Bloated State Budgets Thanks to Big Labor Contracts

Bloated State Budgets Thanks to Big Labor Contracts

The Fiscal Times' Liz Peeks investigates how union budgets have busted state budgets and asks "Is it possible that the real divide in the United States today is between unions and… everybody else?." The answer, unfortunately for taxpayers, is yes. From Bloated Union Contracts Have Busted State Budgets: Consider the issues making headlines: education reform, busted state budgets, the battle to recall Wisconsin Governor Scott Walker, free trade agreements,Occupy Wall Street, the fight to make Indiana a right-to-work state. What these stories have in common is the waning influence of organized labor and the all-out battle by union leaders to hold on. Take the Obama Administration’s Race to the Top initiative. Education Secretary Duncan recently warned that several states, including New York, might not receive monies earlier awarded through that program because they have not followed through on required reforms. The stumbling block? Teacher evaluations. New York City Mayor Michael Bloomberg laid out new education initiatives in his recent State of the City address, among them a proposal to give $20,000 raises to the best teachers, in return for changing the way educators are evaluated. Today, teachers are rated either satisfactory or unsatisfactory; 97 percent fall in the former category. UFT President Michael Mulgrew immediately denounced the plan, describing Mr. Bloomberg as “lost in his own fantasy world of education.” Mr. Mulgrew may be the one living in a fantasy world. Pressure to boost our country’s public schools is one of the rare priorities on both Republicans’ and Democrats’ to-do lists. Americans are appalled by our plummeting world education rankings, and by our graduates’ lack of preparedness for today’s job market. While the decline in our schools stems from a number of sources, most reformers – including Secretary Duncan – see the intransigence of unions on the “job for life” rules that perpetuate mediocre teaching as a major roadblock to progress. Likewise, the recession has forced politicians to confront bloated public employee contracts that have torpedoed many states’ budgets. Estimated at over $3 trillion, the underfunding of state and local pension plans has been described as one of our most serious fiscal problems. Voters now understand that unless elected officials overhaul pay and benefits packages they will face soaring taxes or reduced services.
Wall Street Journal roundtable: Right to Work freedom "almost a life-and-death issue for Indiana"

Wall Street Journal roundtable: Right to Work freedom "almost a life-and-death issue for Indiana"

The Wall Street Journal's Paul Gigot, Dan Henninger, James Freeman, Dorothy Rabinowitz, Kim Strassel and Collin Levy discuss the individual freedom and business opportunities that Indiana's Right To Work bills bring to the Hoosier state: Gigot:  The first big labor fight of the year is taking shape in the Hoosier State. How Indiana's right-to-work push could change the political and economic landscape in the Midwest. Gov. Mitch Daniels: The idea that no worker should be forced to pay union dues as a condition of keeping a job is simple and just. But the benefits in new jobs would be large. A third or more of growing or relocating businesses will not consider a state that does not provide workers this protection. Gigot: He was reportedly booed by protesters in the statehouse hallways for those remarks in his annual State of the State Address this week, but Gov. Mitch Daniels is hoping to make Indiana the first state in more than a decade to approve right-to-work legislation. It would allow individual workers to decide if they want to join a union and ban contracts that require nonunion members to pay dues once their work site is organized. Republican leaders in the state have made it their top legislative priority this year, but Democrats and their union allies aren't giving up without a fight. So, Collin, we heard last year, after the brawl in Wisconsin, that somehow this was over for a union reform movement. What's--why is it happening in Indiana now? Levy: Well, I mean, I think it is a really interesting situation you see happening in Indiana, because Indiana's this sort of industrial state of the Midwest. And you have a particular situation now where Indiana is poised to achieve enormous competitive advantages over states in the Midwest like Michigan, like Illinois. These are high-taxed, unionized states. And Gov. Daniels has taken this moment to say, "You know, we've already made sort of some significant gains in terms of improving the business climate here. We saw what happened in Wisconsin. But, look, you know, we have an opportunity to lure an awful lot of businesses here if we can make it clear that workers can act as free agents," you know? Unions are portraying this as a radical change, but it's really just about worker freedom. Gigot: Kim, the nearest right-to-work state in the Midwest is Iowa. So how much economic benefit could there be here, really, when you get down to it, for Indiana? Strassel: It's huge. When Mitch Daniels talks about this, he is looking at the South. That is where the epicenter of most right-to-work states have been and where there has been a flood of manufacturers who have moved from the North to the South over recent decades to take advantage of those lower-cost, nonunionized states. And if Indiana could do this, it would be a sort of central pole for people to remain in the Midwest and locate and give an enormous advantage over competitors. Gigot: The last state to try to do this was New Hampshire, believe it or not, which had elected huge Republican legislative majorities in 2010. Tried to pass right-to-work. They did. It was vetoed by the Democratic governor. Indiana Republicans also have big majorities, and it looks like they are poised to do it. Henninger: And I hope they do. I mean, I think this is really almost a life-and-death issue for Indiana. Twenty percent of Indiana's workforce is in manufacturing. That's the highest percentage in the United States.
Wall Street Journal roundtable: Right to Work freedom

Wall Street Journal roundtable: Right to Work freedom "almost a life-and-death issue for Indiana"

The Wall Street Journal's Paul Gigot, Dan Henninger, James Freeman, Dorothy Rabinowitz, Kim Strassel and Collin Levy discuss the individual freedom and business opportunities that Indiana's Right To Work bills bring to the Hoosier state: Gigot:  The first big labor fight of the year is taking shape in the Hoosier State. How Indiana's right-to-work push could change the political and economic landscape in the Midwest. Gov. Mitch Daniels: The idea that no worker should be forced to pay union dues as a condition of keeping a job is simple and just. But the benefits in new jobs would be large. A third or more of growing or relocating businesses will not consider a state that does not provide workers this protection. Gigot: He was reportedly booed by protesters in the statehouse hallways for those remarks in his annual State of the State Address this week, but Gov. Mitch Daniels is hoping to make Indiana the first state in more than a decade to approve right-to-work legislation. It would allow individual workers to decide if they want to join a union and ban contracts that require nonunion members to pay dues once their work site is organized. Republican leaders in the state have made it their top legislative priority this year, but Democrats and their union allies aren't giving up without a fight. So, Collin, we heard last year, after the brawl in Wisconsin, that somehow this was over for a union reform movement. What's--why is it happening in Indiana now? Levy: Well, I mean, I think it is a really interesting situation you see happening in Indiana, because Indiana's this sort of industrial state of the Midwest. And you have a particular situation now where Indiana is poised to achieve enormous competitive advantages over states in the Midwest like Michigan, like Illinois. These are high-taxed, unionized states. And Gov. Daniels has taken this moment to say, "You know, we've already made sort of some significant gains in terms of improving the business climate here. We saw what happened in Wisconsin. But, look, you know, we have an opportunity to lure an awful lot of businesses here if we can make it clear that workers can act as free agents," you know? Unions are portraying this as a radical change, but it's really just about worker freedom. Gigot: Kim, the nearest right-to-work state in the Midwest is Iowa. So how much economic benefit could there be here, really, when you get down to it, for Indiana? Strassel: It's huge. When Mitch Daniels talks about this, he is looking at the South. That is where the epicenter of most right-to-work states have been and where there has been a flood of manufacturers who have moved from the North to the South over recent decades to take advantage of those lower-cost, nonunionized states. And if Indiana could do this, it would be a sort of central pole for people to remain in the Midwest and locate and give an enormous advantage over competitors. Gigot: The last state to try to do this was New Hampshire, believe it or not, which had elected huge Republican legislative majorities in 2010. Tried to pass right-to-work. They did. It was vetoed by the Democratic governor. Indiana Republicans also have big majorities, and it looks like they are poised to do it. Henninger: And I hope they do. I mean, I think this is really almost a life-and-death issue for Indiana. Twenty percent of Indiana's workforce is in manufacturing. That's the highest percentage in the United States.
BLS Records Show College Graduates Flock to Right to Work States

BLS Records Show College Graduates Flock to Right to Work States

States Seeking a 'Brain Gain' Should Bar Compulsory Union Dues The nine states with the greatest 2000-2010 gains in their college-educated adult populations all protect the Right to Work. Of the nine states with the smallest gains, only Hurricane Katrina-devastated Louisiana does so. (Source:  November-December 2011 National Right to Work Committee Newsletter) Federal data on the American workforce and employment and unemployment rates show that, even with our country struggling through the most severe recession in decades and a so-far anemic recovery, employer demand for college-educated employees has continued to rise at a surprisingly rapid clip. From 2000 to 2010, the total population of the U.S., aged 25 and over, grew by 12.1%, but the number of people in that age bracket with at least a bachelor's degree grew by 29.3%. And in October 2011, according to the U.S. Bureau of Labor Statistics, the labor force participation rate for civilians aged 25 or older with one or more higher-education degrees was 76.4% (not seasonally adjusted), barely lower than it was before the recession started. That same month, the nationwide unemployment rate for the pool of 47.3 million college-educated adults 25 or over was just 4.2%, well under half the average for the workforce as a whole. The bottom-line significance of these data is that employers across the country typically have more difficulty finding a qualified college-educated person to fill a position than a college-educated person has finding a good job. Of course, not everyone who holds a bachelor's degree and is in the work force is doing well economically. But generally speaking there is still a "seller's market" for college-educated labor in America today. Furthermore, many businesses that sustain large numbers of jobs for people with associate's degrees, high school diplomas, or less education also require a substantial number of college-educated people to operate smoothly. Therefore, the rate at which a state is gaining college-educated people, relative to the national average, is in itself a good indication of how successful the state is in creating and retaining good jobs. 'Highly Educated Employees, Like Other Employees, Benefit From Right to Work Laws'
Indiana Workers Demand Their Right to Work

Indiana Workers Demand Their Right to Work

From the Wall Street Journal: The labor reform story of the year is unfolding in Indiana, which Republicans who dominate the legislature are trying to make the nation's 23rd right-to-work state. Democrats are resorting to the old run-and-hide ploy, but this could be a huge economic boon to the Hoosier State. Big Labor portrays right to work as a radical change, but it merely lets individual workers decide if they want to join a union. In non-right-to-work states, workers typically must pay union dues once their worksite is organized—whether they want to pay or not. This enhances union clout and the cash to dominate state politics. Many industrial and manufacturing businesses only consider right-to-work states as locales for expanding their operations. The nearest right-to-work state in the Midwest is Iowa, so Indiana could set itself further apart from such high-tax, unionized havens as Illinois and Michigan. According to Chief Executive Magazine's annual CEO survey, Indiana has climbed to sixth from 16th among state business climates, thanks to reforms since 2004 under Governor Mitch Daniels. But the state's biggest liability remains its labor market. A Forbes survey last year ranked Indiana 34th in business climate, partially because of a dismal 44th rank in labor "supply," which includes unionization. Democrats in the state House played hooky for three days last week in an effort to deny a quorum for voting on the law. They returned to work yesterday after Democratic leader B. Patrick Bauer acknowledged that they "can't stay out forever." House members face penalties of $1,000 per day for walkouts longer than three days, so the obstruction could get expensive.
Big Labor Bosses Fume as Benefits of Wisconsin Reform Spread

Big Labor Bosses Fume as Benefits of Wisconsin Reform Spread

2011 All in All, 'a Hopeful Year For America' Union-label Milwaukee Mayor Tom Barrett (left) is a bitter political foe of Wisconsin Gov. Scott Walker’s. Nevertheless, Mr. Barrett admits the governor’s Big Labor-detested Act 10 has helped his city get control over its budget. Credit: AP (Source:  November-December 2011 National Right to Work Committee Newsletter) Early this year, Wisconsin Gov. Scott Walker (R) infuriated the union hierarchy, in his own state and nationally, when he introduced legislation (S.B.11) that would abolish forced union dues for teachers and many other public employees and also sharply limit the scope of government union monopoly bargaining. In response, teacher union bosses in Madison, Milwaukee, and other cities called teachers out on illegal strikes so they could stage angry protests at the state capitol and at legislators' residences. Government union militants issued dozens of death threats against Mr. Walker, members of his administration, and their families. Fourteen Big Labor-backed state senators, all Democrats, temporarily fled the state to deny the pro-S.B.11 Senate majority a quorum to pass the bill. In raucous demonstrations, union bigwigs and their radical followers actually suggested Mr. Walker's support for public employees' Right to Work made him similar to Mubarak, Mussolini, Stalin, Hitler, or even Satan. (This fall, national AFL-CIO President Richard Trumka gave his personal imprimatur to such ugly vituperation when he likened the Wisconsin governor to "Lucifer" in an interview published in Esquire magazine.) Thanks in part to public support mobilized by the National Right to Work Committee's e-mail and telecommunications activities, pro-Right to Work legislators were able to withstand the Big Labor fury and send S.B.11 to Gov. Walker's desk. On March 11, he signed into law the measure now known as Act 10. Forced-Unionism Supporters Pumped More Than $40 Million Into 2011 'Recall' Elections Act 10, formally known as the Budget Repair Act of 2011, took effect in June after fending off a union boss-inspired legal challenge in state court. Act 10 now protects most public employees from being fired for refusal to bankroll an unwanted union, but leaves untouched the forced-dues privileges of most public safety and transportation union bosses. "Despite its unfortunate exclusions, this law represents a step forward for public employees' free choice," said Committee President Mark Mix. "Not surprisingly, union bigwigs are out for revenge against Mr. Walker and the legislators who helped pass the Budget Repair Act." As part of its ongoing campaign to obtain vengeance and ultimately repeal the Budget Repair Act, early this year Big Labor launched petition campaigns for "recall" elections of many Senate supporters of the measure. In August, special recall elections in which pro-forced unionism candidates challenged six pro-Right to Work senators took place. Three union-label Democrat senators who had opposed Act 10, and temporarily fled the state to stop it from passing, also faced recall votes this summer. Union bigwigs and their Democratic allies pumped more than $40 million into the nine state Senate races. In the end, the unprecedentedly expensive legislative recall push by Big Labor enjoyed some success, as two of the six pro-Act 10 senators went down to defeat, while all three forced-unionism senators held on to their seats. However, the union political machine fell short of capturing the three seats it needed to relegate pro-Act 10 Senate Majority Leader Scott Fitzgerald (Juneau) to minority status and reassume control of the chamber. Democratic Mayor: Under Act 10, Milwaukee Will Save 'At Least $25 Million a Year' And that same month, Milwaukee Mayor Tom Barrett, Scott Walker's Democratic opponent in 2010 and a bitter foe of Act 10, publicly admitted that, thanks to this very legislation, his city would save "at least $25 million a year -- and potentially as much as $36 million in 2012 . . . ."
Lafe Solomon 'Did What IAM Bosses Told Him To'

Lafe Solomon 'Did What IAM Bosses Told Him To'

E-mails Reveal Why Top NLRB Lawyer 'Screwed up the U.S. Economy' Internal NLRB e-mails show Lafe Solomon (pictured) was disinclined this March to target Boeing for expanding production in Right to Work South Carolina. Then IAM union chiefs, led by Tom Buffenbarger, apparently got to him. Credit: AP/Bruce Smith (Source:  November-December 2011 National Right to Work Committee Newsletter) This April 20, Acting National Labor Relations Board (NLRB) General Counsel Lafe Solomon ignited a public-policy firestorm by filing a complaint against Boeing for initiating a second Dreamliner 787 aircraft production line in Right to Work South Carolina. In several public statements, Boeing executives had made no bones about the fact that their decision to expand in a Right to Work state was prompted largely by their desire to avoid or at least mitigate multi-billion-dollar revenue losses stemming from disruptive strikes. Agreeing with International Association of Machinists (IAM/AFL-CIO) union kingpins who had repeatedly ordered employees at Boeing's west coast facilities out on strike, Mr. Solomon claimed these statements showed Boeing was motivated by "anti-union animus." Consequently, the South Carolina expansion was illegal, declared Mr. Solomon. Mr. Solomon's complaint asked an NLRB administrative law judge to stop Boeing's South Carolina production. Former Clinton-Appointed NLRB Chairman: Boeing Complaint Didn't 'Make Sense'
Lafe Solomon 'Did What IAM Bosses Told Him To'

Lafe Solomon 'Did What IAM Bosses Told Him To'

E-mails Reveal Why Top NLRB Lawyer 'Screwed up the U.S. Economy' Internal NLRB e-mails show Lafe Solomon (pictured) was disinclined this March to target Boeing for expanding production in Right to Work South Carolina. Then IAM union chiefs, led by Tom Buffenbarger, apparently got to him. Credit: AP/Bruce Smith (Source:  November-December 2011 National Right to Work Committee Newsletter) This April 20, Acting National Labor Relations Board (NLRB) General Counsel Lafe Solomon ignited a public-policy firestorm by filing a complaint against Boeing for initiating a second Dreamliner 787 aircraft production line in Right to Work South Carolina. In several public statements, Boeing executives had made no bones about the fact that their decision to expand in a Right to Work state was prompted largely by their desire to avoid or at least mitigate multi-billion-dollar revenue losses stemming from disruptive strikes. Agreeing with International Association of Machinists (IAM/AFL-CIO) union kingpins who had repeatedly ordered employees at Boeing's west coast facilities out on strike, Mr. Solomon claimed these statements showed Boeing was motivated by "anti-union animus." Consequently, the South Carolina expansion was illegal, declared Mr. Solomon. Mr. Solomon's complaint asked an NLRB administrative law judge to stop Boeing's South Carolina production. Former Clinton-Appointed NLRB Chairman: Boeing Complaint Didn't 'Make Sense'