Stephen, J. Cabot blog

April 29, 2010

DEMS DO UNION BIDDING

From the desk of Stephen Cabot:

United Parcel Service is waging a full-strength campaign to get the U S Congress to make sure that FedEx will be subject to the same onerous union rules as itself.
According to an article in The Wall Street Journal, “House Transportation Chairman James Oberstar (D. Big Labor) last year slipped 230 words into a spending bill that would make it easier for the Teamsters to unionize FedEx. This ambush was included at the urging of UPS, which has been saddled with the Teamsters for decades and wants FedEx to feel its pain.”
While UPS operates under the rules of the National Labor Relations Act, which makes the company vulnerable to strikes (e.g. a 15 day strike in1997), FedEx operates under the rules of the Railway Labor Act, which discourages strikes so that there will not be any “interruptions to commerce”

FedEx delivers most of its time-sensitive packages via air, and its customers choose its services because they expected rapid uninterrupted deliveries. UPS, by other means, delivers most of its packages by truck and customers understand that delivery may take a few days.

Having failed to have itself re-classified under the Railway Labor Act, UPS would now like to have FedEx made subject to the National Labor Relations Act, which would open the doors to Teamster organizers. And that’s a potentially large dues paying number of workers for the Union: there are 125,000 FedEx workers.

Imagine, for a moment, if FedEx were to be unionized and then experience slow downs or walk outs by Teamster-organized workers. Its business model would be utterly destroyed. And so UPS is intent on lobbying Congress to make FedEx subject to National Railway Act, thus opening the door to union organizers.

Congress should ignore the lobbying of UPS and adhere to the principles of a free market economy, and UPS should work to decertify its union rather than impose restrictions on its competition. The American economy works best when companies are free to engage in unhindered competition. The answer is not to shackle one’s competition; rather, the answer is to throw off one’s own shackles and engage in a free, open, and vibrant economy.

April 1, 2010

WOULD THE PRISONERS GUARD THEMSELVES

From the desk of Stephen Cabot:

 

When referring to illogical situations, it has often been said that the prisoners are running the prisons, the inmates are running the asylums, the foxes are guarding the hen houses.

 

Such a situation was successfully avoided at a prison in Chester County, Pennsylvania.

The Teamsters Union, ever on the look out for possible new members, had attempted to organize the Chester County Prison correction officers. The officers, ever vigilant of their responsibilities, voted 155 to 35 against forming the Chester County Corrections Officers Independent Union, which – had it succeeded – would have been allied with the Teamsters.

One can only imagine what would have occurred in the prison, if –at some future time – unionized corrections officers would have be unable to reach an  agreement with the warden and the county. Would the officers have felt obliged to go out on strike? Would certain prisoners be given the responsibility of guarding their fellow prisoners?

The fact that the corrections officers believe that they can negotiate on their own, without the normal threats that unions often bring to the bargaining table, says much about their apprehension of realism and their sense of responsibility.  They are to be commended for putting professional responsibilities ahead of personal interests.

The adversarial relationships that so often characterize the bargaining between management and workers have proven to be counterproductive and should be tossed onto the ash heap of labor relations history. It has proven utterly injurious to the economic health of the country. 


March 26, 2010

PRESIDENT OBAMA PLAYS THREE CARD MONTE WITH THE NLRB

From the desk of Stephen Cabot

 

The National Labor Relations Board needs a quorum of three.  If President Obama hopes to enact his pro-union agenda, he will need to have another pro-union advocate on the NLRB. He won’t say who is the pro-union advocate; he won’t even say that there is a pro-union advocate.

 

But as the names are flipped from hand to hand, one name keeps turning up. And if you guessed Craig Becker, you would be right.

 

According to The Wall Street Journal (www.wsj.com) “In a 1993 Minnesota Law Review article [Becker] said that the ‘core defect in union election law…is the employer’s status as a party to labor representation proceedings’ and that ‘employers should be stripped of any legally cognizable interest in their employees’ election of representatives.’”

 

If an NLRB member believes that employers should not be permitted to educate their employees about he disadvantages of unionization, he can hardly be considered a fair minded adjudicator of labor issues.

 

Yet, according to Senator Tom Harkin, President Obama will appoint Craig Becker to the NLRB during the Easter recess. It’s called a recess appointment, and it’s an end run around the Senate.  No votes are required.

 

With his pro-union advocates on the NLRB, President Obama will have won his three card Monte game, for no matter which member Corporate America appeals to, the results will always favor the union.

 

January 8, 2010

GUILT BY ASSOCIATION?

 

People are often judged by the company they keep. That is why probation officers direct ex-convicts not to associate with other criminals.

 

Should Corporate America judge President Obama by the company that he keeps?

 

Andy Stern, president of the Service Employees International Union (SEIU) and Anna Burger, Secretary-Treasurer, have visited the White House 60 times. Ms. Burger also serves on the President’s Economic Recovery Advisory Board. There have also been numerous visits by other union leaders, such as Richard Trumka, president of the AFL-CIO and Lou Gerard, president of the United Steelworkers.

Big labor had ensured such entrée by the amount of money it spent on the 2008 election: approximately $450 million; of that sum, $85 million was spent by SEIU.

What do these cozy relationships portend for Corporate America? To begin, there will be the Employee Free Choice Act, which will be introduced this year. Card checks and government administered binding arbitration will not be the only bad news for corporations. Unions would also like Congress to pass a tax-payer funded union pension bailout. Unions want President Bush’s union reporting requirements about union finances watered down, so that unions would no longer have to reveal how they spend their political dollars. Unions also want more stimulus money to be devoted to preserving unionized government jobs as well as preferential treatment for union contractors. And finally, unions want to make sure that the National Labor Relations Board is staffed by pro-union advocates.

Mothers throughout America warn their impressionable children that they will be judged by who their friends are. Corporate America needs no such warning: the writing is on the walls of union halls and the White House.

December 11, 2009

ORGANIZED LABOR’S CIVIL WAR

One of the most aggressive unions in the country, the Service Employees International Union (SEIU) will now face a challenge to its dominant role representing healthcare workers in California. The National Labor Relations Board (NLRB) has called for an election to determine if SEIU or the National Union of Healthcare Workers (NUHW) will represent 2,300 Kaiser healthcare workers in California.

 

The decision of the NLRB came as a blow to SEIU in its ongoing battle with the breakaway healthcare union, NUHW. SEIU had hoped to stop NUHW’s ongoing march to win the allegiance of thousands of healthcare workers in a wide array of states. As part of its PR war, the two sides have exchanged charges of various acts of wrong doing, including financial mismanagement. Perhaps the most hilarious charge leveled by the unions is union-busting. It’s usually the paladins of Corporate America who are accused of being union busters. If the labor movement has ever evidenced its true agenda, the bitter battle between these two unions indicates that power and money are as important to unions as they are to other institutions.

Determined to preserve its power, the SEIU says it will appeal the NLRB decision. If, however, the SEIU appeal fails, balloting is expected to take place in January.

The fight between SEIU and NUHW amounts to a civil war within the labor movement. The unintended victor will be Corporate America, and the millions of workers who will regard unionization with a richly deserved sense of skepticism, if not disgust.  



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 2, 2009

LABOR ECONOMISTS: UNIONIZATION WILL HURT ECONOMY

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.

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.

 

 

 

 

 

 

          

 

September 11, 2009

Gallup Survey Finds Union Support Dropping

GALLUP SURVEY FINDS UNION SUPPORT DROPPING

 

According to Gallup’s 2009 Work and Education Survey,  more than half of all U.S. citizens disapprove of the role of unions. The percentage of those who do approve of unions has dropped from 59% a year ago to 48% now, “an all time low,” according to Gallup which started asking if people approved of disapproved of unions in 1936. That year, 72% of citizens approved of unions and 20% disapproved.  The tables have dramatically turned against unions.

Gallup also noted that  the perception that unions hurt companies has risen form 39% in 2006 to 46% in 2009. In addition, more than half of all citizens now agree that unions hurt the entire U. S. economy. That’s a jump from 36% in 2006 to 51% in 2009.

Such a low opinion of unions should give Congress pause before voting to pass the so-called Employee Free Choice Act, which should be renamed the Freedom to Hurt America Act!

 

 

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