Worker Rights and Consumer Rights

ALEC's Efforts to Limit Worker and Consumer Rights, Privatize Government Services, and Push "Free" Trade Through the corporate-funded American Legislative Exchange Council, global corporations and state politicians are voting behind closed doors to try to rewrite state laws. Bills here seek to limit workers rights and drain labor unions of resources for protecting employees, undermine consumer protections, favor the Wall Street financial agenda, limit the ability to cap exhorbitant interest rates on credit cards and big bank fees. The bills and resolutions here also attempt to funnel tax dollars to for-profit corporations through privatization schemes and push the "free trade" agenda that has shipped good-paying American jobs overseas.

READ the "Model Bills" HERE Click here for a zip file of Worker's Rights, Trade, Pensions & Privatization bills Click here for a zip file of Banking, Consumer Rights & Housing bills Click here for a zip file of Property/Auto Insurance & Transportation bills Click here for a zip file of Telecommunications & IT bills For a full list of bills from this section, click here For descriptions of some of these bills, scroll down or click here.

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Learn MORE about the "Model Bills" ALEC Corporations Are Backing to Rewrite YOUR Rights The Center for Media and Democracy analyzed the bills ALEC politicians and corporations voted for. More analysis is available below and also at ALEC Exposed's sister sites, PRWatch and SourceWatch.

How are corporations undermining workers through these bills? These bills erode the rights of workers in favor of corporate interests by: Limiting union rights (the rights of firefighters, police, teachers, and other public workers)-- Pushing union-busting 'right to work' legislation Limiting dues deduction from paycheck, (also here) and Allowing employees to opt-out of union dues but benefit from union negotiations with the employer (also here), and Disallowing limited time for union activities from being negotiated as part of employment contracts, and Dramatically changing pension rights for public employees from defined benefits to defined contributions, transferring the management of pension funds to private companies, and also opposing socially conscious investments.(pdf) Limiting wages-- Repealing minimum wage laws or opposing increases in the minimum wage Repealing the prevailing wage paid for government projects, which lowers wage standards, potentially lowers the quality of public works projects, and undermines the competitiveness of potential contractors that have union employees Pushing international agreements that undermine the opportunities of American workers-- Favoring so-called "free trade" agreements that ships good-paying American jobs overseas to developing nations that pay workers subsistence wages. (See the list here.) Using tax dollars to subsidize for-profit corporations for work traditionally performed by government, such as-- The "Council on Efficient Government Act" that outsources public services and weakens public employee unions, and The Competitive Contracting of Public Services Act and Public-Private Fair Competition Act, bills that require agencies to consider whether services can be provided by private entities at lower cost, which reduces the amount paid to workers while adding a profit margin in for corporate executives. Deterring injured employees from making worker’s compensation claims by, for example, giving employers wide access to employees' medical records To see a full list of bills, click here. Did You Know about this Bill? Authorizing "Car Title Pledges" for Predatory Lenders One model bil approved by ALEC corporations would authorize a form of short-term lending that many states have recognized as unfair and predatory to low-income consumers. Specifically, it advances the interest of lending companies in giving short-term, 30-day renewable loans backed by a borrower's car title, loans that usually have high interest rates, which are very difficult for people in tough financial circumstances to keep up with. Consumer groups have opposed this type of lending not only because the high interest rates and short-term repayment period can trap consumers in a cycle of debt, but also because they risk losing their cars, which they often need to get to work. The bill also provides few consumer protections, for example failing to include a private right of action with strong remedies, and requiring that all claims be brought within one year. This provides little deterrence for predatory lenders, and because the budgets of regulatory agencies are limited, the state cannot adequately protect against abuses. The Consumer Federation of America, USPIRG, and the Center for Responsible Lending sent a letter to ALEC opposing "car title pledges" in November 2005, enumerating many examples of predatory title lending, and also pointing out the distorting influence of campaign contributors from this sector of sound public policy. Bills like this have become law in Mississippi, Tennessee, and elsewhere. The ban on this type of predatory lending was also rolled back in Wisconsin after ALEC alumni Scott Walker became governor in 2011.

How corporations undermine consumer rights in the bills? These bills restrict the rights of consumers in favor of the big banks, predatory lenders, and others by: Opposing the Consumer Financial Protection Bureau (CFPB), created to help police Wall Street and protect consumers. Some politicians are also trying to block Elizabeth Warren from leading the the CFPB. (Also Encouraging pension fund investment in real estate securities Opposing limits on astronomical credit card rates, and thus opposing efforts to limit Americans’ credit card debt Opposing limits on ATM fees Allowing insurance companies to engage in "red-lining" by re-branding the practice of "territorial ratings" Prohibiting local governments from regulating unfair or predatory lending practices (such as prohibitions on backing high interest loans with car titles, detailed below) Eliminating building and maintenance codes for affordable housing under the guise of "increasing the construction of low-income housing" And among other things, Limiting the ability to fund comprehensive transportation policies through a state Constitutional Amendment requiring that revenues from gas taxes and vehicle-related fees be used for highways, rather than investment in light rail, bike lanes or other options less profitable for oil companies. Some of this Corporate Agenda Has Already Become Law Wisconsin Governor and ALEC alumni Scott Walker took a cue from ALEC's corporate wish list and introduced a radical bill in February, 2011 to cripple public employee unions. Wisconsin Act 10 inspired months of protests and has been subjected to a series of legal challenges. There is no ALEC bill that exactly mirrors Walker's proposal, but the Wisconsin bill does comport with ALEC's sweeping anti-union agenda, which includes decades of support for "Right to Work," "Paycheck Protection" legislation and other measures to disempower and defund unions. On collective bargaining, ALEC's "Public Employee Freedom Act" declares that "an employee should be able to contract on their own terms" and "mandatory collective bargaining laws violate this freedom." This ALEC bill, and the "Public Employer Payroll Deduction Act," prohibit automatic payroll deductions for union dues, a key aspect of the Walker bill. To learn more about this story, PLACEHOLDER. Have any of these bills been introduced or enacted in YOUR state? More Helpful Resources Additional resources on ALEC's corporate agenda: ALEC Funding, PRWatch (2011) American Legislative Exchange Council and other related articles, SourceWatch (2011) Ghostwriting the Law for Corporate America, American Association for Justice (2010) Climate Denial Report on ALEC and Exxon Funding for ALEC, Greenpeace (2011) Governing the Nation from the Statehouses, Progressive States Network (2006) Wolves in Sheep's Clothing, Common Cause (2006) Prison Economics Help Drive Ariz. Immigration Law, NPR (2010) Exposing ALEC, blogging group, Daily KOS (2011) ALEC: The Voice of Corporate Special Interests In State Legislatures, People for the American Way (2011) Corporate America's Trojan Horse in the States, Defenders of Wildlife and the Natural Resources Defense Council (2002) The Attack on Trial Lawyers and Tort Law, Commonwealth Institute (2003) Wisconsin's Cronon Affair: The Power of a Simple Fact, The Nation Magazine (2011) Ghostwriting the Law, Mother Jones (2002) ALEC Behind Voter Disenfranchisement Efforts, Center for American Progress (2011) ALEC Report, Center on Juvenile and Criminal Justice (2011) ALEC Exposed: Business Domination Inc., The Nation Magazine (2011)

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