Exchange Students Win $200K Settlement for Exploitation at Hershey Plant

Last year there was strike at Hershey Chocolate by 300 foreign students living here on J-1 work-study visas. According to Democracy Now, it was the first time that foreign students had engaged in a strike against their employer.

Their actions are now starting to pay off. Over 1,000 students from Eastern Europe and Asia recently won more than $200,000 in back wages for their work at Hershey in a settlement with the U.S. Labor Department, according to the Huffington Post. The feds have also imposed fines on three groups involved in staffing for minimum wage, overtime and safety violations: SHS Group, a temporary workers firm; Exel, Inc, the company that oversaw the plant; and the Council for Educational Travel-USA, a nonprofit that imports foreign students on J-1 travel visas.

Hershey, however, has so far gotten off without consequences, even though they benefited financially from the exploitation of the students.

The students had to pay between $3,000 and $6,000 to participate in the “cultural exchange program,” a modern day form of job sharking run by the U.S. government. In reality, many were forced to do heavy lifting from 11:00 pm until 7:00 am and toil under sweat shop conditions, when they were supposed to be sleeping and studying for their day classes. They were also forced to live in company housing with rents far above market value, similar to the company towns of the early 20^th century, where workers were paid in scrip.

Interestingly, they did learn a lot about American culture, just not the white-washed American Dream fantasy that the program had hoped for. They not only learned that American capitalism will take advantage of every opportunity to abuse people for private gain, but they also learned that Americans themselves are hungry, homeless, unemployed and desperate for a stable income. (The student workers were given jobs at minimum and sub-minimum wage, while local residents were suffering high rates of unemployment and poverty).

Foreign Youth Give American Workers Lesson in Solidarity

The strike at Hershey by 300 foreign students here on J-1 work-study visas has been going on for two weeks now. According to Democracy Now, it is the first time that foreign students have engaged in a strike against their employer. Federal agencies have begun four separate investigations into the allegations of exploitation.

The students are now demanding that they be refunded the $3,000 to $6,000 they paid for the cultural exchange program (and the right to be exploited by Hershey) and that their jobs be given to local workers at a living wage.

The students came mostly from Eastern Europe and Asia. The fees they paid were supposedly to allow them to participate in a cultural exchange program. Instead, they became slaves of the Hershey Corporation. They were forced to do heavy lifting and work from 11:00 pm until 7:00 am, even though they were also supposed to be taking classes and studying.

Interestingly, they did learn a lot about American culture, just not the white-washed American Dream fantasy that the program had hoped for. They not only learned that American capitalism will take advantage of every opportunity to abuse people for private gain, but they also learned that Americans themselves are hungry, homeless, unemployed and desperate for a stable income.

While they were being kicked around by Hershey, they witnessed local residents who couldn’t make ends meet and realized that this was exacerbated by their exploitation by Hershey. If foreign exchange students could be forced to work long hours at lower pay, Hershey could avoid hiring local residents at union or local rates.

The J-1 visa program, which started as, and continues to be billed as, a cultural exchange program, has become the largest guest worker program in the country, according to Democracy Now. The $3,000 to $5,000 students pay to participate is a de facto bribe to legally work in the country, like the old system of job sharking that was so common in the early 20^th century, when unemployed workers paid large ransoms to job sharks to get them in with an employer. Like the old system of job sharking, the J-1 ransom is a large sum of money for a low-income immigrant and like the job sharks or yore, when the money does result in a job, it is typically at very low wages and terrible working conditions. Workers at the Hershey plant were making roughly $8 per hour.

There are other parallels with early 20^th century exploitation. The J-1 guest workers were forced to live in company housing with rents far above market value, similar to the company towns of the early 20^th century, where workers were paid in scrip.

The Great Strike Wave of 2011? (Part II)

In the Great Strike Wave of 2011 (Part I) I talked about the Verizon strike and the impending Southern California grocery strike, as well as the foreign exchange student strike at Hershey. Today I will discuss other recent and impending strikes and the implications for the labor movement.

Other Strikes and Potential Job Actions

UAW members working for Ford will soon be taking a strike vote as the deadline for their new contract approaches. However, considering the UAW’s disgraceful sellout to Chrysler and
GM, including agreeing to no-strike clauses, it is virtually guaranteed that the UAW will try to sell out Ford workers, too. Nevertheless, it is conceivable that workers will strike despite their union, which could add tens of thousands more to the total number of striking workers.

Last week, hundreds of cement workers walked off the job at the World Trade Center and other New York sites in protest of management’s demand that they accept a 20% pay cut. The walkout lasted three days, Working in These Times reported, and occurred despite the fact that they were working under a labor agreement that banned strikes and without support of their union leadership.

Around the same time, the 25,000-strong New York City District Council of Carpenters authorized a strike vote if an agreement could not reached on their contract, setting the stage for the first city-wide construction strike in 80 years. However, the cement workers cut a deal with employers this week, averting a major strike. The details of their agreement are not yet available, so it is difficult to tell how much, if anything, they conceded. The situation for carpenters, on the other hand, is still unresolved, with the deadline for resolving their contract recently being extended until August 26.

There have also been numerous smaller strikes this week, including one at the Boathouse Restaurant, in New York’s Central Park, and another by workers at a water pollution treatment facility in San Jose California. If we include the basketball and football strikes, the maritime strike on the Great Lakes, several west coast long shore work stoppages, numerous other smaller strikes, and the major protests in Wisconsin, 2011 has already surpassed 2009 and 2010 combined (the 2 lowest years on record) for the sheer number of strikes and far outstripped those years in the total number of striking workers.

None of this is any guarantee that 2011 or 2012 will see any major victories for labor, but it’s a good start. The greater the number of workers engaged in job actions at a given time, the greater the chances that some of them will win, particularly if they support each other’s actions to increase the overall pressure on the bosses. A major victory by grocery workers, for example, is in the interests of all working people as it could infuse the labor movement with new energy and inspire more workers to organize and fight back, leading to more victories and an increase in union membership and participation. It would also send a message to the bosses that labor is not dead and that any continued slashing and gutting will be costly and painful for them.

Workers’ Tough Row to Hoe

Unfortunately, CWA and IBEW officials have ordered their members back to work at Verizon, while the details of a contract get hammered out with the bosses. They have also accepted a 30-day cooling off period, where all strikes are off the table, thus taking the winds out of their sails and reducing the chances that they’ll be able to build up the strength and momentum of their recent 15-day strike. It also takes the pressure off the bosses, allowing them to return to their old tricks and to bargain in bad faith.

If workers hope to slow down the assault on their working and living conditions, let alone make any significant gains, they will have to fight not only their bosses, but their union bosses, as well, as demonstrated by the UAW and numerous other unions, particularly in Wisconsin, where the unions ordered their members back to work despite the fact that there were already thousands of angry workers skipping work and willing to risk getting arrested. Many wanted a general strike. Instead, union leaders argued for a political settlement that never come and that no potential to improve wages or benefits.

Workers also need to recognize that their fates depend on the fates of their fellow workers and be willing to take some risks and make some sacrifices on their behalves. Teachers, for example, should be organizing for a general strike, not only to halt budget cuts that threaten their livelihoods, but to halt the cuts that threaten their students’ families and support services for children. They need to be willing to take job actions to support their clerical and custodial colleagues, not only because school custodians and clerical workers make teachers’ work easier, but because they need reciprocal support when they strike. Teachers need to be willing to take job actions in opposition to NCLB, charter schools and vouchers, not only because it threatens their working conditions, but because they are big giveaways to corporate vultures who are not only raiding public education, but the entire public sector.

Strikes are risky. We lose wages and risk losing our jobs when we go on strike. However, by not striking the losses are guaranteed: declining wages, slashed benefits, increased workloads, and emboldened bosses who constantly want more and know they can get it.

The Great Strike Wave of 2011? (Part I)

The recent Verizon strike, which involved 45,000 workers, was the largest labor struggle to hit the U.S. in years. (For a recent update, see here, here, here and here). It is also just the beginning. 62,000 grocery workers in southern California are now on the verge of going on strike.

In April, baggers, checkers and butchers voted to strike against Vons, Albertson’s and Ralph’s. After months of fruitless negotiations, members of the United Food and Commercial Workers (UFCW) are poised to carry out their threat. The corporate chains are so worried that they are advertising for scabs to replace their employees when they walk out (and then get locked out).

The three corporate chains posted profits of $4.5 billion in 2009, while their CEOs made over $10 million each. Yet they are demanding that employees pay more out of pocket for their health insurance, eliminating their HMOs, slashing pension benefits, and abolishing overtime pay, according to the WSWS.

Despite the egregious assault on their members’ pay and benefits, the UCFW leadership has been doing everything in their power to prevent a strike. Ricardo Icaza, President of UFCW local 770, said he thought the days of strikes were in the past, while Mickey Kasparian, President of local 135, said this was not a time when workers should defend their wages and benefits (see the WSWS article).

A strike by this number of workers could be explosive and quickly spread to other sectors, as workers across the country are being squeezed brutally by greedy bosses hoping to take advantage of the weak economy and even weaker unions. If successful, the grocery workers could inject new hope and confidence in the labor movement and facilitate organizing efforts in other industries. However, the union bosses are not to be trusted and will likely undermine workers’ efforts, even to the extent of crushing a strike, should one break out.

Consider the 2003 grocery strike in Southern California, which last for 5 months, before UFCW leadership caved in to corporate demands. During the strike, UFCW leadership pulled workers from the picket line and made little effort to organize solidarity actions, thus weakening their bargaining power and setting them up for failure.

If the grocery workers hope to be successful this time around, they will need solidarity in the form of consumer boycotts, help on the picket line, and solidarity actions by other workers, such as teamsters refusing to make deliveries and long shore workers refusing to load cargo destined for these chains.

A Victory For One Is A Victory For All

Speaking of solidarity and underdogs, foreign exchange students have walked off the job at Hershey, claiming exploitation and abuse. Several hundred foreign students taking part in a special State Department cultural exchange program have gone on strike, claiming their wages don’t even cover the costs of their visas, according to Democracy Now.

The program is supposed to introduce foreign students to the “American Way of Life” in hopes that it will improve U.S. relations with their home countries. They certainly are getting a heavy dose of the “American Way of Life” by being forced to work long hours at low wages under physically abusive conditions. Other students participating in the J-1 visa program have been forced to work in strip clubs, live in overcrowded conditions or accept wages of only $1 per hour, according to Bloomberg Business Week.

They are also getting a good practice at organizing and fighting for justice. Approximately 400 students did a sit-in at Hershey Chocolates last week. Harika Ozer, a Turkish medical student taking part in the strike, was interviewed on Free Speech Radio News. She said that they were not just fighting against their own abusive conditions, but for local workers, who are also being screwed and who will continue to be there fighting for their own working conditions long after the students return home. She also claimed that Hershey was exploiting children in some of its plants. (Listen to the 6:44 minute interview here)

Read more tomorrow in “The Great Strike Wave of 2011 (Part II)