(Video) Do Big Unions Buy Politicians?

June 8, 2015

We’ve all heard of corporate lobbyists and the influence they can buy for their clients in D.C., but what about the influence of big unions over government, specifically government employee unions? When looking at all levels of government –local, state, and federal– unions like SEIU and AFSCME may be the real masters. In this Prager University video, Professor Daniel DiSalvo explains why:

Though DiSalvo doesn’t use the word, the relationship between unions and pols, particularly Democrats, is a “kickback scheme.” For more on that, click.


Los Angeles: union hypocrisy on parade #RaiseTheWage

May 27, 2015
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Union economics adviser at work

You have to love the moxie of these racketeers: demand a economically nonsensical minimum wage, $15 per hour, and then, when the city is about to implement it, demand an exception for union members because business owners have threatened to do the logical thing: cut jobs.

From The Los Angeles Times:

Labor leaders, who were among the strongest supporters of the citywide minimum wage increase approved last week by the Los Angeles City Council, are advocating last-minute changes to the law that could create an exemption for companies with unionized workforces.

The push to include an exception to the mandated wage increase for companies that let their employees collectively bargain was the latest unexpected detour as the city nears approval of its landmark legislation to raise the minimum wage to $15 an hour by 2020.

For much of the past eight months, labor activists have argued against special considerations for business owners, such as restaurateurs, who said they would have trouble complying with the mandated pay increase.

But Rusty Hicks, who heads the county Federation of Labor and helps lead the Raise the Wage coalition, said Tuesday night that companies with workers represented by unions should have leeway to negotiate a wage below that mandated by the law.

Let’s review a basic lesson in economics, shall we, from another progressive, heavily unionized city:

Like I’ve said many times before: the laws of economics cannot be repealed by legislative fiat. Raise the cost of labor, and businesses will be faced with a choice from among four options — pass the costs on to the consumer; reduce labor costs by cutting hours or whole jobs; eat the costs and accept lower profits; or cease doing business in that jurisdiction, either by moving or closing shop. Ritu Shah Burnham may have loved her business, or she may have hated it. But, regardless, she’s come to the conclusion it isn’t worth staying in business in Seattle. She isn’t the first, and other small businesses in other progressive cities have made the same choice.

Apparently Rusty Hicks understands economics better than the Los Angeles city council and realizes he stands to lose union (dues-paying) jobs when the minimum wage goes up. So, he wants the freedom to negotiate a lower wage, more in line with economic reality. Fine. He’s pursuing his members’ interests.

How odd that he doesn’t want to allow that same freedom to all workers and business owners.

Afterthought: There is actually a sneaky benefit to this for the unions, besides preserving jobs. If unions can negotiate lower wages, there would then be an incentive for non-union businesses to unionize. That would lead to more union jobs and more dues coming into the union’s coffers. Oh, Rusty. You sly dog, you.

via Michael Strain


California: SEIU demands increase in minimum wage, jobs be damned

April 16, 2015
"But at least we won the election! Obama!!"

“But at least we raised the minimum wage! Obama!!”

Fresno is fifth-largest city in California, the largest that’s not on the coast, and the largest in the Central Valley, that agricultural cornucopia that’s being destroyed by drought and environmentalist idiocies.

But don’t get me started on that.

Anyway, just by its position and population Fresno is important to the state’s economy, particularly our agricultural sector. (Where do you think your raisins come from?) But, like much of the Central Valley, it’s suffered more than the rest of California from the 2008 recession and the pathetic recovery: unemployment in the Fresno area in 2014 was still over 11%, well above California’s statewide average of 7.1% at the end of that year.

So, when your city is suffering from a lack of jobs, what’s the first thing you think of to increase opportunities for work?

That’s right! You demand an increase to the cost of labor!

On Wednesday, according to the Fresno Bee, over 150 people joined other workers around the country marking Tax Day by marching in rallies organized by unions as they demanded the current federal minimum wage of $7.24 an hour be raised, as well as the California $9 minimum wage.

Standing in front of a McDonald’s, the protesters–comprised of home and child care workers, county and state workers, students and community leaders, but no fast-food workers–chanted, “Hold the burgers, hold the fries. Make our wages super-sized.”

Union members from the Services Employees International (SEIU) helped lead the way; one member, Beau Reynolds with SEIU Local 100, told the Bee, “We’re here to stand up. We’re here to join forces and we are here to demand better. To demand better wages, to demand better benefits and to demand the right and respect that all working families deserve.”

Notice that none of those protesting in front of McD’s actually work there: they’re just there in service of SEIU’s political goal, which is to get a general increase in the minimum wage, which would include the union’s members, leading in turn to higher dues-revenues for the union to spend on politics. (And union bosses’ salaries…)

But the fast-food workers on the inside? The ones inside who didn’t march, the supposed beneficiaries of SEIU’s fight for economic justice? Apparently they know what happens when you raise labor costs too high:

Welcome to the future

Welcome to the future

In other words, when government raises the cost of doing business —and labor is a cost!— business owners have just a few choices: pass the cost to the consumer and risk losing their custom; reduce profits to perhaps unacceptably low levels; reduce labor costs by cutting back hours, letting people go, and not hiring; or just getting out of the business. They’re already learning this in progressive Seattle, and it looks like the Fresno McDonald’s workers understand basic economics, too, unlike SEIU.

Or maybe SEIU just doesn’t care that fast food workers can be replaced with kiosks, as long as they themselves get their cut.

Either way, they’re not helping Fresno county’s unemployment problem.

(Crossposted at Sister Toldjah)


Labor Unions Swindle Workers and Shakedown Employers

July 30, 2014

Phineas Fahrquar:

In a nutshell, unions are legal cartels that work to increase members’ pay by controlling the supply of labor, removing competition. The linked article is a good example of how, over time, unions almost inevitably move from serving workers’ interests to being little better than strong-arm rackets out for themselves.

Originally posted on KATY GRIMES:

Labor unions are bad for workers and employers. But sometimes the good guys prevail.

The lawsuit filed by a Fresno farmworker against members of the Agricultural Labor Relations Board alleging civil rights violations will move forward to trial, a federal judge just ruled last week.

Silvia Lopez

In February of this year, Gerawan Farming worker Silvia Lopez sued the gubernatorial appointees and regional staff of the ALRB alleging that their refusal to count the Gerawan farmworkers’ decertification votes violated her 1st and 14th Amendment rights.

The Agricultural Labor Relations Board says it exists to protect the rights of all agricultural employees, including those not wanting labor organization representation, as is the case with Gerawan Farming employees. However, Gerawan farming employees say they have not received any assistance from the ALRB.

Whenever they can, labor unions historically try to gain control over entry into the labor market. “Such measures are for…

View original 829 more words


Seattle: $15 minimum wage already costing jobs

May 28, 2014
"But at least we won the election! Obama!!"

“But at least we raised the minimum wage!”

And it’s not even in effect, yet.

But, it’s not surprising. Business managers have to plan for the future, and a looming huge increase in their labor cost will force many to rethink how they do business in Seattle, if they continue to do business there at all. Writing for the free-market Washington Policy Center, Erin Shannon reports on how small businesses are planning to cut back on hiring, delaying expansion, or moving out of the city to deal with the new wage law. Most striking, though, is the account of one business owner who supported the law, but now thinks she may have made a mistake:

One of those business owners is a well-known and active supporter of “progressive” labor policies, including a higher minimum wage. Jody Hall, owner of Cupcake Royale, initially supported a $15 minimum wage. But now Hall admits the proposed policy is, “keeping me up at night like nothing ever has.”

While Hall has serious concerns with Mayor Ed Murray’s plan to phase in a $15 minimum wage over seven years with a temporary tip credit, her biggest fear is if voters approve the radical charter amendment sponsored by the group 15Now. The charter amendment would force all large employers to begin paying $15 in 2015, and would give small business owners just three years to acclimate to the high wage. And the 15Now proposal would not allow for any tip credit.

If the charter amendment passes, Hall says she would be forced to close half of her seven locations and lay off 50 of her 100 workers.

But beyond the differences between Mayor Murray’s proposal or the more aggressive 15Now proposal, Hall says she now has “serious second thoughts” about a $15 minimum wage in general, especially since Seattle would be “going it alone” with a wage that is significantly higher than any other minimum wage in the nation.

Hall’s second thoughts about a $15 minimum wage have led to second thoughts about expanding her business. She was set to open a new business in Seattle this year, but has tabled the plan until after voters have their say on the charter amendment in the November election. Hall says if she considers any new locations before then, they will be outside the city limits.

In other words, when progressivism meets economic reality, guess which wins? You would think a successful businesswoman like Hall would have seen this coming. Maybe she thought she’d get a waiver from Obama.

And pay special attention to her comment about “going it alone.” As minimum wage increases are applied and then have the same effect in various places, there will be more and more calls from the fairness crowd to apply these laws statewide and even nationwide, to make sure business owners can’t just move to a friendlier jurisdiction, which would be “unfair.” The minimum wage thus becomes a wedge issue in an attack on local control, federalism, and jurisdictional competition, things progressive just hate, because their favored policies usually fail.

Meanwhile, I want to thank Seattle for volunteering to be a case study on the foolishness of government control of wages.

via Adrian Moore

(Crossposted at Sister Toldjah)


Cry me a river: union head finds he doesn’t like #Obamacare after all

March 9, 2014
"Another Obamacare supporter learns the truth."

“Another Obamacare supporter learns the truth.”

Sorry, Don Taylor, head of Unite Here, but Obamacare is working as intended, and your members are getting getting it, good and hard:

A national union that represents 300,000 low-wage hospitality workers charges in a new report that Obamacare will slam wages, cut hours, limit access to health insurance and worsen the very “income equality” President Obama says he is campaigning to fix.

Unite Here warned that due to Obamacare’s much higher costs for health insurance than what union workers currently pay, the result will be a pay cut of up to $5 an hour. “If employers follow the incentives in the law, they will push families onto the exchanges to buy coverage. This will force low-wage service industry employees to spend $2.00, $3.00 or even $5.00 an hour of their pay to buy similar coverage,” said the union in a new report.

“Only in Washington could asking the bottom of the middle class to finance health care for the poorest families be seen as reducing inequality,” said the report from Unite Here. “Without smart fixes, the ACA threatens the middle class with higher premiums, loss of hours, and a shift to part-time work and less comprehensive coverage,” said the report, titled, “The Irony of Obamacare: Making Inequality Worse.”

Unite Here was the first union to endorse then-Senator Obama in his quest for the White House and the union was a staunch supporter of the ACA’s passage. Nice reward for all that loyalty, eh?

Once again, it seems the well of my sympathy has run dry. Darn.

Of course, everything Taylor complains about is a feature of Obamacare, not a bug. The Left intended this anti-constitutional monstrosity to be a massive wealth redistribution vehicle, and the middle class, including Unite Here’s members, is the fatted calf at the feast.

Dear Don: You’re welcome.

Don’t forget that unions were among the first to receive the now-infamous Obamacare waivers, in this case for the tax on their “Cadillac” health plans that provide extensive and expensive benefits at little cost to the member. Now it’s finally dawning on these schmucks what has been clear to Obamacare critics for years: that the law creates perverse incentives for employers to cut hours or even dump employees onto the exchanges in order to reduce Obamacare-caused costs.

We tried to tell them, but all we received in return were insults and threats.

Hence my lack of sympathy for Taylor and other union Pied Pipers who lead their members down the garden path and off the cliff.

But I do have a fair bit of sympathy for rank and file members (1), and for them I have a suggestion: You were either lied to deliberately by leaders seeking to increase their own power, or lead by fools who couldn’t see what was plain to the rest of us — that Obamacare was an oncoming disaster of epic proportions. Now it’s here, and you can see you were foolish to trust these people.

It’s too late to avoid the harm that’s already been done, but there is something you can do. Next November 4th, when you go to vote, take a look at the letter after the candidate’s name. If you see a D… vote for the Republican, instead. Fixing Obamacare won’t be easy, but at least we know the right way to fix it:

Repeal it, burn it with fire, and scatter the ashes.

Oh, and stop listening to your union leaders, too. They really don’t have your best interests at heart.

via Rick Moran

Footnote:
(1) I am, after all one of them. A Teamster, to be specific.

(Crossposted at Sister Toldjah)


Minimum Wage: West Virginia Democrats exempt themselves

February 28, 2014

500px-Flag_of_West_Virginia.svg

Weird, isn’t it? If having the state mandate higher and higher wages for everyone is such a good idea, why on Earth would WV House Democrats vote to exempt themselves from a law being imposed on everyone else?

Last week, the Democrat controlled House in West Virginia passed legislation raising the state’s minimum wage to $8.75 an hour, $1.50 higher than the federal minimum wage. The action is part of a nation-wide effort by Democrats to make a minimum wage increase central to their platform for the midterm elections. The increase didn’t effect all workers, though. Democrats exempted many of their own staff from the wage hike. Businesses may have to pay the higher wages, but the legislature will avoid many of the consequences. 

Why, it’s almost as if West Virginia Democrats didn’t believe in private what they were preaching in public.

But we all know that can’t be.

via reader Lance

(Crossposted at Sister Toldjah)


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