Obama Bailout Saved Union Power Not Union Jobs

Paul Roderick, writing in Forbes, takes a fascinating look at the Obama bailout of the auto companies concluding that the bailout was needed, not to protect jobs but to protect the union and their power structure: Contrary to popular belief, bankruptcy does not mean companies close their doors and send employees home. This is the false message President Barack Obama tried to sell on his victory tour of Detroit. If General Motors had gone through a normal bankruptcy without taxpayer bailouts, there would still be GM jobs--maybe even more than there are now. We do not know because that was the road not taken. We do know, however, what happened to the airlines that went through bankruptcy. Their planes kept flying, and pilots, mechanics and flight attendants reported to work, even if there were fewer of them. Over the past decade, no industry has had worse breaks than the airlines. They took a huge hit from 9/11. They have been buffeted by fuel prices. The TSA's intrusive airport screening angered passengers. Furthermore, the airline industry is cyclical; it suffers disproportionately from economic downturns. Compared to the airlines, GM has had a cake walk. Indeed, four major airlines filed for Chapter 11 bankruptcy after 9/11 (US Air and United in 2002; Northwest and Delta in 2005). Each company was restructured by a bankruptcy court according to the rule of law. In each case, creditors took haircuts and employees lost jobs and agreed to concessions in wages and work conditions. Each airline emerged from bankruptcy and continued to operate as a going concern.
New Privileges For Transportation Union Chiefs?

New Privileges For Transportation Union Chiefs?

    Principled U.S. House Leadership Can Thwart Big Labor Power Grab (Source: September 2011 NRTWC Newsletter) Over the next few weeks, the U.S. House will have the opportunity to turn back a Big Labor-inspired bureaucratic rewrite of the procedures through which union officials acquire monopoly-bargaining privileges under the Railway Labor Act (RLA). If self-avowedly pro-Right to Work House leaders and rank-and-file members blow this opportunity, another one won't come for a long time. In June 2010, President Obama's two appointees on the three-member National Mediation Board (NMB) instituted an RLA rule change making it far easier for airline and railroad union chiefs to acquire monopoly power to negotiate employees' pay, benefits, and work rules. NMB members Harry Hoglander and Linda Puchala, the two Obama-selected bureaucrats favoring the rule change, are both ex-union bosses. They overturned decades-old procedures previously supported by GOP and Democratic presidential administrations alike. Union Monopoly Bargaining Hurts Employees and Businesses Federally-imposed "exclusive" (monopoly) union bargaining undermines efficiency and productivity by forcing employers to reward equally their most productive and least productive employees. The damage is compounded when the employees already hurt by being forced to accept a union bargaining agent opposed to their interests are then forced to pay dues or fees to the unwanted union.
'Without Any Warning, the Rules Have Changed'

'Without Any Warning, the Rules Have Changed'

  New York Times Pundit: Reckless Obama NLRB 'Paralyzing' Economy (Source: September 2011 NRTWC Newsletter) For years, New York Times commentator Joe Nocera has been one of the most relentless champions of government regulation of business and "stimulus" spending in the American media. When even Mr. Nocera starts agreeing with critics of a presidential administration that it has gone "too far" in interfering with the decision-making of businesses and their employees, that administration clearly has a serious problem. Therefore, Mr. Nocera's August 23 Times column about the ongoing effort by Acting National Labor Relations Board (NLRB) General Counsel Lafe Solomon to dictate where businesses may or may not expand should have set off alarm bells at the White House. Mr. Solomon's immediate target is Boeing and its employees in Right to Work South Carolina. In April, he filed a complaint against the company, America's biggest exporter of manufactured products, for initiating a new 787 Dreamliner assembly line in North Charleston. As Mr. Nocera observed in his column bemoaning this Solomon power grab, "Boeing's aircraft assembly has long been done by its unionized work force in Puget Sound, Wash." Indeed, seven Dreaminers will still be assembled each month in Puget Sound. "The South Carolina facility," Mr. Nocera explained, "is a hedge against the possibility" that International Association of Machinists (IAM) union kingpins will order unionized employees in Puget Sound out on strike, and thus "shut down production of the Dreamliner." A 'Mind-Boggling Stretch' To Characterize Boeing's Strategy as 'Retaliation'
'Without Any Warning, the Rules Have Changed'

'Without Any Warning, the Rules Have Changed'

  New York Times Pundit: Reckless Obama NLRB 'Paralyzing' Economy (Source: September 2011 NRTWC Newsletter) For years, New York Times commentator Joe Nocera has been one of the most relentless champions of government regulation of business and "stimulus" spending in the American media. When even Mr. Nocera starts agreeing with critics of a presidential administration that it has gone "too far" in interfering with the decision-making of businesses and their employees, that administration clearly has a serious problem. Therefore, Mr. Nocera's August 23 Times column about the ongoing effort by Acting National Labor Relations Board (NLRB) General Counsel Lafe Solomon to dictate where businesses may or may not expand should have set off alarm bells at the White House. Mr. Solomon's immediate target is Boeing and its employees in Right to Work South Carolina. In April, he filed a complaint against the company, America's biggest exporter of manufactured products, for initiating a new 787 Dreamliner assembly line in North Charleston. As Mr. Nocera observed in his column bemoaning this Solomon power grab, "Boeing's aircraft assembly has long been done by its unionized work force in Puget Sound, Wash." Indeed, seven Dreaminers will still be assembled each month in Puget Sound. "The South Carolina facility," Mr. Nocera explained, "is a hedge against the possibility" that International Association of Machinists (IAM) union kingpins will order unionized employees in Puget Sound out on strike, and thus "shut down production of the Dreamliner." A 'Mind-Boggling Stretch' To Characterize Boeing's Strategy as 'Retaliation'
Obama’s NLRB shredding of Democracy exposed in congressional hearing

Obama’s NLRB shredding of Democracy exposed in congressional hearing

As noted in a previous BigGovernment posting, the Obama NLRB has literally chosen to shred secret ballots and thus democracy in the workplace. In what clearly was a gift to Big Labor and its collusive agreements with certain employers, the NLRB took away the right for employees to have a secret ballot election immediately following a coercive union ‘card check’ drive. In addition, it retroactively took action and cancelled secret ballots that had already been cast or were set to be cast. Barbara Ivey of the forced unionism state of Oregon and her co-workers were victims of the totalitarian NLRB actions. On August 26th, as Big Labor Attorney and NLRB Chair Wilma Liebman’s term expired and she slinked back to her Big Labor law practice, the NLRB voted to repeal “DANA rights” in its Lamons Gasket decision. [stream provider=youtube flv=8Z1clf_gVI8 img=x:/nrtwc.org/wp-content/uploads/2011/09/iveyweb.jpg embed=false share=false width=350 height=260 dock=true controlbar=over bandwidth=high autostart=false /] Mrs. Ivey was invited by the Education & Workforce Committee to testify about her shock that the U.S. government took away her right to a secret ballot, especially since the NLRB had earlier said she had the right and had scheduled the vote only days after the fateful Lamons Gasket decision. She and her fellow employees never got a chance for a secret ballot to vote, and now she will be forced to pay tribute to an SEIU union boss in order to keep her job. The video above is taken from the Education & Workforce Committee hearing where the Obama NLRB usurpation of power and destruction of individual liberty is on display. Because of this decision numerous secret ballots that have already cast in workplaces across the country will never be counted. The ballots reportedly are currently stored at NLRB, then will eventually be shredded or disposed of in another manner. To borrow from the Wisconsin union thugs, “This is what DEMOCRACY looks like” in an Obama Administration!