President Obama « Stephen, J. Cabot blog

December 4, 2009

ANOTHER BLOW TO DEMOCRACY

Filed under: Employee Free Choice Act — Tags: Add new tag, airlines, cabot institute for labor relations, corporate America, democracy, labor, National Mediation Board, organized labor, President Obama, pro-union, railroads, stephen cabot, stephen j cabot, union organizers, unions, workers, workforce — Stephen J. Cabot @ 5:20 pm

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.

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November 13, 2009

TAX PAYERS BEWARE

Filed under: Employee Free Choice Act — Tags: Add new tag, cabot institute, labor, labor department, labor relations, organized labor, President Obama, stephen cabot, unionization, unions, workers, workforce — Stephen J. Cabot @ 6:30 pm

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.

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November 6, 2009

UNIONS LOSE!

Filed under: Employee Free Choice Act — Tags: Add new tag, cabot institute, cabot institute for labor relations, employee free choice act, organized labor, President Obama, SERVICE EMPLOYEES INTERNATIONAL UNION, stephen cabot, union finances, union organizers, unions, workers — Stephen J. Cabot @ 5:06 pm

One thing that Tuesday’s elections proved is that union money is not going to win elections this year. In 2008, the Service Employees International Union spent $60-million to help elect President Obama and Democratic candidates to both houses of congress. Altogether, organized labor gave Democratic candidates $400-million in 2008. That money may have been well spent then, but look at the outcome in 2009!

Governor John Corzine’s various and well-publicized relationships with unions hurt both him and the unions in New Jersey. In Virginia, Governor-elect Bob McDonnell won by large margin after vigorously campaigning against the Employee Free Choice Act. In both states, conservative Republicans triumphed over union supported candidates.

And now many Democrats, having analyzed the election results, are against the so-called “card check” provision of the Employee Free Choice Act. Unions have invested their members’ money with, what some would consider, Quixotic abandon. And what has been the return on that investment? The defeat of two pro-union candidates and the likely demise of “card checks.” Union members should demand refunds!

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October 23, 2009

SENATOR McCAIN TAKES A STAND

Filed under: Employee Free Choice Act — Tags: Add new tag, cabot institute, cabot institute for labor relations, congress, labor, National Labor Relations Board, NLRB, President Obama, pro-union, stephen cabot, stephen j cabot, union organizers, unionization, unions. unionization, workers — Stephen J. Cabot @ 5:26 pm

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.

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October 15, 2009

PACKING THE NATIONAL LABOR RELATIONS BOARD

Filed under: Employee Free Choice Act — Tags: cabot institute, cabot institute for labor relations, corporate America, employee free choice act, labor, labor department, National Labor Relations Board, organized labor, President Obama, pro-union, stephen cabot, stephen j cabot, union organizers, unions, workers — Stephen J. Cabot @ 5:01 pm

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..

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October 9, 2009

PRO-UNION ADVOCATE NOMINATED AS SOLICITOR FOR LABOR DEPARTMENT

Filed under: Employee Free Choice Act — Tags: cabot institute, cabot institute for labor relations, corporate America, organized labor, President Obama, pro-union, stephen cabot, stephen j cabot, union organizers, workforce — Stephen J. Cabot @ 4:28 pm

President Obama has nominated M. Patricia Smith to be solicitor at the Labor Department. Ms Smith has served as New York State’s Labor Commissioner, where her department helped to create the New York Wage Watch. While the organization’s misssion is ostensibly to be a watch dog and make sure that immigrant workers receive fair wages, it is really a stalking horse for union organizers. The Wage Watch was not formed in vacuum, but was promoted and aided by unions.

Ms. Smith has a consistent record as a vigorous labor advocate for three decades, and Corporate America can legitimately be concerned that its interests are not foremost on Ms. Smith’s agenda.

As a solicitor for the Labor Department, Ms. Smith will indeed have Corporate America in the cross hairs of of her pro-labor agenda. It is no wonder that disinterested parties have raised objections to Ms. Smith’s nomination. Indeed, while corporations are struggling to survive in a global economy during a recession, they certainly don’t need to be fighting off investigations inspired by unions and their advocates in the Labor Department

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October 2, 2009

LABOR ECONOMISTS: UNIONIZATION WILL HURT ECONOMY

Filed under: Employee Free Choice Act — Tags: cabot institute, cabot institute for labor relations, employee free choice act, organized labor, President Obama, pro-union, stephen cabot, stephen j cabot, unionization, workers — Stephen J. Cabot @ 12:59 pm

The University of New Hampshire recently completed a survey of 925

labor economists on behalf of the Center for Union Facts. It should

come as no surprise to any historian of business and astute observers of Corporate America that unions have had an injurious effect on the overall economy as well as on specific industries (e.g.General Motors, the Port of New York, newspapers, etc.).

The surveyed labor economists then went to note that the proposed (and mis-named) Employee Free Choice Act, which would impose binding arbitration on contract disputes, would have a further negative effect on business. More than 2/3 of the surveyed economists believe that Congress should not pass the EFCA. In addition, more than half of the surveyed economists believe that President Obama’s job creation program would hurt the economy.

It is apparent that the government is on the wrong track; and the only reason that it is pursuing a pro-union game plan is that the AFL-CIO, SEIU, and other unions have contributed millions of dollars to elect representatives who will do their bidding.

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September 18, 2009

ON THE WATERFRONT: THE SEQUEL

Filed under: Employee Free Choice Act — Tags: cabot institute, cabot institute for labor relations, california, congress, drivers, financials. organizers, management, organized labor, President Obama, stephen cabot, stephen j cabot, teamsters, union finances, union organizers, unionization, unions, workers — Stephen J. Cabot @ 4:40 pm

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.

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September 3, 2009

Obama’s Pro-Union Strategy

Filed under: Employee Free Choice Act — Tags: cabot institute, cabot institute for labor relations, corporate America, employee free choice act, National Labor Relations Board, organized labor, President Obama, pro-union, stephen cabot, stephen j cabot, union organizers, unionization, unions, workers, workforce — Stephen J. Cabot @ 12:43 pm

In addition to supporting the Employee Free Choice Act, President Obama has more than signaled his unwavering support for a pro-union agenda. It began when he not only tossed out a series of executive orders signed by President George W. Bush, but it was emphasized by his issuing new executive orders that favor organized labor. Those include creating union friendly agreements for federally funded construction projects and insisting that federal agencies post workers’ rights notices in all workplaces. Such notices inform workers of their right to strike, to file law suits, and to bring complaints to the National Labor Relations Board. In addition, one of the president’s executive orders bans any company that receives federal funds from using those funds to educate workers about the negative effects of unionization.

Earlier, we expressed our disappointment when President Obama nominated Wilma Liebman as chair of the National Labor Relations Board, for she has a record of favoring unions over management.

In keeping with the spirit of that appointment, the president plans to nominate two attorneys who also have a record of favoring unions over the interests of management. They are Randy Babbit to run the Federal Aviation Administration and Jordan Barab to go to the Occupational Safety and Health Administration. Mr. Babbit is expected to sign a pro-union agreement with the Air Traffic Controllers Association, which would make former President Reagan turn over in his grave. It was President Reagan, after all, who fired the controllers in the 1980s for going out on strike and endangering the lives of air travelers.

As if that were not sufficiently indicative of President Obama’s pro-union thrust, he has named Joe Szabo to head the Federal Railroad Administration. Mr. Szabo had been the legislative director of the United Transportation Union in Illinois.

We can expect many more such appointments in the coming months, and the overall effect will be to make America less competitive and productive in a global economy in which many other countries are not hampered by the excesses of bureaucratic rules and regulations that are in conflict with free market economies.

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August 14, 2009

The Power of One

Filed under: Employee Free Choice Act — Tags: Add new tag, cabot institute for labor relations, corporate America, labor department, National Labor Relations Board, organized labor, President Obama, pro-union, stephen cabot, stephen j cabot, union organizers, unionization, unions, washington, workers, workforce — Stephen J. Cabot @ 4:57 pm

Management and workers have long known that high levels of productivity are the result of good relations and of all parties working together to achieve positive goals. That, however, is not the underlying message of Executive Order 13496, which President Obama signed. Here is a sentence from that order: “The attainment of industrial peace is most easily achieved and workers’ productivity is enhanced when workers are well informed of their rights under the Federal labor laws, including the National Labor Relations Act.”

The Order is aimed at those who do business with the government, and it – in effect – guarantees that workers will know about all of their options when it comes to strikes, walkouts, and slow downs. The government has said that the order will provide labor peace. If that sounds unbelievable, it is. The government has handed organized labor another weapon to use against Corporate America.

How will informing workers of union tactics for securing their demands increase productivity? If it does anything, it will put Corporate America at a disadvantage when hiring workers for federal jobs. Not only will contractors have to abide with the Order, but so will their sub-contractors. Each will have to post all the information for their workers; and if it is not posted, delinquent contractors and sub-contractors will be barred from doing business with the government and be liable for various sanctions.

Actions taken against companies will be at the discretion of the Secretary of Labor, who is responsible for the enforcement of the Order. While the Secretary may exempt certain companies, the Secretary can also cancel contracts and prohibit future contracts with the government.

The Executive Order and the power invested in the office of Secretary of Labor is further evidence that the Obama administration is not only on the side of unions, but it is actively advancing union interests to the detriment of Corporate America.

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