Congress took a step towards cracking down on corporate and big bank CEO pay today, as the House passed the Corporate and Financial Institution Compensation Fairness Act of 2009 by a 237-to-185 vote. Today's vote to restrict risky compensation and bonuses would apply to any company with more than $1 billion in assets. It follows mind-boggling report on Thursday that nine of the country's biggest banks--all receiving billions of dollars in bailout funds--had 'awarded' roughly 4,800 million-dollar-plus bonuses.

Today, the average CEO today makes in one day what the average worker is paid in one year. Employment compensation for workers in this country has grown over the past 12 months by the lowest amount on record--a stark reality that stands in direct contrast to the skyrocketing CEO pay and bonuses that have not slowed since our economic crisis hit. Here's a visual to help illustrate our point:

The Penthouse View vs. The Main Street Reality

Bonuses at big banks have even outpaced earnings. CBS News reports that while Goldman Sachs earned $2.3 billion last year and received $10 billion in TARP funds they paid out $4.8 billion in bonuses--more than double their income. "America is not living up to its promise when one of the architects of the economic crisis gets paid billions in bonuses for his failures while his employees take home wages barely above the poverty level," said SEIU President Andy Stern.

The House passage of the bill is an important step to correct the enormous disparity between those at the top and regular working Americans, but much more needs to be done to help Main Street recover. SEIU is calling on lawmakers to pass the Employee Free Choice Act as an essential way to rein in reckless CEOs and corporate greed and speed up economic recovery.

From the moment they flew people to Washington, DC to lobby against the Employee Free Choice Act, things were just not going the Chamber of Commerce's way...

From bringing a major labor law violator to lobby on behalf of (wait for it...) labor law reform, to getting caught in a lie by Sen. Feinstein, this can't be how the Chamber wanted their lobbying week to go.

TERRIBLE: As one of their main lobbyists on labor law reform, the Chamber of Commerce brings to Washington... a major labor law violator.

One of the Arkansas business leaders that the Chamber flew in was Michael Keck of St. Vincent Health System, where multiple unfair labor practices have been filed against management. (As an executive, Michael is "management.") It took St. Vincent nurses more than 3 years to get a union contract, during which time the National Labor Relations Board had to step in at least twice.  Read the full TPM piece here.

HORRIBLE: The Chamber claims that Sen. Dianne Feinstein no longer supports Employee Free Choice, and is promptly smacked down...by Sen. Feinstein. After a local California Chamber group met with Sen. Feinstein, they put out the word that she was changing her position; she did not support the bill. The only problem? It was flatly untrue. In response, Sen. Feinstein issued this clarifying statement:

"A statement has been put out mischaracterizing my position on this bill. The truth is that I am working to find common ground between the needs of both business and labor in order to reach a bipartisan solution. I believe we must find a way to protect the privacy of individual workers so that they may elect whether to form a union free of intimidation."

The same day, Sen. Johnson came out in favor of Employee Free Choice.

According to Wednesday's Argus Leader, Sen. Tim Johnson told a delegation of South Dakota business leaders Wednesday that he would vote to bring a controversial labor bill to the Senate floor for debate. "His decision to vote to consider the Employee Free Choice Act is a blow to local and national business groups, which have lobbied strenuously against the measure," wrote the Leader. It's "very significant," acknowledges the state Chamber president.

NO GOOD:  According to a Maine small business owner: The US Chamber of Commerce doesn't speak for small businesses any more than Burger King speaks for cows.  In response to a statement by the US Chamber of Commerce that Small Business owners oppose the Employee Free Choice Act, Mainer Ben Wootten said: "The US Chamber of Commerce doesn't speak for small businesses any more than Burger King speaks for cows. While the Chamber works overtime to represent the narrow interests of bloated, wealthy corporations, our nation's small businesses are struggling simply to keep their doors open.  We need common-sense measures like health care reform and the Employee Free Choice Act to help small business owners control costs and ensure that their employees feel truly invested in the long-term future of their workplace."

VERY BAD: Backed into a corner, they're now making misleading claims about the Employee Free Choice Act in a new ad. Many people saw the misleading and hypocritical ad the Chamber of Commerce placed in Roll Call and Politico yesterday. The fact is that -- when it suits them -- companies use binding arbitration all the time. In March of this year, the Chamber called Consumer Arbitration, "Fair, Inexpensive, and Unbiased."  But when it comes to creating a contract that works for workers, companies often refuse to negotiate a first agreement, or use stall tactics and gimmicks to delay the process for years.  Sixty-two percent of workers who form a union lack an agreement one year later and companies refuse to even negotiate in good faith in over 28% of cases.

If you've been following our blog, you've no doubt heard about last year's anti-Employee Free Choice call sponsored by Bank of America. As you'll remember, just three days after receiving its first set of bailout funds - $45 billion in total - participants on the call were encouraged to send "large contributions" to groups working to block passage of the bill.

Since that time, a number of groups have followed Bank of America's path. Rather than focusing on paying the American people back, they've instead used their resources to lobby against measures that would improve the lives of their new investors - us.

Here's a quick look at a few of these groups, in addition to Bank of America:

AIG

The American International Group has received the largest of all taxpayer bailouts, at a total cost of $173 billion to the American people, who now own approximately 80% of the group.

More than $90 billion of AIG's bailout funds went towards paying numerous domstic and foreign banks, such as Bank of America and Citigroup. Both of these groups are part of a huge lobbying effort against laws that would benefit working families, such as Free Choice.

The Financial Services Roundtable

The Financial Services Roundtable (FSR) a special interests group that represents more than 90 companies in the finance and insurance industry, including the nation's largest banks and insurance companies. Their leadership includes Bank of America, Wells Fargo, Citigroup, and U.S. Bank.

In total, member companies have received an estimated $213.8 billion in taxpayer money. You could buy a lot of round tables with that kind of money.

In every quarter in 2008, the RSF has lobbied against the Employee Free Choice Act. And this year, they've banded together with the U.S. Chamber of Commerce to make its defeat their top priority in 2009.

Citigroup

Since last year, Citi has received a total of $45 billion in taxpayer bailouts.
Following Bank of America's lead, they hosted a conference call to build opposition to the Employee Free Choice Act. The call, led by a senior executive at the U.S. Chamber of Commerce, was held on March 11th.

Just a day before the call, Citigroup cited Free Choice as the reason to downgrade Wal-Mart's rating, leading to speculation that the move was politically motivated to try to paint the bill as anti-business.

Burger King

Goldman Sachs is one of the largest shareholders of Burger King, and along with private equity firms TPG and Bain Capital, control the Burger King board through seats on its executive committee. Goldman Sachs has received $10 billion in taxpayer bailouts.

Burger King's second largest franchisee is a unit of Cerberus Capital Management, the same private equity firm that also owns Chrysler. Chrysler has received $5.5 billion in taxpayer bailouts.

Tell Corporate CEOs: Stop Standing in the Way of an Economy That Works for Everyone

We've just returned from Lafayette Park - right across the street from both The White House and the Chamber of Commerce - where hundreds of workers from across the country joined with labor, religious and community leaders to stage one amazing rally.

After five separate actions in front of places like Burger King, Bank of America, and the headquarters for the hotel and restaurant trade association, we coalesced together near the Chamber of Commerce, where we participated in some crowd-pleasing skits and heard stories from members, along with a brief word from SEIU President Andy Stern.

Why try to get the attention of these organizations? We took a look at their lobbying disclosures and found that the Chamber of Commerce and the leading associations for the restaurant, hotel, manufacturing, retail, and financial industries spent a combined $138.4 million on federal lobbying last year, hired 44 lobbying firms, and used at least 34 different front groups to push their agenda.

And, for the Chamber specifically, in the last ten years, they've spent $375 million to advance the interests of big business over those of small businesses and working families.

"So they might be a big and mighty lobbying machine--but guess what, when I asked their top officer Tom Donohue to debate me on employee free choice - he declined," said Andy Stern during the event. "It's not surprising they don't want to face us in public... how could they defend what they're doing?"

While the median hourly wage for workers in most industries is at or below the federal poverty line for a family of four, a look at 2007 CEO pay at leading firms in the trade groups found executive compensation ranging from $2 million up to $67 million. All opposed the Employee Free Choice Act, which is supported by 73 percent of Americans according to national surveys, and most also fought minimum wage increases and pushed restrictions on family and medical leave.

Tomorrow, the workers that participated in today's events (including more than 300 SEIU grassroots member lobbyists) have another full, exciting day ahead of them: discuss the importance of the Employee Free Choice Act. They're going meet with their Senators and Representatives to share their stories about being fired, intimidated, and harassed by their employers for trying to form a union. The Committee will also hear from allies and experts about how increased union membership helps communities and the nation's economy.

New analysis of lobbying disclosures shows that the corporate lobbying effort against the Employee Free Choice Act is being waged largely by industry trade associations and front groups rather than by individual companies. (PDF of this report here)

Indeed, when several of the companies that have been active against employee free choice have come under criticism, they have been quick to issue statements to distance their firms from any anti-worker position.

At a time when a majority of the public favors the Employee Free Choice Act and millions of Americans are struggling while high CEO pay and corporate bonuses persist, it appears that companies are reluctant to be out front themselves against a measure that would ensure workers the freedom to gain a voice on the job for improvements.

Instead, the dirty work is being done primarily by eight business associations that are together waging a massive assault against the bill while most of their member companies keep their own names clean.

Industry associations take the lead

• The following eight trade associations were among some of the biggest spenders in lobbying against the Employee Free Choice Act in 2008: U.S. Chamber of Commerce, National Association of Manufacturers, National Restaurant Association, Food Marketing Institute, Financial Services Roundtable, Business Roundtable, Retail Industry Leaders Association, and American Hotel and Lodging Association.
• Yet the officers of these associations have largely remained silent on Employee Free Choice. Out of 37 companies which hold leadership positions on the boards of the eight industry associations above, only 8 have ever independently lobbied on the Employee Free Choice Act and representatives from only 11 have made statements on Employee Free Choice.
• Even more striking, less than 4% of the more than 1,500 companies associated with the eight industry associations have ever independently lobbied on Employee Free Choice.
• While individual companies outspent trade associations in lobbying against the Employee Free Choice Act and other pro-worker legislation in 2007, in 2008 trade associations surged ahead, filing lobbying expenditure disclosures which mention Employee Free Choice totaling $141 million ⎯ $36 million more than individual companies.

Individual companies take cover

Burger King
"Burger King Corp. (BKC) believes unions serve a purpose in some workplaces and a number of its guests, vendors and franchisees have positive union membership experiences. BKC is not anti-union. BKC and its franchisees serve a diverse consumer base and, therefore, aim to remain neutral on political issues." (Source)
⎯ Statement issued February 20, 2009 after report, video, and protests exposed efforts by Burger King to defeat the Employee Free Choice Act and shed light on other poor employment and consumer practices at the fast food company. Burger King is a member of the National Restaurant Association and the National Retail Federation.

Principal Financial
"Contrary to incorrect reports issued today, The Principal Financial Group has not taken a position on the Employee Free Choice Act, nor do we plan to take such a position. The Principal represents the interests of millions of employees and hard working Americans who participate in its employee benefit plans; as well as 35,000 employer clients, 42,000 retirement plan sponsors and its own 15,000 employees. ... We have been a frequent advocate on issues of critical importance to unions and the financial services industry, such as civil rights and pension plan funding."
(Source)
⎯ Statement issued on February 24 after Change To Win Chair Anna Burger sent a letter to Treasury Secretary Timothy Geithner asking that Principal Financial not be considered for federal TARP money given the company's lobbying disclosures showing $2.4 million in federal government lobbying expenditures in 2008 across many issue areas, including employee free choice. Principal is a member of the Financial Services Roundtable.

McDonald's
"We regret our internal effort to keep our franchisees informed on all aspects regarding this legislation has been leaked to the press and mischaracterized as an anti-union campaign. This was not our intent. McDonald's is not engaged in an anti-union campaign. In fact, we pride ourselves on being the restaurant organization for all people -- especially during tough economic times like these. As such, we try to not take sides in political issues, because we know our customers come from all walks of life, and represent diverse opinions and backgrounds."
(Source)
⎯ Statement issued on December 22 after reports leaked that McDonalds Corp. had urged its franchisees to "contact your U.S. senators and representatives to oppose" the Employee Free Choice Act.

Key facts that may be contributing to the companies' strategy to oppose employee free choice through trade associations and distance themselves

• Today average CEO pay is 344 times higher than average pay for workers. In 1980, CEO pay was 42 times higher. In other words, the average CEO today takes home as much in one day as the average worker is paid in a year.
• By next year, median household income is projected to drop to a level lower than it was 10 years ago.
• 73% of adults favor passage of the Employee Free Choice Act (Hart Research Associates, 12/08)

Lobbying Machine
At-a-glance numbers on the combined lobbying forces of the Chamber of Commerce, National Association of Manufacturers, National Restaurant Association, Food Marketing Institute, Financial Services Roundtable, Business Roundtable, Retail Industry Leaders Association, and American Hotel and Lodging Association:

• Spent $138.4 million on lobbying in 2008 ($258,000 per member of Congress). All 8 groups lobbied against the Employee Free Choice Act.
• Hired 44 lobbying firms in 2008 (359 total lobbyists including both firms and association lobbyists).
• Used at least 34 different front groups and/or affiliates to push their agenda.
• Lobbied on hundreds of bills last year (The Financial Services Roundtable alone lobbied on 91 different bills; the U.S. Chamber of Commerce's lobbying disclosures fill 641 pages).
• The five associations with PACs gave 82% of their PAC contributions to Republicans from 2000 to 2008.

* PDF copy of report here

But BKC Statement of Support for Unions, Neutrality on Political Issues at Odds with Poor Employment Practices, Anti-Worker Lobbying Record

SEIU Now Calls on Fast Food Giant and Its Top Investors to Match Actions to Words by Ceasing Anti-Worker Lobbying Expenditures, Withdrawing from Anti-Employee Free Choice Groups

WASHINGTON, DC -- Following the release of a report and video exposing poor business practices and efforts to defeat the Employee Free Choice Act by Burger King and Goldman Sachs--one of Burger King's largest shareholders--and after a week of protests at Burger King locations across the country, Burger King attempted to distance itself from its own record of working against the interests of working families.

In a statement issued on Friday (February 20, 2009), Burger King Corporation (BKC) said the company "believes unions serve a purpose in some workplaces and a number of its guests, vendors and franchisees have positive union membership experiences. BKC is not anti-union. BKC and its franchisees serve a diverse consumer base and, therefore, aim to remain neutral on political issues."

Burger King's statement Friday stands in marked contrast to the company's lobbying record. From 2006 through 2008 Burger King spent $319,648 on lobbying, including lobbying against the Employee Free Choice Act, a measure that would ensure workers the freedom to choose to form a union without employer interference or intimidation. Burger King has also helped fund efforts to oppose the bill through its involvement in the National Retail Federation, one of the organizations behind an anti-employee free choice group called the Coalition for a Democratic Workplace.

"America needs companies like Burger King to help rebuild our middle class and our economy instead of keeping fast-food workers stuck in poverty while CEOs make millions," said SEIU President Andy Stern. "We'll be looking for Burger King to quickly get out of any and all anti-worker lobbying so its actions start living up to its words."

Goldman Sachs - a major shareholder in Burger King, owning more than 10 percent of its outstanding common stock and holding a seat on Burger King's executive committee - is also involved in lobbying against workers' interests as a member of the Business Roundtable, which spent over $15.8 million on lobbying in 2008, including lobbying against the Employee Free Choice Act in the third and fourth quarters last year.

In its response to last week's protests and SEIU report, Burger King remained silent on the report findings that, because Burger King workers struggle to get by on sub-poverty pay with no affordable employer health care, many are forced to seek public assistance. As a result, taxpayers are estimated to be paying more than a quarter of a billion dollars a year to help make up for Burger King's low pay and poor benefits. Meanwhile, Burger King chief executive John Chidsey took home $5.4 million in 2008.

SEIU is now encouraging workers and consumers to call on Burger King and top shareholders like taxpayer bailout recipient Goldman Sachs to completely end all lobbying expenditures against the Employee Free Choice Act, to resign from associations that lobby against working families, and to start paying living wages and offer affordable employer health care to their employees.

For a copy of the SEIU report "King Size Combo: What Burger King and Goldman Sachs Are Costing Our Country" and to view the Brave New Films video, please visit www.ChangeThatWorks.net/bk.

With 2 million members in Canada, the United States and Puerto Rico, SEIU is the fastest-growing union in the Americas. Focused on uniting workers in healthcare, public services and property services, SEIU members are winning better wages, healthcare, and more secure jobs for our communities, while uniting their strength with their counterparts around the world to help ensure that workers, not just corporations and CEOs, benefit from today's global economy.

Under pressure from SEIU activists and allies like Brave New Films, Jobs with Justice, and the Coalition for Social Justice this week, Burger King scrambled to respond to allegations that it lobbied against the Employee Free Choice Act while paying its workers poverty wages. In a statement issued Friday, Burger King apparently backed off its opposition to the Employee Free Choice Act:

"Burger King Corp. (BKC) believes unions serve a purpose in some workplaces and a number of its guests, vendors and franchisees have positive union membership experiences. BKC is not anti-union. BKC and its franchisees serve a diverse consumer base and, therefore, aim to remain neutral on political issues.

Now that it has recanted its opposition, we fully expect that Burger King will cease its expenditures on lobbying against the Employee Free Choice Act and either withdraw from business associations that also oppose the bill, or demand that those groups also stop lobbying against the Employee Free Choice Act.

Burger King spent $319,648 lobbying against the proposed legislation between 2006 and 2008 and has helped fund the fight against the bill through its involvement in the National Retail Federation, one of the organizations behind an anti-employee free choice group called the Coalition for a Democratic Workplace.

Prominent Burger King shareholder Goldman Sachs is also involved in lobbying against workers' interests as a member of the Business Roundtable, which spent $15,849,000 on lobbying in 2008, including lobbying against the Employee Free Choice Act.

"America needs companies like Burger King to help rebuild our middle class and our economy instead of keeping fast-food workers stuck in poverty while CEOs make millions," said SEIU President Andy Stern. "We'll be looking for Burger King to quickly get out of any and all anti-worker lobbying so its actions start living up to its words."

It's time for Burger King to line up its actions with its words. We look forward to seeing Burger King's next steps.

Check out these photos from our Burger King actions this week:

SEIU Leader Shares First-hand Experiences Trying to Organize Detroit Fast Food Workers in the 1980s

In 1980, the United Labor Unions set out to organize employees at Detroit fast food chains in the hopes of sparking a nationwide movement to unionize the workforce in this fast-growing industry. As a rookie organizer working on the campaign, I learned firsthand what is at stake when workers stand up for better wages, healthcare, and a voice on the job.

We started with a Burger King franchise in Detroit's Greyhound station. While the drive was a challenge, the spark spread between employees as they encouraged each other to join the union and stand up to their managers. Greyhound Food Management ran a tough campaign to keep workers from organizing -- threatening some, making promises to others -- but didn't succeed. By a margin of just one vote, the Burger King employees opted to create a union.

Encouraged by our victory, we shifted our focus to three McDonald's franchises on Detroit's North Side. The employees were struggling with all kinds of issues -- minimum wage violations, sexual harassment, unfair scheduling, and health and safety issues ranging from grill burns to meat slicer injuries. Fed up and fired up, they decided to organize a union and won overwhelming support from their co-workers. Nothing could stop them.

Or so they thought.