Friday, April 03, 2009

Fact check on card check

Since the beginning of the recession--which goes back to December, 2007--over 5.1 million jobs have been lost. That's almost matches the population of Denmark.

There's something rotten about the Employee Free Choice Act, better known as card check--even Barack Obama expressed doubts a few days before being sworn-in:

The president-elect also gave his support for legislation that would make it easier for workers to unionize, but he said there may be other ways to achieve the same goal without angering businesses. And while many Democrats on Capitol Hill are eager to see a quick vote on that bill, he indicated no desire to rush into the contentious issue.

"If we're losing half a million jobs a month, then there are no jobs to unionize, so my focus first is on those key economic priority items I just mentioned," he said. "Let's see what the legislative docket looks like."

And card check unionization could mean higher pay--but it might also mean fewer jobs.

Using data from Canada's experience with a card check system, economist Dr. Anne Layne-Farrar's assessment of the consequences of adopting the same system in the U.S. found that union membership would increase, but so would unemployment. Said Layne-Farrar: "For every three percentage points gained in union membership through card checks and mandatory arbitration, the following year's unemployment rate is predicted to increase by one percentage point and job creation is predicted to fall by around 1.5 million jobs." Layne-Farrar works for LECG, a non-partisan economic consulting group in Chicago.

Eventually the economy will turnaround and firms will start hiring. I'm going to be blunt: Many of these new jobs won't pay much. But the opportunity for raises and promotions will exist. But if you don't have a job--how the heck are you going to get a pay increase?

It's not just businesses and Republicans who oppose card check. Sen. Diane Feinstein (D-CA), citing the bad economy, backed off of her support last week. And George McGovern, an old school liberal, opposes card check.

Card check is not the answer.

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