Bayer workers fight for good jobs in Berkeley

In July, 450 workers at the Bayer pharmaceutical plant in Berkeley, CA. heard that that the giant German-based corporation was planning to make layoffs. Within weeks, 29 employees were escorted out of the plant where ILWU Local 6 members have been working since the 1950’s. Because they were covered by a union contract, the laid-off workers were able to choose between remaining on a recall hiring list for one year and collecting severance pay if a job doesn’t open up, or taking their severance over six months while remaining on the company health plan, or taking a lump sum severance and leave the company for good. While these choices were farbetter than what most laid-off employees receive in a non-union setting, the pain and suffering was significant. Some workers lost their jobs just as they were buying new homes or expecting new babies. Bayer didn’t make things any easier by giving laid-off employees only 15 minutes to decide which severance package to take.

Fight back or keep quiet about layoffs?

The layoffs also posed a challenge for the remaining workers and their union; should they watch quietly and sit on the sidelines, or try and do something and question the layoffs? Although many longtime employees knew the layoffs would immediately impact only the newest-hired workers, they decided it was in everyone’s best interest to challenge the layoffs. They launched a campaign to inform everyone in their plant and surrounding community about the layoffs and encourage everyone to join the fight for good jobs at Bayer.

Reason for optimism…

During the recession, layoffs have become routine in many workplaces. But until this summer, Bayer didn’t seem as vulnerable to layoffs because the company’s biotech and pharmaceutical operations have experienced strong growth. Bayer’s facility in Berkeley has also benefitted from producing a popular and profitable drug called Kogenate that’s used to help people with a blood clotting disease called hemophilia. The drug is experiencing record sales.

Because Bayer operates sites in the US and around the world, it’s easier for the company to play workers in one plant against another. That’s what happened in Berkeley last year, when the company made noises about transferring some of the Kogenate production process to a non-union facility in New Hampshire.

…and reasons to be concerned

Despite Bayer’s healthy profits and record drug sales, the recession and high unemployment has made it easier for companies to exert more leverage over workers. It’s now easier for most employers to demand concessions and squeeze out higher productivity through speed-ups and layoffs. And there’s less pressure to share profits with workers, even when productivity increases significantly. The other factor in the Bayer layoffs could be that the Local 6 contract with Bayer expires next summer. While the timing of the 29 layoffs could be just a coincidence, it could also be part of a calculated move by the company to lower worker expectations and prepare employees to accept concession bargaining

Playing workers against each other

Because Bayer operates sites in the US and around the world, it’s easier for the company to play workers in one plant against another. That’s what happened in Berkeley last year, when the company made noises about transferring some of the Kogenate production process to a non-union facility in New Hampshire. Workers and government officials in Berkeley knew that Bayer could just be bluffing about moving, but nobody could be sure and the consequences of losing good jobs – especially during a recession – seemed unacceptable.

Making a deal to save jobs

After Bayer threatened to transfer work, union and local government leaders decided to support a package of tax incentives that the company wanted to ensure work at the Berkeley plant would stay put. The boundary line of an “Enterprise Zone” in nearby Oakland was extended to include the Berkeley plant, providing tax breaks for Bayer that they said would incentivize the German investors to spend $100 million on new equipment in Berkeley. The Enterprise Zone caused local and state governments to lose valuable tax revenue that is desperately needed. These kind of revenue losses due to tax cuts have increased as powerful corporations and wealthy individuals have used their political power to demand and receive more tax breaks – leaving working families with a larger share of the tax burden. It may have been a form of blackmail, but there didn’t seem to be any other way to protect badly-needed jobs from leaving. Back in New Hampshire, Bayer enjoys the same kind of “Enterprise Zone” arrangement that provides the company with tax subsidies that were obtained using the same kind of “we might have to leave” arguments that worked in Berkeley.

After Bayer got their Enterprise Zone tax breaks, they did invest money in improvements at the Berkeley plant. The arrangement by which workers and government officials agreed to help Bayer get the tax breaks wasn’t fair, but it did seem to be accomplishing the goal of securing good jobs. Then the company announced the 29 layoffs in July, leaving workers, the community, and government leaders feeling angry and burned. Research, investigation and action

After the layoffs, workers quickly swung into gear with an action plan:

• A rally at the plant entrance was called for September 22nd – the first rally in recent history.
• An education campaign was launched in the plant to boost communication with co-workers, spread the word about the layoffs, and explain the need to fight for good jobs.
• Outreach to community and neighborhood groups allowed workers to reconnect with old friends and establish new allies in the community.
• Discussions with local and state government leaders including Berkeley City Council members and State representatives who helped Bayer get tax breaks, but felt burned by the layoffs.
• Research and communication help was provided by the union headquarters to provide workers with an analysis of Bayer’s operations and finances in the US and around the world.

Action proves popular

By September 15, a small delegation of workers was testifying at the Berkeley Labor Commission, helping generate a unanimous vote by the body to investigate the layoffs. The rally on September 22 was a big success because of solid turnout and positive media coverage on local radio and television, and in newspapers. Bayer officials did everything possible to intimidate workers from attending the rally, including a written directive instructing workers to stay away from the rally area and prohibiting them from talking to the news media. Workers ignored these illegal threats and came to rally, where they were joined by local government representatives and community leaders. Delegations of workers are continuing to meet with local and state officials, keeping them informed and asking for greater accountability for companies that seek tax breaks but deliver layoffs.

Shop floor concerns

The impact of the layoff inside the plant is an ongoing issue, showing up in the form of speed-ups, mandatory overtime, and greater demands with fewer hands to help. While the company has yet to restore any of the 29 positions that were cut, workers in Berkeley are feeling like they and their union are standing up, fighting back and not being taken for granted any more.