Saturday, May 16, 2009

The REAL Reason for Card-Check

McIlheran did a bit of digging and exposes the.........ummmmnnn........uncovered bets.

It begins with Spectral Specter's half-reverse on card-check, whereby he would support only the compulsory-arbitration portion of the legislation.


Failing pension plans are a major problem for unions. Unions create these multiemployer, collectively-bargained plans in order to provide retirement income for workers in several different places of employment. This requires the union, the sponsor of the plan, to negotiate with each employer to join and contribute to the fund.”

“If the arbitration panel were to require a firm to join one of the many underfunded plans, the firm could well become liable for the pensions of workers, some already retired, of other firms. This would generate an inflow of new cash to the plan but harm the financial position of the firm. According to Brett McMahon, vice president of the construction company Miller and Long, ‘Strengthening underfunded plans is an unstated union motive for seeking mandatory arbitration.’”

That from the ex-Chief Economist of the Dept of Labor.

And that under-funding is significant; when those SEIU and Sheet Metal Workers retire and find that their Union screwed them, it might not be very pleasant.

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