Taxpayer Funded Big Labor Cash Cow Hit by WI Reform

What Reform Was About Wisconsin Republicans put their careers on the line to reform the state's collective bargaining process for government unions -- standing up to entrenched special interests and back room deals that have dominated the political landscape for decades. Byron York of the Washington Examiner takes a look at one of the corrupt bargains that seems to be coming to an end thanks to their efforts. It appears the union bosses were padding their bottom line by forcing school districts to buy health insurance through a company they owned -- all at inflated costs. Now free of those constraints, schools are saving money on wasteful contracts helping teachers and students in the process. Other states should take note. The Hartland-Lakeside School District, about 30 miles west of Milwaukee in tiny Hartland, Wis., had a problem in its collective bargaining contract with the local teachers union. The contract required the school district to purchase health insurance from a company called WEA Trust. The creation of Wisconsin's largest teachers union -- "WEA" stands for Wisconsin Education Association -- WEA Trust made money when union officials used collective bargaining agreements to steer profitable business its way. The problem for Hartland-Lakeside was that WEA Trust was charging significantly higher rates than the school district could find on the open market. School officials knew that because they got a better deal from United HealthCare for coverage of nonunion employees. On more than one occasion, Superintendent Glenn Schilling asked WEA Trust why the rates were so high. "I could never get a definitive answer on that," says Schilling. Changing to a different insurance company would save Hartland-Lakeside hundreds of thousands of dollars that could be spent on key educational priorities -- especially important since the cash-strapped state government was cutting back on education funding. But teachers union officials wouldn't allow it; the WEA Trust requirement was in the contract, and union leaders refused to let Hartland-Lakeside off the hook. "It's going to save us about $690,000 in 2011-2012," says Schilling. Insurance costs that had been about $2.5 million a year will now be around $1.8 million. What union leaders said would be a catastrophe will in fact be a boon to teachers and students.
Union Bosses Out For Revenge in Wisconsin

Union Bosses Out For Revenge in Wisconsin

The implementation and retention of its new state public-sector Right to Work law are critical for Wisconsin's efforts to furnish relief for taxpaying individuals and businesses and reinvigorate private-sector income growth. Credit: Rick McKee/Augusta (Ga.) Chronicle  Pro-Right to Work Legislators Targeted in July 'Recall' Elections (Source: June 2011 NRTWC Newsletter) For at least a decade leading up to the election of Right to Work advocate Scott Walker (R) as governor, Wisconsin, like many other forced-unionism states, was on an unsustainable fiscal path. From 2000 through 2010, total taxpayer costs for compensation of Wisconsin state and local government employees grew by an inflation-adjusted 9.2%, to a total of $19.83 billion last year. By 2010, state and local government compensation swallowed up the equivalent of nearly 17% of all private-sector wages, salaries, bonuses and benefits in Wisconsin. And over the past decade Badger State government employee compensation grew more than two-and-a-half times as fast as private-sector employee compensation, in percentage terms. Upon Taking Office, Governor Properly Focused His Energy On Forced-Dues Repeal Measure
Right To Work Committee Mobilizes Against NLRB Power Grab

Right To Work Committee Mobilizes Against NLRB Power Grab

If the Obama-selected top lawyer for the National Labor Relations Board gets his way, Boeing will have no real choice but to abandon a brand-new $2 billion plant and 1,000 good jobs in Right to Work South Carolina. Obama Bureaucrat Eager to Tell Businesses Where They May Expand (Source: June 2011 NRTWC Newsletter) Lafe Solomon, the man President Obama has selected to be the top lawyer for the National Labor Relations Board (NLRB), outraged millions of Americans across all regions of the country in April by asserting his agency has the prerogative, in many instances, to tell businesses where they may or may not expand. For decades, the NLRB has called the shots with regard to implementation of the National Labor Relations Act, the nation's principal federal labor law. The NLRA covers over 90% of private-sector businesses and front-line employees. The NLRB is thus, no doubt, powerful. Nevertheless, the claim of power by NLRB Acting General Counsel Solomon in his April 20 complaint filed to block Boeing from initiating a new aircraft production line in Right to Work South Carolina is remarkable. As economist Arthur Laffer and senior Wall Street Journal editorial page economics writer Stephen Moore noted in a pungent op-ed appearing in the Journal May 13, this is "the first time a federal agency has intervened to tell an American company where it can and cannot operate a [new] plant within the U.S." Well-informed apologists for compulsory unionism like New York Times labor reporter Steven Greenhouse and former Clinton-appointed NLRB Chairman William Gould don't dispute that the Boeing complaint is, to quote Mr. Greenhouse, "highly unusual." Acting General Counsel: Sensible Business Decision Equals 'Anti-Union Animus'
Right to Work Bill Introduced in U.S. House

Right to Work Bill Introduced in U.S. House

Rep. Steve King is lead sponsor of H.R.2040, the House version of the National Right to Work Act. Credit: Congressman King’s Office Would Bar Firing Employees For Refusal to Bankroll Unwanted Union (Source: June 2011 NRTWC Newsletter) With their hopes buoyed by the passage earlier this year of two new state laws barring the extraction of forced union dues from public servants in Wisconsin and Ohio, pro-Right to Work Americans are now preparing to take the offensive in the U.S. Congress. "National Right to Work Committee members and their grass-roots allies in the Badger and Buckeye States stunned Big Labor in March when they successfully lobbied for legislation removing government union bosses' forced-dues privileges," recalled Committee Vice President Mary King. "Now it's time for Committee members and supporters nationwide to show we can lobby just as effectively in support of legislation that would repeal federally-imposed forced union dues and fees." S.504 and H.R.2040 Would Repeal Federally-Imposed Forced Union Dues Ms. King continued: "When it comes to private-sector forced unionism, Congress is the culprit.
Right to Work Good For Pay and Benefits

Right to Work Good For Pay and Benefits

By prohibiting compulsory union dues, state Right to Work laws spur the growth of private-sector employee compensation in the form of wages, salaries, benefits and bonuses, as well as employment growth. Sources: U.S. Commerce Department, U.S. Labor Department Private-Sector Compensation Growth Lags in Forced-Unionism States (Source: June 2011 NRTWC Newsletter) Even union bosses and their apologists sometimes grudgingly admit that long-term private-sector job growth in states that currently have Right to Work laws on the books far outpaces job growth in states that lack such pro-employee statutes. This fact is indeed hard to deny. From 1990 to 2010, according to the U.S. Labor Department, private-sector payrolls in Right to Work states soared by 32.0% -- an increase triple that of forced-union-dues states combined. Over the past decade alone, nationwide private-sector employment fell by 3.3% due to the impact of the severe 2008-2009 recession. But Right to Work states experienced an overall private-sector job increase, while forced-unionism states suffered a 5.5% aggregate job loss. Big Labor tries to downplay the significance of Right to Work states' large, persistent employment-growth advantage by suggesting that the jobs created outside of forced unionism's dominion are "the wrong kind." Unfortunately for union propagandists, however, U.S. Commerce Department data show that Right to Work states also enjoy a large, persistent advantage over forced-unionism states with regard to growth of private-sector employee compensation (including wages, salaries, bonuses and benefits). Real Compensation Grew Nine Times as Much Over Past Decade In Right to Work States

Want Jobs and Rising Income Levels? Pass Right to Work

The Investor's Business Daily confirms that enacting Right to Work laws is a recipe for jobs and economic growth: The business world is abuzz over the National Labor Relations Board's complaint vs. Boeing's new South Carolina production line. For NLRB critics, the case boils down to one thing: "right-to-work" laws. Right-to-work states have generally lower unemployment, higher job growth, lower taxes and better business climates. They have growing populations and have been attracting businesses from other states. In most states, once a workplace is unionized, employees are required to join the union or they can't work there. But 22 states, including South Carolina, have passed laws that give employees the right not to join. Hence the term "right-to-work." Unions dislike these laws for the obvious reason: It reduces their membership.