Bad Labor Law Is a Path to Economic Ruin

[Chris]

Bad Labor Law Is a Path to Economic Ruin

By BERNIE MARCUS
August 26, 2008; Page A19

I recently said that America "would become France" if a certain bill now in Congress -- which would virtually guarantee that every company becomes unionized -- ever became law. Deceptively named the Employee Free Choice Act, this bill would in most cases take away an employee's right to a secret ballot in a union election and give unions the option to have federal arbitrators set the wages, benefits, hours and all other terms and conditions of employment.

Countries other than France have suffered the consequences of bad labor laws. When I was CEO of Handy Dan, the precursor to Home Depot, I traveled to England in the 1970s to take a look at a chain of stores we were considering for acquisition. When I arrived in London, the airport workers, bus drivers and garbage collectors were all on strike. The major shareholder of the company asked me to interview three employees. He informed me afterward that he wanted me to hire them at Handy Dan "because the U.K. was finished." He explained that his tax rate was 75% and there were no incentives to grow.

When I asked what he and his company were doing about it, he told me that the media would attack the company if it got involved politically. I jumped all over him and the company's CEO for letting this happen without a fight. Needless to say, Handy Dan did not buy these stores. Fortunately for Britain and thanks to the courage of Margaret Thatcher, both tax rates and the power of labor unions were reduced in later years.

(more...)

George McGovern saw this bill for what it is and said 'no thank you'.  Barack Obama is still trying to push it through Congress.  If he gets elected, there's a 100% chance he will sign it.

[Rebel]

These f'n liberal Socialists aren't going to like the outcome of the shit they're about to cause. They're not well-armed. 

[rich_t]

These f'n liberal Socialists aren't going to like the outcome of the shit they're about to cause. They're not well-armed. 

Amen.

[Vagabond]

What, particularly, is so vile about this insidious attempt of insurrection towards the American dream?

I am not sure I understand your question, so understand I will answer what I think your question is asking.

What makes this bill so odious is that it will basically force all of us into unions.  While that is not something explicitly stated in the bill, it will create a situation where those who are trying to establish a union know exactly how each and every employee is voting.  Then unions will "creatively persuade" (read coerce through threats against [rp[erty, person, and family) of anyone who votes against unionization.  It would deny freedom of conscience to anyone who disagreed with the unions.

Then, once a union is established, the union has no reason whatsoever to negotiate in good faith with the employer.  Why?  Because the union can reasonably assume that the government arbitrator would give concessions from the employer that the employer would never give at the negotiating table.  Basically the same people that do not believe that father's should have any parental rights would also have no reason to believe that a business has a right to a "profit".

This ultimately would serve to deprive each of us of our economic freedom and ultimately our prosperity as motives for innovation and expansion dry up. 

Without our economic freedoms, including the right for each of us to negotiate our compensation with our employer without the unnecessary input of the government we are no more than peasants.   I have no desire to serve a tyrant.  Whether he is the government or a union boss.