Wednesday, July 14, 2010

Douglas Turner: Politicians wade into private waters : Douglas Turner : The Buffalo News

Douglas Turner: Politicians wade into private waters : Douglas Turner : The Buffalo News: "WASHINGTON — Six years ago, Sen. Charles E. Schumer urged company site selectors to take a fresh look at upstate New York. He said Buffalo and Rochester were among the best places in the country to build a factory.

What would those private sector decision- makers think now of the campaign that Schumer and the rest of the state’s Democratic notables are making to muscle a national company into making a deal with its labor union?

The dispute — a knot in the state’s shredding business climate — centers on a Motts apple juice factory in the hamlet of Williamson. It sidles up to Lake Ontario east of Rochester in apple country.

It’s owned by Dr Pepper Snapple Group, a new conglomerate spun off from a British firm. It makes 7-Up and dozens of other non-cola drinks. The new owners told 300 stunned workers at the juice plant they would have to accept

harsh take-backs if they wanted a new contract. Union bargainers heard these include pension freezes, a wage cut, reduced company payments to 401(k)s, higher contributions for health insurance and other big sacrifices.

There was a day when even Democratic officials kept their mitts off a private labor dispute where there was no finding of unfair labor practices, and no violence.

But the Retail Wholesale&Department Store Union called in its chits with state Democrats early in the game. State Comptroller Thomas DiNapoli reacted with an astonishing letter to Dr Pepper offices on his official stationery.

DiNapoli said he controls $33 million in Dr Pepper stock as trustee of the state employees’ retirement fund. He warned the company against being seen as “anti-labor” and then said an unhappy work force might cut profitability and the value of the stock. It looked like a threat he might dump 938,000 shares if Dr Pepper didn’t knuckle under.

DiNapoli’s menacing letter reached Dr Pepper offices in Plano, Texas, six weeks before the union struck Motts on May 23.

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