Big Labor Choosing Profiteering over Teachers' Jobs

Big Labor Choosing Profiteering over Teachers' Jobs

In Las Vegas, the Clark County School Board is refusing to allow competitive bidding for health insurance for teachers forcing the school district to use a costly insurance program owned by the union itself.  This decision alone could lead to the firing of 1,000 school employees. As the Education Action Group notes: The CCEA is not the first teachers union to form its own insurance company and pressure local school boards into purchasing that company’s overpriced coverage. The Maine Education Association, the state’s largest teachers union, established its own insurance entity, the Maine Education Association Benefits Trust, in 1993. The Benefits Trust “ facilitates” the purchase of employee health insurance for Maine’s public schools, essentially selling them coverage provided by the state’s largest carrier, Anthem Blue Cross/Blue Shield. Nearly every school district in the state has been lulled into joining this system over the years, according to officials in several Maine school districts. The Benefits Trust/Anthem scam, which discourages outside competition, has driven insurance prices through the roof for Maine schools. The Michigan Education Association owns its own insurance company, called the Michigan Education Special Services Association (MESSA). For years local union negotiators have pressedschool boards to purchase MESSA employee health insurance, despite its high cost.

Big Labor Choosing Profiteering over Teachers' Jobs

Big Labor Choosing Profiteering over Teachers' Jobs

In Las Vegas, the Clark County School Board is refusing to allow competitive bidding for health insurance for teachers forcing the school district to use a costly insurance program owned by the union itself.  This decision alone could lead to the firing of 1,000 school employees. As the Education Action Group notes: The CCEA is not the first teachers union to form its own insurance company and pressure local school boards into purchasing that company’s overpriced coverage. The Maine Education Association, the state’s largest teachers union, established its own insurance entity, the Maine Education Association Benefits Trust, in 1993. The Benefits Trust “ facilitates” the purchase of employee health insurance for Maine’s public schools, essentially selling them coverage provided by the state’s largest carrier, Anthem Blue Cross/Blue Shield. Nearly every school district in the state has been lulled into joining this system over the years, according to officials in several Maine school districts. The Benefits Trust/Anthem scam, which discourages outside competition, has driven insurance prices through the roof for Maine schools. The Michigan Education Association owns its own insurance company, called the Michigan Education Special Services Association (MESSA). For years local union negotiators have pressedschool boards to purchase MESSA employee health insurance, despite its high cost.

NLRB's Boeing Sham

NLRB's Boeing Sham

The Wall Street Journal looks at the political decision to file a complaint against Boeing and the political decision to withdraw it: What a sham, or scam, or choose a synonym. On Wednesday, the International Association of Machinists approved a new contract with Boeing in which the company agreed to make its 737 Max jet with union labor in Washington state. Yesterday, after getting the machinist all-clear, the National Labor Relations Board (NLRB) dropped its lawsuit against Boeing's investment in South Carolina. Has there ever been a more blatant case of a supposedly independent agency siding with a union over management in collective bargaining? Boeing says the new contract wasn't tied directly to a settlement of the NLRB complaint, and that it always made sense to build the 737 Max in Renton, Washington because its work force has experience on the current 737 and offers natural efficiencies. But it's hard to resist the conclusion that Boeing felt obliged to make the agreement to save its more than $1 billion investment in South Carolina, where it is building 787s. Boeing might have won a legal battle in the end, but first it would have to run through an administrative law judge, then the politicized and Obama-stacked NLRB, and only then would it get to an appellate court. Meanwhile, its investment was in jeopardy and its legal bill was rising.

NLRB's Boeing Sham

NLRB's Boeing Sham

The Wall Street Journal looks at the political decision to file a complaint against Boeing and the political decision to withdraw it: What a sham, or scam, or choose a synonym. On Wednesday, the International Association of Machinists approved a new contract with Boeing in which the company agreed to make its 737 Max jet with union labor in Washington state. Yesterday, after getting the machinist all-clear, the National Labor Relations Board (NLRB) dropped its lawsuit against Boeing's investment in South Carolina. Has there ever been a more blatant case of a supposedly independent agency siding with a union over management in collective bargaining? Boeing says the new contract wasn't tied directly to a settlement of the NLRB complaint, and that it always made sense to build the 737 Max in Renton, Washington because its work force has experience on the current 737 and offers natural efficiencies. But it's hard to resist the conclusion that Boeing felt obliged to make the agreement to save its more than $1 billion investment in South Carolina, where it is building 787s. Boeing might have won a legal battle in the end, but first it would have to run through an administrative law judge, then the politicized and Obama-stacked NLRB, and only then would it get to an appellate court. Meanwhile, its investment was in jeopardy and its legal bill was rising.

NLRB:  Law Breakers?

NLRB: Law Breakers?

Conn Carroll of the Washington Examiner raises an interesting question:  Did the National Labor Relations Board violate federal law? What if there were emails showing Supreme Court Justice Sonia Sotomayor coordinating with Attorney General Eric Holder and White House press secretary Robert Gibbs on how the Obama administration should fight judicial challenges to Obamacare? At a bare minimum, Justice Sotomayor would have to recuse herself from the case, she might be impeached, and Holder would face serious ethics questions as well. But such emails do not exist ... concerning Obamacare. When it comes to the National Labor Relations Board suit against Boeing, that is a different story. Cause of Action, a government accountability nonprofit, has obtained emails through a Freedom of Information Act request showing then-NLRB Chairwoman Wilma Liebman, NLRB Acting General Counsel Lafe Solomon and NLRB Public Affairs Director Nancy Cleeland coordinating the board's response to its own decision to sue Boeing for opening a factory in the right to work state of South Carolina. But, since the NLRB is an independent agency, shouldn't they be allowed to coordinate about ongoing litigation? Yes and no. The NLRB is supposed to be an independent agency, capable of creating rules, enforcing them and adjudicating them. But because the NLRB has within itself all of the governing powers our Founding Fathers believed should be separated (legislative, executive and judicial), its creators also wrote rules making it illegal for board employees who perform different functions from communicating with each other under certain circumstances. Specifically, 29 C.F.R. 102.126 and 29 C.F.R. 102.127 forbid a member of the board from requesting or "knowingly caus[ing] to be made" any ex parte communications with any interested person outside the agency relevant to the proceeding. That same regulation also forbids any "interested person outside this agency" from making any ex parte communications to board members.

Manufacturing Needs Right to Work

Manufacturing Needs Right to Work

If America is ever going to get back on its feet, its manufacturing base will need to lead the way and  Bill Fiala argues correctly that Right to Work laws create manufacturing jobs: The pro-job environment in right-to-work states is paying off with new automotive jobs. Tennessee is the home of Volkswagen’s new $1 billion auto assembly plant, as well as plants operated by Nissan and GM. Alabama boasts billion-dollar plants operated by Mercedes-Benz, Honda and Hyundai. Texas enjoys a large automotive manufacturing presence with Peterbilt, GM, International and Toyota. One reason for these states’ growing success in the automotive industry is their strong right-to-work laws embodying a commitment to a worker’s right to choose not to be part of a labor union. Right-to-work laws are an important factor to companies considering where to set up new operations. In the twenty-two states with right-to-work laws, workers cannot be forced to join unions, or to pay union dues if they decide not to join. In non-right-to-work states, workers must join unions or pay union dues to keep their jobs. If an employee working in a non-right-to-work state fails to join the union or pay union dues then the union forces the company to terminate the employee. What does the automotive industry’s decision to set up shop mean for these right-to-work states? It means jobs and increased tax revenues. An analysis by the University of Tennessee predicted that Volkswagen’s recent investment will raise incomes in the region by $511 million annually and will generate more than $55 million per year in new tax revenues. Other automotive manufacturers and component suppliers are spending billions in upgrades and new construction at plants in right-to-work states. Many states have not been as fortunate as Tennessee, Alabama and Texas. For example, states such as New Hampshire have problems attracting businesses and producing job growth partly because union’s have successfully thwarted lawmakers’ repeated attempts to pass right-to-work legislation. The New Hampshire legislature overwhelmingly passed right-to-work legislation earlier this year only to have the legislation vetoed by the governor. New Hampshire would have been the first state in the Northeast to have a right-to-work law. The National Right to Work Legal Defense Foundation reports that right-to-work states “enjoy faster growth and higher real purchasing power than their forced unionism counterparts.”