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Field Notes: Independent Sector Conference

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Posted: October 26, 2006 09:11 AM
Author: Eric Nee

image I just returned from my hometown, the Twin Cities of Minneapolis and St. Paul, where I attended a conference for nonprofit leaders put on by the group Independent Sector. One of the highlights of the event was the opening speech by Andy Stern, president of one of the nation’s largest trade unions, the Service Employees International Union. Stern is a bold guy who recently led the SEIU, along with the Teamsters and several other big unions, out of the AFL-CIO. In his talk, he addressed many of the same issues and concerns confronting nonprofits—the effects of globalization, a broken health care system, failing schools, and growing income inequality.

Listening to him made me wonder, Why do nonprofits talk a lot about partnering with business and government, yet rarely talk about building partnerships with trade unions? Unions and nonprofits are natural allies, sharing many of the same concerns about health care, education, housing, social justice, and the environment.

More importantly, if it weren’t for unions, there would be tens of millions more Americans on the poverty rolls without health care insurance and many of the other benefits we’ve come to associate with middle-class life. The nonprofit sector would have a lot more work to do if it weren’t for unions. (I know this not only from having studied the labor movement, but from having spent several years as a member of SEIU Local 250, working as a nurse’s aid in nursing homes and hospitals.)

As Robert Senkler, CEO of Securian Financial Group (a large provider of insurance, asset management, and trust services), said later during his speech on creating partnerships between business and nonprofits, one of the most important things his company can do to be socially-responsible is create good jobs. That’s true. The only thing I’d add is that sometimes companies need nudges from unions to create good jobs—jobs that pay well, offer health care benefits and paid vacations, and the like.

The Twin Cities is the birthplace of some of the most innovative trade unions in America and some of our most socially-responsible corporations and capitalists. The Teamsters union, which like the SEIU focuses on organizing low-skilled workers, became as strong as it did because a group of Teamsters in the Twin Cities launched an innovative organizing drive in the mid-1930s that targeted truckers.

And American corporations have learned much about corporate philanthropy from the leadership of Twin City companies like Dayton Hudson (forerunner of Target). Dayton and other Minnesota-based companies created the Five Percent Club, companies that contributed five percent of pre-tax profits to philanthropy. As a result of this largess, the Twin Cities has one of the most vibrant nonprofit sectors and strongest arts communities in the country. Minneapolis is home to not only enlightened capital and labor, but also to some of the most progressive political parties and politicians in the country, exemplified by folks like Hubert Humphrey, Walter Mondale, and Eugene McCarthy.
Cross sector partnerships are now becoming the rage. And for good reason. One of the principal reasons that the Twin Cities always rank near the top of the lists of the best places to do business or live is because businesses, nonprofits, and the public sector (and trade unions, I might add), have learned how to work together.

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Eric Nee is the managing editor of the Stanford Social Innovation Review.

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Eric,

I am also from the Twin Cities.  I grew up in Highland Park, was a member of the first graduating class of Highland Park Senior High School, went to the University of Minnesota, and then to Wm Mitchell Law School.  I am familiar with Minnesota’s political tradition and business leadership.  I have worked for the federal government since 1973 and have been at EPA since 1982.

I publish (pro bono) a global directory on business and society on CSRwire.com at csrwire.com/directory.  It now has 1,700 organizations in 90 countries.  It should be helpful for SSIR, your authors, and your readers.

»» Posted by: Michael Kane on October 26, 2006 12:54 PM

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The community action agency where I work is a union shop, but most nonprofits are not.  Do we as a sector avoid working with unions out of fear that they will press us about our own employees’ pay and working conditions?

»» Posted by: Dennis Fischman on October 26, 2006 01:35 PM

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I am not aware of unions advocating on behalf of non profit organizations on any wide spread basis and their needs unless it was and is to organize their employees.  Public service unions have historically been neutral to hostile in supporting government contracting with non profits as opposed to creating more direct public service union jobs.

»» Posted by: Jay Bloom on October 26, 2006 03:25 PM

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Unions that pushed privatization of services might open up funding streams for nonprofits that would enable them to do better in the pay/benefits arena.  Or is the concern that nonprofits allocate poorly internally?

»» Posted by: Howard Finck on October 26, 2006 04:06 PM

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While I beleive that unions have played an important role historically in bettering the working conditions in the United States, I can’t share Eric Nee’s enthousiasm for working with unions today.  My experience, unfortunately, is that much of labor’s attention today is on growing its membership (and hence dues) - with less attention to improving working conditions - and absolutely no concern for the missions of the non-profits in which their employees work.

»» Posted by: William Christopher on October 26, 2006 05:50 PM

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Non-profits do not need unions because unions prevent organizational flexibility and drive up wage costs well beyond market conditions.  If there is one industry that can not afford unions, it’s the non-profits sector.  With shrinking budgets and increased competition for fundraising dollars, non-profits do not have the luxury to pay premiums for a constraining workforce.

»» Posted by: Thomas Newman on October 26, 2006 07:55 PM

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the concept is genuine, but my experience was bit pessimistic, may be in the Indian context, or may be due to ignorance that the organizers of trade union would lose their importance..

GCT78 an engineering CSO/NGO is in the business of training of workers, enhancing their safety and productivity, but in its infant-hood. We tried to enroll some construction workers and auto-drivers for bringing in some system efficiency together with group insurance; there was resistance from the office bearers with the apprehension that the control on the basic workers would be lost. We are still in the business, but have to make some progress. It is very strange that women workers are not that cared by the office bearers in the construction industry. In our part of the country, political clout is more attached to union activities; each party striving to prove that they take care of the workers better than the rest. But, still I believe, there are lots of room for non-political NGOs to work together with the unions. We should also confess that each political party have their own NGOs. The competition in the NGO market domain is also very strong, which was also evident in the tsunami relief works.

with warm regards,
P Purushothaman
Secretary, GCT78

»» Posted by: purushothaman p on October 26, 2006 09:36 PM

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In response to Thomas Newman: It’s true that nonprofits cannot offer wages and salaries that compete with private sector sectors, in many cases.  That’s exactly why it’s crucial to make sure workers enjoy good benefits and working conditions, to increase loyalty and reduce turnover.  Churning of nonprofit staff can dramatically reduce our efficiency (because of repeated expenses to hire and train new employees, build teams at work, get new employees known and appreciated by our partner agencies, and a whole host of other reasons).  It also eats away at morale.  Unions can play a valuable role in negotiating the benefits and working conditions that staff want most.  Unions can also help staff feel represented and hence empowered, another factor that helps them face the challenge of doing more work for less pay that the sector has had to deal with in recent years.

Our experience has been that the union understands our constraints on wage increases.  When Head Start offers our agency a 1% COLA, the union knows we can’t go higher than 1%.  I do agree that unions have not helped us lobby the government for better funding, even when it would be in their own interest to do so, but that’s something we have to address on the national level.

»» Posted by: Dennis Fischman on October 27, 2006 06:59 AM

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Although I’ve worked with labor organizations, I’ve spent most of my career working with nonprofits. I believe there is a lot that the nonprofit sector can learn from organized labor, namely how to “unite” to achieve more. The nonprofit sector is horribly fragmented with too many organizations vying for limited resources to achieve the same goal. This not only makes it difficult for nonprofits to thrive but also for us to work cohesively with other sectors to eliminate long standing problems.

»» Posted by: Lynn Ballard on October 30, 2006 08:29 PM

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I attended the Nonprofit Congress National Meeting and I made a film about my experience.  You can see it on Google Video.  It’s called Nonprofit Congress National Meeting 2006.  I’m not a film major, I am pursuing my Ph.D. in public policy, but I value documenting events for the purposes of democratizing experiences and allowing access and deeper understanding for those unable to attend. 

I know of several people who attended both conferences and would be greatly interested in seeing a similar documentary of the Independent Sector event.

»» Posted by: Esther Baker on November 2, 2006 10:23 AM

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For the past several years, a group of foundations that are a part of the Neighborhood Funders Group have been working to increase support for union-community partnerships. These partnerships have resulted in living-wage legislation, improvement of schools, and better wages and benefits for workers in the hotel and restaurant industry. Here in Chicago, SEIU has been working with community groups to hold hospitals accountable for their chairty-care mandates. We have found that community groups, working with unions, can create a power base that neither could create on their own, and act together to address issues of low-wage work, lack of health benefits, and workers rights. Recent contracts that HERE signed with hotels includes a provision that addresses the rights of immigrants. These successes have given us optomism for the future - community groups and unions can and will play a key role in the struggle for workers rights and social justice.

»» Posted by: Regina McGraw on November 16, 2006 08:06 AM

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“Community Labor United’s mission is to move strategic campaigns combining the joint power of community-based organizations and labor unions in order to protect and promote the interests of low and middle-income working families in the greater Boston area. “

See their website at massclu.org.

»» Posted by: Dennis Fischman on December 5, 2006 07:56 AM

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