Stephen, J. Cabot blog

March 5, 2010

ONCE AGAIN A UNION HURTS WORKERS & CORPORATE AMERICA

In DeWitt, New York, Magna’s Power Train division decided that the installation of surveillance cameras was an appropriate undertaking. Keeping tabs on workers’ productivity is a responsibility of management. Not according to the  UAW. It said that the cameras should not have been installed without first consulting with the union. This is one of numerous union generated complaints against Magna.

 

Because of the barrage of union complaints and because workers repeatedly rejected contract changes, Magna has decided that it will close one of its divisions. Work from Magna’s New Process Gear plant has now been transferred to other Magna facilities and to a factory in Mexico. That means that 112 workers will lose their jobs.

 

This is just another example of why the majority of Americans regard unions as an obstacle to their economic well being. As companies, such as Magna, close plants and send manufacturing to foreign lands, workers will suffer, Corporate America will suffer, and America’s role as an economic powerhouse will diminish while the economies of other countries, such as China and India, continue to grow. It’s a sad commentary on the state of management labor relations in our time.

 

 

 

 

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.

 

 

November 13, 2009

TAX PAYERS BEWARE

According to the Bureau of National Affairs, most unionized employees now work for the government.  While the overall number of unionized workers is just above 12% of the workforce, only 7.3% of those union members work in the private sector.

 

What is amazing is that more than 37% of all government employees belong to unions! That amounts to 8-million unionized government workers! The government has become the largest employer of unionized workers, and those unionized workers make sure that their voices ring loud and clear in the halls of congress as well as in the White House. After all, unions contributed more than $56-million to Democratic political campaigns in 2008.

 

While those government workers cannot go on strike for higher wages, increased benefits, or more paid vacation days; they can  and do have their officers lobby congress to achieve those results.

 

An example of union strategy has become apparent on the west coast where unions have been running television ads and supporting ballot initiatives  to raise taxes so that their members can receive higher wages. One need only stand on line at a local post office or motor vehicles office to experience union-protected inefficiencies and lack of initiative.

 

As a result of union demands, taxpayers will be footing the bill for increased taxes. And those taxes will  go to pay for unionized government workers increased salaries and benefit. As the government pays ever high wages, it will have no alternative but  to impose ever higher taxes to meet the demand. It is a classic vicious circle.

October 23, 2009

SENATOR McCAIN TAKES A STAND

 

As we reported last week, President Obama continues to pack the NLRB with pro-union advocates. We cited the recent example of Craig Becker, a union lawyer, as well as numerous others. Now Senator John McCain has announced on the floor of the Senate that he will block Mr. Becker’s appointment to the NLRB.

 

Senator McCain has reiterated what we have claimed that Mr. Becker will support unions at the expense of Corporate America and will likely curtail its free speech.  Mr. Becker’s articles indicate that he would restrict the rights of employers to present pro-management arguments to their employees during union organizing drives. As an associate general counsel for the Service Employees Union, one of the most aggressive unions in the country, Mr. Becker has been a dedicated advocate of the union’s agenda.

 

In a 1993 Minnesota Law Review article, Mr. Becker argued that “employers should be stripped of any legally cognizable interest in their employees’ election of representatives. Employers should have no right to raise questions concerning voter eligibility or campaign conduct. 

“Because employers lack the formal status either of candidates vying to represent employees or of voters, they should not be entitled to charge that unions disobeyed the rules governing voter eligibility or campaign conduct.”

 

Such arguments obviously favor unions over corporations; yet, the NLRB should be an unbiased, objective body that rules on existing laws and regulations. 

 

We agree with the point of view expressed in a letter that Jay Timmons, Executive Vice President of the National Association of Manufacturers, sent to Senator Tom Harkin. To wit: “Mr. Becker has espoused extreme positions far outside mainstream thought on how our nation’s labor laws should be interpreted.”

It is imperative that the senate votes to maintain the integrity of the NLRB by maintaining a level playing field for both management and workers. We believe that is what Senator McCain is attempting to accomplish, and we applaud his effort.

October 15, 2009

PACKING THE NATIONAL LABOR RELATIONS BOARD

As we have reported numerous times, President Obama continues to work diligently to reform the composition of the National Labor Relations Board by nominating as many pro-labor advocates as the law allows. He has been supported by numerous unions, each of which has been lobbying not only for the addition of pro-union officials to the board, but also for the passage of pro-union legislation, such as the Employee Free Choice Act, which will make it easy for union organizers to sign up new members.

 

Now, one of America’s foremost business groups, The American Chamber of Commerce, has raised an important and well-reasoned objection to one particular nomination, that of union lawyer, Craig Becker.

 

The Chamber has made public a letter to senators that outlines why Mr. Becker should not be put on the Board.

“Mr. Becker has written prolifically about the National Labor Relations Act, the law he will be charged with interpreting and enforcing should he be confirmed. Many of the positions taken in his writings are well outside the mainstream and would disrupt years of established precedent and the delicate balance in current labor law.”

The Chamber also raised objections to the way Mr. Becker might restrict the free speech rights of employers, particularly during union organizing efforts. Conversely, the Chamber is concerned that Mr. Becker would extend the ability of union organizers to have increased access to workers during those same organizing efforts. While employers’ rights would be curtailed, the rights of union organizers would be greatly expanded.

Altogether, Corporate America will be driven to a position where it will be significantly more vulnerable to intensely aggressive union organizing tactics than at any time since the 1930s..

July 10, 2009

Environment Friendly Unions?

 

Those who have negotiated with unions know they will often resort to bargaining tactics that, if used by management, would cause the unions to cry foul. They would go to union-friendly reporters, playing the lachrymose role of outraged victims, and plead for fairness.

 

Now, however, The New York Times, has reported that California Unions for Reliable Energy(CURE) have attempted to influence the awarding of contracts by playing both sides of an environmental issue.

 

When a large California solar power company, Ausra, sought approval to build a new power plant, CURE (an ironic acronym if there ever was one) demanded that a study be conducted to determine the effects of the power plant on the lives of the short-nosed kangaroo rat and the ferruginous hawk.

 

One might have admired CURE’s concern for those poor creatures; however, when Bright Source Energy, one of Ausra’s competitors, also filed plans for a solar facility that would be larger than Ausra’s, the union did not voice any concerns for the endangered desert tortoise, an animal that lives where the new plant would be built.

 

One may guess the reasons for such contradictory manifestations of concern. Asura, the Times reported, had rejected demands that it employ union workers to build its solar facility.  Bright Source, by contrast, agreed to hire “labor-friendly contractors.”

 

The Times went on to report that “…some developers contend they are being pressured to sign agreements pledging to use union labor. If they refuse, they say, they can count on the union group to demand costly  environmental studies and develop and deliver hostile testimony at public hearings.

            “If they commit at the outset to use union labor, they say, the environmental objections never materialize.”

 

With a pro-union congress and administration in Washington, one can expect more such condoned behavior.