one of the least powerful people in the United States are migrant workers who come and do our work but don’t have any rights as a result. But yet we still invite them to come here and at the same time ask them to leave. […] Migrant workers suffer and have no rights.”

Representative Steve King was at the hearing and didn’t care for Colbert’s stunt. He suggested that Colbert didn’t really spend a day working on a farm, as he claimed to have done, and accused Colbert of disparaging American workers who “perform the dirtiest, most difficult, most dangerous (jobs) that can be thrown at them.”

Maybe King was jealous that someone advocating for immigration reform grabbed a lot of media attention. Immigration has long been one of King’s pet issues. Fox News invited King on for a segment about whether Colbert’s testimony was appropriate.

Not surprisingly, media commentators seem more interested in the controversy surrounding Colbert’s appearance than in the topic at hand: an agriculture jobs bill that would give undocumented farm workers a path to U.S. citizenship.

This is an open thread.

UPDATE: Both Governor Chet Culver and Republican candidate Terry Branstad are scheduled to announce “major endorsements” on Monday morning. Who do you think those could be? My guess is the Branstad endorser will be a business person who has supported some Democrats in the past.  

How are you spending the holiday, Bleeding Heartlanders? I’m off to see the Iowa Cubs’ last game of the regular season. If they win, they’ll make the playoffs.

If you attended any labor celebrations this weekend, you may have encountered some Democrats running for office. U.S. Senate candidate Roxanne Conlin attended the Clinton County Labor Day picnic yesterday and was grand marshall of the South Central Iowa Federation of Labor Parade in Des Moines today. Lieutenant Governor Patty Judge is at the Dubuque Labor Day parade today. Senator Tom Harkin, Iowa Democratic Party chair Sue Dvorsky and others will be at the Iowa City Federation of Labor picnic. Governor Chet Culver walked the labor parade in Des Moines today; later he’s is scheduled to attend the Hawkeye Federation of Labor picnic in Cedar Rapids. Culver’s relationship with organized labor has been strained in recent years, but he is clearly a better choice for working people than Terry Branstad. Culver’s campaign released this statement on September 4:

CULVER HONORS LABOR AND DIVERSITY; BRANSTAD’S POLICIES ATTACK LABOR AND LATINOS

Des Moines – Governor Culver is participating in Labor Day activities all across the state of Iowa this weekend including festivities with hard-working Iowans in Ottumwa, Cedar Rapids and Burlington.  Governor Culver has been on the side of working families from day one of his administration.  The first bill he signed raised the minimum wage in Iowa.  He favors labors reforms that give workers their Choice of Doctor, Prevailing Wage, Expanded Scope of Collective Bargaining and Fair Share.

By contrast, Terry Branstad has vowed all labor reform is dead if he becomes Governor.  As Governor, Branstad had to be ordered by the Iowa Supreme Court to honor a legally binding contract between him and the state’s largest state labor union.  He has also opposed working families by his plan to cut health insurance for children, cut state funding for preschool, eliminate job creating entities such as the the Department of Economic Development, the Iowa Jobs and Infrastructure Initiative, and the Iowa Power Fund.

Governor Culver is also attending the Latino Festival today in Des Moines.  This year, Governor Culver signed legislation combating wage discrimination and a bill requiring new legislation to be reviewed for its impact on minority incarceration. Governor Culver is also a strong supporter of civil rights, women’s rights and worker’s rights.

By contrast, Terry Branstad now opposes a United States Supreme Court decision stating that all children in the U.S. are entitled to a basic public education regardless of the citizenship status of their parents.  Branstad says this decision should be challenged even though it has been the law of the land since before he was governor and he failed to challenge or even speak out against the ruling during his entire 16 years in the governor’s office.  Even more extreme, Branstad wants Iowa to go further than the Arizona law currently being challenged in federal court by requiring that everyone carry their birth certificate with them when traveling.  His plan would not only be an unconstitutional invasion of privacy but it would also cost local counties a fortune in increased law enforcement and jail costs.

The choice for the future is clear:  Governor Culver wants to help working families and encourage economic and population growth by making Iowa a more tolerant and welcoming place.  Conversely, Branstad wants to return to his extreme policies of the 1980s by making it tougher on working families.  He also wants to implement some of the most extreme policies in the nation by going further than the Arizona law regarding the immigration issue.

President Barack Obama is in Milwaukee today to announce “a comprehensive infrastructure plan to expand and renew our nation’s roads, railways and runways.” Trouble is, to create a significant number of new jobs we need to spend much more than the $50 billion the president is now proposing.

Farmers and farm workers who are regularly exposed to pesticides, take note: a new study conducted in Iowa and North Carolina showed that “women who are married to farmers who were licensed to apply pesticides” had a higher incidence of thyroid disease.

The percentage of private-sector American workers who belong to labor unions has fallen to about 7 percent. That’s unfortunate, because not only are union jobs more frequently higher-wage jobs, non-union employees are more likely to have health benefits if some of their colleagues belong to a union. I saw this summer that the Service Employees International Union is trying to organize Sodexo, the giant food-service company that runs dining-hall operations at many Iowa colleges.

The AFL-CIO ran a Labor Day television ad during some college football games, major-league baseball games, and a NASCAR race over the weekend. The commercial has a mostly non-political message about “America’s workers” being “the backbone of our communities,” “moving our country forward,” “working together for a stronger America.” Expect more hard-hitting ads to come later this fall: AFL-CIO President Richard Trumka has promised “an aggressive and massive mobilization of working people this Labor Day weekend and for the fall election.” Democrats up and down the ticket in many states will be praying for a strong labor turnout, because most pollsters see a likely voter universe that tilts more toward Republicans than in 2008.

Finally, I got a laugh out of John Deeth’s observation today:

TheIowaRepublican says: “This Labor Day, Celebrate Iowa’s Right to Work Law.” Isn’t that like honoring deadbeat dads on Father’s Day?

Share any Labor Day thoughts in this thread.

This Labor Day, Wake Up Walmart, along with a large coalition of labor, environmental and community groups, are challenging Walmart to live up to their PR promises and join us in supporting the American Values Agenda for Change at Walmart.

To help with the effort, Wake Up Wal-Mart is airing two TV ads in major cities.  Check out the first here and the second below the fold:

There has been a lot of talk this week about the surprising move by Walmart to publically support President Obama’s health care reform plan, supposedly positioning themselves as a

leader in the fight to bring health care to all Americans. As we mentioned in a post on our blog

yesterday, this might be easier to swallow if Walmart had any history of leading by example. Instead, they usually do just the opposite.

Given

Walmart’s long record of trying to build a positive

reputation on ineffective work-arounds to health care coverage

for employee, the recent revelations about sacrificing quality for cheap perescription drugs, and their deceptive PR campaign that severely overstated their workers’ health

care coverage, it’s not hard to understand our skepticism. [get the details in the extended entry]

The parent company of the firm that allegedly exploited mentally disabled workers in Iowa claims not to be subject to our state’s labor laws, the Des Moines Register’s Clark Kauffman reported today.

In May, Iowa Workforce Development fined Henry’s Turkey Service $900,000 for 9,000 violations connected to men who worked at a plant in West Liberty. They received pitiful wages after fees were deducted for housing, food and other expenses.

But the parent company of Henry’s Turkey Service sees things differently:

An attorney for Hill Country Farms said in a written response that the company “is organized, operated and controlled according to the laws and regulations of the State of Texas” and is not subject to the Iowa laws it’s accused of violating.

The company maintains that all of the Iowa workers who lived for decades in a bunkhouse in Atalissa, near the West Liberty plant, were technically residents of Texas and that their real employer was West Liberty Foods, not Hill Country Farms.

State and corporate records support some elements of that argument but undercut other aspects of the company’s case.

For example, some of the Atalissa men were enrolled in Texas Medicaid – a program that in theory is open only to residents of Texas. But the W-2 tax forms in which the men’s wages were reported to the Internal Revenue Service indicate that Hill Country Farms, not West Liberty Foods, was the employer.

Kauffman writes that “it could be a year” before an administrative law judge rules on this case. I’m not an attorney, but I would hope Hill Country Farms is not able to get away with claiming men in Atalissa, Iowa, as Texas residents.

Staff at Iowa Workforce Development and the state legislature should look for ways to close any loopholes companies may be using to evade our labor standards.

Click here for the archive of Des Moines Register reports on Henry’s Turkey Service and the men it housed in Atalissa.

Iowa Workforce Development is fining Henry’s Turkey Service $900,000 for labor law violations, the Des Moines Register reported on May 29. The fine stems from 9,000 counts of making improper deductions from paychecks, not paying the minimum wage, and not providing pay stubs to the mentally disabled workers who lived in a decrepit bunkhouse in Atalissa. (The violations affected at least 30 workers during every pay period in 2007 and 2008.)

Since various agencies are conducting other investigations into the company’s treatment of its workers, I expect this fine will be the first of many levied against Henry’s Turkey Service. However, an attorney for the parent company of Henry’s Turkey Service told the Des Moines Register that the company will challenge Iowa Workforce Development’s proposal. It will be some time before any fines are paid.

Click here for the archive of Des Moines Register reports on this appalling story.

I’ve been meaning to write up a few stories about Senator Tom Harkin this week. As you may recall, he has been working on a compromise for the Employee Free Choice Act, which would build the middle class by making it easier for workers to join a labor union. (Click here for background on the EFCA.)

On Monday Harkin told Bloomberg News that the “card check” provision may have to be dropped from the EFCA in order to get the bill through the Senate. “Card check” means that workers could form a union if a majority sign a document stating that they would like to join a union. Republicans and business groups are loudly complaining that this would destroy “secret ballot” elections on unions, ignoring the reality: “[t]he current process is not secret or democratic.”

Anyway, Harkin told Bloomberg that he hopes to find a compromise

that will gain “maybe the grudging support of labor and maybe the grudging support of some businesses.” […]

A softened version of the bill may attract support from more lawmakers, Harkin said. “Many do feel there is an imbalance” in current laws that favors business over labor, Harkin said.

“They may not be for the card-check, but they are for changing election process and procedures and shortening the period of time for elections” to form unions in a company.

The Bloomberg piece didn’t say anything about binding arbitration, which in my opinion is as important a part of EFCA as card check.

Also this week, Harkin told CNN that he supports appropriating funds to shut down the Guantanamo Bay detention complex this year, as President Barack Obama has promised to do.

In other news, I read at La Vida Locavore that Harkin just introduced a bill to amend the Child Nutrition Act of 1996. Jill Richardson writes that Harkin’s bill

will update the rules on what’s allowed to be served or sold in schools. Right now, almost everything is fair game to sell in schools. You just can’t sell the worst junk in the cafeteria during lunch time. Outside of the cafeteria, anything goes. In the cafeteria when it’s not time for lunch, anything goes.

Harkin’s commitment to improving the health and nutrition of American children continually impresses me (see here, here and here).

Senate Republicans finally gave up on obstructing Hilda Solis’ nomination as Secretary of Labor today, and the Senate easily confirmed her by an 80 to 17 vote. Chuck Grassley was among the 24 Republicans who voted to confirm Solis. Tom Harkin did not vote but clearly would have voted yes, along with all the other Democrats, had he been in the chamber.

Solis’ confirmation was tied up for weeks in committee after Senator Mike Enzi of Wyoming put an anonymous hold on her nomination. Today even he voted yes, indicating that he had no solid grounds for blocking her from serving in the cabinet. I suspect Enzi was just trying to see whether he could trick Barack Obama into withdrawing her nomination as a gesture to Republicans.

Solis’s staunch longtime support for organized labor will make her a target for the right-wing noise machine, but who cares?

For more on why Solis is one of Obama’s best appointments so far, read this piece by Meteor Blades and this one by Paul Rosenberg, who notes,

People just loved talking about what a great political leader Hilda Solis is. I didn’t have nearly enough room to include all the good stuff that was said.

Calitics takes a first stab at handicapping the special election in California’s 32nd district, which Solis is vacating. It’s a safe Democratic seat but will have a competitive primary.

Obama has two cabinet positions left to fill. Kansas Governor Kathleen Sebelius appears to be the leading candidate for Health and Human Services now, and former Washington Governor Gary Locke is reportedly Obama’s pick for Commerce.  

The “prevailing wage” bill fiasco finally ended on Monday:

In what officials called the longest vote in Iowa Statehouse history, House Speaker Pat Murphy at 1:09 p.m. today closed the voting machine on the prevailing wage bill after 2 days, 19 hours and 14 minutes, declaring the bill had lost.

The vote was 50-48, one vote short of passage. But then House Majority Leader Kevin McCarthy, D-Des Moines, switched his vote to “no” — a procedural move that will allow him to bring the bill up for reconsideration later this session. So the final vote stood at 49-49.

After the jump I consider the two eternal political questions: “What is to be done?” and “Who is to blame?”

Tom Harkin will schedule a hearing in the U.S. Senate Committee on Health, Education, Labor and Pensions to examine how this scandal occurred:

For 34 years, Henry’s Turkey Service acted as landlord, caretaker and employer for dozens of mentally retarded men sent from Texas to Atalissa [Iowa] to work in West Liberty’s meat-processing plant. The men were housed in a former schoolhouse, known as “the bunkhouse.” Nine days ago, state officials shut down the bunkhouse, describing conditions there as unsafe and “deplorable.”

In return for working 30 to 40 hours per week, the workers received room, board and care in the bunkhouse, plus a salary that, in some cases, averaged 44 cents an hour.

The Des Moines Register quoted Harkin describing the conditions as “pretty close to slavery.”

The company that contracted with Henry’s Turkey Service says it is not to blame:

A West Liberty Foods executive says the company never asked about the wages paid to the mentally retarded men who worked in the corporation’s meat-processing plant.

For years, Henry’s Turkey Service of Texas provided West Liberty Foods with workers in return for a fee. That fee was based on the number of hours worked by the mentally retarded men Henry’s had working in the plant.

West Liberty Foods Vice President Dan Waters said the weekly payments his company made to Henry’s, if divided by the hours worked by the men, were “well in excess of the minimum wage.” He declined to be more specific. […]

Waters said West Liberty Foods never asked how much of the money paid to Henry’s was passed on to the individual workers in the form of salary.

[…]

Waters said West Liberty Foods does not have any agreements with other companies to place handicapped workers in its plants. State labor officials say they have subpoenaed West Liberty Foods’ payroll records.

Unfortunately, this may not be an isolated incident:

Curtis Decker of the National Disability Rights Network […] said his organization plans to contact the U.S. Department of Labor and to work on ways to improve oversight of companies that employ the disabled. […]

Decker said many companies provide work for the mentally disabled at less than the prevailing wage. With government approval, they can pay less than the minimum wage, which is $7.25 an hour in Iowa. That can lead to abuse by unscrupulous employers, Decker said. “There’s very little oversight of all this by the Social Security Administration,” he said.

In the same article, Peter Berns of the advocacy group Arc called for a federal investigation to determine how Henry’s Turkey Service was able to treat its workers in that fashion for decades without being caught by federal, state or local agencies.

The Houston Chronicle reported on February 11,

It is not the first time the bunkhouse or the Henry’s Turkey Service operation has been examined by Iowa officials. State healthcare facility regulators visited the bunkhouse in 2005 and 2001, but on both occasions found the men to be functioning well enough not to be classified as “dependent adults.”

But in the past four years, the men’s conditions and mental states worsened enough to force Iowa officials to remove them.

On Saturday, state fire marshals closed the bunkhouse.

“The state fire marshal’s office did not know this building existed until we got the call,” said Courtney Greene, spokeswoman for the Iowa Department of Public Safety, which includes the state fire marshal division.

“All 21 men have mental retardation,” said Roger Munns, spokesman for the Iowa Department of Human Services, which petitioned a court this week that all 21 be classified as “dependent” adults. Arrangements were being made Tuesday to transfer the men from the motel they have been living in since Friday to a facility for the mentally disabled in Waterloo, Iowa.

Attempts were being made to keep all the men together because they consider each other family.

I hope these men will find decent care in the same facility, and I hope there will be a full federal investigation of this exploitation following the Senate hearing.

The Senate confirmed Eric Holder as attorney general today by a vote of 75-21. Both Tom Harkin and Chuck Grassley voted yes, as expected. I always thought Holder would be confirmed, but I am pleasantly surprised that he was approved by a larger majority than Treasury Secretary Timothy Geithner. I believe Holder will turn out to be one of President Barack Obama’s better cabinet appointments.

For reasons I cannot fathom, Obama appears ready to appoint Senator Judd Gregg of New Hampshire, a conservative Republican, as Secretary of Commerce. Chris Bowers concisely explains why this is an awful choice:

So, for some reason, in the wake of total Republican intransigence on the stimulus bill, the Obama administration will respond by putting a Republican in charge of one the federal departments overseeing the economy. Judd Gregg himself has said he will oppose the stimulus package. That is certainly an, um, interesting way for the Obama administration to incentivize Republican opposition. Oppose President Obama, and he will reward you by giving you a cabinet position.

It is worth noting what sort of ideas Judd Gregg has for the economy: a commission of center-right insiders operating in secret and circumventing Congress in order to destroy Social Security and Medicare.

Senate Republicans continue to hold up Hilda Solis’s confirmation as Labor Secretary, and Obama responds by appointing Gregg to the cabinet?

Democrats won’t even get a Senate seat out of the deal, because the Democratic governor of New Hampshire has promised to appoint a Republican to serve out Gregg’s term. The only upside is that the appointee may be easier to beat in 2010 than longtime incumbent Gregg would have been. But that’s not worth handing over control of the Commerce Department to a conservative, in my opinion.

All I can say is, Gregg better not screw around with the Census Bureau and the National Oceanic and Atmospheric Administration.

In a dispatch from bizarro world, Politico’s David Rogers still isn’t convinced that Obama is serious about bipartisanship, even though Gregg will become the third Republican in his cabinet and will be replaced by a Republican in the Senate:

Obama, while talking a good game about bipartisanship, is draining the Senate of the very talent he needs to achieve this goal.

If only Obama were merely “talking a good game about bipartisanship.”

Speaking of Senate Republicans, Kagro X put up a good post on prospects for a filibuster of the economic stimulus bill, and Chris Bowers posted a “whip count” here, concluding that

Overall, it seems highly likely that the stimulus will pass without Republicans forcing major changes. However, given the narrow margins, this is not a guarantee.

The Senate will likely vote on the bill on Wednesday. Grassley has already spoken out against what he calls the “stimulus/porkulus bill.”

Update: On February 3 Daschle withdrew his nomination for secretary of Health and Human Services. It looks like he won’t be the “health care czar” in the White House either.

When Barack Obama announced plans to nominate Tom Daschle to run the Department of Health and Human Services, I agreed with Ezra Klein that the choice signaled Obama’s commitment to get comprehensive health care reform through Congress. I knew that Daschle’s wife was a longtime lobbyist, and that Daschle was not nearly as liberal as the right-wingers made him out to be. But we all know that the Senate will be the biggest obstacle to any good health care plan. Daschle knows that body’s procedures and the majority of its members extremely well.

The choice isn’t looking so good today.

Not paying taxes on the use of someone else’s limousine looks bad, but as we saw last week with Treasury Secretary Timothy Geithner, failure to fully meet one’s tax obligations no longer seems to be a barrier to serving in the cabinet. (By the way, Daschle knew about this problem last summer but didn’t tell Obama’s vetting team.)

Many people might honestly not realize that if they use someone else’s car, they need to report the value of that service as taxable income. But what is Daschle’s excuse for overstating his tax-deductible charitable gifts and not reporting more than $83,000 in consulting income? If Bill Richardson was asked to step aside because of an investigation that hasn’t even proven wrongdoing, then Daschle should not get a pass for not paying his taxes.

As is so often the case in politics, though, what’s legal can be even more disturbing. From Politico:

Daschle made nearly $5.3 million in the last two years, records released Friday show, including $220,000 he received for giving speeches, many of them to outfits that stand to gain or lose millions of dollars from the work he would do once confirmed as secretary of Health and Human Services.

For instance, the Health Industry Distributors Association plunked down $14,000 to land the former Senate Democratic leader in March 2008. The association, which represents medical products distributors, boasts on its website that Daschle met with it after he was nominated to discuss “the impact an Obama administration will have on the industry.”

This week, the group began openly lobbying him, sending him a letter urging him to rescind a rule requiring competitive bidding of Medicare contracts.

Another organization, America’s Health Insurance Plans, paid $20,000 for a Daschle speaking appearance in February 2007. It represents health insurance companies, which under Obama’s plan would be barred from denying coverage on the basis of health or age.

There was a $12,000 talk to GE Healthcare in August, a $20,000 lecture in January to Premier, Inc., a health care consulting firm, and a pair of $18,000 speeches this year to different hospital systems, among other paid appearances before health care groups.

The speaking fees were detailed in a financial disclosure statement released Friday, which showed that Daschle pulled down a total of more than $500,000 from the speaking circuit in the last two years, and $5.3 million in overall income.

These speaking engagements are legal, but it is an unacceptable conflict of interest for Daschle to have taken that much money from groups with a major financial stake in health care reform.

At Daily Kos nyceve examines one of those paid speeches and tells you why you should care: As UnitedHealth subsidiary Ingenix defrauded Americans, Daschle was its 2008 keynote speaker.

A lot of liberal bloggers are now calling for Obama to withdraw Daschle’s nomination and appoint Howard Dean to run HHS instead. As much as I like Dean, I do not think he’s the person to shepherd health care reform through Congress. But I agree that Obama needs to find a replacement for Daschle–the sooner, the better.

If Obama stands by Daschle, I suspect the Senate insiders’ club would confirm him, but let’s hope it doesn’t come to that.

Speaking of stalled confirmations, Senator Mike Enzi of Wyoming appears to be the Republican who is holding up Hilda Solis’s nomination for Secretary of Labor. This is purely ideological, based on Solis’ support for the Employee Free Choice Act. Solis has not been accused of any wrongdoing.

Will Obama stand behind his choice for this cabinet position? The president expressed support for organized labor on Friday while signing executive orders to boost labor unions.  

The U.S. Senate confirmed Timothy Geithner as Treasury Secretary today by a vote of 60 to 34, but as you can see from the roll call, both of Iowa’s senators voted no.

Grassley was joined by 29 other Republicans. He voted against Geithner in the Senate Finance Committee a few days ago, citing the nominee’s failure to fully meet his tax obligations during some previous years.

Harkin was one of only three Senate Democrats to vote against confirming Geithner. According to the Des Moines Register,

Harkin voiced concerns about Geithner’s failure to pay some income taxes several years ago, amounting to about $34,000. […]

Harkin also said Geithner was at fault for how some of the $700-billion financial rescue money, authorized by Congress in October, was spent. Harkin voted for the bailout, but said later he would have voted against it had he known the money would go to banks, rather than to buy bad loans.

Geithner was a key figure in the crafting and administering of the money as the president of the Federal Reserve Bank of New York. In the post, Geithner also was partly to blame for the financial meltdown, which stemmed from inadequate regulation, Harkin argued.

“Mr. Geithner made serious errors of judgment in failing to pay his taxes, and he made serious errors in his job as chief regulator of the financial institutions at the heart of the current financial crisis,” Harkin said in a statement released after the vote.

I am surprised that so many senators voted against Geithner. I stand by my opinion that if he were not a white male, the tax problems would have sunk his nomination.

Speaking of Senate confirmations, some Republican has reportedly put an anonymous hold on the nomination of Hilda Solis as Labor Secretary. I called Grassley’s office today, and a staffer told me it wasn’t him.

Will President Barack Obama go to the mat to get Solis confirmed? Will the Republicans filibuster this strong supporter of workers’ rights and the Employee Free Choice Act?

I had assumed that Attorney-General designee Eric Holder would be the cabinet appointment most fiercely opposed by Republicans, but perhaps it will be Solis.

UPDATE: Geithner’s actions during his first day on the job are not encouraging. I believe he will turn out to be one of Obama’s worst appointments.

From Daily Kos user rok for dean:

In 1950, the average pay of an S&P 500 CEO was less than 30 times that of an average U.S. worker; by 1980, prior to the “Reagan Revolution,” the average pay of the S&P 500 CEO was approximately 50 times higher than that of an average U.S worker.  But by 2007, the average pay of an S&P 500 CEO had soared to more than 350 times as much as that of an average U.S. worker.

This is both immoral and unsustainable in a democracy.  By way of comparison, in Europe, an average CEO only makes 22 times as much as an average worker, and in Japan, only 17 times as much.

If America wants to be competitive again, we need to reduce CEO pay to a level comparable to CEO pay in Europe and Japan.  I know exactly how to accomplish this feat.  The [United Auto Workers] should agree to immediately lower U.S. union worker pay to a level equal to the level paid by their non-union, non-American competitors.  In return, auto CEO’s must agree to permanently lower their compensation to only 20 times that of an average union worker.

Sounds fair to me. How many Republicans who’ve been beating the war drums about excessively generous pay to union workers would agree to those terms?

It’s true that union workers get paid more than non-union workers (though strong unions are associated with higher average wages even for non-union workers in the same area). But in a country where two-thirds of our gross domestic product depends on consumer spending, higher wages are not a bad thing.

In any event, unions are not primarily to blame for the auto industry’s current problems. Toyota is about to post its first operating loss in 70 years despite having an entirely non-union workforce. The tough economy has diminished demand for new cars.

American automakers also have to bear the burden of our broken employer-based health insurance system, but that’s a topic for another diary.

The same Republicans who claim they’d never raise taxes on Americans are only too happy to slash the wages of middle-class auto workers. As rok for dean says, let’s call their bluff and see if they would be willing to tie executive pay to a reasonable multiple of the average worker’s salary in the company.

Side note: my dad was a Republican, but it really bothered him when corporate executives would receive exorbitant salaries and bonuses even as they were driving their companies into the ground. Rewarding good performance is one thing, but paying incompetent managers obscenely high salaries is another.  

I opposed the massive Wall Street bailout rushed through Congress this fall, but if the government can provide hundreds of billions of dollars to financial firms with no oversight, it’s only fair that $13.4 billion of the Troubled Asset Relief Program be used to prevent General Motors and Chrysler from collapsing:

“These are not ordinary circumstances,” Bush said at the White House today. “In the midst of a financial crisis and a recession, allowing the U.S. auto industry to collapse is not a responsible course of action.”

The cost of letting automakers fail would lead to a 1 percent reduction in the growth of the U.S. economy and mean about 1.1 million workers would lose their jobs, including those in the auto supply business and among dealers, the White House said in a fact sheet.

‘Necessary Step’

President-elect Barack Obama endorsed the plan, calling it in a statement a “necessary step” to avoid a major blow to the economy.

“I do want to emphasize to the Big Three automakers and their executives that the American people’s patience is running out,” Obama said later at a news conference. “They’re going to have to make some hard choices.”

The United Auto Workers are “disappointed” that Bush added “unfair conditions singling out workers,” the union’s president, Ronald Gettelfinger, said in a statement.

“We will work with the Obama administration and the new Congress to ensure that these unfair conditions are removed,” Gettelfinger said.

This diary by TomP has a lot more detail and reaction to the bailout deal.

It would be grossly unfair for only the workers to be asked to sacrifice to make these companies profitable. Some Republicans, notably Senator Bob Corker of Tennessee are explicitly trying to drive wages in union shops down to the level paid to non-union employees of Japanese automakers in the southern states.

But it’s no coincidence that the standard of living in states with more union workers is higher than the standard of living in the deep south.

I don’t know enough about the details to know whether this bailout can save GM and Chrysler, but failing to act was not an option with so many jobs on the line.

By the way, all three U.S. automakers have made a lot of mistakes over the years, but kudos to management of Ford Motors for locking in a large credit line while credit was easy to obtain. In case you were wondering, that’s why Ford is not currently on the brink of collapse, begging for a government bailout. Nevertheless, I’m sure Ford will have to do a lot of restructuring to adapt to this tough economy, just like GM and Chrysler. I can’t imagine 2009 will be much better for new car sales than 2008 was.

Chrysler has already idled all of its plants for a month. Ford is extending the holiday break at most of its plants until January 12, and GM plans massive production cuts next year.

Those actions may be necessary to save the automakers, but they will have disastrous ripple effects in all the communities where the idled factories are located.

Some of these problems could have been avoided if Congress had fixed our broken health-care system years ago. This report is more than two years old:

The competitive disadvantage of U.S. automakers resulting from the absence of a national strategy on health care financing is becoming increasingly clear. GM faces legacy costs (health care plus pensions for retired workers) of $1,500 per car. Together, the Big Three automakers support roughly 800,000 retirees, compared to less than 1,000 for foreign-owned competitors in the United States.

Clearly the failure to address America’s health care finance problems has become a major competitive disadvantage for our economy as a whole and has placed U.S. workers in a diminished bargaining position for wages and job security in relation to the rest of the industrialized world. Targeting retiree health costs offers an opportunity to provide strong incentives for industry action on fuel savings investment and reduces the competitive disadvantage.

Share any relevant thoughts in the comments.

UPDATE: Why I am not surprised to learn that banks like Goldman Sachs and Morgan Stanley are giving out large bonuses to some executives after receiving billions in bailout money from the federal government?

Note also that George Bush attached all kinds of conditions to the loans for automakers, while major financial institutions just got free money with no oversight.

News about several more key appointments by President-elect Barack Obama emerged today. His choice for Secretary of Labor will be Representative Hilda Solis of California, a bit of a surprise since she didn’t seem to be on any of the short lists leaked so far.

Solis comes from a union family and is a passionate supporter of the Employee Free Choice Act (also known as “card check,” which would make it easier to organize workers in non-union workplaces). Her voting record on labor issues is very solid.

TomP has more background on Solis, including YouTubes.

Ideally, Obama would have introduced his Labor Secretary along with the rest of his economic team to underscore the importance of the job, but I’m not going to quibble about the timing. This is a very solid appointment. I assume that Solis would not give up a safe House seat unless Obama had given her some assurances that he would keep his campaign promise to pass the Employee Free Choice Act.

Speaking of which, Representative Xavier Becerra of California declined Obama’s offer to become U.S. Trade Representative a few days ago. It was a smart move, as Becerra has a chance to become Speaker of the House someday. Today Obama offered that job to former Dallas Mayor Ron Kirk, who had previously been mentioned as a possible candidate for Secretary of Transportation.

Obama made some campaign promises about replacing “free trade” with “fair trade,” but it’s not clear whether choosing Kirk signals a plan to retreat from those promises. The Wall Street Journal argued that

By naming Mr. Kirk, Mr. Obama nodded to the free-trade wing of the Democratic Party, which is small but has important ties to business.

Solis is firmly in the “fair trade” camp of the Democratic Party.

Obama’s chief science adviser will be the physicist John Holdren, an internationally-renowned expert on energy and climate issues. He is apparently a highly effective communicator as well as a brilliant scientist.

Obama also has chosen Oregon State University professor Jane Lubchenco to head the National Oceanic and Atmospheric Administration, a very large agency within the Commerce Department. The Deep Sea News blog ran with the headline, “Obama Appoints Totally Awesome Marine Biologist to Head NOAA!”

Holy Mola! I can’t contain my excitement about this appointment. Her work in marine ecology and conservation is seminal and her involvement in science outreach is phenomenal. This marks a new era for NOAA indeed. I am very excited to see where she takes the agency. Yet again, another amazing Obama appointment. It feels so strange to have a president who respects science and appoints highly qualified people to important posts.

It’s looking more and more like Obama is serious about tackling the global warming problem. But can any of the highly qualified scientists he’s appointed talk him out of promoting “clean coal”?

UPDATE: Reuters says Obama “has chosen retired Navy Adm. Dennis Blair as the top U.S. intelligence official” and will announce that decision soon.

Imagine that–Barack Obama is hiring an Energy Secretary who knows a lot about energy. Dr. Steven Chu is a Nobel prize-winner in physics who heads the Department of Energy’s Lawrence Berkeley National Lab (which employs 4,000 people). Click the link to watch a YouTube of Chu.

The New York Times published some biographical information about Chu here. I love this comment:

In his own words: New houses could be made energy efficient with an investment of an extra $1,000, “but the American consumer would rather have a granite countertop.” (At a lecture in Washington on energy options, June 25, 2008)

Three other key appointees worked in the Environmental Protection Agency during Bill Clinton’s administration, the Associated Press reported:

The president-elect has selected […] Lisa Jackson for EPA administrator, Carol Browner as his energy ”czar,” and Nancy Sutley to lead the White House Council on Environmental Quality, Democratic officials with knowledge of the decisions said Wednesday. […]

— Jackson, who would be the first black person to lead the EPA, is a former New Jersey Department of Environmental Protection commissioner who worked at the federal agency for 16 years, including under Browner when she was Bill Clinton’s EPA chief. Jackson is a co-chairman of Obama’s EPA transition team, and currently serves as chief of staff to New Jersey Gov. Jon S. Corzine. A New Orleans native, she grew up in the Lower Ninth Ward, the area stricken by Hurricane Katrina. She holds chemical engineering degrees from Tulane University and Princeton University.

— Browner, who served as EPA chief for eight years under Clinton, will become Obama’s go-to person in the White House overseeing energy issues, an area expected to include the environment and climate matters. Now chair of the National Audubon Society and on the boards of several other environmental groups, Browner has been leading the Obama transition’s working group on energy and environment.

— Sutley, the deputy mayor for energy and environment in Los Angeles and the mayor’s representative on the Board of Directors for the Metropolitan Water District of Southern California, is the first prominent gay to earn a senior role in Obama’s new administration. She was an EPA official during the Clinton administration, including being a special assistant to the EPA administrator in Washington. She also previously served on the California State Water Resources Control Board and was an energy adviser to former Gov. Gray Davis.

No clear favorite has emerged for Secretary of the Interior. There’s a major battle going on behind the scenes over that appointment.

Obama met with Michigan Governor Jennifer Granholm, who has been mentioned as a possible Secretary of Labor.

Moderate Republican Senator Arlen Specter of Pennsylvania is not going to give Eric Holder a pass when the Senate Judiciary Committee holds confirmation hearings for Obama’s attorney general nominee. But I agree with Daily Kos user Dartagnan:

Specter is going to use the Holder hearing (23+ / 0-)

to shore up his credentials with the right for his primary fight against [right-winger Pat] Toomey.

That’s all this is.

Holder will be confirmed with moderate GOP opposition.

UPDATE: Chu seems to be an advocate of expanding nuclear power.

Regarding Specter’s plans for the Holder confirmation hearings, clammyc has a good commentary.

SECOND UPDATE: Rumor has it Obama will go with a compromise choice for Secretary of the Interior, rejecting environmental groups’ favorite Raul Grijalva as well as Blue Dog Mike Thompson. If true, this is an example of why it’s useful to kick up a fuss when a bad choice is floated for an important job.  

crossposted at Class War Iowa,
http://jimmyhiggins.wordpress.com/

Breaking news – Hat tip to Lee Sustar at SocialistWorker.org.

WORKERS OCCUPYING the Republic Windows & Doors factory slated for closure are vowing to remain in the Chicago plant until they win the $1.5 million in severance and vacation pay owed them by management.

In a tactic rarely used in the U.S. since the labor struggles of the 1930s, the workers, members of United Electrical, Radio and Machine Workers of America (UE) Local 1110, refused to leave the plant on December 5, its last scheduled day of operation.

“We decided to do it because this is money that belongs to us,” said Maria Roman, who's worked at the plant for eight years. “These are our rights.”

rest of story at

http://socialistworker.org/2008/12/06/republic-window-occupation

Jobs With Justice has launched an email campaign for these workers, aimed at Bank of America, which is behind management's actions.

Hold Bank of America Accountable
Only weeks after taking $25 Billion in bailout money, Bank of America is turning its back on hundreds of workers making energy efficient doors and windows in Chicago by refusing to continue credit to Republic Windows and Doors.  To make matters even worse than putting 300 people out of work, Bank of America has instructed Republic to refuse to pay workers compensation they are legally entitled to, either earned vacation pay or the severance pay legally required under the WARN Act, in lieu of proper notice of plant closing.

Go to 
http://www.unionvoice.org/campaign/bankofamerica/

Barack Obama named Bill Richardson to head the Commerce Department today. Click the link to read Obama’s prepared remarks. It’s not a top-tier cabinet appointment, but Commerce still oversees a lot of significant government activities, including the U.S. Census Bureau and the National Oceanic & Atmospheric Administration. Click here to view all the bureaus within the Commerce Department.

The Hispanic Caucus in Congress has sent Obama a letter asking him to appoint more Latinos to the cabinet.

Obama has asked Congressman Xavier Becerra of California to accept the position of U.S. trade representative, but Becerra has yet not made a decision. He is the fifth highest ranking Democrat in the U.S. House, and some believe he could become the first Latino Speaker of the House someday if he stays in Congress.

Obama’s short list for secretary of labor apparently includes Mary Beth Maxwell, “the founding executive director of American Rights at Work.” According to the Wall Street Journal,

Maxwell already had the strong backing of former Rep. David Bonior, who despite repeated attempts to get his name removed from consideration continues to be on the short list of potential labor secretaries. Bonior, 63 years old, says it is time for his generation to turn over power to a new generation, and Maxwell, whose labor-backed organization pushes for expanded collective bargaining rights, is his pick.

Some labor leaders from both the AFL-CIO and Change to Win, a splinter union group led by the Service Employees International Union, back her as a consensus choice, citing her efforts on behalf of legislation to allow unionization at workplaces with the signing of cards, not secret balloting.

The Wall Street Journal says Obama is also vetting Michigan Governor Jennifer Granholm and Kansas Governor Kathleen Sebelius for secretary of labor.

I haven’t heard much lately about a possible secretary of education or transportation.

Who would you like to see in the cabinet?

UPDATE: I forgot to mention that if nominated and confirmed, Maxwell would become the first openly gay cabinet secretary in this country.

Desmoinesdem has previously written about Project Destiny–a tricounty joint venture between Polk, Dallas, and Warren Counties to increase the sales tax in the three communities by one cent–and urged you to vote against the plan.  And now the South Central Iowa Federation of Labor AFL-CIO, will announce on Thursday that they plan to oppose the sales tax increase as well.

From an advisory put out today:

“Union leadwers say voters should consider that “basic needs” are not being met in the three-county area. A regressive tax to finance so-called “quality of life” efforts such as bicycle trails, they say, should not take precedence over citizens’ fundamental needs.”

With strong labor opposition, who knows how the effort will fare on election day, July 10th.

Discussing and talking about the proposal is no easy subject.  Almost two weeks ago, CityView’s cover story was dedicated to the debate over Project Destiny.  The story offered more insight on the project, its supporters and opponents than the Register or any other local news stations have offered.  I recommend reading the full story to truly understand the debate behind Project Destiny.

The biggest opposition to the tax comes from taxpayers groups and citizens who feel that the sales tax increase is a regressive move that hits the poorest residents in these three counties the hardest.  And they’re right.  The fact is, the fundamentals for citizens in these areas aren’t even being provided and that is something that local government leaders should focus on first and foremost.

While I’m all about lowering property taxes in the area–because we could certainly use the decrease–the problem is that current tax revenue isn’t being spent wisely.  Not to mention that we’re already giving out large property tax breaks to the corporations who would receive the most benefit from the proposal were it to pass and they were to have their property taxes reduced further.  Inherently, the system is complex and difficult, but the focus should be on infrastructure priorities and essentials.

I want more trails, culture, and focus on the arts in the region.  But I can’t write off a disproportionate tax increase on the low-income and poorest people of the community to make our region better.  I just can’t.

For more information on the proposal, check out the supporters’ website and the opponents’ website.

From Mark Schmidt at The American Prospect:

One that might be of interest to liberals thinking about whether to support Clinton is “Labor Relations.” In this section, Senator Clinton’s top advisor [Mark Penn]’s company says, “Companies cannot be caught unprepared by Organized Labor’s coordinated campaigns whether they are in conjunction with organizing or contract negotiating … That is why we have developed a comprehensive communications approach for clients when they face any type of labor situation.”