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WSJ: Mandatory Binding Arbitration Means More Power for Union Bosses, While Workers Lose Rights

Here at Freedom@Work, we've covered the so-called Employee Free Choice Act (more accurately called the Card Check Forced Unionism Bill). The job-killing bill would effectively eliminate the secret ballot in union certification elections and open up workers to intimidation and dirty tricks by union organizers in coercive card check organizing drives.  Moreover, the bill's mandatory binding arbitration provision would allow federal bureaucrats to impose terms and conditions of employment on workers and employers -- which even Far Left icon George McGovern opposes.

Shikha Dalmia, senior analyst at the Reason Foundation, wrote in the Wall Street Journal this weekend -- echoing what National Right to Work has been documenting for years -- that mandatory binding arbitration has been occurring in government employment in numerous forced unionism states with atrocious results.

In 1969, the Wolverine State embraced a form of compulsory arbitration nearly identical to the one proposed in EFCA to resolve disputes with its police and firefighters. Years later, Detroit mayor Coleman Young -- who had authored the original law as state senator -- rued what he had done. "We now know that compulsory arbitration has been a failure," he lamented to the National Journal in 1981. "Slowly, inexorably, compulsory interest arbitration has destroyed sensible fiscal management and has caused more damage to the public service than the strikes it was designed to prevent."

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A 2006 task force convened by Gov. Jennifer Granholm, who supports compulsory arbitration, found that local government costs in arbitration states are 3%-5% higher compared to nonarbitration states. "While small in percentage terms, the impact in dollar terms is huge," the task force concluded. Given that local governments in Michigan alone spend over $23 billion annually, this works out to over a billion in extra spending for them.

Michigan's experience is hardly unique. Former Massachusetts Gov. Michael Dukakis also tried to limit public-sector compulsory arbitration during his first term. In 1977, Mr. Dukakis argued that compulsory arbitration "has removed legitimate management prerogatives in the area of staff assignments, (and) transfers from the control of municipal officials at a time when they are under severe pressure to improve their management and make savings." Mr. Dukakis failed to stop compulsory arbitration, but two years later Massachusetts voters approved a ballot initiative that effectively scrapped it.

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Businesses are not the only losers in compulsory arbitration. Currently, any contract negotiated by union officials has to be ratified through a vote of rank-and-file members. Under compulsory arbitration, workers do not get this vote. In other words, EFCA will take away the right of workers to vote to form a union, and then binding arbitration will take away their right to vote on a contract.

The only clear winners under this law would be the union bosses, who will obtain new powers without any new accountability. If Michigan's experience suggests anything, it's that rank-and-file workers, businesses, and the American economy will suffer. Sen. Lincoln and her colleagues should bear this in mind before they make their final decisions.

[Emphasis added]

Read the whole thing here.

 


Click here to watch an urgent video message from Senator Jim DeMint, Steve Forbes, and National Right to Work Foundation President Mark Mix. 

Another Day, Another Union Stooge Appointed by Obama

In the latest of a litany of Big Labor political paybacks, President Barack Obama nominated union lawyer George H. Cohen to Director of the Federal Mediation and Conciliation Service (FMCS). 

According to the Peggy Browning Fund’s biography of Cohen, "he joined the National Labor Relations Board in 1960 as an Attorney Advisor for Board Member [Gerald] Brown where he helped shape the progressive, union [boss]... friendly agenda of the 'Kennedy Board'…  In 1966, George left the Board to begin his 40 year stint as a union-side labor lawyer."

Cohen’s past efforts on behalf of union chiefs clearly indicates that he brings years of forced unionism bias to what is a very coveted position for Big Labor.

Under the mandatory binding arbitration provision in the Card Check Forced Unionism Bill, the FMCS bureaucrats would take over employer/union boss contract negotiations 90 days after a card check forced organizing campaign.  The forced arbitration provision that is triggered at 120 days not only snatches the power of contract negotiations away from the people it actually affects; but it also, as the Wall Street Journal notes, emboldens union bosses "to run out the 120-day clock and let an arbitrator impose a contract that is bound to include much of what unions demand."  The federally-imposed contract would be binding for two years.

If Big Labor's Card Check Forced Unionism Bill passes, the Cohen-led FMCS would become a defacto rubber stamp for union boss coercion, doing Big Labor's dirty work during negotiations and empowering them to browbeat employers into forcing more workers into forced-dues-paying union membership.

Obama's nomination of yet another union hired gun, this time for the vital post of FMCS Director, is just another example in a long list of union stooges who clearly do not have the best interests of independent-minded workers at heart.


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