Stephen, J. Cabot blog

December 4, 2009

ANOTHER BLOW TO DEMOCRACY

According to a recent editorial in The Wall Street Journal, the Obama administration has delivered a body blow to Corporate America, specifically the airline and railway industries, which do not need any further impediments to their respective economic woes.

Both of those industries have their labor relations policies governed by The National Mediation Board (NMB), and the Board has maintained a consistent policy for the last seventy-five years.  

Now, however, under a proposed new rule, the board plans to tilt the playing field in favor of organized labor. To wit: In order to obtain certification, a union will no longer need to win the approval of a majority of workers. Rather than obtain a majority of workers, a union will only have to win a majority of workers who choose to vote in a union election. That works well for unions, because only a minority of workers usually votes. Getting a majority of that minority to vote for a union will be easy. Imagine, if only 100 workers out of a total workforce of 1,000 agree to vote: the union would need only 51 votes to unionize 1,000 workers! The winning team will always be the union.

This dramatic change has been the result of President Obama appointing the former president of a pilots’ union and the former president of the Association of Flight Attendants to the NMB. It is comparable to a single football team using its own players as the sole referees in all of its games. Would such a team ever lose a game?

This change will invite numerous strikes, which will cripple the nation’s transportation system. We are now light years away from the time when President Reagan fired air traffic controllers, members of The Professional Air Traffic Controllers Organization (PATCO) for going on strike. Their strike was against the national interest. President Reagan’s actions led to the demise of PATCO and to a robust airline industry that benefitted all travellers. It was a milestone in the history of labor relations, a milestone that will not  - unfortunately –  be repeated anytime soon.

 

 

May 8, 2009

George McGovern Blasts The Employee Free Choice Act – Again!

GEORGE MCGOVERN BLASTS

 

THE EMPLOYEE FREE CHOICE ACT – AGAIN!

 

George McGovern, former senator and presidential candidate known for his liberal viewpoints, has once again blasted the Employee Free Choice Act (EFCA) for its proposed debasement of democratic practices. His criticism appears on the editorial page of The Wall Street Journal.

 

He was particularly irked by the fact that if employers and unions cannot reach agreements then the government will step in and impose, in each case, binding arbitration.

 

Under the National Labor Relations Act, which has been in place since 1935, employers are free to reject union demands, and unions can strike if they are dissatisfied with employer proposals. If, however, the EFCA becomes law, then government bureaucrats with little understanding of the unique subtleties of various positions will impose their own solutions. Such a process is hardly in keeping with the principles of collective bargaining.

 

Former Senator McGovern wrote: “A federally appointed arbitrator cannot be expected to understand the nuances specific to each business dispute, the competitive market position of the business, or the plethora of other factors unique to each case…. Compulsory arbitration is, in one sense, government dictating to employees what they will win or lose in the deal with no opportunity to approve the agreement.”

 

Such an outcome would be disastrous for Corporate America. Even George Meany, while head of the AFL-CIO, stated that “mandatory arbitration is an abrogation of freedom.”

 

Should Congress pass the EFCA (which seems more likely now that Senator Specter has switched parties) and should President Obama sign the bill into law, then America will be taking a major step away from the free market principles which have been the basis for the country’s remarkable record of commercial achievements, industrial innovations, and the creation of one of the most affluent societies in the history of the world.