Showing posts with label unions. Show all posts
Showing posts with label unions. Show all posts

Monday, March 3, 2014

David G. Tuerck interviewed by Massachusetts Matters on the recent UAW vote in Tennessee.

Tuesday, May 4, 2010


How else could we say it?
MANDEL: "We all know that state and local government finances are a mess. This chart helps explain why."

Chart is here.
Key paragraph:
Now, I’m not anti-government, by any means. But this trend is disturbing. In times of crisis and economic struggle, government workers should not be getting bigger pay increases than the private sector. The domestic private sector has really been struggling for a decade, both in terms of job and pay. But the public sector kept paying higher compensation.

The arithmetic is very clear. State and local governments can’t keep funding higher wages and better benefits for their workers, while the private sector struggles. As a wise man once said, you can’t wring blood from a stone. And you can’t ask troubled taxpayers to pony up bigger pay gains for government workers than they are getting themselves.
Hat tip to Marginal Revolution.

Thursday, March 25, 2010

Repeal Davis-Bacon? One way to save money

DAMON W. ROOT of Reason Magazine takes on the rent-seekers:
For nearly 80 years, contractors working on federally funded construction projects have been forced to pay their workers artificially inflated wages that rip off American taxpayers while lining the pockets of organized labor. The culprit is the Davis-Bacon Act of 1931, which requires all workers on federal projects worth more than $2,000 to be paid the "prevailing wage," which typically means the local union wage.

Here's what happens. Unskilled construction workers possess one clear advantage over their skilled, unionized competitors: They're willing to work for less money. But Davis-Bacon destroys that advantage. After all, why would contractors working on a federal project hire any unskilled workers when the government forces them to pay all of their workers what amounts to a union wage? Contractors make the rational choice and get their money's worth by hiring skilled unionized labor even when the project calls for much less.

Davis-Bacon is a blatant piece of special-interest, pro-union legislation. It hasn't come cheap for taxpayers. According to research by Suffolk University economists, Davis-Bacon has raised the construction wages on federal projects 22 percent above the market rate.
BHI's research on the prevailing wage.
Related material here.