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Special Report
Craig Becker and Boeing
Critics see more conflicts for Obama’s go-to guy on the National Labor Relations Board.
For the last few months, Boeing has been clashing with the National Labor Relations Board (NLRB) over its decision to locate a plant in South Carolina. The NLRB argues that the airplane manufacturer illegally moved work from union factories in Washington state to a new $1 billion facility in the right-to-work Palmetto State.
NLRB lawyers maintain this is straightforward retaliation against union workers, based on comments allegedly made by Boeing executives themselves. Business leaders have denounced this as an unprecedented bit of federal pro-union advocacy, with the House of Representatives last week voting to halt the Boeing case and others like it.
The battle may soon intensify. Federal financial disclosure forms reveal that Craig Becker, a key union-friendly vote on the NLRB, owned stock in Boeing at the beginning of this year. Becker is one of federal agency’s Democratic board members.
According to documents obtained by the National Right to Work Committee, as of January 2011 Becker owned between $1,001 and $15,000 in Boeing stock, earning between $201 and $1,000 in dividends. This particular public financial disclosure report does not require more specific information.
The disclosure already has people detecting a potential conflict of interest. “The fact that Mr. Becker owns or owned stock in Boeing could be extremely detrimental to the NLRB’s case against that company,” says F. Vincent Vernuccio, labor policy counsel at the Competitive Enterprise Institute. “If Mr. Becker currently owns stock in Boeing then he should recuse himself from hearing the case.”
Any recusal could imperil the NLRB’s ability to take the Boeing case at all. Since former member Wilma Liebman’s term expired, the normally five-member board is down to just three members. “The Supreme Court recently ruled that the NLRB must have three members or there will be no quorum,” says Vernuccio. “If Becker is not able to sit on the case there can be no decision for Boeing.”
Another labor policy watcher familiar with Becker’s Boeing investment acknowledges it is a relatively small amount of money. “But how big does it have to be before there can be a conflict of interest?” he asks. “It’s not like there is a minimum where it would be okay.”
Becker, a perennial labor lightning rod, has faced calls to recuse himself before. A former lawyer for the AFL-CIO and SEIU, Becker said in a footnote to a June 2010 ruling that he would recuse himself from cases in which either of those unions was a party. Becker cited compliance with the Obama administration’s ethics policy as his reason for bowing out of those decisions.
But Becker also said that he would not recuse himself from cases involving chapters and local affiliates, arguing that they are separate and distinct legal entities from the national unions. Congressional Republicans blasted this as a meaningless concession, since most cases he would hear arise from the locals, from which the national unions collect dues.
“There’s clear reason to question Becker’s impartiality,” a spokesman for Rep. Darrell Issa (R-CA) told the Washington Post last year. “His former employer, SEIU International, tightly controls its local chapters. With such gaping loopholes, the Obama administration’s ethics pledge Becker signed isn’t worth the paper it was printed on.”
Last month, Sen. Orrin Hatch (R-UT) sent Becker a letter asking him what role he may have had in drafting an SEIU manual instructing union organizers on how to pressure businesses. Critics have called the document the SEIU’s “Intimidation Manual.” During his Senate confirmation hearings, Becker acknowledged providing advice on organizing and contract campaigns.
Becker failed to win Senate confirmation when Republicans — joined by some Democrats from less union-friendly states — blocked his nomination. The Wall Street Journal dubbed him “Andy Stern’s go-to guy” and “labor’s secret weapon.” Becker received a recess appointment from President Obama. His term will therefore expire at the end of this year.
The Boeing disclosure will only add fuel to the fire. The Boeing case is arguably the biggest labor controversy of the Obama administration, and Becker is seen as emblematic of this White House’s tilt in favor of unions against businesses in a challenging economic environment.
Vernuccio doesn’t think selling the stock will get Becker off the hook. “If Becker sold the stock after the case was brought this could point to more serious ethical issues, showing he knew the case could hurt Boeing stock,” he says. “Either way Becker’s ownership puts a new wrinkle in the case and may affect its outcome.”
It will be difficult for the president to get more NLRB members confirmed because Republicans have increased their ranks in the Senate since the filibuster against Becker, and several Democratic senators from right-to-work states are up for reelection next November. Additional recess appointments are likely also out of the question, because House Speaker John Boehner has pledged to block further recesses for the remainder of Obama’s term.
Most previous demands that Becker recuse himself from such cases have fallen on deaf ears, however. (A card check case was an exception.) In fact, critics have pressed him to remove himself from the Boeing case before because the machinists union filing the suit is an AFL-CIO affiliate. The NLRB’s inspector general has ruled in favor of Becker on these questions in the past.
The Boeing holding gives critics yet another shot at Becker. Even advocates for the workers of the world have to watch out for their stock portfolios.
About the Author
W. James Antle, III, author of the new book Devouring Freedom: Can Big Government Ever Be Stopped?, is editor of the Daily Caller News Foundation and a senior editor of The American Spectator. You can follow him on Twitter @jimantle.
Letter to the Editor View all comments (33) | Leave a comment
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Timothy L. Pennell| 10.3.11 @ 6:47AM
I'm thinking..........Singapore.
President Pivot, who's "first think I think about when I get up in the morning, and the last thing I think about, when I go to bed, is JOBS", doesn't seem to have a problem with American Businesses leaving the Country. Just ask GIBSON GUITARS.
The "Blacks Only" Justice Department has gone in to Gibson, with GUNS drawn, to confiscate the Imported Wood, that Gibson uses for their Finger Boards. The "We don't prosecute MY PEOPLE" Attorney General claims that the Wood, Imported from India, is here ILLEGALLY, and to Hell with all of the Paperwork that Gibson has, that prove otherwise.
This Black President's Black Attorney General, who lets Black Panthers violate White People's Voting Rights in Philadelphia, has got his mind set on freeing this Black Wood, from this White Man, at Gibson.
But, there's more.
According to the guy who made MILLIONS, cooking the books at Fannie & Freddie - Eric Holder - Gibson can make this all go away, bye just GOING AWAY.
If they want him to stop harassing them, they can MOVE THEIR BUSINESS, to another Country.
Just not to a Right To Work State.
It's time to put an END to all of this.
We need to TAKE OUT these Sons of Bitches, and get back an America where we can belong, again.
He has to go.
They ALL have to go.
John II| 10.3.11 @ 4:00PM
My impression is rather that the first thing the Professor thinks about when he gets up is indeed the last thing he thinks about when he retires: himself.
Why would he think about jobs? He's never worked one, much less done anything, ever, to create one.
Silly man.
Richard Baker| 10.3.11 @ 7:11AM
The communist in the White House has been hell-bent for election trying to destroy American businesses and I agree with Pennell. These people have to go. Their hatred for this country is on display daily and has to stop. This is NOT a planned economy such the old Soviet Union or any of the other communist/socialist market failures. This is still the dynamic country we all know and these clowns must begone. Next year they will begone to crawl back into the holes from whence they came.
Pecos Pete| 10.3.11 @ 6:29PM
From your keyboard to God's monitor!
Quartermaster| 10.3.11 @ 6:37PM
We can hope they are gone. I would not put it past our electorate to do the stupid thing and put him back in. The GOP leadership is doing all they can to see that happens by playing with primaries in Florida, and in other respects.
USSAlabama| 10.3.11 @ 7:41AM
The next headline will be "Boeing Making Move to China".
Intelligent Design| 10.3.11 @ 8:29AM
You got it, or India?
tom| 10.3.11 @ 5:15PM
Boeing will not move to China, you are mistaking them for GE.
martin j smith| 10.3.11 @ 7:48AM
Obama uses labor as his civilian n foot soldiers The NLRB is Obama's Union shield. The issue with Boeing is but a small part of the effort to destroy this nation. I think that AM SPEC better pay attention to the Union's involvement in anti-Bank and anti_Wall Street riots that will happen. They are now building. Am Spec better pay heed.
WRTolkas| 10.3.11 @ 8:06AM
"Becker cited compliance with the Obama administration's ethics policy as his reason for bowing out of those decisions."
What "Ethics Policy?" The only ethics these chicago thugs know is intimidation. Some policy.
Melvin| 10.3.11 @ 8:07AM
Even the little one horse company I work for received a letter from the NLRB that if we want to form a Union it would assist us.
Now this is a conundrum. North Carolina is a right to work state, and the NLRB says the employees can create a union and the NLRB will protect us. With that being said, does the NLRB trump North Carolina State Law?
The employees here would soundly thrash any Union goons that would pay us a visit from Chicago.
Quartermaster| 10.3.11 @ 6:39PM
People in right to work states can unionize, and the Feds protect that "right." In a right to work state, however, no one can be forced to join a union to have a job.
martin j smith| 10.3.11 @ 8:23AM
There are Union goons and they will behave as such.
Redstateboy| 10.3.11 @ 8:50AM
very well written and informative - that's why I enjoy reading TAS Monday thru Friday.
no hussein 2012| 10.3.11 @ 10:25AM
The hussein forced government motors on the people, now he want's government airlines, THE HUSSEIN IS A COMMIE.
Jack London| 10.3.11 @ 12:22PM
So - are we saying here that by acting in the interests of the union his stock would be more valuable? Seems to me that's what we want, isn't it?
JFGalt| 10.3.11 @ 12:30PM
Does the NLRB only work on behalf of union members? What about the rest of America's workers? They've been pretty silent about all the overseas jobjackin going on. This is all nuts.
Quartermaster| 10.3.11 @ 6:42PM
The NLRB's purpose is to protect unions. As a practical matter, it does little else. I've never heard of an individual complaint being taken seriously by the NLRB.
William| 10.3.11 @ 1:21PM
I think the NLRB's action against Boeing is extremely ill-advised. But wouldn't Becker's stock ownership arguably bias him in FAVOR of Boeing, not against? Or is the point simply the avoidance of ANY appearance of bias?
irish19| 10.3.11 @ 2:20PM
I wondered that myself.
Brubaker| 10.3.11 @ 6:19PM
That's a fair point, but bias is bias, regardless in which side's favor.
Marc Jeric| 10.3.11 @ 4:13PM
First things first - what the new government in 2012 must do immediately: eliminate whole departments and agencies, boards, commissions - as follows:
Agriculture, Labor, Energy, Commerce, HUD, HHS, Homeland Security...
then NLRB, EEOC, EPA, OSHA, Surgeon General,...
Please feel free to add to this list of criminal organizations.
John II| 10.3.11 @ 5:52PM
The IRS. Income per se is not an appropriate target of taxation: taxing income despoils the economy and corrupts the victims (who surrender their civil rights) as well as the enforcers (who become weird in the process of trampling civil rights).
By the way, whenever I hear a liberal airhead blathering about rights to privacy, I tell her that I'm glad to learn she's against the income tax and socialized medicine. Stops 'em every time. Not for long, but it stops 'em. The record so far is about 11 seconds of stupid staring before the blathering started up again. No direct response, of course.
Nite| 10.3.11 @ 9:24PM
The incoming congress needs to do something about what recess appointees can actually do. Becker and Dr. Berwick are cases in point. Unelected and unconfirmed political appointees should not have this kind of power, I don't care which party is in power.
POST American| 10.3.11 @ 11:32PM
-----''90's Show' breakdowns as the
awesome Globalist RED China sellout
and TREASON OP remains UNMENTIONED.
------The enforced SILENCE on this subject ------
-------------------IS KILLING US----------------------
--------------------LITERALLY--------------------------
Negro X| 10.4.11 @ 1:27AM
Obama and Holder are sub-human garbage. Nothing more than african tribal thugs. They would be nowhere without being propped up by white guilt liberals.
Leona Muller | 10.4.11 @ 3:09AM
I think that the United States had better not to make the "China threat theory".
Tulsa Liberty | 10.4.11 @ 8:23AM
I personally do not see how a man owning 1k to 15k in a company stack is going to sway his decision.
I have in the past worked with mega unions like the one in Washington at Boeing, and I must be honest. Quit complaining, as union workers they have great pay, benefits, health insurance, retirement. then when contracts come up they have work stoppages just to see if they can get more.
Last time Boeing workers decided they needed more than the average bear they stopped working for like 60 days. I was in supply chain at the time, we as a company took this hit as a unit and we all worked 24 hours per week so no one would get let go.
Many had to take a second job to have enough money to eat while the fat lazy union guys cried cause 30-40 bucks an hour was not enough, and they might have to make concessions on benefits.
I love my union brothers but try to get some sympathy from anyone who does not make the kind of money you want to walk away from.
Boeing as a company can move their plants anywhere they want to and after the last contract showing I do not blame them for wanting to go to a right to work state.
D Roamer | 10.6.11 @ 12:54AM
Boeing has the stockholders to keep re-investing and adding more. Labor is the major expense. Most of the components of the assembly are brought in from all over the world. Unions better be careful, no reason the assembly could not be in any nation in the world, how about India.