WEBVTT - Next Trial of Texas AG & UAW Strike

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<v Speaker 1>This is Bloomberg Law with June Brusso from Bloomberg Radio

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<v Speaker 1>All Rise. The Court of Impeachment of the Texas Senate

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<v Speaker 1>is now in session.

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<v Speaker 2>Texas Attorney General Ken Paxton's eight year tenure as the

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<v Speaker 2>state's top law enforcement officer has been marked by public

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<v Speaker 2>scandals and criminal charges. The toughest test of his political

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<v Speaker 2>resilience came when he was impeached by fellow Republicans in

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<v Speaker 2>the House over allegations including bribery and corruption. Paxton denied

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<v Speaker 2>any wrongdoing and said the impeachment was a political sham

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<v Speaker 2>orchestrated by his opponents. And after a ten day trial.

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<v Speaker 1>For being fourteen ya's sixteen nays, a finding of acquittal

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<v Speaker 1>is entered as to Article one, and that was the.

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<v Speaker 2>Vote on all sixteen charges, a resounding acquittal that puts

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<v Speaker 2>back into office and attorney general, who's facing trial on

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<v Speaker 2>felony securities fraud charges, remains under an FBI investigation and

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<v Speaker 2>could be disbarred in ethics proceedings brought by the Texas

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<v Speaker 2>State Bar Of course, Democrats and Republicans had strikingly different

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<v Speaker 2>responses to Paxton's acquittal. Here's Democratic State Representative Anne Johnson

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<v Speaker 2>and Republican state Senator Bob Hall. The Republicans in the

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<v Speaker 2>Texas Senate just returned him to the office of top cop.

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<v Speaker 2>I will rely on what I said on the floor

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<v Speaker 2>of the Texas Help House.

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<v Speaker 3>God help us.

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<v Speaker 4>When you talk about impeaching someone, destroying their life, taking

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<v Speaker 4>them out of office. If they've done something and there's

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<v Speaker 4>evidence for it, that needs to happen. What we don't

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<v Speaker 4>need to have or sham investigations.

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<v Speaker 2>Joining me is Madlin Meckelberg Bloomberg Texas Legal reporter. Madeline

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<v Speaker 2>start by telling us about the articles of impeachment broadly,

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<v Speaker 2>what was he accused of so.

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<v Speaker 5>Ken Paxton was impeached by the Republican dominated House in

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<v Speaker 5>May of this year on twenty charges that spanned the

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<v Speaker 5>various allegations raised since he took office as Attorney General

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<v Speaker 5>in twenty fifteen. They talked specifically about allegations raised by

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<v Speaker 5>top staffers in the Attorney General's office who reported Paxton

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<v Speaker 5>to the FBI for alleged bribery. They all really center

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<v Speaker 5>on Paxton's relationship with a friend and political donor named

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<v Speaker 5>Nate Paul, who's a real estate developer in Austin and

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<v Speaker 5>he's been accused of using his office to aid Paul,

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<v Speaker 5>both in terms of turning over potentially confidential law enforcement

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<v Speaker 5>investigation information to Paul, who was under an FBI probe

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<v Speaker 5>at the time, and issuing opinions that would favor Paul

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<v Speaker 5>in some of his proceedings. And so there's twenty different

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<v Speaker 5>articles that go into different facets, but this relationship is

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<v Speaker 5>really what's at the heart of them.

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<v Speaker 2>And we should note that Nate Paul has been indicted

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<v Speaker 2>on charges of making false statements to influence financial institutions

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<v Speaker 2>over loan applications, and he's pleaded not guilty. Now, going

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<v Speaker 2>back to the impeachment trial, can you give us some

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<v Speaker 2>of the highlights of the evidence against Paxton? What stood

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<v Speaker 2>out to you?

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<v Speaker 5>I think something that really stood out from these two

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<v Speaker 5>weeks proceedings was consistent testimony from top employees in his

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<v Speaker 5>office who said they told him time and time again

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<v Speaker 5>that they were concerned about his actions. We heard from

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<v Speaker 5>people who said that they had private conversations with him,

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<v Speaker 5>who called meetings with him to tell him that they

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<v Speaker 5>were concerned that what he was doing was stepping over

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<v Speaker 5>the line. Something that's really key in the case here

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<v Speaker 5>that gets into this bribery allegation is his alleged extramarital affair.

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<v Speaker 5>One of the accusations is that Nate Paul hired the

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<v Speaker 5>woman with whom he was allegedly having an affair and

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<v Speaker 5>kept her on his payroll, and in turn, Paxton was

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<v Speaker 5>performing these acts in his office to benefit Paul. We

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<v Speaker 5>heard from his former chief of staff in the office

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<v Speaker 5>who talked about how this relationship affected the staff and

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<v Speaker 5>how these actions that Pat Paxton was taking had impact.

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<v Speaker 5>And she talked about feeling that people were uncomfortable fielding

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<v Speaker 5>phone calls from Paxton's wife and having to make certain

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<v Speaker 5>accommodations for him and this relationship. I think that was

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<v Speaker 5>a really compelling piece of testimony that we heard.

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<v Speaker 3>What was the defense to those allegations.

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<v Speaker 5>The defense called witnesses and they cross examined the prosecution's

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<v Speaker 5>witnesses and went line by line trying to depute these claims.

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<v Speaker 5>But I think the big picture from them is that

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<v Speaker 5>this is a politically targeted attack at Ken Paxton. They

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<v Speaker 5>say none of the actions he took violated the law.

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<v Speaker 5>All of the things were things that he was allowed

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<v Speaker 5>to do within his power or as attorney general. One

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<v Speaker 5>thing that was interesting during the proceedings in addition to

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<v Speaker 5>allegedly hiring this woman who was part of the affair

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<v Speaker 5>with Paxton, but the prosecutors claim that Paxton had renovations

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<v Speaker 5>done at his home that were funded by Paul and

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<v Speaker 5>that was another element of the bribery allegations, and his

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<v Speaker 5>defense were was really focused on that point. During the proceedings,

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<v Speaker 5>they pulled up pictures of his kitchen that was allegedly renovated,

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<v Speaker 5>and they confirmed that the countertops had actually not been

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<v Speaker 5>changed out at this time, that supposedly the renovations were

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<v Speaker 5>paid for, and they showed invoices of him making this payment.

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<v Speaker 5>That was a big victory, I think for the defense

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<v Speaker 5>during the proceeding, but I think broadly speaking, they cast

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<v Speaker 5>this as a political witch hunt against Paxton who did

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<v Speaker 5>nothing well.

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<v Speaker 2>Paxton didn't testify, and he wasn't even there for most

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<v Speaker 2>of the trial.

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<v Speaker 5>That's correct. He appeared on the first day to plead

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<v Speaker 5>not guilty to all of the charges, and then he

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<v Speaker 5>appeared briefly at the end of the proceedings, but he

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<v Speaker 5>was not present in the chamber and the court decided

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<v Speaker 5>that he did not have to testify. What's significant about

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<v Speaker 5>his absence is that the person who was present and

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<v Speaker 5>had to listen to all of these allegations was his wife,

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<v Speaker 5>who was a state senator herself, Angela Paston. She was

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<v Speaker 5>not allowed to vote on any decisions during the trial,

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<v Speaker 5>but she did have to be there during the court

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<v Speaker 5>proceedings to listen to all of the testimony and evidence.

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<v Speaker 2>Did you find out what his strategy was of not

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<v Speaker 2>even Deigny to appear.

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<v Speaker 5>Oh, we didn't learn much about how that fit into

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<v Speaker 5>his broader strategy. But I think the goal for his

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<v Speaker 5>defense was clear here, and that was to cast this

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<v Speaker 5>as a mutiny by some staffers in his office who

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<v Speaker 5>wanted to take over as attorney general. Potentially, that was

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<v Speaker 5>something they brought forward. They said, this is all a

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<v Speaker 5>political ploy. They tried to create this idea that there

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<v Speaker 5>was some kind of happening about who should be leading

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<v Speaker 5>the state's law office in this way. But we didn't

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<v Speaker 5>hear from Pakistan. We heard from people close to him

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<v Speaker 5>in the office, and most of the witnesses for the

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<v Speaker 5>prosecution were former employees who spoke to his conduct during

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<v Speaker 5>the period alleged. When the defense did call witnesses, they

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<v Speaker 5>asked four current members of the Attorney General's office to testify,

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<v Speaker 5>including one of the people that oversees the Open Records Division,

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<v Speaker 5>and folks who could speak to what they said was

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<v Speaker 5>Paxton's correct behavior while he was in office, But we

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<v Speaker 5>didn't get to hear from him himself.

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<v Speaker 2>Tell us about the vote for a conviction. Twenty one senators,

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<v Speaker 2>which represent two thirds of the chamber, would have had

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<v Speaker 2>to vote for Paxton's conviction.

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<v Speaker 5>That's exactly right. And this chamber, just like the Texas House,

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<v Speaker 5>is dominated by Republicans, so there were nineteen Republicans, which

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<v Speaker 5>would mean that some Republicans would have to vote in

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<v Speaker 5>favor of conviction in order to achieve a conviction at

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<v Speaker 5>the end of this. But what happened. What we saw

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<v Speaker 5>was consistently a party line vote, with all Democrats voting

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<v Speaker 5>in favor of conviction on most of the articles and

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<v Speaker 5>most of the Republicans voting in favor of acquittal on

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<v Speaker 5>all the articles. Only two Republicans in the Chamber ever

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<v Speaker 5>voted to convict on a single article, and the process

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<v Speaker 5>itself was a little bit confusing. Some of the witnesses

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<v Speaker 5>talked about this experience of seeing rules both for criminal

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<v Speaker 5>and civil proceedings being used in this trial, and so

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<v Speaker 5>the vote at the end of the day there wasn't

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<v Speaker 5>one single vote. All of the members voted individually on

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<v Speaker 5>each of the articles pending against him, and so we

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<v Speaker 5>saw some variation, but at the end of the day

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<v Speaker 5>it was a largely party line vote, with just two

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<v Speaker 5>Republicans ever, voting to convict on two of the articles.

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<v Speaker 2>I understand that Trump surrogates and allies tried to pressure

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<v Speaker 2>Republican senators not to impeach Paxson and posted names and

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<v Speaker 2>phone numbers of potential impeachment swing voters.

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<v Speaker 3>Do you know what they were doing behind the scenes.

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<v Speaker 5>That's right, There was a really big pressure campaign around

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<v Speaker 5>this entire proceeding. Obviously, Ken Paxton is a loyal ally

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<v Speaker 5>of our former president who spoke on his behalf as himself.

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<v Speaker 5>But then we did hear reports of these pressure campaigns

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<v Speaker 5>that you're talking about. There were reports we saw of

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<v Speaker 5>an effort to have online influencers pay people to post

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<v Speaker 5>on behalf of the Attorney General advocating for him, and

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<v Speaker 5>we certainly saw phone numbers being circulated, senators receiving phone calls.

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<v Speaker 5>But I think in addition to that campaign, I mean,

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<v Speaker 5>this is the defining political site I think of this

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<v Speaker 5>period in Texas politics. There's so much a play here.

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<v Speaker 5>Ken Paxson's been under indictment since twenty fifteen, and so

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<v Speaker 5>most of the allegations that we were talking about in

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<v Speaker 5>this impeachment proceeding have been known publicly, have been known

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<v Speaker 5>by the members for the duration of his tenure as

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<v Speaker 5>Attorney General, and it all culminated in this fight. So

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<v Speaker 5>I think the political pressure has been mounting from the

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<v Speaker 5>very beginning and really intensify it as a trial date

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<v Speaker 5>group closer.

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<v Speaker 2>Coming up next, we'll talk about the other legal cases

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<v Speaker 2>that Paxton is facing. You're listening to Bloomberg. I've been

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<v Speaker 2>talking to Bloomberg Texas legal reporter Madlen Mecklberg about the

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<v Speaker 2>acquittal of Texas Attorney General Ken Paxton after a nine

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<v Speaker 2>day impeachment trial.

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<v Speaker 3>So Paxton is.

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<v Speaker 2>Back in office as the state's top law enforcement officer,

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<v Speaker 2>but he's facing other legal problems.

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<v Speaker 5>That's right, he's been reinstated as attorney General. I think

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<v Speaker 5>there's a lot of eyes now on what happens next.

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<v Speaker 5>How do you go back to that office after going

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<v Speaker 5>through this like really public ordeal where a lot of

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<v Speaker 5>details were shared about your alleged conduct. And then he's

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<v Speaker 5>got other legal battles regarding his conduct that he still

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<v Speaker 5>has to fight. Like I mentioned, he's been under indictment

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<v Speaker 5>that's twenty fifteen or security fraud in a case that

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<v Speaker 5>is yet to go to trial. It's been delayed significantly

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<v Speaker 5>by these different pre trial squabbles over venue and such.

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<v Speaker 5>But I think we're going to get a date on

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<v Speaker 5>a trial very soon in that case. And he's also

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<v Speaker 5>tied up in some disciplinary proceedings involved in the state

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<v Speaker 5>bar of Texas who accused him of professional misconduct for

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<v Speaker 5>his efforts to try to overturn the twenty twenty presidential

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<v Speaker 5>election results. And there's an ongoing federal probe into his

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<v Speaker 5>conduct that was prompted by the whistleblowers who are behind

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<v Speaker 5>some of these impeachment claims, So we could still see

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<v Speaker 5>charges them from that. So while this was a significant step,

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<v Speaker 5>it's not the final word on Paxton's legal saga.

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<v Speaker 2>Those two state securities fraud charges, he was indicted on

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<v Speaker 2>those just months after he took office in twenty fifteen,

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<v Speaker 2>and it's always surprised me that that hasn't gone to

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<v Speaker 2>trial yet. How has he managed to avoid trial for

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<v Speaker 2>a year.

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<v Speaker 5>That's a great question. There's been quite a few skirmishes

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<v Speaker 5>ahead of this trial date. I think a key one

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<v Speaker 5>was venue where the case should be tried, either in

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<v Speaker 5>Houston or in his home county of Colin County. There

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<v Speaker 5>have been objections raised to the prosecutor bringing the case,

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<v Speaker 5>and all of these disputes have gone through a full

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<v Speaker 5>appeals process on their own, going up to the top

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<v Speaker 5>state appeals court in Texas, and they caused significant delays.

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<v Speaker 5>I think finally the state appeals court said that the

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<v Speaker 5>case can proceed in Harris County. There was a date

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<v Speaker 5>here in state for Paxton in the case just before

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<v Speaker 5>the impeachment proceedings began, and the judge said, once those

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<v Speaker 5>proceedings wrap, she's ready to get this case moving again

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<v Speaker 5>in Harris County.

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<v Speaker 2>And as you said, there is an investigation by the

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<v Speaker 2>FBI and the Justice Department's Public Integrity Section. Is that

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<v Speaker 2>on the same allegations that were to testified to in

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<v Speaker 2>the impeachment trial.

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<v Speaker 5>That's right. So these top employees in Paxton's office, who

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<v Speaker 5>we call the whistleblowers, they reported Paxton's conduct to the FBI.

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<v Speaker 5>As it relates to advancing causes on behalf of his

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<v Speaker 5>friend and political donor Nate Paul, and the FBI and

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<v Speaker 5>the DOJ they've been investigating. We haven't seen the result

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<v Speaker 5>of that investigation up to this point, but those cases

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<v Speaker 5>are ongoing as far as we're aware.

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<v Speaker 2>And there's a civil suit by those whistleblowers against Paxton.

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<v Speaker 5>That's right. The whistleblowers stewed Paxton under the state's whistleblower statute,

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<v Speaker 5>saying that they were retaliated against and in some cases

0:13:41.640 --> 0:13:46.000
<v Speaker 5>terminated because they reported his behavior. And that case is

0:13:46.040 --> 0:13:50.760
<v Speaker 5>actually what prompted this impeachment inquiry to start with, because

0:13:50.800 --> 0:13:54.880
<v Speaker 5>Paxton and the whistleblowers had struck a three million dollar

0:13:55.080 --> 0:13:58.480
<v Speaker 5>settlement agreement in the case, but in order to fund

0:13:58.520 --> 0:14:02.440
<v Speaker 5>that settlement agreement, Packs then needed state lawmakers to allocate

0:14:02.559 --> 0:14:06.280
<v Speaker 5>money towards that effort. State lawmakers said they weren't prepared

0:14:06.320 --> 0:14:09.840
<v Speaker 5>to allocate that money until they investigated the claims behind

0:14:09.880 --> 0:14:13.080
<v Speaker 5>the lawsuit, which is what prompted the investigation that led

0:14:13.120 --> 0:14:15.160
<v Speaker 5>to the drafting of the impeachment article.

0:14:15.640 --> 0:14:19.680
<v Speaker 2>Then he's also accused of professional misconduct by the state

0:14:19.760 --> 0:14:23.160
<v Speaker 2>bar of Texas, and he could be disbarred in that proceeding.

0:14:23.920 --> 0:14:27.320
<v Speaker 5>That's correct, that's a civil proceeding that's happening right now.

0:14:28.120 --> 0:14:32.840
<v Speaker 2>Despite the impeachment, all the public scandals, the criminal charges

0:14:32.880 --> 0:14:37.520
<v Speaker 2>he's still facing, some political experts think that he could

0:14:37.600 --> 0:14:40.920
<v Speaker 2>reach prominence on the national political stage.

0:14:41.440 --> 0:14:44.400
<v Speaker 5>I think that's totally fair. I mean, from the beginning,

0:14:44.520 --> 0:14:49.080
<v Speaker 5>Puxton's reputation has been built on being a conservative agitator

0:14:49.240 --> 0:14:53.760
<v Speaker 5>who does the Biden administration over everything that they do,

0:14:54.400 --> 0:14:58.680
<v Speaker 5>and he's worked to align himself with former President Donald Trump,

0:14:58.720 --> 0:15:02.520
<v Speaker 5>who we saw goats through a similar thing during his presidency,

0:15:02.880 --> 0:15:06.960
<v Speaker 5>being acquitted in impeachment cases and only serving to boost

0:15:07.000 --> 0:15:09.760
<v Speaker 5>his reputation. And I think that that's exactly what we're

0:15:09.800 --> 0:15:12.520
<v Speaker 5>going to see happen here with Paxton, who's going to

0:15:12.640 --> 0:15:16.640
<v Speaker 5>certainly be emboldened by this outcome. I think we're still waiting,

0:15:16.720 --> 0:15:18.800
<v Speaker 5>kind of with bated breast to see what his first

0:15:18.840 --> 0:15:21.240
<v Speaker 5>moves they're going to be now that he's been reinstated

0:15:21.280 --> 0:15:23.840
<v Speaker 5>to the office. But I think it's certainly fair to

0:15:23.880 --> 0:15:26.760
<v Speaker 5>say that this has only helped to bolster his reputation

0:15:26.840 --> 0:15:27.840
<v Speaker 5>within his own party.

0:15:28.360 --> 0:15:31.600
<v Speaker 2>That's an appropriate comparison to Trump, and just to be

0:15:31.760 --> 0:15:34.960
<v Speaker 2>clear he was re elected last year to a third

0:15:35.080 --> 0:15:39.880
<v Speaker 2>term despite all these criminal and ethical allegations. Was it

0:15:39.920 --> 0:15:42.440
<v Speaker 2>by a wide margin or a narrow margin?

0:15:42.920 --> 0:15:45.120
<v Speaker 5>That's exactly right, And that was a point that we

0:15:45.240 --> 0:15:49.320
<v Speaker 5>heard from Paxton's defense council throughout the proceedings. They said,

0:15:49.560 --> 0:15:52.640
<v Speaker 5>Texas voters knew about these allegations, and they didn't care.

0:15:52.800 --> 0:15:55.840
<v Speaker 5>They elected him anyway, and so why should the state

0:15:55.920 --> 0:15:58.760
<v Speaker 5>Senate overturn that? Why should they overturn the will of

0:15:58.800 --> 0:16:01.840
<v Speaker 5>the voters. I was elected by a large margin in

0:16:02.160 --> 0:16:07.040
<v Speaker 5>the general election campaign, but actually last cycles primary was

0:16:07.080 --> 0:16:10.400
<v Speaker 5>the first time we saw some very strong contenders who

0:16:10.520 --> 0:16:15.000
<v Speaker 5>challenged him in the Republican primary, including George P. Bush,

0:16:15.080 --> 0:16:18.800
<v Speaker 5>a descendant of the Bush political dynasty in Texas, and

0:16:18.960 --> 0:16:22.800
<v Speaker 5>Congressman Louis Gohmer and former Texas Supreme Court Justice Eva

0:16:22.840 --> 0:16:26.520
<v Speaker 5>Guzman challenged him. That primary went to a runoff, but

0:16:26.560 --> 0:16:29.760
<v Speaker 5>Paxton secured the nomination for his party there. But it

0:16:29.920 --> 0:16:33.040
<v Speaker 5>was kind of the biggest political test of the impact

0:16:33.040 --> 0:16:35.680
<v Speaker 5>of these allegations against him until we got to this

0:16:35.840 --> 0:16:36.800
<v Speaker 5>impeachment proceeding.

0:16:37.280 --> 0:16:40.520
<v Speaker 2>Well, a lot more to come with Ken Paxton's legal troubles,

0:16:40.520 --> 0:16:42.520
<v Speaker 2>and I know you'll be following them for us.

0:16:42.560 --> 0:16:43.920
<v Speaker 3>Madline, thanks so much.

0:16:44.360 --> 0:16:48.360
<v Speaker 2>That's Bloomberg Texas legal reporter Madlin Mecklberg coming up next

0:16:48.360 --> 0:16:52.040
<v Speaker 2>on the Bloomberg Law Show. The ua W strike as

0:16:52.080 --> 0:16:56.160
<v Speaker 2>automakers layoff more union workers, the question is whether the

0:16:56.280 --> 0:16:59.960
<v Speaker 2>union's aggressive stance will work. You're listening to Bloomberg.

0:17:00.760 --> 0:17:04.360
<v Speaker 3>It's exciting, but very scary because the unknown. You don't

0:17:04.359 --> 0:17:06.120
<v Speaker 3>know when you're going to get that full paycheck again.

0:17:06.160 --> 0:17:07.439
<v Speaker 3>You don't know when you're going to get back in

0:17:07.440 --> 0:17:08.240
<v Speaker 3>there to work again.

0:17:08.600 --> 0:17:12.040
<v Speaker 2>Tonia Sullivan is a third generation auto worker at Ford.

0:17:12.880 --> 0:17:16.360
<v Speaker 2>She's one of the nearly thirteen thousand workers on strike

0:17:16.440 --> 0:17:20.160
<v Speaker 2>against the Big three automakers, and as the strike enters

0:17:20.200 --> 0:17:23.760
<v Speaker 2>its fifth day, GM and Stilantis laid off more than

0:17:23.840 --> 0:17:28.320
<v Speaker 2>two thousand additional union workers. Marcel Edwards has worked for

0:17:28.320 --> 0:17:32.600
<v Speaker 2>Ford for thirty five years and says, though there's some nervousness,

0:17:32.960 --> 0:17:36.800
<v Speaker 2>the striking workers support each other. The nervousness about the

0:17:36.880 --> 0:17:40.720
<v Speaker 2>strike right now, it's just the uncertainty.

0:17:41.119 --> 0:17:44.639
<v Speaker 6>But we believe in fame, We believe in this membership.

0:17:44.720 --> 0:17:45.440
<v Speaker 4>We believe in.

0:17:45.640 --> 0:17:48.320
<v Speaker 2>Our elected officials downtown to make sure that we come

0:17:48.359 --> 0:17:53.000
<v Speaker 2>make with a contract that's respectable, and UAW president Sean

0:17:53.160 --> 0:17:56.280
<v Speaker 2>Faine told workers in a video that he'll call on

0:17:56.359 --> 0:17:59.240
<v Speaker 2>more members to walk away from the job if there's

0:17:59.320 --> 0:18:02.600
<v Speaker 2>no major progress and talks by the end of the week.

0:18:03.040 --> 0:18:06.679
<v Speaker 1>We've been available twenty four to seven to bargain a

0:18:06.760 --> 0:18:11.480
<v Speaker 1>deal that recognizes our members' sacrifices and contributions to these

0:18:11.520 --> 0:18:15.960
<v Speaker 1>record profits. Still the Big three failed to get down

0:18:15.960 --> 0:18:16.800
<v Speaker 1>the business.

0:18:17.000 --> 0:18:20.000
<v Speaker 2>My guest is labor law expert Michael Duff, a professor

0:18:20.000 --> 0:18:23.240
<v Speaker 2>at the Saint Louis University School of Law. Last year,

0:18:23.440 --> 0:18:27.439
<v Speaker 2>public approval for unions reached its highest level since Lyndon

0:18:27.520 --> 0:18:31.200
<v Speaker 2>Johnson was president. Sixty seven percent of Americans approve of them.

0:18:31.520 --> 0:18:34.800
<v Speaker 2>Have unions been making a lot of inroads?

0:18:35.280 --> 0:18:38.240
<v Speaker 6>Well, what I tend to focus on when having this

0:18:38.320 --> 0:18:42.560
<v Speaker 6>conversation with my students is the number of private sexist

0:18:42.720 --> 0:18:46.760
<v Speaker 6>employees unionized throughout the country. Right. So, a lot of

0:18:46.800 --> 0:18:50.960
<v Speaker 6>time we get union activity, we get popular approval, which

0:18:51.000 --> 0:18:54.880
<v Speaker 6>is better than popular disapproval from the perspective of unions.

0:18:54.920 --> 0:18:56.879
<v Speaker 6>But then we turn around and we look at the

0:18:56.920 --> 0:19:02.560
<v Speaker 6>total number of employees presented by a union, and we're

0:19:02.560 --> 0:19:05.600
<v Speaker 6>stuck at a number in the low six percent, right,

0:19:05.640 --> 0:19:08.560
<v Speaker 6>so six point one, six point three, six point four.

0:19:09.040 --> 0:19:13.320
<v Speaker 6>So my guarded answer is yes, I do think unions

0:19:13.320 --> 0:19:16.919
<v Speaker 6>have been making inroads with respect to the attitude that

0:19:16.960 --> 0:19:20.560
<v Speaker 6>the general public has to them, but so far that

0:19:20.760 --> 0:19:25.080
<v Speaker 6>has not translated into people actually joining unions, So it's

0:19:25.160 --> 0:19:26.199
<v Speaker 6>kind of a mixed picture.

0:19:26.720 --> 0:19:30.439
<v Speaker 2>UAW President Sean Fain. I want to talk about the

0:19:30.440 --> 0:19:35.160
<v Speaker 2>way he's framed these negotiations as a broader struggle. He said,

0:19:35.160 --> 0:19:37.720
<v Speaker 2>it's the battle of the working class against the rich,

0:19:37.840 --> 0:19:41.400
<v Speaker 2>the haves versus the have nots, the billionaire class against

0:19:41.480 --> 0:19:42.520
<v Speaker 2>everyone else.

0:19:43.000 --> 0:19:44.360
<v Speaker 3>What do you think of that framing?

0:19:44.800 --> 0:19:47.960
<v Speaker 6>So I come from a blue collar background in a

0:19:48.000 --> 0:19:50.800
<v Speaker 6>prior to life, I was a blue collar worker in

0:19:50.800 --> 0:19:53.040
<v Speaker 6>the airline industry for a number of years. I didn't

0:19:53.040 --> 0:19:55.679
<v Speaker 6>go to law school until my thirties. I was a

0:19:55.720 --> 0:19:59.199
<v Speaker 6>teamster shop steer for a number of years. And I

0:19:59.200 --> 0:20:04.880
<v Speaker 6>would say that that rhetoric resonates with me as somebody

0:20:05.040 --> 0:20:08.199
<v Speaker 6>from that class and somebody who has gone through on

0:20:08.280 --> 0:20:12.040
<v Speaker 6>a personal level labor structure. I think, you know, to

0:20:12.080 --> 0:20:15.000
<v Speaker 6>be honest, we have to look at that and say, well,

0:20:15.000 --> 0:20:18.919
<v Speaker 6>there's a generation of people, people of roughly my age

0:20:19.080 --> 0:20:21.560
<v Speaker 6>or a little bit younger who would be very put

0:20:21.600 --> 0:20:26.679
<v Speaker 6>off by that language that would seem extremely corrosive, not

0:20:26.920 --> 0:20:30.800
<v Speaker 6>tending to lead to agreements and so forth. Now we

0:20:31.040 --> 0:20:35.480
<v Speaker 6>have younger people coming up through the ranks of organized labor,

0:20:35.640 --> 0:20:38.560
<v Speaker 6>and the sort of precariousness that a lot of them

0:20:38.640 --> 0:20:43.520
<v Speaker 6>are facing, I think makes the rhetoric almost suddenly appropriate,

0:20:43.760 --> 0:20:47.399
<v Speaker 6>almost unbelievably to those of us who have been involved

0:20:47.600 --> 0:20:50.560
<v Speaker 6>studying the labor movement for the last few decades. So

0:20:51.040 --> 0:20:54.400
<v Speaker 6>what I think of it is that it matches I

0:20:54.400 --> 0:20:58.160
<v Speaker 6>think the enormity of some of the structural changes that

0:20:58.200 --> 0:21:01.320
<v Speaker 6>we see going on in the economy for workers.

0:21:02.119 --> 0:21:06.680
<v Speaker 2>What about this so called stand up strike targeting work

0:21:06.800 --> 0:21:08.280
<v Speaker 2>stoppages at plants.

0:21:08.920 --> 0:21:12.240
<v Speaker 6>Well, I think to the outside observer, a lot of

0:21:12.280 --> 0:21:16.160
<v Speaker 6>the sounds are pretty esoteric and strange, But actually from

0:21:16.200 --> 0:21:20.000
<v Speaker 6>a legal perspective, it makes sense, right, because once you

0:21:20.080 --> 0:21:22.240
<v Speaker 6>begin to learn a little bit about labor law, you

0:21:22.320 --> 0:21:26.000
<v Speaker 6>find out pretty quickly that unions strike at their peril,

0:21:26.240 --> 0:21:28.520
<v Speaker 6>and the reason they strike at their peril is that

0:21:28.600 --> 0:21:33.040
<v Speaker 6>if employees are striking over economic subjects of bargaining, that's

0:21:33.080 --> 0:21:35.879
<v Speaker 6>the phrase of art. So you're not paying me enough,

0:21:36.080 --> 0:21:39.879
<v Speaker 6>I need more contribution to healthcare from you, mister and

0:21:40.119 --> 0:21:44.040
<v Speaker 6>his employer. If they are economic subjects that are sort

0:21:44.040 --> 0:21:47.160
<v Speaker 6>of fomenting the conflict between the union and the player,

0:21:47.200 --> 0:21:51.280
<v Speaker 6>employees go on and strike, they can be permanently replaced.

0:21:51.720 --> 0:21:54.919
<v Speaker 6>And that's sort of the animating principle behind a lot

0:21:54.960 --> 0:21:58.159
<v Speaker 6>of what's going on here. What permanent replacement means is

0:21:58.200 --> 0:22:01.320
<v Speaker 6>that you go out on strike over an economic subject,

0:22:01.840 --> 0:22:04.960
<v Speaker 6>you can't be fired, but we have to be able

0:22:05.000 --> 0:22:08.239
<v Speaker 6>to attract people to do the job that you're no

0:22:08.320 --> 0:22:12.040
<v Speaker 6>longer doing because you're on strike, and we can't very

0:22:12.080 --> 0:22:14.920
<v Speaker 6>well go to this prospective employee that we want to

0:22:14.960 --> 0:22:18.159
<v Speaker 6>take your place and say, well, we're only going to

0:22:18.280 --> 0:22:21.680
<v Speaker 6>temporarily hire you. Why because we're not going to get

0:22:21.760 --> 0:22:23.600
<v Speaker 6>a lot of people that are going to like that deal.

0:22:23.760 --> 0:22:26.680
<v Speaker 6>So what we say is the replacement worker, the worker

0:22:26.720 --> 0:22:30.280
<v Speaker 6>who's replacing the striking employee, is like, you come in

0:22:30.359 --> 0:22:33.480
<v Speaker 6>and you can hold the job as long as you want, right,

0:22:33.960 --> 0:22:37.320
<v Speaker 6>And so as a matter of law, the employer is

0:22:37.359 --> 0:22:41.040
<v Speaker 6>not required to fire that person at the end of

0:22:41.119 --> 0:22:45.040
<v Speaker 6>the strike. And so if you're the average worker, you

0:22:45.160 --> 0:22:48.360
<v Speaker 6>go out on strike and you're permanently replaced, it's kind

0:22:48.359 --> 0:22:51.920
<v Speaker 6>of a lawyer's distinction, the distinction between being fired from

0:22:51.960 --> 0:22:55.679
<v Speaker 6>being permanently replaced. If it means no employment for a

0:22:55.720 --> 0:22:58.720
<v Speaker 6>couple of years, then you're out of work either way. Right,

0:22:58.760 --> 0:23:01.199
<v Speaker 6>there's no money coming in and you don't have food

0:23:01.280 --> 0:23:03.960
<v Speaker 6>on the table. Once you understand that this is the

0:23:04.040 --> 0:23:08.720
<v Speaker 6>background rule, you begin to understand why unions are very

0:23:08.800 --> 0:23:11.720
<v Speaker 6>leary and have become more leary over the decades of

0:23:11.840 --> 0:23:14.040
<v Speaker 6>just going out on strike, because if you go out

0:23:14.080 --> 0:23:16.639
<v Speaker 6>on strike and the job is the kind of job

0:23:17.000 --> 0:23:19.679
<v Speaker 6>that somebody coming in off the street could do, and

0:23:19.680 --> 0:23:21.840
<v Speaker 6>then what's going to happen is the employer is simply

0:23:21.840 --> 0:23:24.840
<v Speaker 6>going to replace all or most of the bargaining unit,

0:23:24.920 --> 0:23:28.879
<v Speaker 6>and it's a very difficult situation for union. Now, lockouts

0:23:29.000 --> 0:23:32.399
<v Speaker 6>or another area of concern. Your blockouts further complicate the

0:23:32.480 --> 0:23:36.000
<v Speaker 6>scenario because one of the things that employers have been

0:23:36.040 --> 0:23:37.879
<v Speaker 6>able to do, and they've actually been able to do

0:23:37.920 --> 0:23:40.880
<v Speaker 6>it is nineteen sixty five. A lot of people are

0:23:40.880 --> 0:23:43.919
<v Speaker 6>not aware of that. In order to compel the union

0:23:44.000 --> 0:23:47.760
<v Speaker 6>to agree to whatever the bargaining issue is, they can

0:23:47.800 --> 0:23:52.440
<v Speaker 6>simply lock out members of the bargaining unit, say Okay,

0:23:52.640 --> 0:23:55.280
<v Speaker 6>you're not coming back to work and so if what

0:23:55.320 --> 0:23:57.879
<v Speaker 6>there are rules surrounding that, But it's what we know

0:23:58.040 --> 0:24:00.879
<v Speaker 6>of as a bargaining b lockout. You know, it's not

0:24:01.080 --> 0:24:04.359
<v Speaker 6>viewed as discrimination. It is permitted under the.

0:24:04.240 --> 0:24:06.679
<v Speaker 3>Black What about these layoffs?

0:24:07.480 --> 0:24:11.360
<v Speaker 2>All three of the Detroit autel makers have laid off workers,

0:24:11.560 --> 0:24:16.639
<v Speaker 2>and they say that it's because of internal supply chain issues,

0:24:16.760 --> 0:24:19.280
<v Speaker 2>due to a lack of parts needed for certain assembly

0:24:19.320 --> 0:24:23.080
<v Speaker 2>workers to do their jobs. So why are they citing that.

0:24:23.160 --> 0:24:26.400
<v Speaker 2>Do they need a reason for laying off workers during

0:24:26.440 --> 0:24:26.879
<v Speaker 2>a strike?

0:24:27.400 --> 0:24:30.679
<v Speaker 6>That's a very good question. So when you lay off

0:24:31.240 --> 0:24:36.400
<v Speaker 6>workers because you don't have enough materials to continue production,

0:24:37.119 --> 0:24:41.080
<v Speaker 6>arguably that's not even a lockout, right. You're not laying

0:24:41.200 --> 0:24:44.480
<v Speaker 6>the workers off, at least on the surface. You're not

0:24:44.760 --> 0:24:48.520
<v Speaker 6>laying them off to pressure the union to accept your

0:24:48.760 --> 0:24:52.439
<v Speaker 6>bargaining position that you have. You're laying workers off because

0:24:52.480 --> 0:24:56.040
<v Speaker 6>you can't continue production. In the old days, we used

0:24:56.040 --> 0:24:58.440
<v Speaker 6>to talk about lockouts, and just give you a sense

0:24:58.440 --> 0:25:01.280
<v Speaker 6>of how far back this line law goes. It used

0:25:01.280 --> 0:25:06.600
<v Speaker 6>to be that we would say that defensive lockouts were lawful,

0:25:06.680 --> 0:25:11.280
<v Speaker 6>but offensive lockouts were unlawful. The distinction was a defensive

0:25:11.320 --> 0:25:14.600
<v Speaker 6>lockouts you had a good business reason for doing what

0:25:14.640 --> 0:25:16.600
<v Speaker 6>you were doing right, there was no way that you

0:25:16.640 --> 0:25:19.040
<v Speaker 6>were doing it to pressure the union. You had a

0:25:19.080 --> 0:25:24.320
<v Speaker 6>business justification for locking employees out. I think the strategy

0:25:24.520 --> 0:25:28.400
<v Speaker 6>of the automakers here is the position themselves in such

0:25:28.440 --> 0:25:31.000
<v Speaker 6>a way that it's much harder to say that they're

0:25:31.040 --> 0:25:34.440
<v Speaker 6>doing what they're doing for discriminatory reasons. So probably they're

0:25:34.440 --> 0:25:37.000
<v Speaker 6>allowed to do it anyhow, They're probably allowed to do

0:25:37.080 --> 0:25:40.399
<v Speaker 6>it to pressure the union to accept their bargaining position.

0:25:40.520 --> 0:25:44.440
<v Speaker 6>They arguably could do that, But here they actually have

0:25:44.520 --> 0:25:48.080
<v Speaker 6>a business justification, which is, we can't make cars if

0:25:48.119 --> 0:25:49.240
<v Speaker 6>we don't have park.

0:25:49.359 --> 0:25:51.880
<v Speaker 2>Do you consider a lockout and a layoff the same thing?

0:25:52.359 --> 0:25:57.760
<v Speaker 6>I do not. I think lockouts formally are workstoppages initiated

0:25:57.800 --> 0:26:02.480
<v Speaker 6>by the employer, undertaken to pressure the union to accept

0:26:02.720 --> 0:26:08.400
<v Speaker 6>the employer's position on a bargaining dispute, whereas layoff typically

0:26:08.560 --> 0:26:12.120
<v Speaker 6>you're talking about the cessation of work that's prompted by

0:26:12.520 --> 0:26:14.600
<v Speaker 6>various economic exigencies.

0:26:15.160 --> 0:26:18.159
<v Speaker 3>It sounds like management has all the cards. What cards

0:26:18.200 --> 0:26:19.200
<v Speaker 3>does the union hold?

0:26:19.600 --> 0:26:22.520
<v Speaker 6>Well? The sort of gamesmanship, that's what it is. It's

0:26:22.520 --> 0:26:25.879
<v Speaker 6>a high safe game. But this idea of the stand

0:26:26.000 --> 0:26:31.240
<v Speaker 6>up strike is that by moving around, all right, So

0:26:31.880 --> 0:26:34.520
<v Speaker 6>you know, a boxer doesn't stand in one place and

0:26:34.640 --> 0:26:37.959
<v Speaker 6>allow himself to be punched. You sort of move around.

0:26:38.000 --> 0:26:42.200
<v Speaker 6>So you're not on strike at a number of facilities,

0:26:42.600 --> 0:26:45.600
<v Speaker 6>but you are at one key facility, right, And so

0:26:45.800 --> 0:26:48.640
<v Speaker 6>what you're doing is you're setting up a situation where

0:26:48.640 --> 0:26:53.280
<v Speaker 6>the employer could permanently replace in that particular location or

0:26:53.359 --> 0:26:56.439
<v Speaker 6>lock out, but then you have other facilities where nothing's

0:26:56.480 --> 0:27:00.000
<v Speaker 6>going on. It's a variant of something that labor inside

0:27:00.359 --> 0:27:04.040
<v Speaker 6>is called withsaw strikes because actually this actually goes back

0:27:04.160 --> 0:27:07.400
<v Speaker 6>a number of decades. Right. The idea is and typically

0:27:07.440 --> 0:27:11.280
<v Speaker 6>it was a union bargaining with different employers than what

0:27:11.440 --> 0:27:14.800
<v Speaker 6>was called a multi employer bargaining unit. But the idea

0:27:14.880 --> 0:27:18.480
<v Speaker 6>is very similar that what you did was, as the employer,

0:27:18.600 --> 0:27:21.720
<v Speaker 6>you see that the union is striking, an employer say

0:27:21.880 --> 0:27:25.639
<v Speaker 6>over there, So what you do is you lock out

0:27:25.920 --> 0:27:29.719
<v Speaker 6>your employees to prevent the union from being able to

0:27:29.840 --> 0:27:33.119
<v Speaker 6>strike according to its own timetable. And the idea is

0:27:33.520 --> 0:27:37.080
<v Speaker 6>that that pressures the union in unforeseen ways. But what

0:27:37.119 --> 0:27:41.480
<v Speaker 6>the union can do is to engage in work stoppages

0:27:41.600 --> 0:27:46.440
<v Speaker 6>in unpredictable ways, it will run into various legal doctrines

0:27:46.880 --> 0:27:49.840
<v Speaker 6>that have been designed over the decades to frustrate that

0:27:50.200 --> 0:27:52.399
<v Speaker 6>kind of maneuver. But I do think that that's the

0:27:52.480 --> 0:27:56.360
<v Speaker 6>union's best opportunity to wind up with a positive outcome here.

0:27:56.760 --> 0:27:59.600
<v Speaker 2>The union president has said that if there's not serious

0:27:59.600 --> 0:28:04.560
<v Speaker 2>progress in negotiations by Friday, war workers are going to

0:28:04.600 --> 0:28:07.240
<v Speaker 2>walk off the job. That's pretty aggressive, right.

0:28:07.640 --> 0:28:10.080
<v Speaker 6>Yeah, well, it is aggressive. And you know what this

0:28:10.280 --> 0:28:12.720
<v Speaker 6>reminds me of. You know, at the end of World

0:28:12.720 --> 0:28:16.520
<v Speaker 6>War Two, there was a period in history where aggressive

0:28:16.600 --> 0:28:21.160
<v Speaker 6>union activity was obviously curtailed during the war, and there

0:28:21.240 --> 0:28:24.360
<v Speaker 6>was a lot of hint up labor activity that all

0:28:24.400 --> 0:28:27.560
<v Speaker 6>of a sudden was released at the conclusion of the war,

0:28:27.720 --> 0:28:31.200
<v Speaker 6>and you had a lot of strikes occur, and that

0:28:31.280 --> 0:28:35.040
<v Speaker 6>became the impetus for creation of the TAP Partly Act,

0:28:35.040 --> 0:28:37.840
<v Speaker 6>which is a part of the National Labor Relations Act

0:28:37.920 --> 0:28:41.080
<v Speaker 6>as it's been amended. Right, And I almost feel like,

0:28:41.400 --> 0:28:45.120
<v Speaker 6>you know, as a result of just everything that's been

0:28:45.160 --> 0:28:47.680
<v Speaker 6>going on with respect to the gig economy and the

0:28:47.720 --> 0:28:52.000
<v Speaker 6>precariousness of employment coupled with the pandemic and some of

0:28:52.120 --> 0:28:55.520
<v Speaker 6>the labor conflicts that emerged because of the pandemic. A

0:28:55.520 --> 0:28:59.360
<v Speaker 6>lot of it centered on healthcare and perceived dangerous workplaces.

0:28:59.520 --> 0:29:02.680
<v Speaker 6>All of that kind of culminates over this summer. You

0:29:02.760 --> 0:29:06.840
<v Speaker 6>have a situation where workers maybe have had enough, they're

0:29:06.880 --> 0:29:09.720
<v Speaker 6>willing to take risk, and I think Sean Fatis is

0:29:09.800 --> 0:29:13.960
<v Speaker 6>tapping into that. He realizes almost viscerally that he has

0:29:14.320 --> 0:29:17.960
<v Speaker 6>a rank and file employee group that's ready to hear

0:29:18.040 --> 0:29:21.880
<v Speaker 6>that message. If that message had been attempted in other eras,

0:29:21.880 --> 0:29:24.520
<v Speaker 6>it might not have been successful. But I think he

0:29:24.880 --> 0:29:29.480
<v Speaker 6>is mirroring some of the emotions that are percolating up

0:29:29.520 --> 0:29:31.920
<v Speaker 6>from the rank and file. And of course he is

0:29:32.280 --> 0:29:35.160
<v Speaker 6>a rank and file member. He has deep roots in

0:29:35.200 --> 0:29:36.440
<v Speaker 6>the Auto union itself.

0:29:36.880 --> 0:29:38.720
<v Speaker 2>If you had to call it, how do you think

0:29:38.760 --> 0:29:39.360
<v Speaker 2>this will end?

0:29:39.960 --> 0:29:40.320
<v Speaker 4>Well?

0:29:40.720 --> 0:29:43.960
<v Speaker 6>You know, the idea of labor law is that there

0:29:44.160 --> 0:29:47.320
<v Speaker 6>is in the end compromise, and we have a very

0:29:47.360 --> 0:29:52.000
<v Speaker 6>odd system in the United States where we're simultaneously bargaining

0:29:52.240 --> 0:29:56.280
<v Speaker 6>in good faith, which has a very specific statutory meaning,

0:29:56.720 --> 0:30:00.960
<v Speaker 6>even while there are strikes and lockouts and all kinds

0:30:00.960 --> 0:30:03.760
<v Speaker 6>of things that look to the average outside observer like

0:30:03.880 --> 0:30:07.360
<v Speaker 6>anything but bargaining and good faith. My guess is that

0:30:07.400 --> 0:30:10.840
<v Speaker 6>the union is going to make significant gains. And the

0:30:10.880 --> 0:30:14.000
<v Speaker 6>reason I say that is because all of this is

0:30:14.040 --> 0:30:18.240
<v Speaker 6>bubbling up in an era where you already have labor unrest.

0:30:18.360 --> 0:30:21.320
<v Speaker 6>And so my sense is that the company, looking into

0:30:21.440 --> 0:30:25.400
<v Speaker 6>its crystal ball out into the future, sees an environment

0:30:25.560 --> 0:30:28.800
<v Speaker 6>that's likely to be favorable to labor, or at least

0:30:28.800 --> 0:30:31.640
<v Speaker 6>the foreseeable future, and I don't think it would be

0:30:31.680 --> 0:30:35.920
<v Speaker 6>a good marketing strategy to be seen as digging in now.

0:30:36.000 --> 0:30:39.200
<v Speaker 6>Having said that, I'm not suggesting that I think the

0:30:39.320 --> 0:30:42.280
<v Speaker 6>union's going to get everything at once. That's why this

0:30:42.520 --> 0:30:45.880
<v Speaker 6>is ultimately a negotiation. What I do think is that

0:30:45.960 --> 0:30:48.440
<v Speaker 6>at the end of the day, there will be a negotiation.

0:30:48.800 --> 0:30:49.440
<v Speaker 3>Thanks Michael.

0:30:49.680 --> 0:30:52.840
<v Speaker 2>That's Professor Michael Dove of the Saint Louis University School

0:30:52.880 --> 0:30:53.280
<v Speaker 2>of Law.

0:30:53.640 --> 0:30:55.960
<v Speaker 3>And that's it for this edition of The Bloomberg Law Show.

0:30:56.320 --> 0:30:58.640
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0:30:58.720 --> 0:31:02.280
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