Showing posts with label collective bargaining. Show all posts
Showing posts with label collective bargaining. Show all posts

Monday, March 7, 2011

Collective Bargaining Is a Privilege, Not a Right

I keep hearing the narrative that somehow, as though it were written in stone, collective bargaining is a right for public sector unions. I would disagree entirely: collective bargaining is a privilege, not a right, for public sector unions. And you know what? About 50 years ago, the A.F.L.-C.I.O. agreed with me. The union’s Executive Council in 1959 said: “In terms of accepted collective bargaining procedures, government workers have no right beyond the authority to petition Congress — a right available to every citizen.”

And it is a privilege that has been badly abused for years; U.S. Bureau of Labor statistics show that public sector employees, many of them unionized, make nearly $40 an hour in combined wages and benefits versus roughly $27.50 for those in the private sector.

So I applaud what Scott Walker is doing in Wisconsin, but I actually feel he didn’t go far enough. All his Budget Repair Bill is doing is addressing the public sector unions’ right to collectively bargain over pensions and health care. I think it would have been nice to address the right to collectively bargain for wages, and here’s why: at the end of the day, the public sector unions are not collectively bargaining for a greater share of earnings, as do the private sector unions. They are bargaining to get a bigger slice of the pie of tax dollars, which the government has taken from the American taxpayer.

Now to be clear: paying a certain amount of taxes is a part of being involved in an organized civilization. If you want to make sure you have roads and national defense, you’re going to have to pay taxes. But that being said, taxes are removed through a threat of force from the taxpayers by the government (yes, I mean force. Try not paying property or income taxes and see what happens). So the government is run off of money earned in the private sector. Government does not create jobs; when there are reports of more jobs, but they’re all government jobs, the government is not creating anything: it is merely funding even more government jobs off the backs of the private sector. Which compounds the problem because by taking capital from the private sector to create government jobs, you’re not creating jobs that create more capital, as private sector jobs do.

So, public sector unions, unlike their private sector union counterparts, are not creating more capital. Do they provide services for the public good? Absolutely. Are they creating capital? Absolutely not.

So here you have public sector unions negotiating for more pay in tough times, soaking more from the already overburdened American taxpayer. I keep hearing this drivel of, “Well if Walker is expecting the unions to make sacrifices, is he going to ask others to make sacrifices by increasing taxes?” Memo to those saying that (Mika Brzezinski, I’m thinking of you): The American taxpayer has been gouged for years, and years, and years, by higher taxes, and I’m not talking just income taxes. I’m talking the hidden taxes on gas, food, etc. Yeah, add up all your taxes sometime and you’ll realize you’re probably paying well over 50%, sometimes 60% or more of your wages, in taxes. So you’ve kind of already done your part.

I’m at the point where I feel like the public sector unions, and their partners in crime, their allied elected officials, are like vampires on the American public, sucking the very blood out of them. Worse, they are dumb vampires.

Smart vampires suck just enough blood out to satiate themselves and then leave the victim alive so they can hit them again for a quick infusion down the road. The public sector unions and elected officials haven’t quite learned that lesson and keep sucking the blood out of the American people. At some point, there ain’t going to be any more blood to suck, and then everyone is dead.

And a word on the unions allied officials. These officials, standing between the taxpayer and the public sector unions, are supposed to serve the American taxpayer. It’s a little something called a government of “We the People,” with power originating from the people. But in fact the elected officials are serving the public sector unions because the unions collect millions off the forced-dues from government employees and then reward the officials, their “bosses,” by funding their reelection campaigns. This is precisely backward from how this country was meant to work. It was originally meant to work like this: power originates from the American people, is given to elected officials, who then manage the bureaucrats and federal employees, on behalf of the people, i.e. taxpayers.

Now we have this bizarre scenario where the public sector unions have the power to dictate to the elected officials, who then dictate to the American people. The only way any of that last scenario makes sense is if you detach yourself from reality and enter a land of unicorns and pixie dust.

Now I know for most, none of this is a revelation at all. But it does defy logic: ultimately what we’re doing by increasing benefits and pay for public sector unions is removing capital from the private sector (i.e. us) via taxes and crushing our economy in a time when we actually need the private sector to create more jobs.

What Scott Walker, and many others are doing is appealing to common sense, especially in tough economic times. I have no problem at all with public sector unions making the equivalent wages and benefits that their private sector counterparts do. Of course that means a shaving down by about 30% on the combined wages and benefits of the public sector unions, but it has to be done. And I applaud those officials who are willing to step up to the plate and do it. The American people are applauding and cheering you on.

by Ned Ryun – @ Andrew Breitbart Presents: BigGovernment

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Throttled by Compliance

Monday, February 28, 2011

Must-Read - Unions vs. Right to Work

The Op-Ed page of the Wall Street Journal has been a bastion of common sense in a world of ridiculously biased print news media. In fact, other than the Washington Times, there is no other national newspaper that contains a shred of the sort of common sense we regularly find on the WSJ's Editorial Page.

Obviously, the same cannot be said for the rest of that newspaper, but at least it's partially good, like Fox News Channel has Glenn Beck, and despite Shep and the rest of the biased, hardcore leftists (and confused 'Progressives' like Bill O'Reilly) working at FNC, Glenn (and sometimes Hannity and Megyn Kelly) is NOT part of the problem; he (and sometimes they) are definitely part of the solution!

Anyway, this Op-Ed discussion unions and the right to work is excellent, as one might expect when one considers the source; I love the subtitle of this article: "Collective Bargaining on a Broad Scale Is More Similar to an Antitrust Violation Than to a Civil Liberty." That is so true! Also, this is a pretty short, but sweet article; great for a short break at work. I think you'll enjoy it:

Unions vs. the Right to Work

Collective Bargaining on a Broad Scale Is More Similar to an Antitrust Violation Than to a Civil Liberty.
By ROBERT BARRO | FEBRUARY 28, 2011

How ironic that Wisconsin has become ground zero for the battle between taxpayers and public- employee labor unions. Wisconsin was the first state to allow collective bargaining for government workers (in 1959), following a tradition where it was the first to introduce a personal income tax (in 1911, before the introduction of the current form of individual income tax in 1913 by the federal government).

Labor unions like to portray collective bargaining as a basic civil liberty, akin to the freedoms of speech, press, assembly and religion. For a teachers union, collective bargaining means that suppliers of teacher services to all public school systems in a state—or even across states—can collude with regard to acceptable wages, benefits and working conditions. An analogy for business would be for all providers of airline transportation to assemble to fix ticket prices, capacity and so on. From this perspective, collective bargaining on a broad scale is more similar to an antitrust violation than to a civil liberty.

In fact, labor unions were subject to U.S. antitrust laws in the Sherman Antitrust Act of 1890, which was first applied in 1894 to the American Railway Union. However, organized labor managed to obtain exemption from federal antitrust laws in subsequent legislation, notably the Clayton Antitrust Act of 1914 and the National Labor Relations Act of 1935.
Remarkably, labor unions are not only immune from antitrust laws but can also negotiate a "union shop," which requires nonunion employees to join the union or pay nearly equivalent dues. Somehow, despite many attempts, organized labor has lacked the political power to repeal the key portion of the 1947 Taft Hartley Act that allowed states to pass right-to-work laws, which now prohibit the union shop in 22 states. From the standpoint of civil liberties, the individual right to work—without being forced to join a union or pay dues—has a much better claim than collective bargaining. (Not to mention that "right to work" has a much more pleasant, liberal sound than "collective bargaining.") The push for right-to-work laws, which haven't been enacted anywhere but Oklahoma over the last 20 years, seems about to take off.

The current pushback against labor-union power stems from the collision between overly generous benefits for public employees— notably for pensions and health care—and the fiscal crises of state and local governments. Teachers and other public-employee unions went too far in convincing weak or complicit state and local governments to agree to obligations, particularly defined-benefit pension plans, that created excessive burdens on taxpayers.

In recognition of this fiscal reality, even the unions and their Democratic allies in Wisconsin have agreed to Gov. Scott Walker's proposed cutbacks of benefits, as long as he drops the restrictions on collective bargaining. The problem is that this "compromise" leaves intact the structure of strong public-employee unions that helped to create the unsustainable fiscal situation; after all, the next governor may have less fiscal discipline. A long-run solution requires a change in structure, for example, by restricting collective bargaining for public employees and, to go further, by introducing a right-to-work law.

There is evidence that right-to-work laws—or, more broadly, the pro-business policies offered by right-to-work states—matter for economic growth. In research published in 2000, economist Thomas Holmes of the University of Minnesota compared counties close to the border between states with and without right-to-work laws (thereby holding constant an array of factors related to geography and climate). He found that the cumulative growth of employment in manufacturing (the traditional area of union strength prior to the rise of public-employee unions) in the right-to-work states was 26 percentage points greater than that in the non-right-to-work states.

Beyond Wisconsin, a key issue is which states are likely to be the next political battlegrounds on labor issues. In fact, one can interpret the extreme reactions by union demonstrators and absent Democratic legislators in Wisconsin not so much as attempts to influence that state—which may be a lost cause—but rather to deter politicians in other states from taking similar actions. This strategy may be working in Michigan, where Gov. Rick Snyder recently asserted that he would not "pick fights" with labor unions.

In general, the most likely arenas are states in which the governor and both houses of the state legislature are Republican (often because of the 2010 elections), and in which substantial rights for collective bargaining by public employees currently exist. This group includes Indiana, which has recently been as active as Wisconsin on labor issues; ironically, Indiana enacted a right-to-work law in 1957 but repealed it in 1965. Otherwise, my tentative list includes Michigan, Pennsylvania, Maine, Florida, Tennessee, Nebraska (with a nominally nonpartisan legislature), Kansas, Idaho, North Dakota and South Dakota.

The national fiscal crisis and recession that began in 2008 had many ill effects, including the ongoing crises of pension and health-care obligations in many states. But at least one positive consequence is that the required return to fiscal discipline has caused reexamination of the growth in economic and political power of public-employee unions. Hopefully, embattled politicians like Gov. Walker in Wisconsin will maintain their resolve and achieve a more sensible long-term structure for the taxpayers in their states.

Mr. Barro is a professor of economics at Harvard and a senior fellow at Stanford University's Hoover Institution.

h/t to Jared Law at the 912 Project

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Wednesday, February 23, 2011

Government Unions vs. American Taxpayers

Heritage Foundation:

Government Unions vs American Taxpayers

The Washington Post reports today that "the daunting tower of national, state and local debt in the United States will reach a level this year unmatched just after World War II and already exceeds the size of the entire economy, according to government estimates." But there are a number of big differences between our national debt now and the debt in 1946. The Post reports: "State and municipal governments from Sacramento to Madison to Harrisburg have racked up about $2.4 trillion in debt, or more than 15 percent of GDP."

And even this total is understating the problem. Recent studies show that state and local governments are severely underestimating their pension and benefit promises, including a $574 billion shortfall for the nation’s top major cities and a possible $3.4 trillion shortfall for the states. The cause of these crippling pension and benefit obligations is no secret. The Post explains: "Public employees often enjoy more generous pension and health-care benefits, and these are at the root of the long-term budget problems confronting many states."

How did this happen? Why did so many state and local governments not only spend too much today but promise future spending far beyond the means of taxpayers to pay for it? Government unions. And across the country, legislators and governors are beginning to fight back.

The professional left (including the AFL-CIO, the SEIU, the Reverend Jesse Jackson, the NEA, AFSCME and President Barack Obama) is trying to portray these budget battles as an assault against all unions. But as Wisconsin Governor Scott Walker (R), who is pushing legislation to curtail government union bargaining power, explained last night, this is just plain false:

The bill I put forward isn’t aimed at state workers, and it certainly isn’t a battle with unions. If it was, we would have eliminated collective bargaining entirely or we would have gone after the private-sector unions. But, we did not because they are our partners in economic development. We need them to help us put 250,000 people to work in the private sector over the next four years.

Walker is right: Government unions are inherently different from private-sector unions. The purpose of private-sector unions is to get workers a larger share of the profits they helped create. But government is a monopoly and earns no profits. All government unions do is redistribute more tax dollars from taxpayers to unions. The left used to understand this. Not only did President Franklin Delano Roosevelt write in 1937: "All government employees should realize that the process of collective bargaining, as usually understood, cannot be transplanted into the public service," but as recently as 1959, the AFL-CIO Executive Council stated that "government workers have no right [to collectively bargain] beyond the authority to petition Congress—a right available to every citizen."
Ohio Governor John Kasich (R) also recognizes the key difference between private-sector and government unions, telling the Associated Press Monday:

We have an $8 billion budget hole in Ohio. We have a third of our college students that leave Ohio after three years. We’ve lost 600,000 jobs in the last 10 years. Only California and Michigan have lost more than that. And part of the reason why we are pushing collective bargaining is we frankly want to give the managers in our local communities and our schools the ability to control their costs so they don’t have to raise taxes and drive businesses out and more jobs out.

By granting government workers the power to collectively bargain, government unions have completely politicized the civil service. State and local employees in 28 states are required to pay full union dues or get fired. Using this government coercion, government unions have amassed tremendous financial resources that they use to campaign for higher taxes and higher pay for government workers. The top outside spender in the last election was the American Federation of State and County Municipal Employees ($91 million).Governor Mitch Daniels (R–IN), who signed an executive order ending state worker collective bargaining his first month in office, spoke in support of Walker yesterday:

The people who are doing the demonstrating, and their allies … spent that state broke. … The most powerful special interests in America today are the government unions. They’re the leading financial contributors. They have muscle, a lot of times their contracts provide for time off to go politick and lobby.

And lobby and politick government unions have. Across the country, from Arizona to California to Minnesota to Maine to New Jersey and more, government unions have pushed legislation and ballot measures that raise taxes and spending. In Trenton, New Jersey, last night, Governor Chris Christie (R) framed the debate:

In Wisconsin and Ohio, they have decided there can no longer be two classes of citizens: one that receives the rich health and pension benefits, and the rest who are left to pay for them. These ideas are not red or blue. They are the black and white of truth.

Conservative governors across the nation should absolutely work to reform the way public-sector unions drain our economy. As Governor Christie told MSNBC's 'Morning Joe' today: "We're not trying to break the unions, the unions are trying to break the middle class."

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