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Showing posts with label unions. Show all posts
Showing posts with label unions. Show all posts

Fast food and class warfare

CAUTION: The fast food wage debate is heating up.  Consider recent actions undertaken by labor unions and community organizers against McDonald's and then...
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read Al Lewis' WSJ column, ("Let Them Eat Burgers" September 1, 2013).  Mr. Lewis concludes that a super-sized minimum wage increase is justified on the basis of a single data point (average age of minimum wage workers has increased) and comparison to an Australian business model.  

Mr. Lewis' account of a recent protest demonstration reminds me of the danger I've been talking about since 2008.  Here's the story...

A vocal group is demanding a doubling of the minimum wage to $15 an hour in front of a Denver-area McDonald's which had to shut down because of the ruckus.  Lewis interviews a twenty-six year old man working at McDonald's who's protesting and had this to say about his employer, 

"They'd rather line their own pockets, than take care of us." 

A little perspective is in order.  According to the Bureau of Labor Statistics (BLS), there are over four million workers employed at fast food establishments in the U.S. and half of them work part time. Turnover is high and this job pool is expected to narrow as new technologies become cost efficient alternatives to tasks currently performed by humans.

The education level required to perform most of these jobs is less than a high-school education.  Such jobs were not conceived as self-sustaining careers.  They are typically temporary positions for which the market pays a correspondingly low wage.  Nothing wrong with the work of course.  Many of us have performed such jobs -- I have -- and I take Lewis' point that if the average age of minimum wage workers is increasing, it says something troubling about our employment picture.  I never said that no wage increase is warranted or that all is sunny.  

However, should McDonald’s have a primary responsibility to "take care of us" or instead should they strive to satisfy customers, franchisees and shareholders?  What are the implications to our system if a corporation like McDonald's is pressured to act less like a business and more like a social safety net that also sells fast food?

Why is the implication that employees are "owed" more by McDonald's Corporation?  Most McDonald's restaurants are not even owned by McDonald's Corporation -- they are franchised to individuals or small businesses that pay royalties and franchise fees to McDonald's. This fact might not matter to one protester that Lewis interviewed who added,

"The corporation makes billions of dollars every year -- they can afford to pay us $15".

Piling on, Mr. Lewis writes, "Companies have paid the lowest wages they could, for as many years as they could".  Of course.  We call that a market economy.  Either way, can't we dial back the shame-mongering and instead focus upon additional training and education of the workforce? 

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The Truth About Wisconsin's Collective Bargaining 'Rights'

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Published in American Thinker - 4.3.2011

By Tim Peterson, Robert J. Simandl, and John J. Maddente

Right: noun: a just claim or title, whether legal, prescriptive, or moral. 

That's the definition of the word used in connection with Wisconsin's government union employees and their demands to retain collective bargaining privileges.  This issue more than any part of the Budget Repair Bill, has captured the nation's attention.

For weeks, we've heard demonstrators beating drums in Madison and equally vocal sympathizers in the media admonish anyone listening about "rights" of government union employees and the turmoil visited upon "the middle class" due to the Governor's Budget Repair bill.  We've also seen polls suggesting public support for some of their views. 

We do not believe that: 1) government employee collective bargaining constitutes a "right" by any reasonable measure, or 2) poll data spewed out by parts of the media has been properly framed, or useful to gauge public opinion. 

According to Encyclopedia Britannica, collective bargaining is
"A process of negotiation between representatives of workers (usually labor union officials) and management to determine the conditions of employment. The agreement reached may cover not only wages but hiring practices, layoffs, promotions, working conditions and hours, and benefit programs."
Further into the root of the issue, according to West's Encyclopedia of American Law, edition 2, in Constitutional Law rights are classified as natural, civil, and political. Natural rights are those that are believed to grow out of the nature of the individual human being such as rights to life, liberty, privacy, and the pursuit of happiness. Civil Rights belong to every citizen of the state, and are not connected with the organization or administration of government.

Political rights entail the power to participate directly or indirectly in the establishment or administration of government, such as the right of citizenship, the right to vote, and the right to hold public office.  Nothing in Wisconsin's Declaration of Rights (found in the State Constitution) guarantees a right to collective bargaining for any citizen, yet the reaction coming from government unions sounds as though the 1857 Dred Scott decision was dropped on them to enshrine slavery. 

One point appears lost in this discussion of "rights" (even coming from some commentators who supported the bill's passage).  Neither the U.S. Constitution nor Wisconsin's Constitution identifies collective bargaining as a right.  One can argue for an amendment at the state level -- and some advocates have recently done so -- but you can't credibly maintain that the legal equivalent presently exists. 

Therefore since collective bargaining is neither a natural, civil, nor political right, at best it is a right only in the colloquial sense of the term and merely a privilege in a purely constitutional sense.  It is a privilege in our view that has been badly abused in Wisconsin to the detriment of state taxpayers.  Collective bargaining actually denies the individual employee -- who might otherwise choose to decline a contract, or even decline the requirement to bargain collectively -- an ability to act independently, yet many continue to refer to this bargaining mechanism as a right.

While the recently enacted bill has caused much consternation, what it actually will do is replace collective bargaining with distributed bargaining and push down negotiations to the local school district levels -- where, in our view, they belonged in the first place.  We are bothered by the oft-used phrase of an "assault on the middle class" believing as we do, that it is not an assault on government employees who possess Cadillac health care benefits and retirement plans the rest of us only dream of.  Further, at 15% of the workforce (and even less of the populace), they hardly constitute the sweeping characterization we often hear as -- "Wisconsin's Middle Class."

The fact is, at the local level in many rural Wisconsin communities, public employment has become a fiefdom of privilege where, owing to binding interest arbitration based upon comparability, the never-ending spiral of wage and benefit improvements often results in local government compensation exceeding community "middle class" standards. The need to bargain virtually every operational issue makes implementing policy decisions and providing services a protracted struggle, often ending in grievance arbitration.

Perhaps this is why President Franklin D. Roosevelt, the patron saint of the American labor movement warned:
"All Government employees should realize that the process of collective bargaining, as usually understood, cannot be transplanted into the public service. It has its distinct and insurmountable limitations...The very nature and purposes of Government make it impossible for...officials...to bind the employer...The employer is the whole people, who speak by means of laws enacted by their representatives."
We believe by limiting Collective Bargaining, the legislature has enriched individual workers ability to work where they want and associate and negotiate with whom they choose and taken steps to reign in runaway costs.

We also take issue with the way poll takers have tried to report public opinion, and trumpet results.  Consider the USA Today/Gallup poll asking respondents, "Would you favor or oppose a law in your state taking away some collective bargaining rights of most public unions, including the state teachers union?"  Their poll data revealed that 61% of respondents said "oppose" and so the Feb. 22rd article title in USA Today blared, "Poll: Americans favor union bargaining rights"

We say -- not so fast.  In the first place, a more reasonably framed question would have been,

Would you favor or oppose a law in your state that substituted some collective bargaining privileges, including those of the state teachers union, with a move toward local bargaining?* 

The aforementioned USA/Gallup poll also indicated that 71% of us do not favor any tax increases as a means to reduce state budget deficits.  The problem with the USA/Gallup poll and those who like to seize only on responses to the first question mentioned above, is that they fail to ask respondents to choose between tax increases or spending cuts, as an either or proposition. Assuming we want present government employee staffing levels, we must choose between reducing costs, and levying tax increases for taxpayers.

A few commentators maintain that the $3.6B structural deficit Governor Walker inherited, does not actually mean our state is broke.  Of course the state can simply borrow more, raise taxes and user fees, engage in more accounting gimmickry (e.g. raiding segregated funds to close budget gaps), or some combination thereof.  That's what we have been doing for decades by kicking the proverbial can down the road. 

Change is never easy, but meaningful reform has come from duly-elected officials in Madison, Wisconsin.  We applaud our Governor and the Republicans for their leadership in standing for fiscal restraint and we remind our fellow taxpayers this boils down to a debate over controlling costs. Too much deficit requires lower and sustained limits on government employee benefits -- just like in real life where private businesses and taxpayers dwell. 

*Question shortened form published version.

Tim Peterson is a Milwaukee businessman and former Libertarian Party Candidate for US Senate, Robert Simandl is a Wisconsin attorney practicing employee benefit, labor and employment law and John Maddente is a Milwaukee businessman and former community columnist.

Submitted to US Senator Herb Kohl moments ago...

"Dear Senator Kohl,

I am writing as a private citizen to voice my strong opposition to the bill misleadingly labeled as the `Employee Free Choice Act' also known as Card Check.

The coercive leadership of organized labor does not need additional tools to intimidate ordinary men and women who prefer to remain outside the union. I would urge you to speak out against this legislation and expose it for what it is -- a catalyst for union demagoguery.

I am not against organized labor per se, but I am against bullies and thugs gaining ground with sanction from Congress.

Respectfully,


John J. Maddente"

Public education and "choice"

Some public education voices extol a right to choice that includes free-from-faith learning environments.  Public Teachers Unions have also historically chosen to fight performance standards intended to hold their members accountable.  
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Yesterday’s blog post from Patrick McIlheran is spot on.  Mr. McIlheran makes the point that when parents choose alternatives to public education for their children, the principle of free choice often vanishes from teacher unions' consciousness and they behave as though they are the victims.  

I'll always choose to support a strong public education system, but I also choose to reject the views of those who are antagonistic, if not hostile toward alternative education.  We also need adoption of reasonable and enforceable performance standards for public school teachers.  

Is that what heaven looks like?

L ast week before leaving Thailand (more about that trip shortly), I learned my brief reader's comment about financial advisory services...