union

Osorio: Specter Says ‘No’ on Card Check

by Richard Morrison on March 24, 2009

in Economy, Employment

An update from our very own Ivan Osorio:

Sen. Arlen Specter (R-Penn.) is expected to announce this afternoon that he plans to vote against cloture on the so-called Employee Free Choice Act, according to Grover Norquist, president of Americans for Tax Reform, who was called by Specter’s office. He announced this at the Capital Research Center labor conference, at which I spoke on a panel this morning.

CongressDaily is also reporting the news.

New Study Shows Job Loss Data under Card Check

by Ivan Osorio on March 5, 2009

in Economy, Employment, Labor

This week, Dr Anne Layne-Farrar, an economist with the Law and Economics Consulting Group, published a new study in which she analyzes the likely economic effects of the so-called Employee Free Choice Act if it were to be enacted, especially on employment. EFCA would replace secret ballots in union organizing elections with a process known as card check, whereby union organizers ask employees to sign union cards out in public, thus exposing workers to high-pressure tactics which secret ballots are designed to avoid. Labor unions see this as a way to revive their declining number. The summary of Layne-Farrar’s findings includes:

[P]assing EFCA would likely increase the US unemployment rate and decrease US job creation substantially. The precise effect on unemployment will depend on the degree to which EFCA increases union density, but for every 3 percentage points gained in union membership through card checks and mandatory arbitration, the following year’s unemployment rate is predicted to increase by 1 percentage point and job creation is predicted to fall by around 1.5 million jobs. Thus, if EFCA passed today and resulted in an increase in unionization from the current rate of about 12% to 15%, then unionized workers would increase from 15.5 to 19.6 million while unemployment a year from now would rise by 1.5 million, to 10.4 million. If EFCA were to increase the percentage of private sector union membership by between 5 and 10 percentage points, as some have suggested, my analysis indicates that unemployment would increase by 2.3 to 5.4 million in the following year and the unemployment rate would increase by 1.5 to 3.5 percentage points in the following year.

As Layne-Farrar explained in a press conference call today, she analyzed the experience of Canada with both card check and secret ballots. Union organizing in Canada is set at the provincial, rather than federal level, so different provicial policies allow for contrast. As she explained, several provinces have moved from card check to secret ballots, while one went the other way. To control for other factors, she said she did a regression going back 22 years.

Study available for download here.

For more on card check, see here.

For Obama, No Solace in Solis

by Ivan Osorio on February 5, 2009 · 1 comment

in Economy, Labor, Politics as Usual

This afternoon, the Senate Health, Education, Labor, and Pensions Committee abruptly canceled a session to consider the nomination of Rep. Hilda Solis (D-Calif.) for Labor Secretary, after USA Today reported that her husband paid $6,400 to settle tax liens yesterday. As embarrassing as this is to the Obama administration, coming on the heels of two nominations being sunk over tax problems, Solis’s nomination should be of concern for other reasons. As The Washington Post‘s Michael Fletcher notes, her nomination “had been delayed by questions over her role on the board of the pro-labor organization American Rights at Work.”

American Rights at Work’s website still lists her as a board member. That is no small thing. Her membership on the board, combined with her voting record and campaign donation history, should raise serious doubts regarding her ability to consider disputes involving labor unions in an impartial fashion.

For more on the Solis nomination, see here, here, and here.

The UAW’s Three-Year Emergency Response

by Ivan Osorio on December 12, 2008

in Bailout Watch, Economy, Politics as Usual

Last night, the Detroit Big Three bailout package crashed and burned for the best of reasons. To their credit, Senate Republicans refused to abide the United Auto Workers’ cavalier attitude toward further, drastic concessions. Reports The New York Times:

Late Thursday, the Senate did not take up an assistance measure passed by the House, after hours of negotiations between Senate Republicans with the auto companies and the U.A.W. The sticking point apparently was the union’s refusal to agree to lower wage and benefit rates as soon as next year.

Representatives for the union, which had already accepted a series of cuts in its current contract, sought instead to push any more concessions back to 2011, when the U.A.W.’s contract with Detroit auto companies expires.

And the UAW’s stated reason for wanting to take so long? The union put out a statement:

“Unfortunately, Senate Republicans insisted that this had to be accomplished by an arbitrary deadline. This arbitrary requirement was not imposed on any other stakeholder groups. Thus, the U.A.W. believed this was a blatant attempt to make workers shoulder the lion’s share of the costs of any restructuring plan,” the statement said.

Isn’t it inconvenient how an emergency can impose an “arbitrary deadline”? The UAW’s argument of “Make them do more!” cannot obscure the fact that the union itself still needs to make further concessions, no matter what.

If the Detroit auto makers’ situation were truly as dire as they and the union claim, they’d be renegotiating contracts now.

Next Entries →