The "Death of American Business Act"

In 2008, voters are rightly focusing on the current turmoil in economic markets, high fuel prices (though far below their highs for the year), and, to a lesser degree, the wars in Iraq and Afghanistan. It is indeed a remarkable time.

In a less remarkable time, an issue which might be leading the discussion and which more voters should be paying attention to today, is the Employee Free Choice Act (“EFCA, H.R.800), sponsored by the union’s best friend in the House of Representatives, George Miller (D-CA), whose donor list is a who’s-who of “International Brotherhoods”, “Associations of Workers”, and “Political Leagues”.

The EFCA, also called “Card Check”, allows unions to force a workplace to be unionized by public signing of voting cards by workers, complete with the pressure or overt threats which one might expect union organizers to bring against hesitant workers.

A secret ballot is an absolutely fundamental principle in America’s labor system. Under EFCA, that goes away, at great peril to businesses and their employees alike.

The Heritage Foundation calculates that EFCA “would disenfranchise 105 million workers.”

There are other major problems in EFCA, including a 90-day deadline for a union to negotiate with a company after which a government mediator has 30-days to try to mediate an agreement. If that is unsuccessful, the decision goes to an arbitration board (which is not defined in the bill) which determines the provisions of the contract between the union and the company.

Additionally, EFCA adds substantial penalties for “unfair labor practices” by a company’s management…but no penalties for unfair behavior by unions. That’s not a surprise given George Miller’s ownership by unions. I’m sure he believes there is no such thing as bad behavior by unions.

Doug Bandow wrote a column on October 5th which calls Card Check “the key to union control”. That means control of politics, not just business. On the business side, Bandow quotes former General Electric CEO Jack Welch as saying that EFCA “could trigger a surge in unionization across U.S. industry — and in time, a reversion to the bloated economy that brought America to its knees in the late 1970s and early ’80s and that today cripples much of European business.”

On the political side, Bandow offers the following:

Labor consultant Jonathan Tasini reported that “unions spend seven to 10 times what they give candidates and parties on internal mobilization,” which he figured meant “$8 billion to as much as $12 billion on federal elections alone” between 1979 and 2004. EFCA would enable organized labor to pour even more money into campaigns, spurring passage of union-supported legislation.

Here in Colorado, the unions have a great ally in Congressman and Senate candidate Mark Udall who is a strong supporter of EFCA. In a YouTube video on the subject (at about 45 seconds into the video), Mark Udall says the bill “isn’t perfect.” One can’t help but wonder, Congressman Udall, which provisions of the bill you don’t like. And since most of the provisions have truly dire effects on the balance of power between unions and businesses, if you think any of them is not good how can you support the bill overall? Would you be so kind as to tell us what you don’t like about EFCA and what you’d try to do about it if elected?

My guess is that Udall believes the bill is basically perfect and that he said those words just to appear more thoughtful (or informed) than he is.

The McCain campaign is finally bringing up Card Check on the stump, saying that “Senator Obama is…planning to take away your right to vote by secret ballot in labor elections.” Even the left-leaning CNN agrees that “McCain accurately represents Obama's stance.”

This is no minor issue. Donald Wilson, a labor relations expert, believes that company managers should learn “to identify early signs of union organizing” in order to mount a rapid campaign “while the card signing is going on, in order to keep people from signing additional cards.” He adds “I don’t know whether there’s time left or not…it’s coming, and you’d better get ready for it. Those companies that have prepared are the ones that are going to survive. The ones that haven’t prepared are going down.”

If there is any reason to support Republican candidates for the House and Senate in 2008, it is this issue. If things stay the way they appear today, electorally speaking, EFCA will become law in 2009. Businesses will fail or just close, unemployment will spike, and the economy will suffer even worse than it already will. As usual, when it comes to economic legislation proposed by Democratic politicians, the only clear winners will be labor unions…and Democratic politicians.

For more in-depth analysis of EFCA, the Heritage Foundation has done some excellent research which you can see at http://www.heritage.org/research/labor/cardcheck.cfm

  • J David
    Comment from: J David
    10/15/08 @ 12:18:16 pm

    For the sake of speculative amusement, following some of the recent political contrarianism found here in recent days, let's consider what will happen after the the Card Check bill passes (as it surely will, McVain or no McVain, when commie-lib Dems firm up control of the House and Senate in a few weeks)in Congress...

    When the dying unions, already causing American industry to die where ever they still exist (MI being an excellent example) get the power to strong-arm the votes, what will the industry execs and stockholders do? They will go through the inconvenience of moving to parts of the country, or the world, where there are no unions. Their employee base will follow them, or they will leave union states for lower cost-of-living areas to where other industry has already re-located.

    This idea that the blue collar class won't move, and can always be extorted by unions is a fallacy that caused the original exodus from the South to northern industrial areas in the mid-1900s. It is an excellent example of socialist parasites ultimately being their own worst enemies.

  • J David
    Comment from: J David
    10/15/08 @ 12:24:32 pm

    I should add that immediate results to the Card Check bill, in view of what will probably be immediate results of its passage, may cause a strong backlash if it can be hung around the necks of a commie-lib Dem gov't.

  • Comment from: Rossputin
    10/15/08 @ 12:36:46 pm

    JD,

    The problem with your argument is that card check will be a federal law, not state, so mobility of workers won't matter much. I presume the law will over-ride "right to work" laws in the states that have them.

    You're right that this will almost certainly pass no matter who is president. I just want to make sure the Dems get blamed for it...unlike how the media has treated the Dems' causing the housing market crisis.

  • Abe
    Comment from: Abe
    10/15/08 @ 01:08:01 pm

    I agree with you again. What exactly is wrong with the secret-ballot system?!?

    I do believe that workers' have the right to collectively bargain and I hate when Michigan's problems are blamed on the Unions. Management signed on the dotted line and agreed to the collective bargaining agreements. Management should carry half the blame.

    But allowing card-check gives unions to power-grab by coersion of hestitant employees.

    I don't understand this legislation at all.

  • Comment from: Rossputin
    10/15/08 @ 01:12:22 pm

    Sure you understand it, Abe.

    The unions own the Democrats. They buy votes for Democrats who then return the favor by creating pro-union legislation at the expense of the American consumer, taxpayer, and overall economy.

    Even George McGovern has been slamming EFCA repeatedly...
    http://www.youtube.com/watch?v=afjp4Cx-3W0

  • J David
    Comment from: J David
    10/15/08 @ 01:12:57 pm

    With commie-lib Dems running the Federal gov't I make the assumption that Dem "insider" governors will be able to wrangle opt-out deals (law is enforced on Republicans and seems to be largely irrelevant for Dems), but if it turns out that that isn't so, you are right about the death of industry and deepening economic woes, and it will be a self-renewing cycle like the over-regulation of the 30s and the 70s, with like results. Unfortunately this is foisted upon us by a so-called "Republican" president, and signed onto by both candidates, so there is a commitment to grinding it through no matter who rises to the throne in a few weeks.

  • Abe
    Comment from: Abe
    10/15/08 @ 04:19:16 pm

    Ross,

    I don't understand the legislation because it is so blatantly un-Democratic. I don't understand how even Dems could vote against the secret ballot.

    A co-worker was at a networking event, partially sponsored by a Harvard Business Alum group. A speaker asked for an informal poll on political party affiliation. Aside from three Indpendents, all were Republican. OF COURSE everyone was Republican. No Orange County CA businessman would go to a business networking event and admit to being a member of the Democratic party. The secret ballot, as the Republican committee members stated, is sacrosanct.

    I can be assured that my Congressman, John Campbell, will not be voting for this. Can't say the same about my Senators though.

    "The right to a secret ballot is sacrosanct. Republican Members of the Committee could not be more clear or resolute on this point: the right to a federally-supervised private ballot election represents perhaps the greatest protection American workers are afforded under federal labor law. We cannot and will not support efforts to strip workers of this right." - Republican Views in House Report 110-023

    -Abe

  • Comment from: Rossputin
    10/15/08 @ 04:23:54 pm

    Again, Abe, we agree on this.

    It should not be a partisan issue except for highly partisan Democrats who only care about getting more money to Democratic candidates. But I believe even that will eventually fail because so many places which are forced to unionize will simply close down.

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