Local 853 Battles VWR on Many Fronts

VWR must have thought they could sneak out of Brisbane in the dark of night, dump the union, set up shop non-union in Visalia and collect huge tax breaks without anyone noticing. Well, they were wrong. Local 853 has represented about 150 members at VWR for more than 50 years. Since the company, now owned by Chicago-based private equity firm Madison- Dearborn Partners, announced they were skipping town, the Local has fought them every step of the way.

On May 9, Congresswoman Jackie Speier (D-San Francisco/San Mateo) and State Treasurer Bill Lockyer held a hearing about the VWR situation with a specific focus on state and federal tax policies that may be subsidizing the piracy of jobs and economic activity from one area of the state to another.

Speier told a crowded room full of anxious Teamsters that she would do everything in her power to keep the medical supply company from leaving Brisbane and taking jobs with it.

“This misdirected tax policy subsidizes the loss of good jobs in Brisbane and offers an incentive to hire employees at likely lower wages in Visalia,” Speier said. “We need to find ways to protect local jobs.”

The ramifications of the VWR move impact more than the workers; the city of Brisbane will be crippled by the loss of about 50 percent of its sales tax revenue, City Manager Clay Holstein said, estimating that the lost revenue would reduce Brisbane’s police force by 67 percent and its fire department by 88 percent.

Panel members for the State-Federal hearing included Speier, State Treasurer Bill Lockyer, Assemblymember Jerry Hill, staff from the office of Senator Leland Yee, Clarke Conway from the Brisbane City Council, a representative from the Brisbane Chamber of Commerce, and Shelly Kessler from the San Mateo Central Labor Council, AFL-CIO.

Panelists explored different state tax policies — especially the Enterprise Zone program — as well as the reimbursement agreement where the City of Visalia agreed to give VWR millions in propertyrelated improvements. They also discussed the considerable amount of state pension fund investments that Madison Dearborn has enjoyed.

In his remarks, Lockyer said he was reviewing whether the employee retirement system CalPERS should continue to invest in Madison Dearborn. “This is an example of state law run amok,” Speier said. “It is a job-destroying law. It is a taxpayer ripoff that is robbing one community in order to enrich another in the same state.”

Assemblyman Jerry Hill, D-San Mateo, is currently crafting legislation to close what he calls a “loophole” in state law to prevent cities from luring companies away from others.

Fifteen Local 853 members who work at VWR braved retaliation and came to the hearing to shed light on the situation. And, Joint Council 7 mobilized Locals 70, 350, 386, 624, 665, 853, 856, 948, and 2785 to pack the room.

So far, none of VWR’s local employees have been offered the opportunity to relocate to Visalia, said John Thomas, an employee at VWR for more than 15 years. “They don’t want to take union employees,” he said. “We helped build this company to success.”

“My tax money is going to get rid of my job,” complained Carlo Ricci, who has worked at the facility for 15 years. “They’re pirating jobs from one part of the state to another, and my tax dollars are paying for it,” he said.

Local 853 has worked on numerous strategies to keep VWR in Brisbane and to ensure that if the company does leave, that the members have severance and transfer rights. “Unfortunately, we tried mediation, but that got us nowhere,” says Business Rep Bob Strelo. “It’s very disappointing. We’re now prepared to ramp up the campaign to educate VWR’s customers about what a bad player this company is. It looks like a strike is inevitable. This is the most disingenuous company and labor relations operations I’ve ever worked with.”

Watch this newsletter for calls to action about how you can help your brothers and sisters at VWR.