BooneCountyGirl
skyler the weird
Rick Barton
Joe
Wiley Coyote
Labor Pains: Unions And The DNC Hit Queen City
In my almost 30-year finance career I’ve worked with literally thousands of companies, and I cannot think of one instance where union involvement has been positive for a business. Conversely, I can think of multiple examples of unions creating needless problems for businesses, and in some cases being a major contributor to business failure. Union involvement is a huge negative for banks, equity investors and other providers of capital to business, including small business.
Unions served a very important purpose in the early/mid 20th century – for example, unions contributed to the eradication of many atrocities levied on West Virginia coal miners by their employers. Today, with OSHA, state labor regulations, plaintiff attorneys, etc., unions are absolutely useless and outdated, and they are a medium for promoting and affirming mediocrity and incompetence in a workforce.
I have a close friend – a coach for one of my kids – whose local business recently failed partially because he lost government work to out of state union companies, despite his company having a great track record and being cheaper. This happened post Obama. My friend’s local company has closed and over time at least nine people lost their jobs. This has placed quite a strain on his family, and caused him to pursue a total career change. My friend’s very difficult experience further demonstrates that unions are part of the problem and NOT part of the solution.
The DNC And Unions
Should North Carolina citizens be concerned about the following clause in the Charlotte DNC contract?
“To the extent permitted by law, to the extent, if any, such labor is available in the region, and except as otherwise expressly agreed by the DNCC, all services, goods, equipment, supplies and materials to be provided or procured by the Host Committee hereunder shall be performed or supplied by firms covered by current union collective bargaining agreements with the unions which have jurisdiction for the work or services to be performed.”
Lawyerese to English translation – for the DNC, union companies will have priority over nonunion companies.
Here’s the real catch: according to this clause price doesn’t matter; quality doesn’t matter; speed doesn’t matter; track record doesn’t matter; promptness doesn’t matter. The only thing that matters is being union.
This requirement is likely to trump truly local companies from getting DNC work in some instances. For example, from a legal standpoint it takes about two minutes for, say, a Chicago union-dominated construction company to establish a NC-based subsidiary. Should that happen, my reading of the DNC contract indicates that the Chicago-based union company will trump our truly local nonunion companies and obtain DNC work due to this technicality.
Unions Aiming For NC And Charlotte Government?
Given the Democrats’ crushing election defeat statewide in North Carolina, but the continued Liberal dominance of the Charlotte City Council and the Mecklenburg County Commission, does this mean that the DNC is the first major salvo in union efforts to organize in Charlotte?
Let’s not kid ourselves – Anthony Foxx et. al. would love to see major union infiltration in Metrolina business and government to further solidify their political base and provide a major source of funding. For Charlotteans that is a very, very bad thing; the financial deterioration of many states and major US cities is largely due to the bloated pay and pensions of unionized public workers.
Public unions are obviously a huge conflict of interest. How can an elected official objectively negotiate/approve a public union contract when that union and its employees contribute (or not, as the case may be) to the elected official’s campaign? Plus, what if certain truly “critical” public workers (e.g. fire, police, air traffic controllers) go on strike? What then happens to public safety and security?
That said, unions absolutely have a right to organize in the private sector. What they DO NOT have the right to do is harass people and trespass on private property, as about 500 Service Employees International Union members did last year in Washington DC to a Bank of America executive and his family, including the executive’s teenage son who was alone in the family’s house at the time of this incident. Unions also do not have the right to coerce workers into voting for unionization by intimidation and thuggish methods such as ”card check.”
You can bet Fort Mill and Rock Hill are anxiously watching for any signs that unions are further infiltrating Charlotte.
Unions Are Bad For Economic Growth And Capital Flows
In the capital-raising arena – my expertise – providers of capital view unions very unfavorably. All things being equal, they will charge higher rates to a union-heavy business to compensate for increased business risk. At the extreme, certain financial organizations refuse to fund union-heavy companies – they don’t want the aggravation.
Businesses need capital to survive; unions discourage capital flow and thus discourage business growth, hiring, etc. Unions are a deterrent to economic growth.
I am truly not trying to rain on any parades regarding the DNC. I am thrilled to see any large group congregate in Charlotte if they will abide by our laws and provide an economic boost to the region. But it is important that “real life” business issues such as unionization come to the attention of our citizens with regard to the DNC.
We need your help! If you like PunditHouse, please consider donating to us. Even $5 a month can make a difference!
Short URL: http://pundithouse.com/?p=5075
Recent Posts by Sam McNeil |
Some thoughts on Dem Convention: From reading the CO you would think this is the biggest event to ever hit Charlotte. Estimated attendence is 30,000-35,000. NRA came to town in May 2010. Attendence: 75,000. I can promise you the average NRA attendee had much higher disposable income and spent more than the attendees of the future Dem freak show will shell out. The CO claimed that the Dems who attend convention will go visit NASCAR museum and become avid fans which will result in increased attendence for our latest albatross. We had 75,000 NRA attendees who are a read demographic for NASCAR. They didn’t exactly turn this piece of garbage into a roaring success did they????? Drug dealers, hookers, and bars will clean up from this convention and the taxpayers will foot the bill paying for it by being customers of BOA, Wells, Duke Energy etc… who will “finance” the convention by “donating” the money they charge us to do business to the DNC.
Like or Dislike:
1 
0
Martin, while I completely agree with your sentiment, your argument isn’t completely true. My family and I counted for 6 of the attendance. We went twice, once on Saturday to look around, and after church on Sunday to buy a pepper spray gun for my wife. There was no way there were 75,000 unique visits to the NRA convention. The number is probably half that, and the majority of that number are from people who live within 150 miles of Charlotte (2 1/2 hour) drive. Also, the NRA convention took place Friday – Sunday. It didn’t really interfere with the normal uptown workday.
That’s not to say the NRA convention wasn’t a great time!
As for the income issue, I’m sure the Dem delegates have quite a bit of cash to spend. The bigger issue that nobody seems to get is that political conventions, outside of the LATE, LATE, LATE night parties, are working sessions. The NASCAR HOF and the museums are only going to see token increases in attendance during that week. Although, I’m sure someone (the taxpayers) is going to be footing a bill for a fete at the NASCAR HOF featuring Dem bigwigs going through bottles of $125 wine like it was Coca-Cola.
BTW, Drug dealers, sex workers, and bars do benefit anytime there’s a large gathering in any city.
Like or Dislike:
0 
0
No way a transvestite from San Fran is going to become a NASCAR fan and I can assure you the demographic represented by the Dem Convention will generate more business for the drug dealers, hookers, and bar owners than any other convention that has ever come to our world class city.
Like or Dislike:
1 
0
I’d go even further and say the CIAA tourney probably does more biz for many local shops than the DNC ever will. As I’ve tried to explain, walk-up biz will die for some weeks Uptown. Maybe the convention week makes that up — if you land some big contracts and are very good at managing such things. There is just not going to be the giant pot of gold that too many local biz people who should know better are imagining.
First test, who does the Arena work?
Like or Dislike:
0 
0
Unions are far from perfect, but to make the claims your levying against them is almost laughable.
You claim that Unions are bad for economic growth. Did you miss the collapse of the stock market? Ultimately, the blame for the majority of fiscal problems of local and state governments rests at the feet of Wall Street speculators and the Banks you defend. They are the ones who crippled the U.S. economy with what amounted to fraudulent investment schemes.
Time Magizine recently published a story on who was to blame for the financial crisis and you will notice that not one Union or union member is mentioned: http://www.time.com/time/specials/packages/completelist/0,29569,1877351,00.html
You make it clear that Charlotte politicians should not be infiltrated by unions but how do you feel about other lobbyist groups like the Chamber of Commerce who are all ready in bed with the Charlotte politicians.
How about some objectivity the next time you spew your next personal opinion piece.
Also, before the next time you make a statement about Unions creating an “incompetant workforce” how about doing a simple fact check on facts you are presenting. Police and Fire are not allowed to strike by law and all four of the major Police Unions and the International Association of Fire Fighters forbid it by their members because of the risk it would put the public.
Like or Dislike:
1 
2
So “Time” magazine says unions were not to blame for the economic collapse, it was actually the fault of CAPITALISM!!!!!!!!!!!!!!!!!!!!!!!!!!!!! What an original and stunning finding.Well, there you have it. The definitive conclusion. Straight from the mouth of God.
Like or Dislike:
0 
1
Instead of just attacking the source why don’t you debunk the argument. Enlighten us on who is to blame for the economic collapse? I’m pretty sure it wasn’t labor Unions giving high risk loans than gambling on wall street on things like credit default swaps. Where Bernie Madoff andKenneth Lay corrupt union bosses?
Was it capitalism or facism that bailed out BOA, Goldman Sacs, GM ……..
Like or Dislike:
1 
1
http://arkansasgopwing.blogspot.com/2011/02/union-boss-calls-proponents-of-spending.html
More evidence of the cluelessness, selfishness and greed (yes, GREED) of unions, Mr. Brewer.
Like or Dislike:
0 
0
@ Tom Brewer —
I must say, your comments are quite confusing because:
++ I don’t defend any financial institutions, banks, Wall St., etc. I simply state facts as to the business practices of these organizations based on 29 years of dealing with them. How is that defending them? What is YOUR experience and knowledge of how capital providers view the risk of unionized companies, Tom? I would appreciate hearing more about your actual experience in this regard – and sorry, the sensationalist but basically factless journalists at Time Magazine (whose circulation rates are falling off a cliff) don’t count.
Citing Time Magazine, are you serious? Next time cite a real publication – at least upgrade to the NYT or WSJ.
++ You mention the stock market “crash”, which by the way is now back to about 87% of its prerecession level based on the DJIA, yet you conveniently forget the long term decline/demise of many heavily unionized industries. Remember the US steel industry “crash” 20-30 years ago? How about the decline of the US auto industry since the 1980′s, which had been one of the most powerful industry groups in the world during the post WW II expansion? Airlines – what airline of any significance hasn’t filed bankruptcy at least once – do you think unions have been good for that industry. Why do you think companies migrated from the highly unionized northern regions to the South 40-50-60 + years ago, and are now migrating overseas? A big reason is union avoidance.
Maybe you need to add some historical perspective to your “objective” analysis of facts.
+ Let’s talk strikes, Tom. What law prevented the air traffic controllers from striking in the 1980′s and posing a huge danger to the public? What prevents union airline mechanics from striking a posing a huge danger to airline passengers? Maybe there are laws to safeguard against “critical” public workers, but I do believe that unions have maybe “tweaked” a law or two in the past, wouldn’t you say? Or do the words “pension fund” and “Mafia infiltration” not ring any bells with you?
++ All lobbying groups should be on the same footing. But you miss a very important point – when public sector unions donate to their bosses, i.e. elected public officials, it is a huge conflict of interest because those “bosses” sign off on union contracts. The conflict could not be more pronounced. Besides, unions seem to be doing just fine in the political donation department —
http://www.workerfreedom.org/public-sector-union-tops-campaign-contributions-a3842
http://online.wsj.com/article/SB10001424052702303339504575566481761790288.html?mod=rss_Politics_And_Policy
Tom, apparently you are not an economist or businessperson. If you were, you would probably not read Time Magazine, and instead read more serious and incisive publications such as the Wall St Journal, Barron’s, Fortune, Bloomberg/Businessweek and Forbes. If you did, you would also read about how the Bernie Madoffs and Ken Lays pale in size to the Fannie/Freddie escapades, how bailing out Fannie/Freddie will dwarf any bailout to date, and why the dollars involved in this bailout are estimated to reach $500 bil to $1 trillion.
++ Tom, let’s talk more objectivity about public worker union pay. How do you feel about unionized police, firefighters, etc. working huge overtime in the 12-24 months prior to retirement so they will get big pension checks from their states after they retire in their 50′s and live another 20-30 years? All on the states’ dole? Getting paid for free? Want facts – well, check out how far states are in the hole on pensions, much of which is due to public sector unionized workers —
http://iimagazine.com/pensions_and_endowments/Articles/2442415/Trillion-Dollar-Pension-Crisis-Looms-Large-Over-America.html
Sorry, Tom, but the facts don’t support your arguments.
By the way, are you an NFL or NBA fan? What happens when the player unions go on strike because they are upset with the way their multimillionaires are treated? Do the players (and admittedly the team owners) have the fans best interests in mind? I hope they do go on strike, and fans abandon them. Teach them all a lesson.
Like or Dislike:
0 
0
@Sam, I apoligize for coming across as confusing and probably somewhat disjointed. As I’m sure you would agree it’s easier to get your point across while debating points in person rather than in this kind of forum. Not that you can’t make points and get other people’s views by doing this.
Anyways, I won’t put up much of an argument about Time Magizine, it would be like using The Pundit House as a legitimate source. However in the case of the point I was making they were right on a lot of the players who cause the current financial mess that this country is in and not one was a union member. The fact the only real challenge you gave to me was discrediting the sorce. If your saying that the stock market is back that means you are saying the the Democratic policies of bailouts and stimulus worked than? Dems should get all of the credit and you should be happy the DNC is coming here. You probably agree with me that the stock market numbers are just inflated due to stimulus and bailout and another bubble burst is looming. Besides just because your numbers are back on wall street it doesn’t excuse them or erase the damage that they inflicted on this country and on working people like myself. That is going to take years to fix if ever.
As far as blaming unions for the problems of the auto and steel industry’s it’s just not that simple. Sure the unions played a part, but there were other factors. Like all business’s things like taxes, unfair trade agreements, health care cost, legacey escepecially, hurt them but another huge problem for US car manufacturers was that the were designing some pretty crappy products in the 80′s-early 2000′s. The cavilier, geo’s, taurus…to compete against better designed cars like the accord, sentra… Also GM got in a lot of trouble by doing things like starting a bank, buying Sabb, Hummer and other questionable moves by management. Besides if the unions get the blame for their demise they should get the credit for their previous success. Besides during this latest economic downturn, not caused by unions, the workers have all made concessions, the UAW has actually taken over all of the healthcare and the companies are on the upswing. IMO those companies succeded together and failed together, it’s a partnership. At least it should be, admittidly not always the case.
Unions do make it harder for business’s because they force the employer to treat the worker fairly and honor commitments. The get greedy at time, but that’s human nature and being involved in finance the way you are you see a lot of greed as well. Business historically and continue to chase cheap labor.
Blame unions all you want, but the facts are, union membership in the US is at an all time low with only about 13% of the work force belonging to them. NC is the least unionized state in the nation at 3.2% and we face the same budget shortfalls as other states and gov officails in this state don’t have to deal with any union contracts. 3.2% of the workforce in NC yet the furniture plants and textiles still left for cheaper labor.
Like I said in my initial post, unions are far from perfect. The problems this country faces have more to do with poor decisions by gov officials, and the current financial mess created by wall street, and banks taking high risk on things like credit default swaps.
As far as the NFL make sure you understand that there will be no strike. If their is no NFL season it will be do to Billionaire owners “Locking Out” Millionaire players. The owners are the ones not wanting to live up to the contract that they themselves actually wrote and presented to the NFLPA about 5 years ago.
Like or Dislike:
1 
0
Tom, I appreciate your reply. We will have to agree to disagree re: unions. No problem, respectful disagreement helps make our country great.
Were there other factors that made steel, airlines, and auto companies go bust? Absolutely – bad mgt, bad markets, better competition, etc. However, unions played a huge role.
Now Tom – re: NFL/NBA, lockout or strike is an “ego trip technicality” of the players and owners. The players strike if the owners don’t lock them out, and vice versa. The primary point is that a work stoppage will be caused by mgt/union disagreement, and damn the fans — the ones who really make it work for both of them (as they did BEFORE the NHL “lost season” per labor/mgt unrest).
Union membership is way down, as it should be, and in my mind because unions are outdated in this country. But the Richard Trumkas of the world still seek job security and power – thus, they are focusing on Hispanics, illegals, govt workers, bank tellers, etc. As you know, in these efforts unions try to use “card check”, which is an outrageous breach of the right of privacy, and opens union dissenters up to all sorts of abuse.
Look – I don’t know what you do. But in my line of work and based on the experience of personal and professional friends, unions are nothing but trouble and are a big contributor to many ills that our country and the business community now face. The last thing the CLT area needs is another economic body blow in the form of unions infiltrating our govt and businesses – if so, watch our businesses (and our jobs!) head to SC, TX, TN, VA, WV (yes, I DID say WV), etc.
No offense Tom, and I’m not trying to be an ass, but I don’t care to see that happen. The world is already competitive enough without additional unions to further hamper CLT bringing in more business.
Like or Dislike:
0 
0
Sam, I forgot to mention. Something we can both agree on is Pension Spiking. Although very few do it, it is a practice that I don’t think anyone would try to defend.
Here are some pension numbers from some very conservative groups who fight unions really hard including the ICMA, Leauge of Cities and Leauge of Municipalities. Granted they have a vested interest in pensions but here it is anyways: http://www.prnewswire.com/news-releases/national-state-and-local-government-organizations-get-the-facts-out-on-public-pension-plans-115032269.html
Like or Dislike:
0 
0
Tom:
Please forgive my smart aleck tone in my earlier comments. Sometimes I get carried away. I will be posting some thoughts on the financial meltdown next week which will hopefully give you my thoughts on why it happened. You are absolutely correct when you say unions were not the primary cause of the situation.
Like or Dislike:
1 
0
Tom – an article that says a lot of what I say, albeit in a more articulate manner.
Interesting article quote —
“In 2010, the number of union-represented employees government employees (7.6 million) surpassed the number of unionized workers in the private sector (7.1 million) for the first time. Since it’s peak about 55 years ago, private-sector unionization has declined by almost 80% (from 33.9% to 6.9%), while public-sector unionization has almost tripled, from 9.8% to 36.2%.”
These numbers give additional credence to my concern over public sector unionization in CLT and NC.
Like or Dislike:
0 
0
link to article
Like or Dislike:
0 
0