Laid-off Bayer workers still fighting for their jobs

Bayer Healthcare on Dwight in Berkeley. Photos by Lance Knobel

When 414 workers at Bayer Healthcare Pharmaceuticals vote on a new contract on today, Anita Holloway won’t be among them.

Holloway worked in janitorial services at Bayer Healthcare on Dwight Way for three years, earning $22.65 an hour. Then in August 2010, she and 28 other union members were laid off, with the faint promise of being rehired when times got better.

Many of those workers decided to take severance and separate themselves from the company. But Holloway didn’t and has been hoping that she might get “recalled,” a technical term used in the contract between Bayer and the International Longshore and Warehouse Union, which represents the employees.

The phone call that Holloway had been waiting for came in May. Bayer contacted the union and said it had numerous jobs opening up, according to Donal Mahon, an ILWU organizer. He called the 10 people who were still hoping for reemployment by Bayer, and all of them indicated their eagerness to return. The recall came at the right time, said Mahon, because the employees could only hold onto their seniority and recall rights until Aug. 22, 2011.

But then something went wrong, said Mahon. Bayer backed away from its offer to bring back the ten employees and said it could actually only reemploy two people. Holloway was not one of them.

When it became clear to the union that its workers would soon lose their seniority, organizers asked Bayer to extend the “recall rights” for 90 days. Bayer didn’t respond to the offer, said Mahon, Two weeks later, new contract negotiations began, and Bayer said it would extend the recall rights only if the union approved a new contract by Aug. 24th, said Mahon. Part of the terms of the proposed contract would give Bayer the right to contract out janitorial work, effectively eliminating the job Holloway hoped to reclaim, said Mahon.

“They led the union and all the people on the recall list to believe they would call us back,” said Holloway, who lives in Richmond. “They blindsided us, and started using us as a bargaining chip in the contract negotiations.”

Sreejit Mohan, Bayer’s director of public policy and communications, said the situation is much more nuanced than the way the union has portrayed. However, since workers are voting on a proposed contract today, it would not be appropriate to discuss any employment issues, he said.

“We just want to be seen as fair to our employees,” he said.

A building on the 43-acre Bayer campus

Union officials have staged protests and collected signatures to petition Bayer to rehire its workers. They are particularly aggrieved because of Bayer’s special relationship with Berkeley and the huge profits made on the medicine manufactured at the Berkeley plant.

Bayer Healthcare Pharmaceutical, with 1,500 employees, is the second-largest employer in Berkeley after the University of California.  (Although just a small percentage of workers live in Berkeley). In 2009, when Bayer’s corporate parent Bayer AG of Germany was trying to decide whether to outsource some of the medicine made on site, East Bay cities made a push to retain the company. Berkeley worked with Oakland to extend that city’s enterprise zone northward to include the 43-acre Bayer facility.

Including Bayer in the zone made the company eligible for $10 million in state tax breaks for investments in equipment and in energy cost savings, according to Dave Fogarty, Berkeley’s economic development project coordinator. Bayer is now investing $100 million to upgrade its manufacturing equipment, said Mohan. The construction should be completed by the end of 2012, and Bayer hopes to start manufacturing on the new equipment in 2013, he said.

Bayer and Berkeley also signed a 30-year development agreement in 1992. The city guaranteed zoning changes would not affect the company and streamlined site development. In exchange, Bayer agreed to make a number of investments, including the creation of the Berkeley BioTech Academy, which has introduced 1,000 high schools students to the biotech field. Bayer has also invested in job training, transportation, housing and environmental protection. Bayer estimates it has paid Berkeley $455,000 through the development agreement, according to a 2010 report prepared by the company. Adjusted for inflation, that amounts to about $20 million, according to the report.

Bayer Healthcare has had a banner year, according to Mahon, the union rep. It makes Kogenate, a drug used to treat hemophilia. The drug brought in $1.45 billion in 2010, and sales have already increased by 14% this year, said Mahon. Bayer stands to benefit even more when new provisions of the health care reform law go into effect in 2012, according to a study prepared in May by students at UC Berkeley.

That’s why union officials can’t understand why Bayer is trying to cut janitorial jobs. And while the proposed contract has raises of 3.1% to 3.4%  each year for the next four years, it also is calling on workers to pay a larger share of their health care costs.  ILWU members currently pay $217 a month; that would go up to $354 a month by the end of the contract, said Mahon.

For that reason, the union negotiating committee is recommended that workers vote against the proposed contract on Wednesday.

“If we are going to make this much money for them we ought to get part  of the reward,” said Mahon.

Even when Bayer workers agree to a new contract, it doesn’t look good for Holloway and the other workers who were hoping for a recall, he said. As of now, they are not reemployed and have lost their seniority. (The union has proposed a two-tier system for janitors in the contract. New hires would start at $15 an hour instead of $21 an hour.)

“It’s upsetting,”  said Holloway. “For them to dangle a carrot like that, to imply they are going to bring us back, to me, that’s a breach (of contract). “

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  • Anonymous

    This kerfuffle seems to conflate a whole lot of issues. I share a degree of disgust when it comes to enormous and under-taxed corporate profits, which then go almost entirely to lining the pockets of those at the top. Yet, I am also aware that classic economics dictates that labor costs are determined primarily by the skills of the worker as well as by the state of the broader labor market–not necessarily by the profitability of an individual firm. I sympathize with the notion that a company that’s so profitable can afford to shoulder the burden of increased health care costs, but I nevertheless think it futile for the union to make such demands in our current economic climate. One is then faced with the issue of potentially losing jobs to other places and the whole dilemma of a race to the bottom.

    Though it is a selfish reaction, on a personal level, I also find it difficult to have sympathy for someone getting paid $22.65/hr after working only three years in a relatively unskilled position. While it is my understanding that working in these facilities requires more knowledge and care than a more conventional janitorial position, I don’t get the impression it requires a four-year university degree. (Someone please correct me if I’m wrong.) Meanwhile, I know people who have degrees in STEM fields who are actually conducting scientific research and making less money than this. Again, it’s something of an emotional response, but this disparity does not particularly endear this cause to me. (I suppose you could turn this around into an argument for more workers in other fields having stronger union representation.)

    Until someone can clearly demonstrate why I should feel strongly one way or another on this specific situation, I’m just gonna hang out on the fence and stew over corporate profit, tax policy, and the challenges of global labor competition.

  • Bruce Love

    Eric, as a former candidate for council (and future?):  Do you think that Berkeley’s efforts to accommodate this firm with tax breaks and so forth are good policy?    They do not employ many who live in Berkeley.   They union bust.   They threaten us into tax breaks.   The article hints that the firm negotiated in bad faith with the union.    The firm boasts of their big investments in capital equipment — which likely means money being spent outside of Berkeley.    Is this good economic development policy in action?

    I understand that, emotionally, you are not sympathetic to people who formerly made around median household wages because you gather they aren’t educated enough to merit that in a free market  — and yet you have said not one single word about the market advantages bestowed on Bayer as a matter of Berkeley civic policy.   You seem, in that regard, to have an anti-worker and pro-corporate bias.

  • http://www.webhamster.com/ The Sharkey

    Median individual income in the United States is roughly $25k.
    If they worked a 2080 hour work year, the income of someone making $22/hour would be roughly $46k.

    http://en.wikipedia.org/wiki/Personal_income_in_the_United_States

  • Anonymous

    I don’t feel I have adequate information, Bruce, to determine whether anyone has acted in bad faith. Unless they lied, Bayer having a change of heart when it realized its bargaining position doesn’t necessarily constitute what I would view as an act of bad faith. It could very simply be that Bayer is looking to make cost savings either by replacing these workers with contractors, or by rehiring these workers and agreeing to a union contract characterized by lower costs across the board. There’s a fine line between a company doing something unethical and doing something that’s not altruistic. Like I said, I’m of two minds on this issue.

    I think this marks the first time in my life I’ve been called pro-corporate to my face, which is a delight only a city such as Berkeley could afford me. I am decidedly for more corporate regulation, a higher minimum wage, significantly higher corporate taxes, and even “radical” things like international worker protections and fair rather than free trade. *GASP!* At the same time, I recognize that at the city level, one must make pragmatic decisions within a larger context that we as a city cannot readily change. If Berkeley loses Bayer to, say, Vacaville, we achieve neither a benefit to the citizens of Berkeley nor any victory on the larger field of national or international policy regarding corporations or workers’ rights. Though you and I probably have significant agreement on these issues, we gain nothing by losing economic engines like Bayer to other locales that don’t share our ideological qualms. As long as there is no clear and consistent wrongdoing and the benefits to the city continue to outweigh the costs, I don’t think the city should cut off its nose to spite its face.

  • Bruce Love

    And $46K is around the median household income in these parts.

    (Also, more or less everything people normally buy costs a lot more around these parts.)

  • http://www.webhamster.com/ The Sharkey

    I believe that most households in the Bay Area are dual-income.

    I see nothing in the story that suggests that Anita Holloway is the sole earner for her household. Do you?

  • http://www.webhamster.com/ The Sharkey

    I think this marks the first time in my life I’ve been called
    pro-corporate to my face, which is a delight only a city such as
    Berkeley could afford me.

    Yeah, I laughed at that too.
     Seeing someone like you get pinned as a right-wing fascist is so off-base it’s hilarious.

  • Nick Mamatas

    Nothing stopping those STEM professionals from becoming janitors, is there? That’s the marketplace too.

  • Bruce Love

    Eric, maybe think about it in terms of opportunity costs.   If our electeds are dealing out favors, making zoning promises, shorting us on taxes, bending over for Bayer — they ain’t working much on economic development that employs Berkeleyans, that attracts businesses that recirculate more money locally, and that help us export more than just cash and low-labor products.    The Bayer style of development may be an economic engine but I don’t see how it’s one that’s particularly good for Berkeley — it seems kind of parasitic.  As a city we concede and we concede — and in return we get jacked around for relatively little reward.

    And, again, you’ve doubled down now on your notion that city imposed market distortions in favor of a corporation like Bayer are just fine — but you figure these workers should lose in a free market.   You say you’re of two minds.  Well…. pick one :-)

  • Nick Mamatas

    More like $57K, and for a family, $93K. Which helps support your point, of course.

    http://factfinder.census.gov/servlet/STTable?_bm=y&-context=st&-qr_name=ACS_2007_1YR_G00_S1901&-ds_name=ACS_2007_1YR_G00_&-CONTEXT=st&-tree_id=307&-redoLog=false&-_caller=geoselect&-geo_id=16000US0606000&-format=&-_lang=en

    Household income is income per housing unit, family income takes into account only households with relatives (marriage, blood relations adoptions) making up the household. $22 an hour isn’t unreasonable even for *gasp* a mere janitor!

  • http://www.webhamster.com/ The Sharkey

    $46k is high for a janitor. Even in California.

    http://www.indeed.com/salary/q-Janitor-l-California.html

    You’ll note that I never said it was “unreasonable” as you put it. I am merely pointing out that it is very high for unskilled labor.

  • Anonymous

    Taxes are arguably market distortions, but they are market distortions that you and I both favor. Labor protections and minimum wages are also a form of market distortion that you and I both support. In classic economics, a truly free and undistorted market is one of infinite buyers and sellers with perfect information. In this way, patents, unions, any degree of corporate consolidation, and/or the collective action of a community benefits agreement are all also market distortions.

    Let’s dispense with that false choice and the absurd notion that I’m somehow for corporations and against the workers.

    Please feel free to take the last word, I’ve got other things to do.

  • Bruce Love

    Thanks, Nick.

  • Nick Mamatas

    A quick search of this page shows that the word “fascist” was never used by anyone but you. There’s a world of difference between “pro-corporate bias” and “right-wing fascist.”  Also between “pinned” and “You seem.”

    It’s interesting to me that you’re happy to assume that the janitor mentioned in the article must be part of a dual-income household because there’s no specific evidence that she isn’t (and because some majority of households in the state are), but make ridiculous leaps to the far end of the political spectrum when it suits you. If you’re going to play the game of facts and average in one comment, don’t play the game of extreme hyperbole in the next.

  • Nick Mamatas

    Lots of progressive Democrats who are interested in regulation and legislation don’t have many good things to say about unions that actually got their workers higher wages for a while. No surprise there, honestly.

    At any rate, skills and education influence income, but are hardly the only influences. That’s a pretty naive view—one that would lead to scholars of dead languages making more money than most folks with a BS in a STEM field.

  • Bruce Love

    Eric you have badly misunderstood me.   The market distortion here is that Bayer is granted tax *breaks*.    Are you really unaware of this?   We conceded $10M to them over a few years. This is how they are repaying the favor.

  • http://www.webhamster.com/ The Sharkey

    I guess jokes don’t come across very well on the internet. I’ll make sure to pepper my obviously jocular comments with smiley faces for you in the future. 

    :-)    :-)    :-)   

  • http://www.mishalov.net/photopage.html John Galt

    Hello people,

    The party is over.

  • Anonymous

    I never said that skill and education are the only influences on income.

    The irony of your comment is that the scholars of dead languages who end up making more money than those with a B.S. in a STEM field are typically the very ones who continue their education, get an advanced degree, and in the process demonstrate a high degree of skill, determination, and willingness to work hard. Thanks for proving my naive view.

  • Nick Mamatas

    Berkeleyside seems to limit the length of threads, but to answer Sharkey’s question—no, I don’t have any information that Holloway lives in Berkeley. Pipl.com tells me of two local Anita Holloways, one who lives in Antioch ( mhi: $60K, mfi: $64.7K) and one who lives in Vallejo (mhi: $47, mfi: $53K).* Looking at medians, which you suggested we do, tells us that she’s about right. Perhaps she has more people in her home drawing incomes, perhaps she does not. There’s no reason to assume she does.

    As far as the idea that janitorial work is unskilled, that’s just plain false, especially when it comes to janitorial work in a research lab environment. The question of income is rather beside the point anyway—well, except for the seeming upset a working class person who isn’t desperately poor causes—since the point of the story is that Holloway doesn’t actually have a job and isn’t drawing that income.  Yup, at a certain point, due partially to unionization and partially due to the demands of the work environment, Holloway dared make more than what some “self-taught progressive Democrat” thinks she should. Boo-hoo. Now she’s not making that money anyway. So what’s the problem? That she ever dared make that much money, and not a Panzer-approved “free market” wage?

    *Incidentally, one may wonder why the mhi and mfi for these two cities are closer together than in Berkeley. A good guess would be that many households in Berkeley are comprised of non-married lovers, or households of several relatively low-income college students, while “families” are more likely to be comprised of middle-class professionals.

  • Nick Mamatas

    Again, no threading past a first or second reply. Anyway Eric, your comment comparing the incomes of scholars of dead languages (and how one might get to the top of that field, by “determination” etc.) to the incomes of STEM pros tells me you actually don’t know how it is that some very very few scholars of, say, Ge’ez, might end up making more than someone with a BS in computer engineering.

    How might this vanishingly small number of scholars actually edge out STEMers with BSes? In the US: thanks to the AAUP and other faculty unions.

  • Nick Mamatas

    And to avoid spamming or bugging people with too many comments on this story, please, other commenters, have the last word at your leisure. 

  • http://www.webhamster.com/ The Sharkey

    Nick Mamatas, you are excellent at treading the fine line between snarky comment and personal attack.

    I formally relinquish my  position as “Most Self-Righteous Jerk on Berkeleyside” and pass the crown over to you.

    :-) :-) :-)

  • Bruce Love

    A person I respect asked to pass along this link to an organization that resists some of Bayer’s practices.

    http://www.cbgnetwork.org/4.html

  • http://pulse.yahoo.com/_V6KQTJGAQAZXMNEIKG5LM2IHZU Tizzielish

    $46K is median income here. Since when did median income measure median household income?  To measure median income while factoring in other incomes in a household might be appropriate for evaluating eligibilily for affordable housing, it seems dishonest to lump in, as The Sharkey does, dual-income households.

    Median area income is NOT based on media households, but on median individual incomes. $46K is very definitely median income here. Has anyone priced rental housing costs in this area? $46K buys about what someone earning half of this person’s income would buy monthly housing affordability in many smaller Midwestern cities but here in the Bay Area, $46K is very close to median income per person, without factoring in dual-income homes.

    And, The Sharkey, your assumption that most households in the Bay Area are dual-income is based on what reliable data? 

    You guys are all using terms with different meanings and using your personally preferred meanings to buttress your opinions.

  • http://pulse.yahoo.com/_V6KQTJGAQAZXMNEIKG5LM2IHZU Tizzielish

    Well, unless those STEM professionals have very good connections to the decision-makers in a position to give well paying janitor work to STEM professionals, I can tell you, from purely personal and anecdotal experience, that quite a lot of hiring supervisors will not seriously consider STEM professionals for janitorial work. So there is something stopping STEM professionals from becoming janitors:  bias, discrimination, ignorance.  Many people underreportj their qualifications when applying for jobs below their highest skill levels, which is risky, cause if the job applicatn is caught lying, sometimes even after many years of satisfactory employment history, they are summarily fired. But without some serious connects, a STEM pro scoring a janitorial gig is almost never a reality.  A supervisor with less education seems to naturally reject those with more education, telling themselves the person doesn’t really want the work, or the person will leave as soon as she can get a job in her field or that the person will not follow orders of less educated supervisors. There is very steep vias against professionals taking lower skilled work.

  • http://pulse.yahoo.com/_V6KQTJGAQAZXMNEIKG5LM2IHZU Tizzielish

    Speculation:  Anita Holloway was laid off about a year ago so she is still, likely, collecting unemployment, which might have allowed her to hold out hope of being rehired by Bayer with or without a second income in her household . . but it would be a very tight hanging on, wouldn’t it? So I think El Sharkey’s purely speculative assumption that she probably lives in a dual income household might be possibly right. Otherwise one has to assume Holloway has been humping hard to find a new job but it appears she’s been keeping her fingers crossed to be recalled to Bayer. And hey, more power to her if she can hold out. Although now it appears her dream of returning to Bayer is over.

    I am put off by the introduction of suggestion, even innuendo, that Holloway must be dual-income, as if that materially alters her contractual relationship as a union employee.  I hear some folks squawking about avoiding regulation, advocating for a free marketplace but then, when it suits them, these some folks are willing to inject specious, distracting arguments that are not, um, exactly free market. With or without a life partner, Holloway is entitled, is she not, to try to get the best deal she can for herself? And since when did seeking optimal advantage for one self, in or out of a dual-income household have anything to do with one’s contractual relationship with an employer, a contract exchange money and benefits for services? This discussion has been rife, if you ask me, with muddled thinking, with folks shifting their free market, pro-corporate or anti-corporate, pro-union or anti-union positions freely just to make points.

    I take exception, actually, to Holloway’s comment, quoted at the end of the pice, where she says Bayer’s promise that they would do their best to bring back laid off workers amounted, according to Holoway, as a contract. Now that I object to.  There is no breach of contract here.  Bayer acts like most corporations:  it takes and takes and takes whatever it can get, it rarely delivers the benefits to a community like Berkeley that has given and given and given exceptions to Bayer, and it holds no real allegiance to its workers, worshipping only its own bottom line. This is the way of corporate life:  profits for shareholders trumps wellbeing to the communities that helped generate the shareholders wealth.  It might not be a breach of contract, as Holloway suggests, but it is a breach of good faith.

    I think it is high time Berkeley city leaders, and all city leaders everywhere, (and other local leaders giving out corporate giveaways with elusive, nonbinding dreams that the corporations will nurture the community in return for its nurture of it) to stop giving away tax breaks to corporations. Let’s really trust the free market place if we are going to be burdened by the free market religion. Let all corporations proceed without any tax benefits, let them make money on a fair playing field. Employees of all these corporations have to live in a world without corporate giveaways for the individuals:  make it a real free market on all sides.  It’s just not right that much corporate profit that goes to shareholderse and senior execs with stock or stock options, is derived from tax subsidies that never really get funneled back into the surrounding community.  End all corporate giveaways and let the real free market play. Bayer has to do business somewhere. If no one was giving freebies, the same tide would rise all economic boats, I predict, with fairness and economic justice for more, instead of just for the corporate shareholders who can wine and dine political leaders and city staffers.

  • http://www.webhamster.com/ The Sharkey

    I believe you misunderstand my objective, Tizzie.

    My numbers suggesting that $46k is a lot of money for a janitor (well above the State average for the position, and almost double the National median for an individual) was simply an affirmation of Eric’s statement that $22+/hour seemed awful high for janitorial work, and to point out that Tom Lord’s use of household income was deceptive when we were talking about the income of an individual. If Tom’s assumption that Bayer’s employees are mostly non-Berkeley residents, then Nick Mamatas’ use of Berkeley income numbers is also deceptive.

    My assumption that she lives in a dual- or multi-income household is simply a result of my personal experience that the vast majority of people I know who live in the Bay Area either live with a partner or in a roommate situation (roommates count as multiple-income households). Baseless conjecture for which I am unable to find recent numbers, but which I believe most of us will agree seems to be the norm in this area.

    None of this has anything to do with Bayer’s obligations or lack thereof.
    Eric made some very good points, and I believe that Tom’s manipulative comments and insinuations were uncalled for. That’s it.

  • http://www.davosnewbies.com lknobel

    We allow a thread depth of four. When we first used Disqus we didn’t limit the depth and it resulted in absurdly narrow columns of text for comments. In most cases, four seems adequate.

  • STRIKE

    You assume too much!

  • http://www.webhamster.com/ The Sharkey

    No, I don’t.

  • Obama

    Nowadays, Bayer seems trying very hard to impress the local government and media, but in another hand, it totally changes its attitude toward its employees and tries everything it can to save a few dollars for the CEO’s compensation bonus.  It not only laid off many union worker, I heard that it tries hard and figures out ways to fire its researchers and engineers (not lay-offs) so Bayer even doesn’t need to pay their laid off benefits thus saves even more for its CEO’s bonus.  Who cares, the bosses all are in Germany not in US. Who said Bayer invested 100 millions in Berkeley, have you ever seen any new buildings over the horizon line?  What a lie!