Andy Stern: The New Boss

Lesley Stahl Profiles The Powerful Union Leader

(CBS) 
"Your critics say that you can't really stand up for the workers if you're worrying about compromising with the corporation," Stahl asks Stern.

"Well, here's what we know. The members of our union — janitors, security officers — are getting health care while other workers are losing it. The members of our unions are getting raises while other people aren't. The success has to be judged by what's happening to the members of our union," he says.

Since he split with the AFL-CIO, Stern has become a lightning rod.

Some of Stern's critics have called him arrogant, rude, a small peacock. Asked if the criticism hurts, Stern says: "Yeah, I'm human. I don't like people saying things that are bad about me, but this is not an easy job."

But Stern is also known as a street fighter and will use hardball tactics, against companies such as Wal-Mart. Stern may cozy up to some companies, but nothing gets his blood boiling more than Wal-Mart.

Stern says he's not trying to unionize Wal-Mart — at least not yet. He just wants the retailer to pay what he considers a fair share of its employees' healthcare. So last year he spent millions in union money to push through legislation in Maryland that forced Wal-Mart to spend eight percent of its payroll on healthcare. Now he's going after the company in 30 other states.

"Here we have the leading corporation of America. The most profitable corporation in history," Stern argues. "And, yet, when their workers get sick tonight and they go to the hospital, 50 percent chance they don't have healthcare. You and I, Lesley, are going to pay for their healthcare out of our taxpayer's dollars."

Wal-Mart disputes Andy Stern's assertion that only half its employees have healthcare: in a statement to 60 Minutes, the company says when you factor in those who are covered by a spouse's or parent's plan, or by Medicare, 75 percent of their employees have healthcare.

It's not enough for Andy Stern to take on the largest retailer in America, he's now taking on the world. Recently, he was demonstrating with a group of janitors in London.

Like the head of a big company today, he's going global — recruiting without borders. He has moved organizers into nine different countries.

"You like to say, 'Workers of the world unite.' Which sounds, it is Karl Marx. But that's your, that's your kind of slogan now," Stahl tells Stern.

"Well the good news is, Communism is dead," Stern explains. "But the truth is the phrase means a lot because all of a sudden workers in London and workers in the United States are working for the same employer and the same owners."

The janitors Stern rallied with work for GBM, a cleaning company based in London. Stern says GBM's American affiliate, Pritchard Industries, pays his union janitors in New York up to $20 an hour — twice what GBM non-union cleaners make in London.

"How long is it going to take before they come to New York and say, 'Why are we paying such high wages here when we can pay such lower wages in London?' " asks Stern.

Stern says if GBM doesn't agree to accept a union in London, he might ask janitors such as Emmanuel Tanis to go on strike in New York.

"The workers seem to get it," Stern says. "They understand their power comes from being able to join their voices when they have a common employer. It's a lesson the auto workers haven't learned, and it's a lesson other unions haven't learned as well."

"Here you are, we're talking about janitors and you're sticking it to the AFL-CIO, sticking it to the autoworkers union. You almost can't resist," Stahl says.

"Well, what I'm trying to say is that we have to wake up to the fact that we're in a global economy and people have to change," Stern replies.

That's what he's all about: change. His union critics complain he's encouraging a cult of personality. But if his old friends in the labor movement get offended, well, as he has said, it's a tough business. And it's alright with him.