Inside the PAC Teaching Corporate America How to Make Its Employees Vote for the Right Candidates

Who's winning, who's losing, and why.
Oct. 15 2014 11:49 PM

Office Politics

Inside the PAC teaching corporate America how to make its employees vote for the right candidates and causes.

A worker uses a pressure hose to clean part of the Trans-Alaska Pipeline Marine Terminal in Valdez, Alaska, where oil flows from oil fields in Prudhoe Bay
A worker uses a pressure hose to clean part of the Trans-Alaska Pipeline Marine Terminal in Valdez, Alaska, where oil flows from oil fields in Prudhoe Bay. The Alaskan gas and oil industry lobbied many of its workers to vote no on a state ballot measure in August by suggesting some of their jobs could be at stake.

Photo by Lucas Jackson/Reuters

On the morning of Jan. 29, construction workers were building a seawater pipe at Oliktok Point, part of a sprawling network of oil fields owned by ConocoPhillips on Alaska’s arctic North Slope, when they received an ominous notice. Workers at the icy camp would be required to attend a “safety stand-down” meeting, which is typically announced only after a job-site accident involving serious injury. One such meeting was called earlier this year, according to a contracted worker at the site, when a mechanic’s fingers were mangled by an industrial fan. Working in one of the world’s coldest and most isolated regions in the dead of winter—the nearest town of Deadhorse is roughly 40 miles away—comes with a host of potential hazards, and it was unclear to the crews what had happened and who might have been hurt.

When nearly 200 construction workers assembled inside a large heated tent just outside the camp, they learned the meeting’s true purpose. An unfamiliar manager, identified as John Schuelke from ConocoPhillips’ Anchorage office, took to the stage and told them that there hadn’t been an accident. Instead, the company had gathered the group, mostly construction contractors, to tell them how they should vote in Alaska’s upcoming August primaries. The oil and gas industry, Schuelke said, was fighting Democrat-supported Ballot Measure 1, which sought to repeal a massive tax cut for oil companies that Alaska’s Republican-controlled state Legislature had recently passed. Schuelke told the crowd to vote against the repeal, according to the contracted worker, who was present. Schuelke claimed that many of the area’s jobs relied on the tax break. The implication was clear: Vote against repeal or your industry and your livelihood will suffer.

“I’d never seen so many confused faces and so many frowns,” the contractor said. “It was definitely an abuse of our safety culture.” (A ConocoPhillips spokeswoman said the primary purpose of the meeting was to reinforce safety measures.)

Advertisement

This particular construction worker favored repeal, which Democrats argued would allow Alaska to equitably tax oil companies to fund its struggling public school system and other vital services. Yet the contractor said that corporate management’s forceful political agenda at the site, where ConocoPhillips oversees a patchwork of oil field contractors, made it unwise to express a dissenting point of view. “The feeling was that if we didn’t stay quiet we could get blackballed from the Slope,” the contractor said. A welder and a pipefitter did jump up during the meeting to yell, “What does this have to do with safety!” and another worker walked up to Schuelke afterward to say she wouldn’t vote as he’d instructed. But everyone else was “in fear of their jobs and said, ‘I didn’t agree with what that guy was saying but you guys better be quiet or you’re gonna get fired.’ They were scared.” Afraid of becoming unemployable on Alaska’s North Slope, the contractor spoke with me on the condition of anonymity.

It isn’t the first time in recent years that large American employers have told their employees how to vote. For instance, in the lead-up to the 2012 presidential election, employees of Koch Industries and Cintas, the uniform company, leaked letters they had received in which CEOs indicated a strong preference for Republican presidential candidate Mitt Romney; the Cintas letter predicted heavy job losses if President Obama were re-elected and asked workers to visit the company’s political website, which featured negative rankings of legislators thought to be hostile to a pro-business political agenda.

But there is a common thread that links those efforts to those associated with ConocoPhillips and scores of other American companies: the Business-Industry Political Action Committee, or BIPAC, a political organization that has attracted little media scrutiny.

Each of Alaska’s “big three” oil companies—ConocoPhillips, ExxonMobil, and BP—is affiliated with BIPAC, which has ties with more than 100 prominent American firms, including Campbell Soup Co., eBay, Nationwide Insurance, and Walmart. Include its partnerships with hundreds of the country’s major trade associations, and BIPAC can reach more than 25 million employees in the United States.

A Walmart employee in a store
Working with hundreds of American companies, including Walmart, BIPAC can reach more than 25 million employees.

Photo by Rick Wilking/Reuters

Based in Washington, D.C., BIPAC donates directly to political candidates just like other traditional political action committees; this year, it has contributed to a variety of campaigns, including Republican Senate contenders Cory Gardner of Colorado, Terri Lynn Land of Michigan, and Thom Tillis of North Carolina. Eighty-nine percent of BIPAC’s contributions in House and Senate elections this year have gone to Republicans, and not a single dollar or endorsement has gone to a Democrat in a U.S. Senate race. But its primary aim isn’t to help individual candidates win office; rather BIPAC’s goal is to turn as many private employers as possible into “employee political education” machines for business interests. BIPAC urges major companies to transform their workforces into a voting bloc and provides sophisticated tools that show employers how to do it. Although BIPAC claims nonpartisanship, in the races that matter most—such as this year’s hotly contested battles that will determine control of the Senate—BIPAC has the GOP’s back.

Companies do not generally advertise their affiliation with BIPAC. The websites that BIPAC builds and hosts for businesses often contain no indication—other than the BIPAC URL—that the information is coming from a third party. ConocoPhillips’ employee engagement website is typical, in that it appears to be wholly created by the company itself. The website even bears a ConocoPhillips copyright. But once employees click the “election information” button, they arrive at BIPAC’s ranking of elected officials. For those in Alaska, that means seeing a BIPAC performance rating of 86 percent for Republican Sen. Lisa Murkowski, but only a 26 percent rating for the state’s Democratic Sen. Mark Begich, who is fighting a tight race this fall to hold onto his seat.

Publicly, BIPAC portrays itself as providing a helpful service that educates employee voters who may not be well versed in political or public policy issues. Citing research BIPAC itself commissioned, the group even claims that workers want their bosses to feed them political information. But of the half-dozen Alaskan workers I interviewed who described being subjected to vigorous political messaging at their workplaces—ties with BIPAC were apparent in at least five cases—all but one asked not to be named. They feared that speaking publicly about their experiences could cost them their jobs. Some feared being blacklisted from the Alaskan oil industry. One worker even said his employer, an oil field construction contractor, would likely be barred from doing business with ConocoPhillips if his identity were discovered.

“They let it be known that if SB 21 was repealed that there would be layoffs,” said one BP employee, referring to Alaska’s Ballot Measure 1. “It was clear how they wanted us to vote.” The employee said that BP, another BIPAC affiliate, fed its employees a consistent stream of information about the repeal effort through emails and virtual town-hall meetings. He said it was “absolutely not” an environment in which it was acceptable to express any dissent over management’s political positions. An email sent to every BP employee in Alaska, and obtained by the Investigative Fund, encouraged employees to wave signs rejecting repeal along some of Anchorage’s busiest thoroughfares. “At no time did BP indicate to employees that layoffs would occur in connection with ballot measure 1,” BP spokesman Brett Clanton said in an emailed response. “The issue of tax reform was an important issue for BP and was communicated broadly with our employees. Any BP employee that participated in campaign activities did so voluntarily.”

  Slate Plus
Behind the Scenes
Oct. 29 2014 3:45 PM The Great Writing Vs. Talking Debate Is it harder to be a good writer or a good talker?