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Trouble in Paradise; DNC getting pusback from Big Labor

At least 12 trade unions will boycott the Democratic National Convention in part because of its location -- Charlotte, North Carolina.  Apparently, North Carolina and 21 other states are on a union blacklist because they are Right to Work states.  The states are far from union-free, its just workers can't be forced to pay to a union boss. But in addition to locating in North Carolina, union bosses have "broad frustration" with President Obama and the Democrats in Congress.  Obama and the Democrats have given big labor everything they could but, of course, that is not enough. The Charlotte Observer has the story: CHARLOTTE, N.C. — Casting North Carolina as an anti-union bastion with “regressive policies aimed at diluting the power of workers,” more than a dozen trade unions affiliated with the national AFL-CIO have told the Democratic National Committee that they will sit out the 2012 convention in Charlotte, N.C. Coming on the heels of some liberals’ complaints that President Barack Obama is giving in to Republicans, the unions’ decision is another sign that key Democratic allies are unhappy with Obama and other party leaders as they gear up for a difficult election season. It’s also a signal that anything relating to Charlotte — from its besieged hometown bank to its lack of unionized hotels — will face scrutiny as the city eases into the national spotlight. Labor unions have long played an integral role in Democratic conventions. And some big ones, including the National Education Association and the Service Employees International Union, still plan to be active participants when the Democrats come to Charlotte in 2012. Local and state labor leaders also are still on board. The N.C. AFL-CIO helped lobby for Charlotte to be the convention site. On Friday, a leader of the Raleigh-based labor group called the national unions’ decision understandable, but “shortsighted.”

NLRB is Killing Jobs

The Wall Street Journal makes the point that the NLRB's reckless actions in the Boeing case is causing reverberations throughout the economy.  These decisions do not happen in a vacuum and affect investment decisions across the nation.  NLRB Wake Up! The National Association of Manufacturers asked its members last month how the National Labor Relations Board's decision against Boeing's Sourth Carolina plant case is affecting their decision-making. Some 60% said the government's case already has—or could—hurt hiring. Sixty-nine percent said the case would damage job growth. And 49% said capital expenditure plans "have been or may be impacted by the NLRB's complaint." Around 1,000 of the association's 11,000 members contributed to the survey. That's a lot of lost jobs. Some might dismiss these results as self-interested, or predictable given the general business distaste for regulation. But that ignores the role that confidence plays in reviving the animal spirits essential for economic growth. When CEOs or entrepreneurs fear political intervention that might impose higher costs, they are more reluctant to invest or to hire new employees. That's especially true when the economy is already growing slowly, or emerging from recession. The NLRB's assault on Boeing has been especially damaging because it violates what most Americans consider to be a core tenet of U.S. capitalism—the ability to move capital or business where you think it has the best chance of success. Boeing's executives are being punished for remarks they made long ago about strikes at their Washington plants.

On, Wisconsin

With teachers in Wisconsin having the ability to decline the payment of  forced union dues or fees, teacher union officials are reportedly laying off 40% of their staff.  The Wall Street Journal opines: The Battle of Wisconsin ended with a whimper on Tuesday as two Democrats facing recall elections for their roles in the fight over union reform hung on to their seats. Four of six Republicans up for recall did the same last week. After Greek-style protests in Madison, a judicial election and tens of millions of dollars spent, voters weren't in the mood for revenge after all. For all the hullabaloo, the great upheaval prophesied by the unions never came true. Republicans still control the state senate. The national unions went home. Badger State voters got a balanced budget without tax increases, and the spectacle of Democratic senators fleeing to Illinois to avoid a vote became an unpleasant memory. Life goes on. Since Governor Scott Walker's union reforms and budget legislation went into effect, school districts have saved money with competitive bids for their health-care plans. According to the Milwaukee Journal Sentinel, the change will save Milwaukee some $25 million a year and as much as $36 million in 2012, more than compensating for the cuts in state aid to the city.