Showing posts with label right-to-work. Show all posts
Showing posts with label right-to-work. Show all posts

Sunday, July 19, 2015

Walker's Minions Giving Wisconsin The Business

Just in time for Scott Walker's presidential campaign kick-off, his economic revisionists are spinning yarns about steady improvement and a bright future due to Walker's policies.

Tom Hefty (conservative shill, Wisconsin Policy Research Institute affiliate and Journal Sentinel contributor) started this wishing-and-hoping form of policy analysis back in March. As I described his actions then, "He just rattles off numerous surveys that say Wisconsin is headed in the right direction, Wisconsin is poised for job growth and Wisconsin has a bright job outlook. More or less, opinions masquerading as statistics."

Kurt Bauer, chief executive officer of Wisconsin Manufacturers and Commerce, continued the wishing-and-hoping analysis.

First he claims it's really too early to tell if Walker's economic policies are working. Funny, when the data aren't on their side, conservatives are suddenly patient in their proclamations. Yet, the entire time Scott Walker has been governor has coincided with his cronies unrelenting boosterism, despite the fact that reality (the data) disproves their optimism.

Then, like Hefty, Bauer talks of many good business climate rankings and surveys showing good potential for Wisconsin. For conservatives, simply becoming a right-to-work state will somehow transform the economy. Too bad all the research looking at right-to-work has found no such definitive benefit. And, surveying conservatives about whether the policies they favor will be good for the economy is like asking a cocaine addict if he would like more cocaine. Despite the evidence of the damage being done, they still want more, more, more. 

Next, though, he details all of the actual economic metrics where Wisconsin trails Minnesota. You know, reality. Those unimportant things like per capita income, unemployment rate, and education levels. Take that, Minnesota!



This is followed by a host of historical excuses/reasons why/how this has hamstrung Wisconsin. Surprise! Cities and states have histories and experiences that have shaped their progression. Poor Milwaukee is caught between Chicago and Minneapolis. Yet, having these two economically vibrant centers nearby has been good for Milwaukee, not bad. And we would have an even more regional economy, drawing more from both of those cities and strengthening the region as a whole, if we had improved rail transit amongst the three cities. A terrible Walker policy (killing the train) that will have implications in the region for decades.

Bauer then abruptly switches gears claiming Wisconsin is more business-friendly and therefore Wisconsin has a brighter future. "A better Wisconsin business climate will lead to a better Wisconsin economy. The opposite is true for Minnesota."

Doesn't the fact that Minnesota's economy has been performing better than Wisconsin's for the past few decades tell us that they have a pretty good business climate and a productive set of economic policies in place? Wisconsin has improved in the business climate ranking - we're now 32nd. Minnesota's ranking is 9th.


Wisconsin ranks dead last for start-ups, despite Governor Walker’s goal of creating thousands of new companies [post]

Wisconsin is hardly even nipping at Minnesota's heels, even using the supposed indicators that the boosters claim show such promise for Wisconsin.

As was noted back in April, "Even the former mayor of Minneapolis, writing in the Minneapolis Star Tribune, felt the need to highlight the differences between Minnesota and Wisconsin policy-choices since Scott Walker took office:"
In Minnesota, Dayton turned a $5 billion budget deficit into a more than $1 billion budget surplus in just one term. By raising taxes on the wealthiest earners, Minnesota is now in a position to invest more resources into the state’s schools and infrastructure. 
In Wisconsin, Walker was unable to take his state out of the red and is still facing a $2 billion budget deficit. Walker made the decision to cut taxes for millionaires and billionaires, while slashing programs and refusing investments at the expense of middle-class families and Wisconsin’s financial well-being. 
In Minnesota, Dayton has moved forward Democratic policies like increasing the minimum wage, expanding Medicaid and investing in the middle class, and now we are seeing one of the most business-friendly states in the country. Just this year, Forbes ranked Minnesota as the ninth best state for business, seventh in economic climate and second in quality of life. 
In Wisconsin, Walker opposed a minimum-wage increase and equal-pay legislation, rejected federal funds to expand Medicaid, and attacked Wisconsin workers with right-to-work and anti-collective-​bargaining policies. As a result, the cost of doing business in Wisconsin is higher than the national average, and median household income is thousands less than in Minnesota. 
The facts are clear: Walker and the Republican trickle-down economic policies have made it practically impossible for Wisconsin to recover from the recession, and the state consistently sits at the bottom of the region in private-sector job growth.
Bruce Thompson's article, at Urban Milwaukee, asks, Why is Minnesota outperforming Wisconsin? He ultimately concludes Minnesota is doing many things correctly and, "Empirical evidence can lead to better solutions—but not if it is treated only as grist for a pre-determined position." Minnesota is following the evidence, Wisconsin republicans are merely digging in their heels continuing to push policies they know are unfair and inefficient.

For Further Reading:
Scott Walker & Wisconsin's Slow Job Growth
38th, For Republicans, Is The Head Of The Class

Saturday, April 4, 2015

Representation, Dues & Taxes

Two Journal Sentinel readers responses to the right-to-work travesty make great points and are well worth the read.


Sunday March 1, 2015

Make taxes optional
What does it really mean when our state's Republican legislators think an individual should not be required to pay union administrative dues for representation by their union? 
The representatives of union members receive a wage to help achieve improvements to wages, benefits and working conditions for employees of contractors and companies. When members vote on their representatives' compensation within each union, it is often with the knowledge that union rep positions are demanding and often stressful jobs. 
I ask people to consider if there is a difference between a union representative and a legislative representative. Both are there to represent our individual interests in a collective manner. 
I believe if Republican legislators believe so firmly that paying for union representation should be an option, then it is time for taxpayers such as myself to have the same opportunity to decline payment for my representation as a citizen. 
I no longer want to pay taxes that support the wages, per diems, benefits, perks, travel expenses and office costs of state legislators and their staff. I no longer want to pay toward the governor's salary while he is campaigning in Iowa and New Hampshire, traveling to Europe or conducting other "representation" responsibilities on my behalf. I want to be given the same option as a state citizen to withhold my financial support for the costs of my representation. 
I look forward to fast-track legislation from one of our Republican legislators that gives me the same right-not-to-pay as those granted to other individuals in our state under the right-to-work legislation. Let's call it Representation-Without-Taxation. 
Brent D. Emons
Jefferson

Sunday March 8, 2015

Dues and taxes
In John Breest's letter of March 3, he says he doesn't want his union dues going to liberal causes ("Unions and politics," Letters). 
As an atheist and taxpayer, I don't want my taxes going to private religious schools. Will I be afforded the same "right" to opt out of taxes that go to superstitious organizations such as churches? 
For some reason, I can't see that happening. 
Steve Burek
Trevor

More Bad News In The Continuing Sad Saga Of Scott Walker

The Pay-To-Play Allegation Walker's Watchdog Isn't Defending
Secret $1.5 Million Donation Uncovered In Walker Dark-Money Probe
State Of The Union Buster
Walker Ends Freedom Of Contract In Wisconsin
Right-To-Work Laws: Designed To Hurt Unions & Lower Wages
Lawmakers' Priorities For Property Tax Cuts Favor Wealthy
Wisconsin Economy Is Nowhere Near The 'Head Of The Class'
Wisconsin's Middle Class Shrinking Faster Than Any Other State
Wisconsin's Shrinking Middle Class
Walker's Wisconsin Still Lags Nation For Job Growth

Friday, March 13, 2015

Scott Walker: The Opposite of Anything Good

Scott Walker continued his political legacy of claiming his policies are accomplishing the exact opposite of what reality is telling us they are actually doing. He's got Wisconsin open for business, he's cutting taxes, he's growing jobs, etc.

President Barack Obama commented on Scott Walker's passage of right-to-work in Wisconsin:
"Wisconsin is a state built by labor, with a proud pro-worker past," Obama said. "So even as its governor claims victory over working Americans, I’d encourage him to try and score a victory for working Americans -- by taking meaningful action to raise their wages and offer them the security of paid leave. That’s how you give hardworking middle-class families a fair shot in the new economy -- not by stripping their rights in the workplace, but by offering them all the tools they need to get ahead."
Walker replied:
"On the heels of vetoing Keystone pipeline legislation, which would have paved the way to create thousands of quality, middle-class jobs, the president should be looking to states, like Wisconsin, as an example for how to grow our economy...Despite a stagnant national economy and a lack of leadership in Washington, since we took office, Wisconsin's unemployment rate is down to 5%, and more than 100,000 jobs and 30,000 businesses have been created," Walker told National Review Online. 
As usual, all of Walker's boasts are completely bogus! As Politifact reported, regarding Keystone XL, "The State Department expects that the project would only result in only a few permanent jobs that last past construction." Keystone is not only bad for the environment, it is also not the job-creator its proponents claim.

The Journal Sentinel noted, "Wisconsin's job creation remained sluggish in the latest 12-month report."

Speaking of jobs, Jelly Belly Candy is closing their Kenosha operation. Haven't they heard Wisconsin is open for business? And, we're also right-to-work! Businesses should be stumbling over each other trying to get in here, at least according to the (misguided) logic Republicans keep selling.

As a glaring example of Walker's misplaced priorities, even though Walker likes to use the City of Milwaukee as a convenient whipping-boy, City Center - Including Milwaukee - Noted For Growth In New Jobs:
In Milwaukee, the city-center employment gain averaged 1.4% per year — nearly three times the figure for the 41 cities as a whole. The rest of the four-county metropolitan area, meanwhile, lost 1.3% of its jobs annually, according to the report.
Right-to-work - yet another Orwellian-termed boondoggle being sold across the country by Republicans. Common sense tells us we're not going to get better work conditions or better pay by limiting our leverage (strength in numbers).

Florence Jaumotte and Carolina Osorio Buitron wrote, "The decline in unionization in recent decades has fed the rise in incomes at the top."



Also (probably not hard to believe), Unions that backed Scott Walker are faring better than others. Pay-to-play and cronyism are top priorities of the Republican Party platform.

Right-to-work is a pet policy of the Monied Republican Influence Peddlers right now, thus Walker wanted to get on board so he could get the campaign money that goes along with boosterism for right-to-work.

Even John Torinus, conservative and former Journal Sentinel columnist, was taken aback by Walker and the Republicans push for right-to-work:
Another example: a low-key issue during the campaign was right-to-work legislation. Gov. Walker said it would be “a distraction” in his second term. A few legislators teed up the issue in their campaigns. But it was a minor issue at best, even though many voters guessed it would become a major GOP issue if the party controlled both houses and the governor’s chair. 
Even though low priority, it has become a page-one issue. Call it a head fake. It’s now high priority for the GOP, even though only 8% of the state’s private work force is unionized. Non-union high growth startup companies, which will define the state’s future economy, also don’t care.
Jon Peacock discovered "Right to Work" Bill Would Suppress Wisconsin's Already Anemic Wages. He cites recent research by Marquette's Dr. Abdur Chowdhury, economics professor:
The potential net loss in direct income to Wisconsin workers and their families due to a RTW legislation is between $3.89 and $4.82 billion annually. Using a conservative estimate of an impact multiplier of 1.5, the total direct and induced loss of a RTW legislation is estimated between $5.84 and $7.23 billion annually. Based upon the two estimates of lost incomes and an overall effective tax rate of 4.0%, the economic loss in state income taxes is estimated between $234 and $289 million per year...
Right-to-work legislation would provide no discernible overall economic advantage to Wisconsin, but it does impose significant social and economic costs. The benefits of right to work enjoyed by some prospective employers are overshadowed by the costs borne by other employers and the state as a whole. Low wages would weaken consumption. Higher rates of labor turnover and adversarial labor-management relations would decrease productivity. And low-wage employment would burden the state with “mop up” costs (including social services, housing assistance, subsidized day care, school lunch programs, etc).
Even the NFL Players Association issued a press release against Walker's passage of right-to-work legislation:
Devoted food and commercial workers who spend their Sundays servicing our players and fans at Lambeau Field will have their wellbeing and livelihood jeopardized by Right to Work. Governor Scott Walker may not value these vital employees, but as union members, we do. We understand how devastating it would be if they lost the ability to have their workplace conditions and wages guaranteed through collective bargaining. We do not have to look any further than our own CBA to see that a band of workers, joined together as a union, can overcome decades of poor workplace conditions and drastically improve pensions and benefits...
The U.S. Bureau of Labor Statistics found that average wages across all industries in right-to-work states were $4 per hour lower than those in non-right-to-work states. One study determined that Wisconsin would see a net loss of between $3.89 and $4.82 billion annually in workers’ incomes. In fact, Governor Walker’s anti-union efforts have resulted in Wisconsin leading the nation in job losses for two months in a row. 
This proposed legislation unfairly risks the health and safety of employees by depriving them of on-the-job protections that unions have historically defended.
Minnesota's Republican billionaire (heir to the Target fortune) governor taxed the rich and increased the minimum wage. He took office with a $6.7 billion budget deficit and a 7 percent unemployment rate. By late 2013, Minnesota was the 5th fastest growing state in the United States. Forbes ranked Minnesota the 9th best state for business (Wisconsin was 32nd). Minnesota's current unemployment rate in 3.6 percent.

Derek Thompson, at The Atlantic, details one of Minnesota's star cities in The Miracle of Minneapolis:
In the 1960s, local districts and towns in the Twin Cities region offered competing tax breaks to lure in new businesses, diminishing their revenues and depleting their social services in an effort to steal jobs from elsewhere within the area. In 1971, the region came up with an ingenious plan that would help halt this race to the bottom, and also address widening inequality. The Minnesota state legislature passed a law requiring all of the region’s local governments—in Minneapolis and St. Paul and throughout their ring of suburbs—to contribute almost half of the growth in their commercial tax revenues to a regional pool, from which the money would be distributed to tax-poor areas. Today, business taxes are used to enrich some of the region’s poorest communities.
Republicans prefer the opposite strategy - Increasing Taxes on the Poor and Cutting Them for the Affluent. And based on this strategy, the New York Times found, "The bottom fifth of earners pay more than 10 percent of their income in state and local taxes, the top 1 percent pays closer to 5 percent."

Showing his care for women's issues and income inequality, in general, Scott Walker repealed Wisconsin's Equal Pay Law. The gender wage-gap in Wisconsin is predicted to be closed around 2068. Just 53 more year ladies!


If Scott Walker wants to help the economy and increase revenues for Wisconsin he could address our inequitable tax code. The Keystone Research Center and Good Jobs First report Tax Fairness: An Answer to State Budget Problems found, "If the top one percent were taxed at the same rate as the middle 20 percent, states and localities would raise $68 billion per year. Similarly, if the top 20 percent paid the same as the middle 20 percent, states and localities would generate $128 billion each year."

The Wisconsin Budget Project noticed the highest earners in Wisconsin already pay the smallest share of income paid in state and local taxes.


Walker's education cuts and tax cuts for the highest earners have not created anywhere near the number of jobs they claimed they would. In the end, these policies have lost revenue for the State.






Experience and the latest research point a pretty clear path for public policy and job growth in Wisconsin; if we care to actually follow such. Sadly, Scott Walker is only concerned with personal opportunity and the wishes of his paymasters. When it comes to policies that would be best for Wisconsin, Mr. Walker prefers to do the opposite.

Sunday, February 22, 2015

Wisconsin Could Be Right-To-Work In A Matter Of Days

Wisconsin Could Be Right-To-Work In A Matter Of Days
Paul Secunda, a labor law professor at Marquette University Law School in Milwaukee, said the situation in Wisconsin is so dire for organized labor that unions have only one choice: a general strike by the state's unionized workers. Though they garnered national attention, the 2011 protests didn't manage to stop Act 10 or Walker, he noted. 
"I think they should shut it down," Secunda said. "Public-sector workers in solidarity with private-sector workers should walk out next week. I think if the union movement has any strength left it's in the power of withholding labor. If it's not willing to do that, there's very little power they have."

Sunday, December 14, 2014

Right-To-Work Is Not Right Nor Does It Work

Does 'Right-To-Work' Create Jobs?
Misleadingly named right-to-work (RTW) laws do not, as some unfamiliar with the term may assume, entail any guarantee of employment for those ready and willing to work. Rather, they make it illegal for a group of unionized workers to negotiate a contract that requires each employee who enjoys the benefit of the contract to pay his or her share of the costs of negotiating and policing it. By making it harder for workers’ organizations to sustain themselves financially, RTW laws aim to restrict the share of state employees who are able to represent themselves through collective bargaining, and to limit the effectiveness of unions in negotiating higher wages and benefits for their members. Because it lowers wages and benefits, weakens workplace protections, and decreases the likelihood that employers will be required to negotiate with their employees, RTW is advanced as a strategy for attracting new businesses to locate in a state.

Right-to-work laws have been implemented in 22 states, predominantly in the South and Southwest, starting as far back as 1947. But what is their actual track record in spurring employment growth? And what is the likelihood that, in today’s economy, a state deciding to adopt the 23rd right-to-work statute would see its job market improve? ...
As states look to attract and retain employers, and particularly to expand the opportunities for state residents to land middle-class jobs, the hard statistical evidence suggests that so-called “right-to-work” laws have no role to play in this revival. Where states with such laws have done well, all signs – including the data, in-depth analyses of state economies, and the statements of economic devel- opment officials themselves – point to other causes for this success. It is understandable that, in times of trouble, state legislators would look to any possible avenue in hope of finding a way out of the current crisis. But having reviewed the track record of the state with the most recent and best-documented experience, it seems clear that legislators would do better to focus their energy in other, more productive, policy directions.
"Right-to-Work" For Less
Right to work laws lower wages for everyone. The average worker in a right to work state makes about $5,333 a year less than workers in other states ($35,500 compared with $30,167).[1] Weekly wages are $72 greater in free-bargaining states than in right to work states ($621 versus $549).[2] Working families in states without right to work laws have higher wages and benefit from healthier tax bases that improve their quality of life. 
Federal law already protects workers who don’t want to join a union to get or keep their jobs. Supporters claim right to work laws protect employees from being forced to join unions. Don’t be fooled—federal law already does this, as well as protecting nonmembers from paying for union activities that violate their religious or political beliefs. This individual freedom argument is a sham. 
Right to work endangers safety and health standards that protect workers on the job by weakening unions that help to ensure worker safety by fighting for tougher safety rules. According to the federal Bureau of Labor Statistics, the rate of workplace deaths is 51 percent higher in states with right to work, where unions can’t speak up on behalf of workers.[3] 
Right to work laws just aren’t fair to dues-paying members. If a nonunion worker is fired illegally, the union must use its time and money to defend him or her, even if that requires going through a costly legal process. Everyone benefits, so all should share in the process. Nonmembers can even sue the union if they think it has not represented them well enough.
Myths And Facts About "Right-To-Work" Laws
[O]ur findings -- that "right-to-work" laws are associated with significantly lower wages and reduced chances of receiving employer-sponsored health insurance and pensions -- are based on the most rigorous statistical analysis currently possible. These findings should discourage right-to-work policy initiatives. The fact is, while RTW legislation misleadingly sounds like a positive change in this weak economy, in reality the opportunity it gives workers is only that to work for lower wages and fewer benefits. For legislators dedicated to making policy on the basis of economic fact rather than ideological passion, our findings indicate that, contrary to the rhetoric of RTW proponents, the data show that workers in "right-to-work" states have lower compensation -- both union and nonunion workers alike.
Right-to-Work 101:Why These Laws Hurt Our Economy, Our Society, and Our Democracy
Right-to-work laws infringe on the democratic rights of the electorate by weakening unions. Unions help boost political participation among ordinary citizens and convert this participation into an effective voice for pro-middle-class policies. By weakening unions, they are less able to advocate for pro-worker policies within our government and help get workers out to vote. 
Research shows that for every percentage-point increase in union density, voter turnout increased by 0.2 to 0.25 percentage points. This means that if unionization rates were 10 percentage points higher during the 2008 presidential election, 2.6 million to 3.2 million more citizens would have voted. 
Unions also help translate workers’ interests to elected officials and ensure that government serves the economic needs of the middle class. They do this by encouraging the public to support certain policies as well as by directly advocating for specific reforms. Unions were critical in securing government policies that support the middle class such as Social Security, the Affordable Care Act, family leave, and minimum-wage laws. 
Indeed, this may be a large part of why many conservatives support right-to-work laws. Research demonstrates that supporters’ claims that these laws will create jobs and strengthen local economies are not credible. Instead, supporters may back these laws as a pretext for attacking an already weakened union movement in hopes of crippling it as a political force and as an advocate for all workers. 
The bottom line: Right-to-work laws work against the critical needs of our economy, our society, and our democracy.

Sunday, January 26, 2014

One From The Vault

Bargaining Isn't To Blame

How does eliminating collective bargaining reduce deficits?

"States with no collective bargaining rights for any public employees saw an average budget shortfall of 24.8 percent in 2010 while states (including the District of Columbia) with collective bargaining for all public employees had an average budget shortfall of 24.1 percent."

For Further Reading:

Saturday, February 25, 2012

The Right To Have Your Labor Exploited

37 state legislatures are attempting to pass anti-union, anti-labor right-to-work bills. The race to the bottom continues. This -- right-to-work legislation -- will lead to lower wages, less health care coverage, and more retirement volatility.

For Further Reading:
Does Right-To-Work Create Jobs?
Right To Work For Less
Right To Work Lowers Wages
What's Wrong With Right-To-Work?
Working Hard To Make Indiana Look Bad

Saturday, January 7, 2012

Wrong-To-Work

The latest research concerning the right-wing's continued attack on collective bargaining and living wages; the so-called "right-to-work" legislation:

Working Hard To Make Indiana Look Bad
"Right To Work" Lowers Wages - And That's A Fact!