Category Archives: jobs

Labor Unions, Labor Workers, and Employers

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The lately formed Republican Party coalition, led by President-elect Donald Trump, consists of business-friendly and labor-friendly folks from opposite wings of the party.

Opposite, though, is not the same as opposing, a distinction the misconception of what’s involved masks. For instance:

People close to the transition said Trump’s potential appointments to key labor positions could include old-guard Republican functionaries, corporate executives, or individuals who are closer to the New Right and see themselves as more pro-worker.

Maybe and individuals who are pro-worker.

This makes plain the misconception:

[U]nion officials said Trump’s record is at odds with his pro-worker rhetoric. “It’s going to be a rude awakening for a lot of folks who wanted to take Trump at his word,” said Steve Smith, a spokesman for the AFL-CIO, which campaigned for President Biden and, subsequently, for Vice President Kamala Harris. “They talk a big game when it comes to workers, but…they’re going to attack the working class.”

Not at all. It’s entirely possible—useful, too—to be both pro-company and pro-working class while simultaneously opposing today’s unions. This is especially the case with today’s unions, where union management, far from concerning themselves with their membership—those working class folks—concern themselves more with what’s good for them personally.

That misplaced concern includes threatening employers with destruction of their businesses—striking and denying the businesses’ ability to function at all unless and until the union managers get their demands satisfied—and with ripping off workers with their efforts to force unionization in businesses where employees continually reject unions in labor votes. Union management in the past ripped off workers even more blatantly by exacting tribute union dues from workers whether they were union members or not. Court rulings have slowed that particular abuse, but they’ve not eliminated it.

What’s needed, and what becomes possible with the incoming administration, is bringing those pro-business and pro-labor folks into the same room to work out processes that benefit both, without the middle man union management in the room clouding things up and constantly trying to pit the one against the other, rather than helping them collaborate on business-labor policies.

Stop Treating These in Isolation

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Richard Rubin thinks he has an approach to Republicans’ desire to cut taxes:

To pass a bill without Democrats, GOP lawmakers seek agreement on the deficit number

That’s the subheadline for his article. He then opens his piece with this:

As Republicans prepare the party-line tax bill at the core of their 2025 agenda, the key to everything is, simply, “The Number.”
The Number is the maximum budget deficit increase that Republicans are willing to tolerate as they extend tax cuts scheduled to expire after 2025 and advance the rest of President-elect Donald Trump’s plans. To unlock the gate to the legislative fast track that lets them sidestep Democratic objections, Republicans must agree, with virtually no defections, on The Number.

But that’s only part of the matter, and as long as Republicans—either party, come to that—insist on treating taxes in isolation, they’ll continue to fail. The plain fact is that Republicans don’t have to agree on any deficit Number; what they need to agree on instead is a Number that represents any value in the interval from zero to budget surplus.

That, of course, also would require them to agree on spending cuts that bring that overall spending down to within the expected (dynamically projected) revenues realized from the tax cuts.

There are two ways those revenues will grow on net from the from this sort of budget move. One is the well-known increase in overall economic activity that results simply from tax rate cuts. These leave more money in the hands of private economy players—individuals, households, and the businesses they own and operate. It’s been repeatedly demonstrated that those players allocate their spending far more efficiently than anything a government can achieve.

The other way revenues increase, though, is less frequently discussed, even as it’s closely related to tax cuts. This is that, with less government spending, there is less competition for the resources—labor, raw materials, finished and semi-finished products—that private enterprises need for their own operation. With that resource competition from Government greatly reduced, the prices for those resources come down, and private businesses can more easily and cheaply acquire what they need. Private enterprise competition then increases and overall economic activity increases, overlaying the increase from simply reducing taxes, and a positive feedback loop develops among increasing production, lowering prices, increasing private demand, increasing employment, and increasing innovation. And net increasing revenues to Government.

Those two outcomes achieve one other item of critical economic, and political, and security importance. It provides an opportunity to commit those budget surpluses to paying down our national debt.

Of course, the Progressive-Democratic Party is going to quibble over any spending cut and tax cut, all the while objecting to either altogether, so to get these done even temporarily, Republicans will have to do them through legislative reconciliation.

That, in turn—both the taxing and the spending reductions—will require the Republicans’ Chaos Caucus to leave off their ego-driven their-way-or-nothing-at-all obstructionism and agree to compromises that move things in their direction, even if not everything all at once.

And get Republicans like Senator James Lankford (R, OK) to shape up or at least stay out of the way. According to him:

We’re not going to have something that’s going to have zero deficit impact. That’s not going to happen[.]

On that score, the Chaos Caucus is right. There need to be spending cuts to achieve outright deficit elimination and actual surplus.

A Union Win and a Business Loss

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The International Association of Machinists and Aerospace Workers union ratified the contract its managers lately extracted from Boeing.

The union got

• 38% wage increase over the next four years for its members
• $12,000 ratification payment for each of its members
• guaranteed annual bonuses for each member ranging from a minimum of 4% to as high as 6% (the guaranteed nature defeats the purpose of bonuses, and converts the payments to an annual Christmas present)
• 401(k) Boeing match of 100% of each member’s first 8% of pay plus an automatic 4% Boeing contribution
• requirement for Boeing to build its next airplane in the union shops of the Seattle area

What did Boeing get in return? The company gets to restart its commercial aircraft production in the Seattle area, and so to survive.

That’s one outcome of the legalized extortion that is union strikes.

A Determination to Create Dependency

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The Progressive-Democrat-run government of California has placed on its November ballot a proposal to require a State-wide minimum wage of $18 per hour. The Wall Street Journal editors provide some data, citing a Beacon Economics study.

  • 90% of the 130,000 newly unemployed in California during the past two years were under age 35
  • Between the first quarters of 2022 and 2024, unemployment among those ages 16 to 19 increased to 19.2% from 10.8% in California, versus 11.9% from 10.5% nationwide
  • Unemployment among those 20 to 24 years old also ticked up 1.3 percentage points in California, while declining 0.7 percentage points nationwide
  • unemployment averaged 3.2% in the 20 states that followed the federal minimum wage compared to 4.1% in the 15 with minimums between $14 and $17
  • fast-food employment in California has declined 3.2% over the last five months while increasing 3.6% nationwide
  • fast-food prices in California increased 3.7% after the higher minimum took effect in April

The editors asked a question: Are they trying to keep teens out of work? It’s far broader than that.

Where do these unemployed go? To Government for early on unemployment insurance and for long-trm welfare payments. The youth—those 16-19 years old and 20-24 years old—who start out dependent on Government for handouts have very little hope of breaking that dependency; it’s hard enough for adults who’ve been and are being priced out of low-skill jobs. Especially in an economic environment so riddled with these Progressive-Democrat policies.

That dependency on government, though, is votes for that government’s incumbents and preservation of those incumbents’ power.

ILA Featherbedding

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Railroad unions are pikers here.

[T]here were 50,000 or so ILA strikers but only 25,000 or so port jobs. That’s right, only about half of the union’s members are obliged to show up to work each day. The rest sit at home collecting “container royalties” negotiated in previous ILA contracts intended to protect against job losses that result from innovation.

This ILA monopoly abuse is aided and abetted by Progressive-Democrat President Joe Biden. Biden, far from invoking Taft-Hartley, which he doesn’t believe in, openly made his own extortionate threats against management:

President Biden had threatened the United States Maritime Alliance (USMX) with legal action this week if it didn’t give in further to union demands. “My Administration will be monitoring for any price gouging activity that benefits foreign ocean carriers, including those on the USMX board,” he said in a statement. This was a direct threat to Maersk and other ocean carriers if they added a surcharge because of the disruptions from the ILA strike.

Keep in mind, too, that this was just for the precondition the ILA demanded in order for the union to agree to negotiate at all. The union will be back with its still-open strike threat on 15 January. And to hell with the rest of us Americans:

Mr Daggett [the ILA MFWIC] was happy to put countless truck drivers, warehouse employees, retail clerks, and auto workers out of work so he and his “connected” members can buy another yacht.

This is what a Progressive-Democratic Party-dominated Federal government will do to all of our economy and to us American citizens’ right to work and to choose for ourselves whether to join a union or not—and to keep all of our paycheck if we choose to not join a union.