EFCA - Idle Hands and Unintended Consequences
The L.A. Times reports on "L.A. Unified pays teachers not to teach - About 160 instructors and others get salaries for doing nothing while their job fitness is reviewed. They collect roughly $10 million a year, even as layoffs are considered because of a budget gap."
While the Wall Street Journal, in writing on potential alterations to the Employee Free Choice Act in order to get it out of the Senate, quotes Mike Eastman:
"The issue of government arbitrators telling an employer how to run their business is not something the employer community is going to accept."
Elsewhere in the WSJ, George McGovern - former senator from South Dakota and the 1972 Democratic presidential candidate - shows his displeasure with forced contracts as well:
Last year, I wrote on these pages that I was opposed to this bill because it would eliminate secret ballots in union organizing elections. However, the bill has an additional feature that isn't often mentioned but that is just as troublesome -- compulsory arbitration. This feature would give the government the power to step into labor disputes where employers and labor leaders cannot reach an agreement and compel both sides to accept a contract. Compulsory arbitration is bound to trigger the law of unintended consequences.
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In a contract negotiation, each party typically perceives the other as too demanding. But no one loses their right to contract willingly or suffers being forced to agree to anything....EFCA would disrupt that balance by enabling government-appointed lawyers to decide what they believe is fair or reasonable.A federally appointed arbitrator cannot be expected to understand the nuances specific to each business dispute, the competitive market position of the business, or the plethora of other factors unique to each case. Yet fundamental decisions on wages and benefit costs, rules for promotions, or even rules for exiting an unprofitable line of business could fall to federal arbitrators under EFCA....Compulsory arbitration is, in one sense, government dictating to employees what they will win or lose in the deal, with no opportunity to approve the "agreement." Why should employees pay union dues to get such a contract?
My perspective on the so-called Employee Free Choice Act is informed by life experience. After leaving the Senate in 1981, I spent some time running a hotel. It was an eye-opening introduction to something most business operators are all-too familiar with -- the difficulty of controlling costs and setting prices in a weak economy. Despite my trust in government, I would have been alarmed by an outsider taking control of basic management decisions that determine success or failure in a business where I had invested my life savings.
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