Tonight’s news that Wisconsin Governor Scott Walker survived a recall effort at the hands of national union bosses seeking to punish the first term executive for making major reforms which turned around a $3.6 billion budget deficit serves to remind observers of another debilitating loss recently experienced by Big Labor.[1]
In 2010, labor bosses staked everything on unseating a Democratic Senator from Arkansas due to her opposition to the Employee ‘Forced’ Choice Act (EFCA). But Blanche Lincoln won and Lieutenant Governor Bill Halter lost the Democratic primary in the Natural State after union bosses spent nearly 10 million against her in an unprecedented effort.[2]
History to a certain extent seems to be repeating itself in the 2012 cycle with union bosses having drawn a line in the sand yet again, but the result has not changed.
This exacerbates a narrative that has long been developing, which is labor is losing ground and its ranks are diminishing with a unionization rate lower than seven percent in the private sector[3] meaning government is sustaining them, hence the tooth and nail fight in Wisconsin and Arkansas. The long and short is that union bosses are desperate and willing to do and say anything to bolster their ranks and in turn, line their pockets.
This has been exemplified in how Big Labor has demanded “payback”[4] from the Obama Administration in the form of “administrative action”[5] by the National Labor Relations Board (NLRB). This relatively unknown, so-called “independent”[6] federal agency has served as an organ of union bosses issuing rulings and making decisions that hurt workers and businesses.
Recently, the board’s “ambush election” rule was struck down by a federal judge[7], while its Specialty Healthcare decision cleared the way for a micro-union to be formed at a Bergdorf Goodman store in New York where women’s shoes associates on two separate floors were allowed to form a collective bargaining unit.[8]
Clearly, with unemployment over eight percent for 40 consecutive months[9] and anemic job creation in May, the American people are focused on the economy and they understand unelected government bureaucrats issuing regulations will only negatively impact employees and employers at the worst possible time.
All of this comes to the fore as labor organizations are experiencing massive structural deficits with Credit Suisse recently reporting “the hole in the pension plans of U.S. labor unions now stands at $369 billion.” In addition, “Multi-employer pension schemes, managed by trade unions on behalf of members working for many different employers, are now just 52 percent funded, the bank calculates with most of the burden to close this gap likely to fall on small and midsize companies.”[10]
This is at the heart of recent actions by union bosses. They are fearful the end is near for the system which has allowed them to spend nearly one billion dollars on politics in 2008[11] and 2012[12] alone rewarding politicians who have done their bidding, while punishing opponents. When coupled with polling showing organized labor is one of the institutions Americans have the least confidence in, Big Labor has reason to be concerned.[13]
The outcome in Wisconsin, much like the result in Arkansas, are two data points among many, but also contribute to a storyline that is negative for union bosses, yet positive for everyday employees and employers.
[1] Caitlin Huey-Burns, “Walker, Barrett Sprint To Finish Line In Wisconsin,” Real Clear Politics, 6/4/12
[2] Ben Smith, “White House Official: ‘Organized Labor Just Flushed $10 Million Down The Toilet,’” Politico, 6/8/10
[3] Website, U.S. Bureau Of Labor Statistics, Accessed 6/5/12
[4] David R. Sands, “Labor’s ‘Priority’ On Back Burner,” The Washington Times, 12/29/08
[5] Stewart Acuff, “Restoring The Right To Form Unions And Bargain Collectively,” The Huffington Post, 2/3/10
[6] Website, National Labor Relations Board, Accessed 6/5/12
[7] Sam Hananel, “Judge Strikes Down Union Election Rules,” The Associated Press, 5/14/12
[8]Press Release, “Isakson Slams Federal Labor Board’s Approval Of New Union For Bergdorf Goodman Shoe Department,” Sen. Johnny Isakson, 5/17/12
[9] Website, U.S. Bureau Of Labor Statistics, Accessed 6/5/12
[10] Dan McCrum, “US Union Pensions Hole Deepens To $369 Billion,” Financial Times, 4/8/12
[11]Tim Miller, “Giving Away The Store,” New York Post, 12/17/07
[12] Sam Hananel, “Unions Gearing Up To Spend Big In 2012 Election,” The Associated Press, 2/22/12
[13] “Confidence In Institutions,” Gallup, 6/9-12/11
This entry was posted in Big Labor Bailout, Big Labor Bosses, NLRB, Politics and tagged Arkansas, Bergdorf Goodman, Big Labor, Bill Halter, Blanche Lincoln, Credit Suisse, EFCA, Governor Halter, Jobs, New York, NLRB, Obama, Scott Walker, shoes department, Specialty Healthcare, U.S. labor, Wisconsin. Bookmark the permalink.