Theodore's World: EFCA Authorizes Government Control of 4 Million Small Businesses

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March 14, 2009

EFCA Authorizes Government Control of 4 Million Small Businesses




EFCA Authorizes Government Control of 4 Million Small Businesses

The Heritage Foundation


The Employee Free Choice Act (EFCA, H.R. 1409, S. 560) does more than take away secret ballot elections: It empowers the federal government to impose contracts on newly organized companies.

The government would set wages, benefits, work assignments, promotion procedures, and any major changes to business operations. Because EFCA has no meaningful small businesses exemption, it would authorize federal control of up to 4 million small businesses employing 39 million Americans. Consequently, bureaucrats with no management experience would effectively control these small businesses.

Four Million Small Businesses Affected

The misnamed Employee Free Choice Act affects both large and small businesses. The National Labor Relations Act (NLRA) has a small business exception. However, this exemption has not been updated for inflation since 1959.[1] It covers all non-retail businesses with gross revenues of $50,000 a year and retail businesses with gross revenues over $500,000 a year

To put those figures into perspective, the average private-sector worker costs his or her employer $56,000 a year in wages and benefits--before the cost of any capital needed to do the job. A business with one worker earning average pay would not qualify. Consequently, the law has no meaningful small businesses exemption.

The Heritage Foundation used Census Bureau data to calculate how many small businesses EFCA would affect: The act covers 4,180,000 businesses employing 38,934,000 workers.

Consequently, bureaucrats with no management experience would effectively control these small businesses, says James Sherk, the Bradley Fellow in Labor Policy at the Heritage Foundation.

The misnamed Employee Free Choice Act affects both large and small businesses, says Sherk:

* The National Labor Relations Act (NLRA) has a small business exception, however, this exemption has not been updated for inflation since 1959.
* It covers all non-retail businesses with gross revenues of $50,000 a year and retail businesses with gross revenues over $500,000 a year.
* To put those figures into perspective, the average private-sector worker costs his or her employer $56,000 a year in wages and benefits--before the cost of any capital needed to do the job.
* A business with one worker earning average pay would not qualify, consequently, the law has no meaningful small businesses exemption.

The Heritage Foundation used Census Bureau data to calculate how many small businesses EFCA would affect: The act covers 4,180,000 businesses employing 38,934,000 workers.

EFCA takes away these workers' right to a secret ballot vote on joining a union -- a consequence that has attracted considerable controversy, says Sherk. However, the bill has a second provision of equal if not greater significance to small businesses that has attracted much less attention: EFCA replaces collective bargaining with government-imposed contracts for newly organized companies. In practice:

* EFCA will effectively eliminate collective bargaining for initial contracts because the system provides no reason for unions not to hold out for a government contract.

* Unions would have strong incentives to make extreme demands and hope the FMCS appointed arbitrator splits the difference between these demands and management's position.

Granting such a radical amount of power to the FMCS puts control of workplaces in the hands of unaccountable government bureaucrats, says Sherk.



Wild Thing's comment........

The inmates are running the asylum.

What the heck is happening to our country?

Everyone of these dangerous beltway initiatives makes me grieve even more for the poor souls that fell on Normandy and everywhere else.

They gave all to fight back evil and preserve our freedom. And those fools in Washington are just throwing it all away.

summary of this BS: aka Communism! or is State control of private business is called FACISM.

You have 2 candidates, the UNIONS and the EMPLOYERS. They both are campaigning for the workers vote. The UNIONS want them to vote YES to unionize and EMPLOYERS wants them to vote NO against unionization. After campaigning for their vote, both go back to their respective corners while the EMPLOYEE decides which candidate they will side with, the UNIONS or the EMPLOYERS. Come “election day,” the EMPLOYEE goes to the “polls” to cast their vote. They enter a PRIVATE BOOTH and pull the lever of their choice, either for or against unionization. What the EFCA will eliminate is the PRIVATE BOOTH in which the EMPLOYEE votes. No longer will the UNIONS have to campaign up until “election day.” All they will have to do is walk up to every EMPLOYEE, where ever they may be, and get them to vote YES or NO. IT would be like Barack Obama going around to every person in America and handing them a ballot and telling them to vote for them right there on the spot while they watch.

The end goal of communism is to have all the means of production in the hands of government. Obama is trying to move the country to that situation as soon as possible.

If these last two months haven't been reason enough for a revolution, what will it take? I suppose we shall find out as we still have many years left on our sentence.

This is insane. The unions get to tell the employees anything they want; promise things they cannot deliver. The employer does not even get the right to have a say.


....Thank you Mark for sending this to me.


Mark
3rd Mar.Div. 1st Battalion 9th Marine Regiment
1/9 Marines aka The Walking Dead
VN 66-67


Posted by Wild Thing at March 14, 2009 05:48 AM


Comments

You ask what's happening to our country? What's happening is that we have a president and liberal controlled congress taking it toward Socialism.

Posted by: BobF at March 14, 2009 07:22 AM


They say it's all happening at the zoo. Yep, the inmates of Belleview have escaped and are running the show and not a one of them is taking their medication! Pelosi and Clinton-Queen Bee instability; Reid and Murtha-Alzheimers; Emanuel-Psychotic Sociopath; Gibbs-Anger problem; Biden-OCD; Kennedy-loopy de loop in the head; Michelle-Narcissitic; Obama-Delusions of Godhood.

Posted by: Lynn at March 14, 2009 07:40 AM


You said it Chrissie. Fascism!!!

Posted by: Jack at March 14, 2009 10:30 AM


This goes back to the Davis-Bacon act signed by Herbert Hoover, it was primarily to keep black from the South from competing for jobs in the cities during the depression. The unions got hold of DBA and instead of the prevailing wage of a community, the standard Union wage was instituted.

It has gotten much worse. In some cities the prevailing wage for the Union is double or triple that of non-Union employees. The Union has confounded the DBA to the point that City contracts, Federal contracts can only be bid by Union Shops. In Chicago, for example, My daughter owns part of a condo, 1/4, it was determined by the city that they needed a new Electric Service. The total bill for a 400 Amp service, single phase was 12,000 dollars. the same service in Cleveland can be done for 3500 to 4000 dollars depending on the contractor.

This new law will intimidate non-union workers, they are taking away the right to a secret ballot. A non-union shop will be forced to accept the Union, they will be dictated to by a Government bureaucrat and the Union, the Union will determine pay raises, pension, Health care, also NON union employees, or employees who choose not to join the Union will be fired. The Union will also determine the work schedule. This is a private business of which they have no right but will intimidate Small business owners to the point where the owner will either quit of give in. At this point, our freedom of choice has vanished...Why, because of a smooth talking puppet.

So much for Free enterprise and private business or even small business.

Posted by: Mark at March 14, 2009 11:42 AM


Marxism is here folks. Destroy small business and nationalize major industry. Destroy the middle class through excessive taxation(redistribution of wealth). Enforce compliance in the workplace with union thugs and crooks. Equalize everyone to the lowest denominator.

The ruling class is now in place. Their blueprint is falling into place and they are working hard to reverse that pesky Constitution that is their nemisis.

Posted by: TomR at March 14, 2009 12:29 PM


BobF., yes your right, we sure do and I am not liking this one bit. grrrrrrrr

Posted by: Wild Thing at March 14, 2009 07:02 PM


Lynn, excellent run down of each of them.

Posted by: Wild Thing at March 14, 2009 07:04 PM


Jack, thank you, it gets confusing to me. Some things they do are socialism, othere marxism and then other things fascism with his communist mentality thrown in too. whew he covers it all this Obama creep.

Posted by: Wild Thing at March 14, 2009 07:08 PM


Mark, thank you so much for all of that information and explanation. I would be ticked big time if I was a union worker and had my right to a secret ballot taken away.

Posted by: Wild Thing at March 14, 2009 07:11 PM


Tom, my Dad had a copy of the Constitution on his wall in his office at his company. He has passed away, but I remember the day I was visiting him at work and he proudly walked me over to the wall it was on and read had me see it. It would really break his heart to see what is happening to our country.

Posted by: Wild Thing at March 14, 2009 07:16 PM