18 Economists and Labor Experts: Right To Work, Public Sector Union Reform, and ERA

18 Economists and Labor Experts: Right To Work, Public Sector Union Reform, and ERA

Eighteen Economists and Labor Experts warn of a ticking fiscal time bomb and prescribe three steps to diffuse the bomb:  Right To Work laws for workplace freedom, Wisconsin style public sector union reforms, and the Employee Rights Act. From FoxNews: As economists and labor experts from across the country, we believe it’s time for legislators at all levels of government—local, state, and federal—to recognize that the labor reforms begun in Wisconsin need to be implemented nationwide. The stakes couldn’t be higher.  A ticking fiscal time bomb has already begun to explode in some cities, a direct consequence of unsustainable union pay and benefit packages.  Meanwhile, state laws that mandate union membership as a job requirement are contributing to a status quo that delivers workers’ paychecks and citizens’ taxes into union hands—and from union hands to the bulging coffers of labor leaders’ favorite political allies. The appropriate response to this perfect storm of excess is threefold. First, steer our cities away from insolvency and bankruptcy by passing meaningful reforms to public employee pensions and compensation. Careful economic research has shown public-sector workers receive a level of compensation, pension benefits, and retiree health coverage in excess of what comparable workers in the private sector enjoy. In some instances, the total premium can be 30 percent or higher. The resulting burdens on municipal and state budgets are simply unaffordable. The next step, at the state level, is to advance right-to-work legislation that gives employees a choice in union membership. [media-credit id=7 align="alignright" width="150"][/media-credit]A key tenet of our democracy is freedom of association—including the freedom to form a union. But what about the right of a worker to choose not to join a union?  In the 27 states that haven’t passed right-to-work laws, this right doesn’t exist. In 2012, the state of Indiana showed that such laws can become a reality, even in the face of bitter opposition from labor leaders. Not only are such laws good for employees—they also make good economic sense. Research published in the journal Regulation compared manufacturing employment in counties with a pro-business environment (including right to work laws) to counties across a state border that didn’t have such laws.  The study found that manufacturing job growth was nearly 90 percent higher between 1947 and 1992 in the pro-business right-to-work counties.
Teacher Union Boss Indicted

Teacher Union Boss Indicted

Hot Air examined the indictment of a Broward Teachers Union boss and, to say the least, it makes interesting reading: I’ve been combing through the arrest warrant for Pat Santeramo, the former president of the Broward Teachers Union (BTU) who was charged with 20 counts of fraud, racketeering and other stuff. It makes for fascinating reading. Many of the charges stem from Santeramo’s working relationship with David Esposito, the head of Marstan Construction. Esposito was apparently provided immunity in exchange for his help in the Santeramo investigation. A number of these expenses catch the eye. “I didn’t think anybody could be infected with that many ants,” said Broward Sheriff Al Lamberti. And certainly there was an awful lot of work with flags, flag poles and flag cord. But it seems the entire BTU staff spent a significant part of every day in the dark, considering the number of light bulbs and ballasts that had to be replaced. The amount of cash being disbursed from union funds for such mundane tasks never lit a light bulb over anyone’s head. As egregious as this list is, Esposito told police that the kickbacks to Santeramo began with the renovation of the BTU building in early 2000. There’s no telling how much union cash Santeramo collected, but he bought a $574,000 vacation home in November 2007, putting $274,000 down, and paid off the mortgage in three years. Esposito also testified that repair work he performed at the homes of Santeramo’s two adult children were paid for with BTU dues money. We also learned that police interviewed former BTU president Tony Gentile to learn if he had actually initialed the March 8, 2000 memo Santeramo produced as evidence of his entitlement to unused sick leave and vacation time. Gentile provided a sworn statement that he had never seen the memo, which in any case did not contain his initials, since he always used AJG and not the TG listed on it. Members of the BTU executive board denied any knowledge of the memo, and said they never would have authorized the settlement AFT administrator John Tarka reached with Santeramo had they known it was based on the memo.
New Mexico is Right for Right to Work

New Mexico is Right for Right to Work

[media-credit id=7 align="alignright" width="300"][/media-credit]Eric Fruits, the president and chief economist at Economics International Corp., an economics consulting firm, makes the case on why passing a Right to Work statute in New Mexico would help create jobs and prosperity: Right-to-work legislation is one of the very few pro-growth policies that is virtually costless to enact. And a large body of research has found that it benefits states economically. New Mexico, along with much of the country, still struggles to recover from a recession that began more than four years ago. While the state has benefited from the recent energy boom, states like New Mexico have struggled to cope with the employment consequences of the recession. In response, policymakers have tended to focus on fiscal policies such as tax cuts and “stimulus spending” rather than market structural solutions. Right-to-work laws can be a key component of a pro-investment and pro-employment package for New Mexico that encourages firms to locate and expand in the state. A large body of research has found that, as a group, right-to-work states have enjoyed more rapid employment growth, better job preservation and faster recoveries from recession that states without right-to-work laws in place. New Mexico has recognized this when the Legislature passed right-to-work legislation twice – in 1979 and 1981 – only to see the legislation vetoed by then-Gov. Bruce King. Proponents of right-to-work legislation argue that individuals should have the choice of whether or not to join a union and that the choice of whether to join a union should not be a condition of employment. They point to the relatively rapid growth in employment and incomes in right-to-work states relative to non-right-to-work states.