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Ed SperlingOffering news and business analysis for the design engineer, Managing News Editor Suzanne Deffree filters the electronics industry's developments and trends to explain how what's happening in the board room today can impact the tech innovation of tomorrow. Follow Suzanne on Twitter, @Deffree. Suzanne also manages EDN's Twitter account, @EDNMagazine.



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Wednesday, August 27, 2008

Labor group protests Nvidia

Aug 27 2008 11:50AM | Permalink |Comments (18) |


Attendees to Nvidia’s Nvision event this week were greeted by some unexpected guests. Union activists from a group called Unite Here have been using such tactics as flyering, light projections, and the distribution of potato chip bags with creative stickers that read “Find the flawed chip …” (see pictures below) to draw attendees’ attentions to Nvidia’s recent product failures.

Nvidia in July announced a massive charge on failing products in some notebook configurations with GPUs and MCPs manufactured with a “certain die/packaging material set.” In full marketing defense mode, the company has released little information and has yet to fully explain the issue. Nor has it stated how exactly many laptops the chips have gone into or what it plans to do about the problems chips and the PCs impacted.

A statement from Jim Dupont, VP of Unite Here International, accuses Nvidia of “putting the burden of Nvidia’s chip failure on consumers. Band-Aids will not fix this; Nvidia must recall their defective chips.”

EDN spoke to a rep for the labor group, who reported a mixed bag of reactions from Nvision attendees to Unite Here’s tactics. “Some people are happy that it’s happening and other people are not,” the rep said.

Unite Here, by the way, is not an electronics industry-based group in any way. It’s a combination of two formerly separate groups, the Union of Needletrades, Industrial and Textile Employees (UNITE) and Hotel Employees and Restaurant Employees International Union (HERE). The group’s core issue seems to be with Nvidia vendor Aramark, the food/business services company. It appears that the group’s strategy here is to pressure the GPU maker, so that it will in turn pressure its subcontractor Aramark into negotiating a better deal with the striking service workers Unite Here represents.

Such seemingly roundabout strategies are not unusual. I can recall an IDF passed where I was handed a flyer from an environmental group protesting Intel’s rival AMD. And, as another editor here at EDN noted on a staff call this morning, Nvidia’s “marketing crap” and refusal to detail and fix the situation impacts the lives of its employees and the companies, as well as their respective employees, with which Nvidia does business, like Aramark.

So Unite Here isn’t totally off base with its presence at Nvision. But as a different editor noted on the same call this morning, if groups protested every time there was a tech product problem, there would be a heck of a lot of protesting going on.

What do you think? Is Unite Here out of line at Nvision, or is it Nvidia that’s out of line? Share your thoughts on Unite Here’s efforts or Nvidia’s response to the product failures below.

--Suzanne Deffree, Managing Editor, News


Reader Comments



at 8/27/2008 1:45:27 PM, Kelly said:
Definitely out of line.
Unions suck and this is another example of their heavy handed approach to maintaining their existence



at 8/27/2008 1:46:23 PM, Advanced said:
Unions like these are the reason American corporations have such a hard time competing in the global marketplace.

Perhaps Nvidia should outsource everything to an overseas fab and see how UNITE likes them apples.



at 8/27/2008 2:33:03 PM, txgordo said:
Unions performed valuable work in a time on the early part of the 21st century to compel industries to be fair to workers. However, their heavy-handedness over the years has been a contributor to the failures of the US auto industry, and why public education and government don't work for the taxpayers anymore. That said, UNITE is being silly - they don't know what they are talking about.



at 8/27/2008 2:33:43 PM, txgordo said:
Oops - 20th century.



at 8/27/2008 3:59:07 PM, the truth said:
The real issue behind this is that NVIDIA is a customer of Aramark's. They pay to have Aramark employees come on sight and make food. They are *NOT* NVIDIA employees, so NVIDIA has no obligations to them. This union is representing Aramark employees, trying to get them health care *FROM ARAMARK*, and they are attacking their customers to do it. They are pressuring NVIDIA to support them in their quest for health care, and NVIDIA refuses to get involved since this is between Aramark and it's employees, not NVIDIA (a customer!). That's all this is about. Imagine going to the grocery store where employees blackmailed you and made big PR against you in order to get you to support them to get something out of the grocery store...

The funny thing about this is that they were protesting at Siggraph too, but instead it was directly about the labor concern. When that failed to gain traction they picked up this chip issue (which a labor union actually cares nothing about) to try to hurt NVIDIA with revenge tactics.





at 8/27/2008 4:23:48 PM, tactics elsewhere said:
The Massachusetts Convention Center Authority is urging a local union to push for a quick resolution in its dispute with Aramark Corp., alleging the union is harassing organizations that plan to hold events at its two centers.

As part of its call for a boycott of Aramark, which provides food and beverage services at the MCCA's Boston Convention & Exhibition Center and the John B. Hynes Veterans Memorial Convention Center, UNITE HERE, Local 26, has been contacting conventioneers, according to the MCCA and some organizations that have scheduled events at the sites.

This month, MCCA executive director James E. Rooney sent letters to Aramark and the union, asking the groups to work together to reach agreement on a labor contract. In the letter to the union, he admonished Local 26's "intimidation strategy."

"They're targeting every event big and small that is booked into the convention centers - the Hynes and BCEC - until the end of the year," Rooney said. "I'm sure the union would describe it as giving information, but our clients are reporting using words like 'bullying' and 'intimidating' and 'threatening.' Clearly for us, that crosses the line."

The union, which represents more than 300 workers in the Boston area, didn't confirm whether it has contacted organizations holding future conventions at the MCCA venues, but fired a letter back to Rooney, saying it has not intimidated any group or organization.

"The Union has only engaged in free-speech activity away from the Hynes and BCEC," Janice Loux, president of Local 26, said in the letter. "You cannot strip the Union of its federal right to publicize the dispute by calling it 'intimidation.' "

Since September 2007, the union has been involved in bitter contract negotiations over healthcare, retirement benefits, and other issues with Aramark, which has had a contract with the MCCA since 1997. In July, the National Labor Relations Board filed an unfair labor practice complaint against Aramark, charging intimidation and firing of employees for union activity. And later that month, the MCCA notified Aramark it would look for another concessions vendor, saying it has been concerned with the quality of the service since 2005. The contract, worth $27 million for the fiscal year, ended June 30.

"All our members want is a decent standard of living that was promised by Jim Rooney and the MCCA when the convention center was built," said Loux in a statement yesterday.

In Rooney's letter to the union, he accuses Local 26 of intimidating several organizations to further its cause. Many of those groups, he says, have contacted him about the union's tactics.

One of those organizations, the US Green Building Council, is expecting 30,000 people to attend its annual green building conference and expo at the Boston Convention & Exhibition Center in November. Rooney said the union contacted the conference's keynote speaker, Nobel Peace Prize winner Desmond Tutu, and as a result he is "considering whether or not he'll come."

Taryn Holowka, a council spokeswoman, said the union did approach the council a couple of weeks ago, and the council has been in contact with Aramark, the MCCA, and the union since then. But she said the council had not heard from Tutu and wasn't sure if he'd been contacted directly by the union.

"We're just trying to figure out what's going to work for everyone involved," Holowka said, adding that the organization is not considering backing out.

Rosie's Place, a community center for poor and battered women in Boston, which is hosting an event at the Hynes on Oct. 16, also said it has been contacted by the union. Center officials had a "pleasant meeting" with union workers, who explained what they are protesting, said Sue Marsh, executive director of Rosie's Place.

"We are philosophically understanding and sympathetic of their plight," Marsh said.

"We're trying to figure out a way where we can be supportive of the union's aims and still be able to have a fund-raiser that raises money for poor and homeless women."



at 8/27/2008 4:49:25 PM, Mr. G. said:
I think it is one of the only available avenues left to get a point across. Unions are what gave us a 5 day work week, insurance, worker rights, etc. I suppose you''re willing to go back to the carpet bagger days with sweat shops and child labor?



at 8/27/2008 6:27:14 PM, coffa said:
It seems like a very bad way of demonstrating, are they only targeting Nvidia?

If I were Nvidia i'd find some other service provider, and Armamark should fire the responsible for the loss of a customer.

As fun as it is, it's just not right.



at 8/27/2008 9:38:24 PM, Nvidia 'A Raising Start". said:
Union sucks...It is troubling Nvidia unnecessarily and spoiling its reputation. No doubt that Nvidia, a raising star, in near future...



at 8/28/2008 2:58:31 AM, Kel said:
As an NVIDIA employee, I'd like to point out that the food Aramark provides us definitely has a lot of room for improvement in terms of taste. Maybe it's not a bad idea to find a different vendor.



at 8/28/2008 8:22:55 AM, Gary said:
Untie is way off base. This has only to with their union dues. and how much they can collect from the unskilled workers of America.This is a rich and powerful union that uses people as pawns to collected money for their purposes ONLY.



at 8/28/2008 9:37:15 AM, B said:
If anything, these protesters are only going drive Nvidia to select a different food vendor! I don't want to hear any whining or complaining when these food service employees are no longer without a job. That said, I'm not a union-busting conservative by any stretch, but these tactics are just downright illogical and completely stupid!



at 8/28/2008 9:50:15 AM, KenGilleo said:
"I'm here from the union and I'm here to hurt".



at 8/28/2008 7:19:55 PM, Jimmy Hoffa said:
They should collude with the mafia and clean out the convention center of all valuables.



at 8/28/2008 11:24:33 PM, Larry said:
Aramark is essentially Nvidia's employee, they hired them. So Nvidia can set the terms of their contract with Aramark. If they say that the cafeteria workers should get better wages and health care then Aramark is likely to buckle. THAT is why Unite Here is pressuring Nvidia.

Do you think that these corporations are going to respect their workers, give them health care and livable wages just because it is the right thing to do? No, of course not, their bottom line is profit. They have to be made to do the right thing. Are you guys a bunch of corporate sympathizers who don't care about the hard working people who stand on their feet all day cooking your food and cleaning up after you?



at 8/29/2008 9:32:23 AM, I.C.E. said:
We will be stopping by aramark sooner than latter.



at 8/30/2008 12:46:41 AM, screw that said:
what the Aramark employees did was unacceptable, they should be fired and "good, honest" workers should be found elsewhere that won't backstab NVIDIA just so they can make 11.25 instead of 10.50 per hour



at 8/30/2008 6:08:42 PM, Nvision Goer said:
Wow. We saw and talked to these guys they wouldn't tell us who they were from and the info they have is total crap. I really don't care if my Nvidia Card fail which for over a year of overclocked use it hasn't, because I have my life time warranty. I really thought these fools were from ATi, and I still think they are. This has got to be the Lamest idea ever. They had no business at the Lan, and really showed their total lack of understanding of the gamers. I hope they all lose their jobs!

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