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Leon Trotsky
Trade Unions in the Epoch of Imperialist Decay (1940)

There is one common feature in the development, or more correctly the 
degeneration, of modern trade union organizations in the entire world: 
it is their drawing closely to and growing together with the state power.

Monopoly capitalism does not rest on competition and free private 
initiative but on centralized command. The capitalist cliques at the 
head of mighty trusts, syndicates, banking consortiums, etcetera, view 
economic life from the very same heights as does state power; and they 
require at every step the collaboration of the latter. In their turn the 
trade unions in the most important branches of industry find themselves 
deprived of the possibility of profiting by the competition between the 
different enterprises. They have to confront a centralized capitalist 
adversary, intimately bound up with state power. Hence flows the need of 
the trade unions – insofar as they remain on reformist positions, ie., 
on positions of adapting themselves to private property – to adapt 
themselves to the capitalist state and to contend for its cooperation.

full: http://www.marxists.org/archive/trotsky/1940/xx/tu.htm

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NY Times December 9, 2010
Cuomo Gains an Ally for a Looming Fight With the Public-Employee Unions
By CHARLES V. BAGLI

Business and real estate executives intend to raise $10 million in the 
coming weeks in support of Governor-elect Andrew M. Cuomo’s looming 
showdown with government employees’ unions over wages and pensions.

And the business leaders, organizing as the Committee to Save New York, 
have found a surprising ally: one of the most powerful union officials 
in the state.

The official, Gary LaBarbera, is the president of the Building and 
Construction Trades Council of Greater New York, a 100,000-member 
federation of electricians, iron workers and operating engineers who 
work on large building sites around the region.

Their trades have suffered 20 percent unemployment in the economic 
downturn, and the union argues that healthier state finances and lower 
taxes will spur development and construction work.

And while, on average, the construction workers earn more than their 
union brethren in the public sector, they have the rankling perception 
that government unions have not shared in their recent suffering.

“We’re advocating for a fiscally sane economy in New York,” Mr. 
LaBarbera said Thursday. “This is not about bashing public-sector 
unions. But without a fiscally sound environment, we will not be able to 
attract new businesses to the city; we’ll continue to lose business.”

He conceded that “at times there will be competing interests between 
public- and private-sector unions.” But he added that he had become 
involved in the committee, in part, to serve as a counterweight to those 
who would “vilify working people.”

His participation was heatedly discussed during a recent meeting in 
Puerto Rico of the Public Employees Conference, a coalition of 
government employee unions in the state. And labor leaders say the top 
union official in the state, Denis M. Hughes, the president of the New 
York State A.F.L.-C.I.O., is concerned about what could turn out to be a 
debilitating schism in the most unionized state in the country.

Joshua B. Freeman, a labor historian at the City University of New York 
and the author of “Working-Class New York,” said he was not surprised 
that there might be “an open break” within the labor movement.

“The construction trades have been hard hit by the economy,” Professor 
Freeman said, “and are hard pressed to provide leadership for a labor 
movement that is increasingly dominated by public-sector unions.”

Though there has long been friction between private- and public-sector 
unions, the construction trades have had reason to feel aggrieved with 
other unions as well. Last year, the Retail, Wholesale and Department 
Store Union successfully defeated the $310 million Kingsbridge Armory 
project in the Bronx, which would have meant hundreds of jobs for 
construction workers, when the developer failed to agree to certain wage 
demands for employees who would work at the resulting retail mall.

But unions representing public workers have come under increasing 
pressure around the country. The Republican governor-elect in Wisconsin, 
for instance, has suggested that public employees should perhaps be 
stripped of collective-bargaining rights.

Still, Mr. Freeman said he would be “amazed” to see any unions join the 
business coalition if Mr. Cuomo turned his fiscal campaign into an open 
attack on unions.

Officially, Mr. Cuomo has no connection to the committee, but his ties 
are evident, and he has been fully apprised of the group’s progress, 
executives said.

The committee’s work will be run by Bill Cunningham, a managing director 
of DKC, a public relations firm started by Dan Klores, a close friend of 
Mr. Cuomo’s. John Marino, a former state Democratic Party chairman who 
is close to Mr. Cuomo, also works at DKC and has been active in the 
effort, committee members said.

The addition of Mr. LaBarbera — whom Mr. Cuomo named to his transition 
committee on transportation and infrastructure — may provide the 
Committee to Save New York with some insulation from criticism that the 
elite is looking to solve the fiscal problems of the state on the backs 
of working people.

Kathryn S. Wylde, the president of the business association Partnership 
for New York City, has been a key player in the formation of the 
committee. She said it was not trying to turn government workers into 
“villains.”

“This is just a situation where we have not been realistic over the past 
decade about what New York could afford to spend and still remain a 
competitive and attractive place to live and do business,” Ms. Wylde said.

Mr. Cuomo has made it clear that he plans to hold the line on property 
taxes, restructure Medicaid spending and take on the unions in a bid to 
resolve the state’s $9 billion budget deficit.

And he has publicly asked business leaders to back him up.

One influential leader, Steven Spinola, president of the Real Estate 
Board of New York, said, “I believe the business community needs to 
stand up and support a fiscally responsible budget.”

The committee, which includes the Real Estate Board and the Business 
Council of New York, has been asking executives and companies to pledge 
money, to finance a campaign of advertising and advocacy to counter the 
kind of advertising campaign that unions have used effectively to blunt 
previous cost-cutting attempts by governors.

One union, the Public Employees Federation, is already distributing 
stickers opposing layoffs and urging, “Keep Vital Services.” These are 
aimed at Gov. David A. Paterson, who has been threatening cuts in his 
final weeks in office.

Regardless of the involvement of the construction unions, Ed Ott, the 
former executive director of the New York City Central Labor Council, 
said the group’s demand for government employees to sacrifice was “too 
much of a one-way street.”

“It’s all about what should working people give up,” said Mr. Ott, now a 
lecturer on labor matters for CUNY.

“Let’s put the stock transfer tax on the table,” he added, referring to 
proposals to revive a state tax on stock sales, which Wall Street 
vehemently opposes.

Rob Speyer, co-chief executive of Tishman Speyer Properties, is expected 
to be named a co-chairman of the new committee, along with Richard D. 
Parsons, the chairman of Citigroup, and H. Carl McCall, a banking 
veteran and a former state comptroller.

The committee is soliciting pledges of financing. Tishman Speyer has 
said it will donate $1 million.

In recent years, efforts to curb state spending have been blunted by 
advertising campaigns by unions, notably 1199/S.E.I.U., the health care 
union.

Mr. Cuomo is intent on overhauling the Medicaid program, where state 
spending has tripled over the past 10 years while enrollment has more 
than doubled. Instead of slugging it out with 1199, however, Mr. Cuomo 
has quietly entered talks with George Gresham, president of the union. 
Mr. Gresham had early and loudly endorsed Mr. Cuomo’s bid for governor, 
when many other unions sat out the race.

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