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Thursday, May 07, 2009

McGovern on Card Check

Former Senator and Presidential nominee George McGovern - and though I hate the cheap labels used by the media, they would probably call him an "ultra-liberal" - writes in today's Wall Street Journal about the misnomer of the the Employee "Free Choice" Act (aka Card Check):

[T]he bill has an additional feature that isn't often mentioned but that is just as troublesome -- compulsory arbitration.


This feature would give the government the power to step into labor disputes where employers and labor leaders cannot reach an agreement and compel both sides to accept a contract. Compulsory arbitration is bound to trigger the law of unintended consequences.

Currently, labor law maintains a careful balance between the rights of businesses, unions and individual employees. While bargaining power differs depending on individual circumstances, the rights of the parties are well balanced. When a union and a business enter negotiations, current law requires that both sides bargain "in good faith."

In a contract negotiation, each party typically perceives the other as too demanding. But no one loses their right to contract willingly or suffers being forced to agree to anything. Employees can strike if they feel that they have been dealt with unfairly, but it is a costly option. Employers are free to reject labor demands they find to be too difficult to accept, but running a business without experienced employees is itself difficult. Both sides have an incentive to press their demands, but they also have compelling reasons not to press their demands too far. EFCA would disrupt that balance by enabling government-appointed lawyers to decide what they believe is fair or reasonable.

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