Is Big Labor the Silent Jobs Killer?
Unions Work to Erode NC’s Competitive Advantage

With the decline of union membership in other states, union leaders are seeking to swell their membership rolls and thereby increase their revenues by renewing their fight in union-free states.  Unions very likely view North Carolina’s ranking as the least unionized state in America as an opportunity rather than an impediment as they ramp up their efforts to gain back the clout they lost decades ago.  In short, they are targeting growth in areas where they haven’t before in an attempt to accumulate the resources to pursue their agenda – an agenda out of sync with modern times and out of touch with modern workers. 

Organized labor is silently but effectively eroding North Carolina’s ranking as the least-unionized state in the country – a significant competitive advantage in attracting, keeping and creating good jobs. Recent actions by labor organizations will likely result in an explosive growth of union members in North Carolina.  

In particular, a recent vote by the State Employees Association of North Carolina (SEANC) to affiliate with the Service Employees International Union (SEIU), which claims to be the largest, fastest-growing union in America, will increase union membership in our state by 50,000.  In recent media reports the head of SEANC boasted, “This vote marks the largest union victory ever for working people across the south—especially in North Carolina, which previously had the lowest rate of unionization in the country.”

Aside from the significant SEANC vote, other activities that have been quietly ongoing at both the state and national levels could also contribute to the growing union presence in North Carolina.

Shedding Light on Unions’ Quiet Agenda

Several key pieces of legislation that were vigorously fought by our Chamber and its national partners last year are quietly gaining congressional and legislative attention in Washington and here at home.  Aside from the labor issues and initiatives outlined below, potentially the most destructive union maneuver at hand involves a hidden congressional amendment that would delete the authorization of right-to-work states, such as North Carolina.   It goes without saying that if big labor is successful in advancing this objective, it would have incalculable negative effects on the free-market economy as we know it.

NC Unions Fighting for Collective Bargaining Rights

Public-sector unions have been attempting for years to overturn North Carolina’s current ban on collective bargaining rights for public-sector employees (both state and local).  While they have been unsuccessful to date, recent events offer reasons to believe that their efforts may yield results if unmet with strong opposition.

For example, in addition to state employees’ recent vote to unionize, they have been increasingly active in politics to elect labor-friendly candidates to the NC General Assembly.  As reported by SEANC, in 2006, 38 of 45 General Assembly candidates supported by the labor group won.  

Perhaps more alarming is that bills promoting unionization in North Carolina that historically went nowhere in the state legislature were given a hearing and passed by a committee during the last legislative session (2007).  These factors combined fuel the labor movement in North Carolina and appear to send the message that there is new opportunity here for unions. 

Unions Step Up Efforts to Squash Secret-Ballot Elections

Nationally and in states across America, union bosses are continuing their fight to build power by trampling employees' rights.  This is most evident in a piece of legislation that has been pushed by unions in Congress for over a year now, the wrongly named “Employee Free Choice Act,” or “Card Check” Bill. 

It is blatantly disingenuous for unions and their supporters to brand this legislative objective as one about “free choice” when it would take away individual employees’ rights to decide for themselves whether they want to join unions.  It would do so by doing away with secret- ballot elections for employees, exposing those who choose not to join unions to on-the-job harassment and retaliation. 

What more basic right is there than the right to cast an election ballot in private?  This union legislation would prevent employees from being able to make a confidential decision about their work environment and would force money from their paychecks into union bank accounts.   

The Card Check Bill was blocked in the US Senate in 2007, but it is no secret that it will be a top legislative priority for unions in 2009.  Even now, organized labor is purportedly seeking to amass over one million volunteers to help it lobby for the bill.  Correspondingly, big labor has made support for the Card Check Bill a litmus test for candidates that it will support in the 2008 elections.  

As part of a broad, national coalition, our Chamber fought last year to prevent passage of the Card Check Bill.  Our Chamber remains committed to preventing this bill from passing, recognizing the enormous negative impact it would have on North Carolina’s employers and our state’s future.

Where our Congressional Delegation Stands on Card Check

Democratic presidential candidates Hillary Clinton and Barack Obama have endorsed the unions’ Card Check proposal as described in this e-newsletter. Republican presidential candidate, John McCain, has not endorsed it.

Nearly half of North Carolina’s representatives in the U.S. House co-sponsored the original piece of Card Check legislation and all of NC’s Democratic Congressmen voted “yes” on Card Check last year:  Rep. G.K. Butterfield (D-1); Rep.  Bob Etheridge (D-2); Rep. Brad Miller (D-13); Rep. David Price (D-4); Rep. Mel Watt (D-12); and Rep. Heath Schuler (D-11). All of NC’s Republican Representatives voted “no”: Rep Robin Hayes (D-8); Rep. Patrick McHenry (D-10); Rep. Howard Coble (D-6); Rep. Virginia Foxx (D-5); Rep.  Walter Jones (D-3); Rep. Mike McIntyre (D-7); and Rep. Sue Myrick (D-9).  Both of North Carolina’s US Senators, Sen. Elizabeth Dole and Sen. Richard Burr, voted to prevent the bill from reaching a floor vote in the Senate.

Police Union Resurfaces in Congress to Gain Clout in States

As our Chamber reported earlier this year, a national police union lobbied Congress to creatively insert a collective bargaining amendment into an unrelated Farm Bill that would have established minimum federal standards for state collective bargaining laws for public safety officers.  Among these standards was notably the right of public safety officers to join a union.  Thanks to efforts by the National Sherrifs’ Association and other pro-employee rights organizations, the amendment was withdrawn.   As anticipated, however, the efforts of the union have re-surfaced.

Just last month, the Police Union had a bill filed in the U.S. Senate – the Public Safety Employer-Employee Cooperation Act – that would give collective bargaining rights to all public safety officers in all states, regardless of the state’s collective bargaining laws.  Just last week, this union bill gained the support necessary to be debated with a vote of 69 to 29.  North Carolina law currently bans collective bargaining for public employees.

Union Political Spending May Top $1 Billion in 2008

The upcoming elections are the best shot in a half-century for big labor to make over Washington.  As Gerald McEntee, the head of the American Federation of State County and Municipal Employees (AFSCME) has publicly stated, “Big Labor is looking for a trifecta – the Oval Office, the House and a filibuster-proof Senate.  And after that, the biggest rewrite of labor law in modern America.”

How hard is organized labor willing to fight this election season?  The AFL-CIO has approved a record political budget of $53 million.  Its affiliated national and international unions have pledged another $200 million. The National Education Association (an umbrella union with state affiliates across America, including the North Carolina Association of Educators – or NCAE – here in our state) will contribute up to $50 million in races.  SEIU (the international union that state employees voted to affiliate with) has marked $100 million for politics and pledged to pay 2,000 union members the equivalent of their salaries to work on campaigns.  When you add union money for political action committees (PACs) and local and state races, estimated union political spending may top $1 billion in 2008.

Join Forces with Our Chamber to Protect Jobs

As unions gain momentum nationally and here at home, North Carolina businesses must join forces and build equal momentum to prevent big labor’s anti-business, bad-for-employees, bad-for-jobs agenda from becoming America’s agenda.  The activities and actions of unions in recent years should serve as a wake-up call to the business community: Not everyone shares the same vision for the future of our state and country, and those who see a globally competitive business climate as an imperative for the foreseeable future face growing opposition from organized labor. 

National and state unions are clearly engaged in trying to shape North Carolina’s future to match their vision and interests.   An organized business community enabled by a strong state Chamber will ensure that our collective aspirations for our state’s future will be realized instead.  We believe that the “Pillars of a Strong Future for North Carolina” include: world-class education and workforce development systems; adequate transportation and other infrastructure to meet growing needs; effective economic development strategies and tools; and a globally competitive business climate. 

Let us hear from you if you believe increased union activity and clout in Washington and North Carolina is a threat to our state’s future and your business (answer our poll question in this e-newsletter or send us an email).  It is our mission to ensure that North Carolina is a leader in the world in which to do business.  It is a key part of our vision to positively impact North Carolina’s business climate and quality of life. 

Union Panel Discussion at 2008 Manufacturing Summit

Click here for more information on the Union Panel.

Click here to register. If you have not yet registered for the Chamber’s Manufacturing Summit, be sure to do so this week as it will be held on June 10th in Greensboro.