Labor, management and Market Basket

If you don’t live in New England – you have probably never heard of the Market Basket grocery chain.  It has been known for customer service and low prices.  I confess that I’ve probably shopped there maybe twice in the last 20 years so I am clearly not a regular.  But I know people who swear by Market Basket and, for some, it is the only store in town.  Whether you have heard of MB and love it, or don’t know the first thing about the store, there are lessons to be learned for Labor Day.

For more years than I can count, there has been a feud between the two cousins, Arthur S. and Arthur T. who inherited the store.  It has involved an epic court battle, and if I remember correctly, disciplinary action against some of the attorneys.  There was also an actual fist fight as at one point between the Arthurs.  All the while, Arthur T. has been managing the stores and making money for everyone.  But, according to the employees and Arthur T., the board wanted to take a bigger share of the profits for themselves and the shareholders who are mainly family members. The board decided to fire Arthur T.  Shirley Leung writes in her Boston Globe column

For six weeks, we were mesmerized by the sight of thousands of grocery clerks, cashiers, and other workers protesting at stores, on Facebook, and on the front pages of this paper. They did so at great risk, without the protection of a union, not because they wanted higher wages, but merely the return of their beloved boss, Arthur T. Demoulas.

 

Who among us would do that? Not many, if any at all. We were riveted because we wanted to be them. These rebellious employees gave voice to the voiceless masses who just wanted to hold on to decent wages for a decent day’s work at a time when fat cats get $50 million paychecks for showing up, and the gap between the rich and the poor is as gaping as ever.

 

After the Market Basket board ousted Arthur T., these foot soldiers of capitalism kept the story alive when they made flyers protesting his removal and distributed them to customers. Then they reached out to the media and politicians to talk about their improbable demand. Soon workers walked off the job and refused to restock shelves. Customers boycotted in solidarity, putting the economic squeeze on new management to do something.

While it is tempting to portray Arthur T. as the Good Arthur and Arthur S. as the Bad Arthur, as Leung points out Arthur S. and his pals never carried out threats to fire everyone and hire new people.  There was an attempt to hold a job fair, but it was never clear how many people came or if anyone was hired.  I believe eight people were fired early on, but that example didn’t slow either the employee action or customer boycotts.  The governors of New Hampshire and Massachusetts got involved.  A settlement was announced finally and Arthur T. is buying out Arthur S. so as to become the majority shareholder.  He will now be running a severely damage company in deep debt and will be borrowing money to pay for his purchase.

Employees seem optimistic.  They returned to work as soon as the announcement was made.  Whether the stores can be stocked so there are things for people to buy, whether suppliers can return, and whether Arthur T. can keep to his promise to continue to treat and pay workers well are open questions.  If Market Basket can beat the odds and make a comeback to profitability, the story will be studied in business schools and by labor historians for many years.  Actually, it will probably be studied no matter what happens.

Market Basket employees celebrate the return of Arthur T.

Market Basket employees celebrate the return of Arthur T.

The Market Basket story is one for this Labor Day.  Non-union employees took collective action to save a boss and his practice of putting employees above shareholders. I’ll let Joan Vennochi have the last word.

Most notable is the power of narrative. Market Basket workers used social media as an organizing tool, but, at the same time, they skillfully used old and new media to tell their story before the other side knew what was happening.

And, unless you were Arthur S., it was a story that had something for everyone:

Workers standing up for, not against, management.

The desire to believe in one corporate leader putting the well-being of his workers

over shareholders, in an old-fashioned “It’s A Wonderful Life” way.

Employees of modest means willing to put paychecks for rent and mortgages on the line for principle.

“It speaks to a search and yearning for respect and fairness,” said Lew Finfer, a veteran community organizer who has worked for decades with unions to do just that by promoting better worker pay, conditions, and benefits.

There are lessons here for everyone.

Photograph:  JESSICA RINALDI/GLOBE STAFF

 

Mittens the mean

Whether you are going to vote for him or not, Mitt Romney has kinda a nice but clueless rich guy image.  Don’t let that fool you.  Joan Vennochi reminds us of his history here in Massachusetts.

Massachusetts is where Romney first showed his appetite for running over any candidate who stands between him and political office. Here, it happened to be women.

When Romney decided to run against Ted Kennedy in 1994, Republican Janet Jeghelian, a former talk radio host, was in the race. Once Romney jumped in, he and the state GOP kept her off the primary ballot.

Jeghelian wasn’t a strong candidate, but she was a prescient one. After she was forced out, she predicted he would waffle on abortion rights. It took awhile, but he did.

Seven years later, Romney muscled out acting Governor Jane Swift, who had his pledge that he would not challenge her for the nomination. But fresh from running the winter Olympics, Romney jumped in, and without so much as a courtesy phone call, pushed out the politically weak Swift.

Realizing the delicacy of kicking aside the Bay State’s first female chief executive, Romney recruited another woman, Kerry Healey, to run as his lieutenant governor and vouch for his pro-choice credentials. Once elected, he relegated Healey to back channel roles, but she remains loyal and supports his presidential bid.

These tactics should be familiar to Rick Santorum and the other Republican candidates only there he did it with his super Pac and advertising.

Joan’s point is that all of this leads to a lack of trust which hurts him particularly among women.  And while he has flip-flopped on a number of issues two matter to women.  The first is his support of abortion rights during his Massachusetts Senate campaign.  And he has done a major flop on Massachusetts health care reform.

As Shannon O’Brien, the Democrat he defeated in 2002, points out, “The choice issue is just one glaring reason why women can’t trust Mr. Romney. The broader, more profound issue is about what he will do to protect and preserve family health care across the country. Where he had such promise as governor, setting the stage for using Massachusetts as a national model, now he’s saying he didn’t mean it, never said it, doesn’t want it. That’s the biggest flip-flop-flip that women should be concerned about.’’

Massachusetts Democrats are gleefully reminding voters of Romney’s singular role in health care reform. He pushed for the individual mandate. He personally escorted the first woman who signed up for Romneycare. At his request, his official State House portrait, which hangs in the reception area of the governor’s office, includes the artist’s rendition of Romney’s wife, Ann, and a stack of papers representing the state’s health care law.

Will he have his portrait replaced next?

Men and women run against each other with regularity these days.  Look at President Obama and Secretary of State Clinton.  The point is that Mitt doesn’t seem to care about the niceties.  He could have run in a primary against both Swift and Jeghelian and maybe he would have won.  Maybe it is just coincidence that the two candidates he ran over were women and we will never know whether he would have jumped in if they had been men.  I think he just would have competed in the primary and blasted his opponent with negative advertising.

So all of you fellow Obama supporters take heed:  this is not a nice guy and brace yourself for a negative campaign and he tries desperately to recapture the women’s vote he needs to win.  Luckily, I don’t think he can flip again on either abortion or health care as that flip will cost him his Republican support. 

We can only hope he stays perplexed.

 

The Police, Henry Louis Gates, Jr. and Racial Profiling

I know the controversy is just beginning.  Volumes will be written about the incident in Cambridge.  Both sides will defend themselves and blame the other side.  Everyone will play the race card.  People who already mistrust President Obama because of his skin color will use his remarks as proof they are right.

The best commentary I’ve seen on the incident so far is from Joan Vennochi writing this morning in the Boston Globe.  In her regular op-ed column Vennochi wrote

The arrest of Henry Louis Gates Jr. by a Cambridge police officer is playing out along racial lines. But it’s also about power and machismo – on both sides.

Machismo.  That’s the key.  Gates, whether true or not, felt he was being treated differently than a white man would be in his own home.  Years of disparate treatment combined with the ego that comes from being an important and respected person in your field, caused him to lose his temper.  The police sergeant, James Crowley, faced with a potential break-in and a tired angry man reacted, not by backing down, but by arresting him.

Gates was in his own home when a Cambridge police officer responded to a call about a possible break-in at that address. The professor had just returned home from filming a documentary in China. His front door was stuck shut and his taxi driver helped him pry it open. Then, Sergeant James Crowley appeared at his door and demanded to see identification. Gates provided it, although some facts about how and when are in dispute.

The police report states that Gates was arrested after exhibiting “loud and tumultuous behavior, in a public place, directed at a uniformed police officer who was investigating a report of a crime in progress.’’ Gates disputes some information provided in the police report, but does acknowledge that he responded with anger.

Human beings of all races have a tendency to react as Gates did, especially when they are tired, frustrated, and privileged. Police officers usually don’t like it. The question is whether this police officer responded more harshly because of skin color.

The answer isn’t obvious, but both men could use some sensitivity training. Gates shouldn’t have yelled at the police officer; still, what he did was irritating, not criminal. Once the officer determined Gates did live in the house, he should have left, no matter what the professor was shouting.

Harvey Silverglate, a criminal defense lawyer, civil liberties defender, and Harvard Law School graduate, believes Gates’s arrest should be investigated, but not only because of its racial implications: Was Gates arrested and held as a way to teach him a lesson? If so, asks Silverglate, “Is this acceptable, regardless of whether the citizen is white or black?’’

In an ideal world, no. When it happens to a black man, racism may be the easy explanation, but that doesn’t make it the only explanation. Life and power in 21st-century America are more complicated than that.

President Obama at his July 22 press conference offered this

Wednesday night’s press conference seemed to be a different deal as the president leaped into a highly charged controversy that has ignited passions across talk radio, the blogosphere and the old-fashioned water cooler.

But in fact, racial profiling was a major issue for Mr. Obama when he was in the Illinois legislature. He was the chief sponsor of a bill, which became law, that requires police to record the race, age and gender of all drivers they stop for traffic violations and for those records to be analyzed for evidence of racial profiling.

Mr. Obama, asked Wednesday what the incident said about race relations in America, noted up front that Professor Gates is a friend and that his comments might be biased. He said “words” had been exchanged and added:

“Now, I don’t know, not having been there and not seeing all the facts, what role race played in that, but I think it’s fair to say, number one, any of us would be pretty angry; number two, that the Cambridge police acted stupidly in arresting somebody when there was already proof that they were in their own home; and, number three, what I think we know, separate and apart from this incident, is that there is a long history in this country of African-Americans and Latinos being stopped by law enforcement disproportionately. And that’s just a fact.” He added later that the incident was “a sign of how race remains a factor in this society.”

He also used biting humor, grinning broadly as he imagined being in Professor Gates’s seemingly preposterous circumstance of being arrested after trying to get into his own home.

“Here, I’d get shot,” Mr. Obama said, referring to his new address of 1600 Pennsylvania Avenue.

The whole racial profiling question becomes curiouser and curiouser as we learn that the officer involved spent time at the police academy teaching racial profiling.

I heard a discussion this morning on MSNBC’s Morning Joe in which Joe Scarborough talked about the serious question of racial profiling and admitted that he would have probably had a similar reaction to Dr. Gates’ and likely would not have been arrested.  Perhaps what we need is a discussion of racial profiling and we can begin with a civil dialogue between Sergeat Crowley and Dr. Gates – an expert police profiler and one who has been profiled.  They both need to lose their machismo and have a serious talk.  No one would have to lose face and no one needs to apologize. Oh and yes, as Joan Vennochi suggested let’s throw in some sensitivity training.