UPDATE: More information on the labor reform issue in Nebraska: Senator + Lobbyist = Zero Real Reform.
Public Unions: Revolting, Nation-wide
As the budget crisis deepens, state and local governments are seeking new means of cutting costs. The recent pro-union protests in Wisconsin have taken center stage in the national budget battle and have inspired similar protests across the country.
The Nebraska Capitol was the site of Nebraska’s Wisconsin-esque protest this Saturday. Hundreds of Nebraskans showed up on a cold, snowy day to show their support for union members and the retention of collective bargaining by state employees. To get a better understanding of the pro-union perspective, Jeremy Jensen of the York County Tea Party briefly interviewed several protesters. His video provides several examples of the unfortunate misconceptions people hold about public unions.
The Case for Labor
First, a woman described the pro-union view of private corporations (4:00), “we have seen time and time again that corporations will not support our rights as workers … their bottom line is money not people.” This interpretation of American corporations hearkens back to the industrialist days prior to World War I. Corporations are motivated purely by profits and would presumably enslave anyone who they can get their hands on, according to the unionistas. On the other hand, unions protect the “little guy” workers from awful greedy men who would dare to question public union members’ ‘right’ to retire at age 45 and get paid over $80k per year while getting hundreds of days off every year. Never mind corporations, this rally was about public unions, so the evil greedy corporation in this case is YOU: the taxpayer.
She later clarified what she meant by ‘rights’ (11:35), “Worker rights are human rights, period.” Human rights generally refer to protection from activities such as slave labor, forced prostitution and war crimes. I don’t think any rational person would disagree with her - those things are unacceptable, but she takes the idea of human rights much further. Her perspective is that workers deserve the right to collectively bargain, to come together and force cigar-smoking employers in top hats to provide ever-increasing guarantees of benefits and pay. This is always backed with the threat of force by way of production-crippling strikes.
Economic Reality
Individual employees who feel they are underpaid are always free to seek better employment. It is not uncommon for people in the private sector to change jobs often. However, if an employee is working in an industry dominated by a monopoly he or she may have much more difficulty finding an equivalent job.
In a free market the general rise in prices for goods or services produced by unionized businesses will discourage consumers and they will tend to take their business elsewhere. If the union understands the lost market share resulted from their actions, future demands on employers will be less drastic and the business can still compete with non-union counterparts.
By nature, government is a monopoly. By monopolizing sectors of the economy (police, fire, schools) the government erases the free market counter-balance described in the paragraph above. Unions can continue to make higher and higher demands. Members can shirk productivity because the union protects them from having to compete.
Politics interferes with normal employer-employee relations, especially in the form of high pensions. Promises of future compensation are written into contracts because it conceals the compensation in the immediate view (i.e. a $40k salary sounds reasonable, but the real costs are contained in extravagant pensions that don’t pay out until later).
Over time taxpayers pay higher and higher taxes without receiving corresponding increases in productivity. Ultimately these factors have led us to the current debt crisis. A man at the Capitol rally Saturday acknowledged the debt (8:20), incorrectly stating that Nebraska is “almost a trillion dollars in debt”. In reality the budget shortfall for FY12 is $314 million – no small amount but definitely nowhere near $1 trillion.
Nebraska Legislature Incapable of Reason
After the Omaha union/budget fiasco of 2010 a whopping NINE labor reform bills were introduced in the Nebraska legislature. Business and Labor Committee Chairman Senator Lathrop said, “They want to get rid of labor unions, because they want everyone to work for minimum wage.” As Chairman, Lathrop can dictate the direction of any labor reform. He introduced one of the nine bills, LB 397, but it is a “shell bill” meant to be a placeholder for a later substitute. His apparent bias toward labor unions and his key position in committee will likely mean any labor reform will be ineffective.
One Ray of Hope in the Battle of Public Union Budget Woes
LB 50 would help to diminish the monopoly of public unions in education. It would create scholarships for children so that they can attend private schools. See Advancing School Choice in Nebraska for more.
More Pro-Union Protest Statements
1. 8:20 - “that’s what Republicans do, they spread lies!”
~Rather than use rational judgment, it is easier for partisans to simply demonize the opposition.
2. 13:20 - “if governments cut employment in a recession they make the recession worse. They have to run deficits, which they can easily do.”
~FDR, according to some textbooks, singlehandedly saved America during the Depression by creating 3-lettered bureaucracies to employ displaced workers. The benefits of government projects are questionable, inefficient at best, but FDR convinced people of the goodness of government with his jobs programs. America had the ability to deficit spend back then because the dollar was much more valuable but today’s monetary situation at the Federal Reserve and the fiscal situation in Washington make it increasingly difficult to continue funding deficits without de-valuing the dollar. Furthermore, states and municipalities cannot print more money to pay for bills like the Fed/Washington can.
3. 13:46 - “I don’t know how changing the CIR is going to fix the budget problem,” said one union leader.
~If you don’t understand you shouldn’t be leading anybody.
4. 14:30 Regarding corporations’ bad working conditions: “I don’t want to call out any corporation per se. I think wages get lower and lower when you allow them to. Or there’s ways in which corporations find ways to cut corners which means maybe your wages don’t go down but you’re expected to work more hours. They’re always trying to get more productivity out of workers.” … “To get productivity out of workers is great but to squeeze them to the point where they no longer … care about what it is that they’re doing … your job should bring you happiness, it should bring you meaning.”
~While smart enough to perceive decreasing wages, the woman doesn’t make the connection to decreasing prices. Products across the board have continually become cheaper due to things like increased worker productivity, increased quantity of competing products, increased number of overall products on the market, and decreasing costs of materials. Think about the cost of computers and cell phones as well as the increased productivity they enabled. All of these factors are normal functions in the free market, and while the numerical values of prices and wages have changed over time the overall result of free market competition has been increased quality of life. Strange, quality of life seems to be what she is getting at in the second half of her statement?!
5. 15:20 – “This governor pushed his responsibility off to cities, forcing them to raise taxes, not doing what he is supposed to do.”
~Running city budgets is not the duty of the State Government. If it were, there would be no point in having city governments.
6. 15:40 - Paying taxes is patriotic?!
~I simply disagree with this.
7. 16:50 - “we have to protect Nebraskans, we have to protect United States-ians”
~I just hope any liberty activists who get interviewed at events know better than to say something as outrageous as “United States-ians”.
Even More Ridiculous Statements
The correlating rally in Colorado’s capital Denver was more raucous, with a large union rally countered by a large tea party. One woman’s summary/impression of the goofy insults heard that day: “Yeah! How dare you send your children to homeschool instead of public schools because the teacher’s union is in charge of public schools and they are doing such a great job, you jobless, except secretly job-having, rich, regular-clothes-wearing, except secretly wear your suits and sit behind your desks and spend your money, Escalade-driving Nazis, you Wall Street tools, who are also slaves and secretly Chinese?! Yeah!”
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