Friday, May 13, 2011

Labor Relations & the NLRB

http://online.wsj.com/article_email/SB10001424052748703730804576317140858893466-lMyQjAxMTAxMDEwMzExNDMyWj.html

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"When I'm getting ready to reason with a man, I spend one-third of my time thinking about myself and what I'm going to say - and two-thirds thinking about him and what he's going to say." (Abraham Lincoln)

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What's a government without a little regulation? So, the NLRB has told Boeing where it cannot build a plane. Now, as we see from the WSJ article attached, between 2000 and 2008, 4.8 million Americans moved from forced union states to right-to-work states - that's one person every minute of every day.

The NLRB filed a complaint last month against Boeing to block production of the company's 787 Dreamliner at a new assembly plant in South Carolina - a right-to-work state with a law against compulsory union membership.

The NLRB is looking for nothing less than returning this new production to the Boeing plant in Washington.

This is the first time a federal agency has intervened to tell an American company where it can and cannot operate a plant in the U.S. So, the plane will cost MORE to build (if the decision goes against Boeing). If the decision goes against Boeing, what's to prevent them from building the plane overseas? Then everybody is out of the new jobs! Earth to the NLRB!

Earth to NLRB 2: "Employers that move away from forced-union states mainly do so not to scale back wages and salaries - although sometimes that happens - but to avoid having to deal with intrusive union rules, the threat of costly work stoppages, lawsuits, worker paychecks going to union fat cats, and so on." (WSJ)

So, it's about that "regulation thing." Do we really know what we're doing?

6 comments:

  1. Wow, absolutely POSITIVELY one of the most baffling things I've heard.

    I blogged about this when I read it: http://behindcompanies.com/2011/05/boeing-and-the-union-berlin-wall/

    Here are my main thoughts:

    The key issue is that labor unions sound great, but in practice they only hurt. They are essentially a monopoly on labor that levels everything out for everyone. It helps low performers while hurting top performers.

    The fact that I’ve grown up in a right to work state and one that is the most business friendly, has me baffled that if you’re pissed at your employer you can just stop working. If you’re pissed, you should go find another company to work at. If you can’t find one that will hire you for better benefits, it means you’re making what you’re worth.

    Man, I hope Boeing wins.

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  2. I have to agree with Marcelo - Wow!

    I am not an expert on unions, so I have a question. How is what the NLRB doing legal?

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  3. First of all, to Tracey and Marcelo: Wow! I love the fact that my point had some impact on you!!

    Second: the NLRB was created at a different place and time when unions needed legal protection from abusive employer tactics. That time is long gone. While I'm no expert on the Supreme Court, I'm confident that the NLRB will be embarrassed at the outcome of this case if it gets that far. So, technically, the NLRB feels that it is within the law (or their charter) to act as it has. If, by some ridiculous insanity, the Supreme Court upholds the NLRB decision, we'll see more jobs going overseas.

    I'm actually going to ask Phil Jones (a recently retired labor law partner at one of the largest law firms in Dallas), who comes in to talk with my students on labor issues, to talk about this case this fall. Among other things, Phil has practiced before the Supreme Court and represented Boeing.

    And, could I just mention "regulation?" Because the SEC (and other regulators) is incompetent, we get the worldwide financial crisis - add Alan Greenspan @ the Fed who was busy telling us that the financial markets regulate themselves so the Fed doesn't need to do anything. So, with those situations we have: NO REGULATION. With the new NLRB case against Boeing we have: INCOMPETENT REGULATION.

    This is how we do the business/government relationship here in the U.S. And, what was that current unemployment rate again?

    ReplyDelete
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