Stephen, J. Cabot blog

January 15, 2010

RESPECT FOR WHOM?

In the current political climate, Corporate America (to borrow a phrase from Rodney Dangerfield) “gets no respect.” Unions are rallying again for what they cleverly call RESPECT for supervisory personnel. At issue is the Re-Empowerment of Skilled and Professional Employees and Construction Tradeworkers (RESPECT), which had originally been introduced in 2007 by Senator Dodd, but which may be taken up by a new congress.

 

The National Labor Relations Act defines a supervisor as an employee with the authority to “hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or to responsibly direct them, or to adjust their grievances, or effectively to recommend such action.” In other words, supervisors are part of a company’s management, and management cannot be organized by unions. To do so would create divided loyalties.

 

The Respect Act would eliminate the responsibility of supervisors from assigning and responsibly directing non-supervisory personnel. The effect would be that all supervisors would become like all other employees and be eligible to join unions. The ensuing value to union coffers is estimated to be in the many millions of dollars. In this Alice in Wonderland world proposed by unions to the NLRB, there would be no line separating supervisors from workers. Where would the allegiance of supervisors be if they are on the picket lines, cheek by jowl, with those they had once supervised? And should card checks become law, one can easily imagine supervisors pressuring employees to sign those cards! In such a situation, it would be impossible for supervisors to carry out the goals of management.

 

This proposed Act is obviously no respecter of logic or common sense. It is, instead, part of our brave new world where union leaders not only frequently visit the White House whose occupant’s political campaign enjoyed the benefits of tens of millions of dollars raised by unions, but where unions are visiting upon the country an ongoing assault on economic well being and growth. Corporate America does – indeed – get no respect.

 

 

 

December 18, 2009

UNION MEMBERS REVOLT

 

Municipal employees in Portland Maine have decided to show their unhappiness with the American Federation of State, County, and Municipal Employees (AFSCME). Many local union members (Local 1373) feel that they pay expensive dues and are not receiving sufficient job protections. More than ninety of their members were laid off from their city jobs.

 

Now 450 members of the union have received ballots, giving them the opportunity to decertify the union.  The local AFSCME sends the national office $130,000 a year, and feels that it’s not getting its money’s worth.

 

Local leaders had filed a petition in October with 200 signatures that asked for decertification ballots. As a result, those leaders were suspended from their leadership positions, and the Local’s assets were seized. In addition, the National office has been running local ads critical of the Local.

 

As we reported last week in our report about SEIU, a union that is in a war with a break-away union, this is another example of intense dissension within the ranks of organized labor. As unions become increasingly more superfluous, their internecine battles increase in ferocity. Organized labor, unable to connect with workers, are fighting with each other for the ever diminishing number of workers who still find what is chimerical value in being union members.

September 18, 2009

ON THE WATERFRONT: THE SEQUEL

Waterfronts, from New York to California, have a long history of union difficulties. And now, according to an editorial in The Wall Street Journal, the Mayor of Los Angeles, Antonio Villaraigosa (a former union organizer), is urging congress and the Obama administration to change federal law so that the Teamsters Union will be able to organize independent truckers who work in the Port of Los Angeles.

 

The mayor wants the federal law changed so that harbor trucking companies will be banned from contracting with independent drivers. Instead, he wants the Port to permit “employee drivers” to operate in the Port, because those drivers are eligible for membership in the Teamsters.

Federal law, however, does not now permit state and local authorities to make their own laws regarding ports, for that would defeat the purpose of having uniform regulations throughout the land. If the mayor’s proposal became law, truckers in one port would not be allowed into another port. The resulting chaos would ruin interstate commerce.

The Ninth Circuit Court of Appeals has found that the mayor’s intended change would violate the Constitution’s Commerce Clause, and so an injunction was issued. As a result, the mayor wants Washington to change the law.

Should that happen, the Teamsters would have incredible leverage to affect wages, benefits, and the price of shipped goods. No doubt, the result would be a huge spike in labor and consumer costs. In such an environment, if the Teamsters did not get what they want, they could call strikes and shut down one port after another.

This is another example of how the Democrats are working to increase the power of unions at the expense of everyone else.

 

 

 

 

 

 

          

 

July 2, 2009

Financial Woes of Pro-Union States

The National Institute for Labor Relations Research (NILRR), a proponent of right-to-work policies, recently released a report that the demands of unions have greatly added to the financial woes of New York, California, and New Jersey. The Cabot Institute for Labor Relations has also been studying this phenomenon, and it concurs with the findings of the NILRR.

The percentage of unionized workers in those three states ranges from 20% to 27%, while the number of unionized workers in the rest of the country is between 12% and 13%. In the three heavily unionized states, workers receive the largest hourly wages in the country, and public-service employees receive the most generous pensions. For example, a retired police officer in Westchester county receives $200,000 a year and another in Suffolk county, New York, receives $100,000 a year. When one multiplies those numbers by the number of public-service retirees, many of whom retire in their mid-forties, it’s easy to understand why those three states are in such deep financial trouble.

When one compares job growth in right-to-work states where non-union auto makers have set up manufacturing facilities with a state, such as Michigan, home to domestic auto makers, the numbers are indeed startling. It is obvious that right-to-work states are enjoying far more robust employment figures than pro-union states. And because right-to-work states offer greater non-union employment opportunities than the big industrial states, the former states are in far better financial shape than New York, New Jersey, Michigan, and California.

Washington law makers, unfortunately, are intent on making it easier for unions to organize workers, and the results will be higher labor costs, greater unemployment, and more states in financial trouble.