The Public Policy
Card Check’s Bounce
Another looming threat to our economic freedom.
Barack Obama provides a study in contrasts. He is personally measured, but his agenda is radical. Although his top personnel are largely centrist, his objectives are standard leftist issue. If his program succeeds, the U.S. will look a lot more like Europe, with far more of life controlled by the central government. Rather like American Uncle Sam meets French Sun King.
One of the most important goals of the Obama program is to strengthen labor unions. Explained the president: “I do not view the labor movement as part of the problem. To me, it’s part of the solution.” Of course more powerful unions would make it easier for him to push through the rest of his policy agenda. That’s why he is backing the “card check” bill, which makes it a battle to control the entire economy.
Obviously, people have a right to join unions. But there is no reason for government to promote unions, especially in today’s world. For all the cant from union officials about how everyone in America is desperate to join a union, labor membership has been falling steadily for reasons unrelated to the latest National Labor Relations Board ruling.
Just 7.6 percent of private sector workers today belong to unions because most workers view unions as irrelevant in today’s rapidly changing economy. Sclerosis and stasis, the normal prescriptions of union leaders, benefit labor bureaucrats rather than workers.
But these unions won’t take no for an answer. Current law requires that an organizing election be held if 30 percent of workers sign a union card. But if that’s all a union collects, it is likely to lose the vote. In fact, organizers figure they have to collect the signatures of three-quarters of the workers to have a 50-50 chance of winning. Unions typically lose 40 percent of organizing contests. As a result, the AFL-CIO melodramatically claims, “workers still lack the freedom to form unions.” UAW President Ron Gettelfinger even compares the plight of union workers to that of blacks fighting Jim Crow.
To redress this phantom injustice, organized labor has concocted the so-called Employee Free Choice Act. The bill would force recognition of the union if 50 percent plus one person signed a card, a process known as card check. The legislation also would impose a contract through arbitration if the union and company could not agree.
The goals are to eliminate organizing elections and bias contract negotiations. Since it’s hard for unions to argue against elections — they demand them for decertifying unions and promote them for labor unions overseas — organized labor claims that the current system is unfair. Employers supposedly can fire organizers and propagandize workers.
But NLRB figures indicate that in fewer than three percent of organizing campaigns are union organizers illegally fired. The obvious solution to any abuses is to adjust penalties rather than end elections. Employers also have legitimate arguments to make, arguments best offered in the course of a secret ballot election.
The secret ballot is key. It protects workers from retaliation — that’s why the U.S. elects public officials, rather than allowing citizens to sign election cards. It doesn’t take a rocket scientist to tell which worker is more vulnerable to pressure and even violence: one who gets to cast a secret ballot or one who must sign or not sign a card in public view. Four decades ago a federal appeals court declared: “it is beyond dispute that secret election is a more accurate reflection of the employees’ true desires than a check of authorization cards collected at the behest of a union organizer.”
Former union organizer Jen Jason testified before the House Education and Labor Committee: “During the course of my employment with the union, I began to understand the reality behind the rhetoric. I took in the ways that organizers were manipulating workers just to get a majority on ‘the cards’ and the various strategies that they employed. I began to appreciate that promises made by organizers at the worker’s house had little to do with how the union actually functions as a ‘service’ organization.”
In fact, misrepresentation and intimidation are routine, as union organizers lie about what signing the care means (claiming, for example, that it certifies attending a meeting or requesting more information) and badger employees to sign (sending groups of pro-union workers to people’s homes). The National Right to Work Legal Defense Foundation has collected the stories of many employees, such as that of Mike Ivey, a South Carolina materials handler, who complained that the UAW “created a hostile work environment” through relentless pressure to sign cards. These abuses would be multiplied if card check automatically yielded recognition, foreclosing the need for a vote.
This may be why even union members favor elections. Polls have found that eight to nine of every ten of them favor a vote. Card check is a tool for union executives and Democratic politicians, not workers.
The proposal for binding arbitration may be no less dangerous. Having foisted a union upon unwilling workers through card check, labor leaders want to foist a union contract upon unwilling companies. The card check bill sets virtually no standards to guide the process. Notes University of Chicago law professor Richard Epstein in a detailed new study: “Nothing in the statute settles questions of how arbitration panels are to be set up, the scope of their powers, or the reviewability of their decrees on matters of fact and law.”
Arbitration of grievances is a common procedure, but authorizing someone to determine the “interests” of two parties over the wide range of issues covered in a typical contract is very different. In the public sector this practice has increased costs, which “have long been seen as a significant feature of out-of-control local government budgets,” notes attorney Thomas P. Gies. Moreover, the process would likely lead to an economy-wide standard irrespective of industry, product, service, or finances. Organized labor is hoping for a double “gimme” — recognition without winning an election and contract without completing a negotiation.
No one can predict with certainty the economic consequences of card check. Unions assume they would have millions of new members and billions of new dollars.
About the Author
Doug Bandow is a senior fellow at the Cato Institute. A former Special Assistant to President Ronald Reagan, he is the author and editor of several books, including The Politics of Plunder: Misgovernment in Washington (Transaction).
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frost| 3.10.09 @ 7:28AM
Fine analysis. I read somewhere that unions are for people that want more than what their worth. And those afraid to seek jobs where their real worth (or the lack thereof) is the determining factor as to what they’re paid.
Fact is, in the present neo-Marxist climate, businesses are going to have a hard enough time staying in business without an expensive union telling them how to run their operation.
Truth is, union workers are incapable of producing quality because they work for the union, not the company.
And they're hypocrites.
frost| 3.10.09 @ 7:35AM
Another quick point - - a lot of years ago, 1960, in fact, I bought a new BMW coupe (long before they were trendy, a fad, or called a Beemer) -- worst car I ever owned! But, one of the reasons I bought an imported car was because the Union Chief Walter Ruther was so anti-American and pro-Soviet in his socialistic stance, at the time I refused to buy an American car.
And now we have similar types as very good-buddies with the president (can you say convicted terrorist William Ayres?).
Whew!
stu.b.con| 3.10.09 @ 7:51AM
Even that old liberal warhorse George McGovern has come out against this egregious personal liberty grab.
Eric Baum | 3.10.09 @ 10:23AM
In my view, the worst aspect of card check would be to greatly discourage investment. Remember when foreign car companies came over and built factories in right to work states? Say bye to those investments, when union bosses would essentially have a right to loot the investments.
I think the possibility of card check is looming over the Dow, and if it passes I look for a further plunge. If it is finally defeated, I look for positive move.
Eric Baum | 3.10.09 @ 10:26AM
BTW, I have various investments. Some of them may be in the Dow.
Tom| 3.10.09 @ 11:32AM
Other union doings. Living wage. every so often congress raises the minimum wage. That automatically gives union workers a raise.
Another one is union dues. My son-in-law elected not to belong to a union local. New an equal amount of what would be union dues is deducted for charity.
Yes we live in a free country, bull.
Marc Jeric| 3.10.09 @ 12:09PM
There are two inescapable and immutable laws concerning unions, viz.:
1) given enough time any union will be taken over by either a criminal organization, say mafia, or a revolutionary marxist group;
2) union will eventually destroy the industry where it prevails; examples abound - steel, automobile, textile, apparel, electronics, etc.
3) such destroyed industries will try to save themselves by going elsewhere; that is called outsourcing;
4) government employee unions will also destroy whatever they are engaged in - say schools, where now 45% of teachers "teach" and 55% "administer, facilitate, organize, plan, etc," and of course engage in politics. Other such unions in government provide a safe haven for rejects of private enterprise and have "work rules". For example, it is forbidden to a supervisor to request a deadline for any work; e.g., one must not ask a secretary to type up a one-page memo for a meeting one week hence.
Rick| 3.10.09 @ 9:15PM
"...someone somewhere should pay them for doing as little as possible..."
That sums up the entitlement attitude that pervaded my workplace's recent union drive.
MassArtMom| 3.12.09 @ 5:03PM
Unfortunately, cultures change (and not for the better) when unionized workers and management live together under the same roof. This is unfortunate and entirely the fault of management. If management was fair to its workers, unionizing would not be an issue. Over the last decade astronomical profits and bonuses have soared and sadly, the workers in the trenches (the ones who actually "do" the work and make the profits) have remained stagnant. Raises have not kept up with the cost of living, inflation, etc. To equate unionization with the Mafia is just another old scare tactic used by management. Sheesh! How obvious can you get?!
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azdirici | 9.2.10 @ 2:59AM
One of the most important goals of the Obama program is to strengthen labor unions. Explained the president: "I do not view the labor movement as part of the problem. To me, it's part of the solution." Of course more powerful unions would make it easier for him to push through the rest of his policy agenda. That's why he is backing the "card check" bill, which makes it a battle to control the entire economy.
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