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August
22, 2008
In this Issue:
Free Choice Act Is Anything But Free
Union Organizing: Voters Support Private Ballot Elections
U.S. Inflation Highest In 17 Years
State Representative Still Seeks Help From Retailers
Free Choice Act Is Anything But Free
On Tuesday, August 13, 2008 the president of the Georgia AFL-CIO
wrote that the Employee Free Choice Act (EFCA), which is at the
forefront of the Democratic agenda this election year, would "restore
America's workers' freedom to choose to come together to bargain
for a better life" ("Put unionizing power back in workers'
hands.").
Nothing could be further from the truth. The centerpiece of the
act is the elimination of government-run secret-ballot union elections.
And by stripping employees of the fundamental right to cast a private
vote for or against union representation, the Employee Free Choice
Act undermines the very principles of a free and democratic society,
and only robs employees of their vital "freedom to choose."
Since its formation in 1935, the National Labor Relations Board
has conducted approximately 500,000 secret-ballot elections. All
told, more than 40 million employees have voted in these elections.
The union election begins when an organizing labor union obtains
signed "authorization cards" from at least 30 percent
of the employees in an appropriate voting unit. This "showing
of interest" leads to an election. A government agent sets
up a voting booth (complete with privacy curtains) and watches over
an official, sealed ballot box. Employees are given a ballot and
then enter the booth. They mark either "yes" or "no"
to union representation, fold the ballot, and then place the ballot
into the sealed box.
At the end of the election, the government agent counts the ballots,
free from possible interference by either the company or the union.
If a majority votes "yes," the union wins. If a majority
votes "no," the union loses.
Lately, however, unions have not been winning as many elections,
or bringing in as many dues dollars, as they would like. Unions
have responded by trying to eliminate elections altogether.
With the Employee Free Choice Act, the employee's process of selecting
a union begins and ends when the employee signs an authorization
card. There is no election. The employee cannot go into a private
booth and vote "yes" or "no." And the employee
certainly cannot return the card to a neutral government agent.
Instead, the employee is forced to hand the very card stating that
the employee is either in favor of or against union representation
back to the very union he is accepting or rejecting.
The dangers are obvious. This law would leave employees vulnerable
to threats and intimidation, and produce extraordinarily unreliable
results. Even the U.S. Supreme Court has acknowledged that "the
unreliability of [authorization] cards is inherent ... in the absence
of secrecy and the natural inclination of most people to avoid stands
which appear to be non-conformist and antagonistic to friends and
fellow employees."
However, the unions justify their support for the Employee Free
Choice Act by making completely baseless accusations of "corporate
bullying." Again, nothing could be further from the truth.
Under existing labor laws, any company that would "resist,
prevent, impede or interfere" with a secret-ballot election
would be subject to criminal prosecution. And any company that would
"interfere with, restrain or coerce" employees in the
exercise of their election rights would risk civil prosecution and
the possibility of re-running an election the union may have lost.
Just as important, the "corporate bullying" that unions
complain of is most often nothing more than protected free speech.
Unions hurl accusations that large companies hold meetings "warning"
their store managers of the dangers of unionization while ignoring
the fact that corporations have long been free to share certain
opinions on the effects of unionization, both with employees and
managers.
Complaints that companies may direct their managers or employees
to vote against certain candidates are similarly false. The unions'
own political maneuvering underscores their hypocrisy. According
to recent reports, unions will spend more than $300 million in support
of Sen. Barack Obama's presidential campaign this year, and the
AFL-CIO alone has budgeted more than $53 million to campaign on
behalf of Obama. These enormous financial contributions are made
almost entirely by utilizing member dues, without concern for the
members' beliefs or political affiliations. The unions' hasty charges
that companies direct the manner in which their employees vote are
therefore absurd.
The effects of EFCA, and the underlying union support that drives
the act, are clear. Very few American workers ever have the opportunity
to vote in a union election. Most of the rest of us, however, have
—- and exercise —- the right to vote in political elections.
Imagine what you would think this November if you learned that the
scheduled presidential election had been canceled —- and one
of the candidates certified —- based only on voter opinion
polls.
Union Organizing: Voters Support Private Ballot Elections
New research in three battleground states shows wide spread opposition
among voters on the Employee Free Choice Act also referred to as
the union “card check” legislation. The research surveys
were conducted in Louisiana, New Hampshire and New Mexico.
Two-thirds of Louisiana voters, seven in ten New Hampshire voters
and close to eight in ten New Mexico voters agreed that secret ballot
elections are the cornerstone of democracy and should be kept for
union elections. The survey further found that there was greater
support for preserving secret ballot elections in union households
in these three jurisdictions. Under the “card check”
legislation, private ballots would be replaced with a card check
scheme where a union is automatically recognized if a majority of
workers simply sign a card.
The research, conducted by McLaughlin & Associates, showed that
voters in Louisiana, New Hampshire, and New Mexico would be less
likely to vote for Congressional candidates if they support the
“card check” bill.
U.S. Inflation Highest In 17 Years
Inflation in the U.S. hit a 17-year high in July amid high gas and
food prices. Consumer prices were 5.6% higher on July 30, 2008 when
compared with July 2007, reflecting the steepest annual increase
since early 1991.
That was the sharpest annual increase since January 1991, as Americans
paid more for clothing, food, transportation and recreational products.
Though the news was distressing for investors, stocks on Wall Street
rose, with the Dow Jones industrial average up more than 100 points
in afternoon trading. Wal-Mart reported a better-than-expected rise
in quarterly profits, but the company also issued a gloomy sales
forecast for the rest of the year.
The Consumer Price Index, considered the benchmark gauge of U.S.
inflation, rose 0.8 percent in July. Economists had forecast a rise
of half that rate. In June, prices rose 1.1 percent.
The index surveys prices of a basket of common consumer goods, among
them toothpaste, prescription drugs, airfares and the cost of dining
out.
Because food and energy prices can be highly volatile from month
to month, the Labor Department also calculates a so-called core
price index, which strips out those costs. In July, core consumer
prices rose 0.3 percent, reaching a 2.5 percent annual rate.
That is higher than the Federal Reserve and other economic policy
makers would prefer. Central bankers use core consumer prices to
see whether price increases are becoming entrenched in the broader
economy; Federal Reserve officials are said to prefer a ceiling
of 2 percent annual increases.
The Fed has signaled repeatedly that it has no plans to lower interest
rates, given the threat that inflation poses to the economy. Lowering
rates could stimulate more economic activity, but such a move would
risk inflating prices further. The inflation report Thursday cements
that view, and suggests that an increase in interest rates could
come sooner rather than later.
The consumer price index provided further evidence about the price
pressures facing Americans this summer. Energy prices were up 4
percent in July; transportation costs increased 1.7 percent on a
sharp rise in airfares; and the price of clothing rose 1.2 percent
after falling or staying steady for most of the year. Food and beverages
also cost more, with prices rising 0.9 percent in July, 2008.
State Representative Still Seeks Help From Retailers
Representative Stephanie Stuckey-Benfield is looking for help from
retailers who may be able to donate to the Early Literacy Event
at the Decatur Book Festival.
The event will be held on Friday, August 29 from 10 a.m. to noon
at the Decatur Recreation Center and will serve approximately 300
pre-K students from Decatur and Title I DeKalb Elementary Schools
and is being coordinated by the United Way and the DeKalb Early
Learning Commission (I'm a member of the Commission).
Activities will include story book reading and activities. They
are hoping to provide the children with gift bags.
Target has already offered to provide book bags.
They also need school supplies and coupons and gift certificates
for early education related items for the gift bags.
Please let me know if you may be willing to assist.
Thank you.
John C. Heavener, MSM, CAE
President
johnh@georgiaretail.org
Telephone – 770-484-3449, ext. 21
Fax – 770-484-5727
Georgia Retail Association
About GRA: The Georgia Retail Association, with
membership that comprises all retail formats and channels of distribution
including department, specialty, discount, catalog, Internet, independent
stores, and grocery stores has been serving the state’s business
community since 1961. The Georgia Retail Association represents
an industry with more than 71,300 retail establishments, and more
than 715,000 employees - about one in five of Georgia’s workers
- and 2004 sales of $115.2 billion.
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