Tag Archives: jobs

Liberals and Unions

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In December 2014, the NLRB passed a final rule on a partisan 3-2 vote that greatly shortens the time for a workplace union-organizing election. … Mr. Obama issued a “memorandum of disapproval”—essentially a veto—to kill the Congressional measure [to overturn the rule] and preserve the NLRB rule.

From now on unions will have unlimited time to prepare their campaigns to organize a workplace, springing the election paperwork on an employer when they figure they have the best chance to prevail. By reducing the time before an election to as little as two weeks from the current average of 38 days, unions will be able to lobby workers and make their case before a company can counter with its own argument.

Because with Liberals and unions, there’s only one side to a story. No need to hear from anyone else.

A Reason

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…to decertify public “service” unions. And to terminate for cause the government’s “negotiators” for agreeing to such a thing.

Under the 1978 Civil Service Reform Act, “official time” was named, and it allows public service union members to use company time—that is, time they’re formally working for the government in a government job as a government employee—to do union administrative things. Doing union-specific work on the government’s clock also means they’re being paid by the government—by us taxpayers—to do union, and not government, work.

The thinking behind this little fillip was the premise that the union bargains in the name of all government employees, whether they’re union members or not, and this was a way to compensate the union for those alleged extra costs.

Like all sweetheart deals, this one has gotten out of hand.

According to the Office of Personnel Management, in 2012 (the most recent year there are statistics for) federal workers spent 3.4 million man-hours on union issues and not the work they were hired for. OPM estimates the cost to taxpayers was more than $157 million.

What’s more, at two government agencies that would seem least able to afford a loss of manpower—the Veterans Affairs Department and IRS—hundreds of workers spent 100% of their time doing union work. At the VA, 259 employees worked solely on union issues. At the IRS—which only disclosed their statistics when the National Review sent them a Freedom of Information Act request—the number was 201.

But wait—there’s more:

According to the Bureau of Labor Statistics, 939,000 federal workers belonged to a union in 2014. Another 139,000 were covered by collective bargaining agreements, but weren’t in a union. That brings the total number of employees covered by the unions to 31.6% of the total federal workforce.

However, there’s no requirement for any union to bargain for non-union employees, nor is there any requirement for any employer—even the government—to apply union contract terms to non-union members. Indeed, there’s no requirement for non-union employees to accept union contract terms as their own employment terms.

And so there are no costs for bargaining for the benefit of non-union employees. There never has been, requirement or cost; those are just fictions peddled by self-serving union leadership in order to get more money for union coffers.

Hence my call for decertification and termination.

These Explain a Lot

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Joseph Clancy, Secret Service Director, testified before a House Appropriations subcommittee, and this loose exchange between Clancy and Congressman Chris Stewart (R, UT) ensued:

Clancy: It’s going to take time to change maybe some of this culture. There’s no excuse for this information not to come up the chain. That’s going to take time because I’m going to have to build trust with our workforce. And the best way for me to work or earn that trust with our workforce is by my actions.

Stewart: I understand what you’re trying to do. I really do. But when you say, I have to set an example, I have to earn their trust. Dude, you don’t have to earn their trust. You’re their boss. They’re supposed to earn your trust.

And this:

The Secret Service director said he didn’t learn about the March 4 incident until five days later from an anonymous email, a delay he described as unacceptable. He said he delivered a “good, stern talk” to his staff upon learning he was kept in the dark.

“Good, stern talk?” Why is the head of that staff still on Clancy’s payroll?

Hmm….

Of Course He Will

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The National Labor Relations Board, the union arm of the Wagner Act, enacted a rule a few weeks ago that allows unions to hold organizing votes in non-union companies before company management has a chance to respond.

The Senate passed a resolution canceling the NLRB’s rule with a party line oriented vote. The House is taking up the bill and is expected to pass it as well, and with a party line oriented vote.

President Barack Obama, who succeeded in packing the NLRB for this sort of purpose, is expected to veto the resolution.

Of course he will. Remember this veto in 2016.

A Number of People Predicted This

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The first stage of the Seattle-mandated $15/hr minimum wage, to $11/hr, takes effect next month, but already Seattle’s low wage workers are feeling the pain of their pay “raise.”

…the city is experiencing a rising trend in restaurant closures.

The closings have occurred across the city, from Grub in the upscale Queen Anne Hill neighborhood, to Little Uncle in gritty Pioneer Square, to the Boat Street Cafe on Western Avenue near the waterfront.

The shut-downs have idled dozens of low-wage workers, the very people advocates say the wage law is supposed to help. Instead of delivering the promised “living wage” of $15 an hour, economic realities created by the new law have dropped the hourly wage for these workers to zero.

After all,

About 36% of restaurant earnings go to paying labor costs.

Restaurants operate on thin margins, though, with average profits of 4% or less….

The Seattle Eater offered a more itemized breakout [emphasis added]:

Bottom line, labor can only be a function of sales. If a busy restaurant at lunch serves 150 eaters during the lunch hour, and each person spends $15, the restaurant just grossed $2,250. If labor comprises significantly more than 30%, the restaurant won’t be in business for long. So that allows $675 total for labor for the day, and before the employer taxes we pay that allows $550 or so. At $15 an hour, that allows 36 labor hours, which means four people can work a full day. This assumes that everyone is making the new minimum. Now look around in a busy restaurant serving 150 people—do you see more than 4 employees? Of course you do.

The 16.2% increase in labor cost that first stage represents over Seattle’s current $9.47/hr minimum wage represents a total cost increase of nearly 6%—turning that 4% profit margin into a loss. Even taking Brendan McGill’s (Chef/Owner, Hitchcock, Hitchcock Deli and the gentleman quoted just above by the Seattle Eater) estimate of 30% labor costs, that spike in the minimum wage coming in a week or so works out to just under a 5% increase in total costs, still wiping out that 4% margin. No wonder restaurants are closing.

The question remains: are the targeted low-wage folks better off for being out of an $11-$15/hr job than they are for having a $9.47/hr job? Really?

Another question: how many other low-wage industries besides the food services one are getting hammered by this minimum wage law?

A final thought: maybe next, to cover Seattle’s minimum wage requirement, Seattle will impose a minimum business profit requirement on Seattle’s taxpayers.

 

…including AEI‘s Mark Perry, to whom h/t