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Union-Busters Close

Stella D’Oro Factory

by Marty Goodman  / November 2009

 

NEW YORK—What began in August 2008 as a strike at the Stella D’Oro bakery in the Bronx became an 11-month protracted war and one of the great labor battles in recent New York history. The Stella D’Oro workers became a national symbol of resistance to a heartless economic system.

 

Stella bosses had demanded slashing wages as much as 25 percent, making insurance premiums unaffordable and eliminating holidays, vacation, and sick pay. During the strike not one of the 136 strikers crossed the line, a rare achievement.

 

After 78 years, on Oct. 8, Stella D’Oro’s owners, Brynwood Partners of Connecticut, closed its doors and laid off all of its workers in an act of outright union busting. Brynwood sold the bakery Sept. 9 to Lance, Inc., a non-union junk-food company, for an undisclosed amount, estimated at $12 to $17 million. Lance is moving all production to its non-union plant in Ashland, Ohio.

 

After a Stella boss announced the closing, one worker, George Kahassi, shouted into his face, “The workers united will never be defeated!”

 

About 90 workers chanted along with Kahassi for several emotion-filled minutes. The workers then cleared out their lockers and filed out, some in tears, but as labor heroes nonetheless. In a personal tragedy, one Stella worker of 29 years lost his father the day before he also lost his job.

 

The Stella workforce is mostly Latino, but also Italian, Greek, Albanian, West African, Eritrean, and Indian. They are represented by Local 50 of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM). About a week after the shutdown, workers received contractual severance pay, although one estimate puts outstanding compensation at 40 percent.

 

Typical of the capitalists that have thrown millions into unemployment lines, Brynwood is a Wall Street hedge fund that boasts of delivering high profits to wealthy investors—meaning, of course, profits on the backs of working people!

 

The investment firm of Goldman-Sachs, the largest recipient in federal bailout funds ($12.9 billion), is a major investor in Brynwood Partners. Goldman-Sachs plans to distribute $16 billion in employee bonuses in 2009. 

 

Over the years Brynwood received $425,000 in city tax breaks to keep production and jobs in the Bronx. City officials claim that there is no legal recourse under New York laws to prevent bosses from absconding with machinery paid for, in part, by New York’s working class. Moreover, capitalist law is so rigged that it is legally difficult to stop companies from closing plants in retaliation for a union’s unwillingness to accept concessions, although a Local 50 appeal is pending.

 

What is needed to stop company shutdowns and save jobs is mobilizing the power of the labor movement to stop scabs in their tracks and shut down production cold. Reliance on the boss-friendly court system is a trap for workers.    

 

On June 30, in response to a union appeal, the National Labor Relations Board ruled that Brynwood had “bargained in bad faith” and ordered the company to take back the workers and negotiate a contract. In an act of retaliation, the company announced the day the workers returned on July 7 that it would close in 90 days. Throughout, the local City Labor Council affiliate of the AFL-CIO did nothing to mobilize workers.

 

Stella workers assess their struggle

 

Emile Dorsu, a Ghanian immigrant and Stella packer, told Socialist Action, “I was thinking it’s been a failure. But, after speaking to some people, they say that we motivated them. We proved that we can stand up and fight. That makes me feel like, ‘OK, even if we didn’t win now, we have set some example for people to fight for what they believe in.’ She added, “That makes me feel good.”

 

Shop steward Mike Filippou said, “If we had 20,000 workers around Stella, the bosses couldn’t win. The labor movement is so weak. When we wanted to sit-down to get what we earned, they said they were afraid of lawsuits. The bosses take advantage of that, and the laws are made for them.”

 

He added, “Our Stella D’Oro Support Committee was a great thing. We had many rallies. We had people from every corner of the labor movement.” Filippou was suspended during the final month in retaliation, although there may be a negotiated deal on his status soon.

“I’m very proud of my co-workers,” Filippou told Socialist Action. “We stayed out and fought. But, it’s not over yet. We have to convince the city to allow CITGO petroleum [owned by the Venezuelan government] to make Brynwood sell it and make it into a worker co-op, as they’ve said they’re still willing to do.”

 

Only the physical Stella plant remains, owned by Brynwood. Thus far, Brynwood has not responded to CITGO. For a complete history of the Stella D’Oro struggle go to www.stelladorostrike.com.

 

Human Needs, Not Profits!