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Employment

Return to Common Sense

July 16, 2010

Section: Domestic – Employment

“Increase union accountability and effectiveness by requiring re-certification elections every five years to ensure unions continue to meet member needs and unions continue to represent their members.”

Government's role should be only to keep the playing field level, and to work hand in hand with business on issues such as employment. But beyond this, to as great an extent as possible, it should get the hell out of the way.” Jesse Ventura.

 

Philosophy (Background, Issues, Objectives):

Department of Labor is a U.S. Cabinet level department responsible for:

Americans work more, enjoy their work more, and are happier than any other country.

o   No difference in satisfaction found between those with above or below average incomes.

o   Two thirds of working people would continue to work, even after having money to stop working.

o   Happy people work more hours per week than unhappy people.

o   Happy people work more in their free time as well.

o   People with more hours per week to relax outside their jobs are not happier.

Organized labor was successful in the 1930s long after many workplace conditions were implemented already, based on company best interests and employee retention.

·         In 1911, Henry Ford implemented a shorter workday, and the daily wage.

o   An eight hour day meant the plants could run three shifts, 24 hours a day, speeding production and reducing costs.

o   In 1922, Ford shortened the workweek from the industrial standard of 50 hours, including half a day on Saturday, to a five-day, 40-hour week.

o   With overtime, Ford could run full shifts on the weekend and keep his plants busy 24/7/365.

·         In 1913, Ford Motor Co. started an embryonic employee health plan, with company clinics for on the job injuries, employees, and their families.

·         The company health department also placed the many handicapped workers Ford hired in suitable positions and in some cases monitored their health.

·         DuPont had a gunpowder mill that faced difficulties attracting and keeping workers, so employees were given life insurance, if they were killed on the job.

·         DuPont also trained their employees to be very, very safe, with “safety first” becoming part of the DuPont corporate culture.

·         The Davis-Bacon Act requires employers to pay the “prevailing” local wage (union pay rate) on federally funded projects.

o   “Prevailing wages," as determined by the federal government, were in error 100% of the time.

o   Davis-Bacon wage rates are on average 22% higher than the standard wage rate in an area.

Union membership continues to decline, except in the public sector, and is at an overall low.

o   In 2009 7.26% of private sector workers are union members..

o   Corruption (pension fund abuse) continues to plague union leadership.

o   Unions have begun to merge internationally as a way to increase membership and power.

o   Public “card check” agreements are misrepresented and misused to recognize unions.

o   Misuse of member funds for political activism, instead of member support, is undermining support.

o   Executive Order 10988 in 1962 allowed unionization of the federal work force.

o   In 2009 37.4% of public-sector workers are union members, including:

§  Service Employees International Union (SEIU);

§  American Federation of State, County, and Municipal Employees (AFSCME); and

§  American Federation of Government Employees (AFGE).

o   44% of all union members are in the public sector – federal, state, or local.

o   Federal employment pay gap between public and private sector employment is increasing at breakneck speed. 

o   Public employees are earning an average $13.38 per hour in benefits, while private sector workers earn only $7.98.

o   Government benefits rose three times more than those in the private sector.

o   Congress has exempted itself from laws allowing staff to unionize.

Right to work generally refers to section 14b of the 1947 Taft-Hartley Act, which allows states to bar union shop collective bargaining agreements in which paying union dues is required for many jobs.

·         In non-right to work states, workers can be forced to join a union or pay dues as a condition of employment.

·         22 states have adopted right to work laws since 1947, mostly in the South and West.

·         Since 1970 the population of right to work states has more than doubled

·         Since 1970 the population of closed shop states has increased by only 25.7%.

·         Census data show that 4.7 million Americans moved from closed shop states to right to work states between April 1, 2000, and July 1, 2008.

·         Dues go not only toward representational expense, but also toward lavish compensation for union officials and political donations to causes and candidates that individual union members individually might not support.

·         On average, right to work states have fared better than their closed shop neighbors.

Outsourcing is not a zero sum game.

o   In 2006 employment has declined near 12,000 jobs a month in the manufacturing.

o   Employment has declined near 1,000 jobs a month in construction.

o   Job gains have averaged 167,000 per month in the service providing sector.

o   Between 2000 and 2003, number of workers in manufacturing declined by 2.8 million.

§  Low skilled jobs have been automated, while higher skilled jobs are in demand.

§  Skilled construction workers such as plumbers, electricians, welders are in high demand.

o   Overall unemployment rate has shrunk to 4.5%.

o   In 2006 manufacturing output and Return on Equity reached an all time high.

o   In 2006 manufacturing revenue and profit reached an all time high.

o   In 2006 value of U.S. manufacturing exports reached an all time high.

o   U.S. leads world in labor productivity at $63,885 of wealth per year, or $35.63 per hour.

Minimum wage is ineffective as a poverty tool, because of inefficient targeting of the poor.

 

Principles:

USA participates in a global economy and jobs move to where they are most efficient.

Incent unemployed to become employed.

Unions that outlive their usefulness should de-certify to release their members from dues.

 

Recommendations:

Short Term, Decrease government control and interference in employment practices.

De-federalize the minimum wage:

Reform unemployment insurance:

Increase union accountability:

Measure employment accurately:

Long Term, Remove federal interference in private sector employment.

Abolish the federal Department of Labor as not covered under enumerated powers.

Repeal the Davis-Bacon Act to allow market to set prevailing wage rate.

Repeal Executive Order 10988 authorization for federal work force unionization.

 

References:

Does the Minimum Wage Reduce Poverty” by Richard K. Vedder and Lowell E. Galloway dated June 2001 published by The Employment Policies Institute on http://www.epionline.org/studies/vedder_06-2001.pdf .

Job Growth Description” by R. Emmett Tyrrell, Jr. dated March 11, 2004 published by The American Spectator on http://www.spectator.org/dsp_article.asp?art_id=6269 .

And Away They Go” by Bruce Stokes dated March 26, 2004 published by National Journal.

Ten Myths about Jobs and Outsourcing” by Tim Kane, Brett Schaefer, and Alison Fraser, dated April 1, 2004, published by The Heritage Foundation on http://www.heritage.org/Research/TradeandForeignAid/wm467.cfm .

Outsourcing Debate Tainted by Myths, Misconceptions” by Radley Balko dated April 22, 2004 published by Fox News at http://www.foxnews.com/story/0,2933,117820,00.html .

The Outsourcing Bogeyman” by Daniel W. Drezner dated June 2004 published by Foreign Affairs on http://www.foreignaffairs.org/20040501faessay83301/daniel-w-drezner/the-outsourcing-bogeyman.html .

Shrinking Union Labels” by John Carlisle dated February 11, 2005 published by National Legal and Policy Center at http://www.nlpc.org/view.asp?action=viewArticle&aid=801 .

Hard at Work: Why the Unemployment Rate Accurately Reflects the Strength of the Labor Market” by James Sherk dated June 15, 2006 published by The Heritage Foundation on http://www.heritage.org/Research/Labor/bg1942.cfm .

Raising Minimum Wage Would Hurt U.S. Economy” by Armstrong Williams dated July 14, 2006 published by News Max at http://www.newsmax.com/archives/articles/2006/7/13/124958.shtml .

Minimum Wage Workers’ Incomes Rise When the Minimum Wage Does Not” by James Sherk dated July 28, 2006 published by The Heritage Foundation on http://www.heritage.org/Research/Economy/wm1181.cfm .

Who Earns Minimum Wage – Single Parents or Suburban Teenagers” by Rea S. Hederman Jr. and James Sherk dated August 3, 2006 published by The Heritage Foundation on http://www.heritage.org/Research/Economy/wm1186.cfm .

Low Income Workers May be Worse Off if Congress Increases the Minimum Wage” by Rea S. Hederman Jr. and Sam Hyman dated August 3, 2006 published by The Heritage Foundation on http://www.heritage.org/Research/Economy/wm1187.cfm .

Union in Decline and Under Review” by Tim Kane and James Sherk dated August 29, 2006 published by The Heritage Foundation on http://www.heritage.org/Research/Labor/wm1202.cfm .

Statistical Politics” by Alan Reynolds dated August 31, 2006 published by Town Hall at http://www.townhall.com/columnists/AlanReynolds/2006/08/31/statistical_politics .

Unions Labor Against Free Choice” by Mark Mix dated September 1, 2006 published by National Review Online at http://article.nationalreview.com/?q=OGJhMWU4YjUzMTU4NzBmOTc3YTFlNjBjMjA0ZGIyNmU= .

“Wishful Thinking on the Minimum Wage” by Steve Chapman dated October 22, 2006 published by Human Events Online at http://www.humanevents.com/article.php?id=17655 .

Card Check Undermines Workplace Democracy” by James Sherk dated November 14, 2006 published by The Heritage Foundation at http://www.heritage.org/Research/Labor/wm1255.cfm .

Minimum Wage Hikes Hurt Unskilled and Disadvantaged Workers’ Job Prospects” by James Sherk dated January 2, 2007 published on The Heritage Foundation at http://www.heritage.org/Research/Labor/wm1294.cfm .

Easing the Pain: Let States Opt Out of a Minimum Wage Hike” by James Sherk dated January 2, 2007 published by The Heritage Foundation at http://www.heritage.org/Research/Labor/wm1295.cfm .

Restore workers’ constitutional rights” dated January 10, 2007 published by Washington Times at http://www.washtimes.com/op-ed/20070109-091003-4565r.htm .

Tough times at the UAW” by George Will dated January 10, 2007 published by Town Hall at http://www.townhall.com/columnists/GeorgeWill/2007/01/10/tough_times_at_the_uaw .

Labor Unions Team With Liberals for Ambitious Agenda” by Mike Franc dated February 16, 2007 published by Human Events Online at http://www.humanevents.com/article.php?id=19448 .

Steve Jobs Has Guts” by Jay Greene dated February 21, 2007 published by New York Sun at http://www.nysun.com/pf.php?id=48971 .

Big Labor’s Desperate Power Grab” by Phil Kerpen dated February 23, 2007 published by National Review Online at http://article.nationalreview.com/?q=OWQyNDJkMjZlYzA2MzQ0MDMzMDEwZTBkOWU2OWM5ZGY= .

Job Corps: A Consistent Record of Failure” by David B. Muhlhausen dated February 28, 2007 published by The Heritage Foundation at http://www.heritage.org/Research/Labor/wm1374.cfm .

Top 10 Labor Union Power Grabs” dated March 13, 2007 published by Human Events Online at http://www.humanevents.com/article.php?id=19793 .

In Defense of Income Inequality” by Peter Schwartz dated March 28, 2007 published by Capitalism Magazine at http://capmag.com/article.asp?ID=4940 .

Unions for a Global Economy” by Harold Meyerson dated April 26, 2007 published by Washington Post at http://www.washingtonpost.com/wp-dyn/content/article/2007/04/25/AR2007042502409_pf.html .

Curing the Blue-Collar Blues” by John Silvia dated May 23, 2007 published by National Review Online at http://article.nationalreview.com/?q=NjhhMGMxNmJkMDk2ZTc0NWYyZjYzZjllZDNlNjRiMTM= .

Outsourcing Myths” dated June 19, 2007 published by Investors Business Daily at http://www.ibdeditorials.com/IBDArticles.aspx?id=267145498195664 .

Happy for the Work” by Arthur C. Brooks dated June 20, 2007 published by American Enterprise Institute at http://www.aei.org/publications/pubID.26371,filter.all/pub_detail.asp .

Not Worth Saving” dated August 20, 2007 published by Investors Business Daily at http://www.ibdeditorials.com/IBDArticles.aspx?id=272501666762825 .

Liberals Target Labor-Union Watchdog” by Robert B. Bluey dated August 20, 2007 published by Human Events Online at http://www.humanevents.com/article.php?id=22009 .

The State of the American Worker 2007: Attitudes About Work in America” dated August 21, 2007 published by American Enterprise Institute at http://www.aei.org/docLib/200408301_work14886.pdf .

Thriving in a Global Economy” by Daniel Ikenson dated August 28, 2007 published by Cato Institute at http://www.freetrade.org/pubs/pas/tpa-035es.html .

Upwards Leisure Mobility: Americans Work Less and Have More Leisure Time Than Ever Before” by James Sherk dated August 31, 2007 published by The Heritage Foundation at http://www.heritage.org/Research/Labor/wm1596.cfm .

Americans Are World’s Most Productive Workers, UN Report Finds” dated September 3, 2007 published by Fox News at http://www.foxnews.com/story/0,2933,295556,00.html .

Joel Kotkin Debunks the Myth of Deindustrialization” by Bill Steigerwald dated September 4, 2007 published by Town Hall at http://www.townhall.com/columnists/BillSteigerwald/2007/09/04/joel_kotkin_debunks_the_myth_of_deindustrialization .

Trading Up – How Expanded Trade Has Delivered Better Jobs and Higher Living Standards for American Workers” by Daniel Griswold dated October 25, 2007 published by CATO Institute at http://www.freetrade.org/node/782 .

Equal Rights Nonsense” by Roger Clegg dated February 8, 2008 published by Wall Street Journal at http://online.wsj.com/public/article_print/SB120243354900752415.html .

The Coming Crackdown with Public Labor” by Lewis M. Andrews dated March 12, 2008 published by Human Events Online at http://www.humanevents.com/article.php?id=25441 .

Extended Unemployment Insurance – No Economic Stimulus” by James Sherk and Karen A. Campbell dated November 18, 2008 published by The Heritage Foundation at http://www.heritage.org/Research/Economy/cda08-13.cfm .

Myths of Organized Labor” by Ronnie Schreiber dated December 16, 2008 published by Front Page Magazine at http://www.frontpagemagazine.com/Articles/Read.aspx?GUID=F740D12D-DB5D-46AF-9D28-53E7FFF08C74 .

From civil servants to the new nobility” by Harry Eisenberg dated February 15, 2009 published by World Net Daily at http://wnd.com/index.php?fa=PAGE.view&pageId=88886 .

Taxpayers on the Hook for New Government Benefit?” by Darrell Issa dated June 4, 2009 published by Human Events at http://www.humanevents.com/article.php?id=32141 .

Time for Congress to Work Under the Same Rules as the Private Sector” by James Sherk and ryan McDonnell dated October 13, 2009 published by The Heritage Foundation at http://www.heritage.org/Research/Labor/bg2326.cfm .

Beyond Card Check” by Kevin Mooney dated December 1, 2009 published by The American Spectator at http://spectator.org/archives/2009/12/01/beyond-card-check .

Public-sector Unions Bleed Taxpayers to Help Dems” by Michael Barone dated February 8, 2010 published by Town Hall at http://townhall.com/columnists/MichaelBarone/2010/02/08/public-sector_unions_bleed_taxpayers_to_help_dems .

How to Save $11.4 Billion This Year” by Steve King dated March 4, 2010 published by The American Spectator at http://spectator.org/archives/2010/03/04/how-to-save-114-billion-this-y .

Michigan a Right to Work State?” by F. Vincent Vernuccio dated July 16, 2010 published by The American Spectator at http://spectator.org/archives/2010/07/16/michigan-a-right-to-work-state .

 

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