Showing posts with label prevailing wage. Show all posts
Showing posts with label prevailing wage. Show all posts

Tuesday, June 28, 2011

Union derangement syndrome

Warning: this post and the linked article contain potentially offensive language and terms.

I have no other way to describe the warped thinking evident in this missive than to call it 'union derangement syndrome.'

You may have heard part of this article in the June newsletter of the Northwest Ohio Building and Construction Trades Council (NWOBCTC) being discussed on both the morning and afternoon shows on WSPD. That's where I first heard of it.

I managed to get a copy and am sharing it here for all to see in its entirety, because I believe it's important for people to know exactly what union leaders are thinking.

The title of the column, "Union haters are ignorant fools" might tell you all you need to know in terms of what officers of unions think of those who aren't in a union. But, as I've said recently in other posts, when you start with an incorrect premise, you draw an incorrect conclusion.

In this case, the incorrect premise is that those who want to rein in the unsustainable public union compensation packages must 'hate' unions. Further, as the article makes clear, they have to be fools if they don't agree completely with the union agenda.

But the article itself is dripping with 'hate' and derision toward people who see a problem and are trying to fix it. How else do you explain the use of the word "tea-bagger" - a sexually-explicit and intentionally derogatory term opponents (and even the media) have called members of the tea-party movement?

"Governors and Mayors, bankers and developers, Tea-Baggers and their conservative mouth-pieces are blaming unions for our economic woes. They complain about how much money union workers make and how opulent our benefits are while they give themselves and their pals pay raises and bonuses. Simultaneously, they introduce reckless anti-union bills in the name of budget balancing, while in reality these are nothing but thinly veiled union-busting tactics.

Why else would Senate Bill 5 contain language to the effect that public union members would only have to pay dues voluntarily?"

Let's look at the 'logic' here...

While I don't believe that unions are the sole source of our economic woes - and I haven't heard any elected officials say that is the case - the 'opulent' (his own term) benefits and compensation packages of public sector unions are contributing to the budget problems of the state. I don't blame unions solely for this - I also blame elected officials who, with their symbiotic relationship to the public sector unions, fail to properly represent the taxpayer when it comes to negotiations and voting on contracts.

Both parties are at fault for the situation, but it is unions who are making things worse by this type of rhetoric and incendiary language, refusing to admit that maybe, perhaps, possibly, the 'opulent' (again, his term) compensation they receive has a significant impact on the current financial state.

In fact, unions are doing themselves - and their members - a serious disservice by failing to understand that future public pension and health care obligations are at risk if steps are not taken quickly to address the problem.

Of course, it should be noted that NWOBCTC is not a public sector union, so SB5 doesn't even apply to them.

But other pending Ohio legislation, to raise the threshold for the prevailing wage (PW) provisions and to eliminate Project Labor Agreements (PLAs), would. In case you're not familiar with these, PW laws require state and local governments to pay what is 'determined' (via formula) to be the 'prevailing' wage in the area for government jobs/projects/contracts. This most often turns out to be the union wage as it is traditionally the highest. The law requires bidders on contracts to pay their workers that particular wage, thus ensuring that union companies are not at a disadvantage to non-union companies when bidding.

A project labor agreement is more insidious in that the governmental entity will mandate a union contract with a bidder for the duration of the project bid. In most instances, the government actually negotiates the contract with the union and then imposes the terms upon the company and its workers. The workers - who are not in a union - are then forced to pay union dues and other fees to the union while they are performing the work under the contract with the government.

I opposed PLAs in Lucas County, but the Commissioners instituted them after my term was up. Interestingly, it was the NWOBCTC that pushed the PLAs in Lucas County. (For more on this you can go here, here, here and here.)

Mr. Schlagheck, of course, doesn't want to see these measures passed because he, and his union coffers, directly benefit by using government to force non-union members to pay dues to an organization they have previously refused to join. But his 'logic' on why these two measures shouldn't be instituted boggles the mind:

"Both of these bills have been introduced by Tea-Bagger politicians to "save the budget" even though every study ever done proves PW and PLAs do not drive up costs."

Really? Every study ever done???

A quick Internet search came up with this website which lists multiple studies and findings showing exactly the opposite. In all fairness, I did find a study done by a union-dominated group that said PW doesn't increase costs, and multiple references to that study. But as the unions will claim a bias by those who say otherwise, I cannot help but believe there is a bias toward the union position when a study is done by a group that is dominated by unions.

There are numerous other articles talking about the problems with the federal PW law and why it should be repealed. Apparently, Mr. Schlagheck is not as well-read as he would like to believe.

As for PLAs, there's actually an entire website dedicated to the sinister nature of such agreements, www.PLAwatch.com, which has a page of studies proving that PLAs raise costs, diminish bidder participation and reduce competition.

Aside from these studies, common sense tells you that when bidders to public projects are required to pay more than what they'd normally pay, the cost of the project is higher than if the bidder were allowed to pay the lower wage. Nothing could be more simple and even a child understands this concept. Why don't the unions?

One can only conclude that the denial of such basic logic qualifies under the definition of 'deranged.'

But it gets worse:

"Of course, much of this labor bashing rhetoric stems from those hateful morons on conservative talk radio and TV. It appears to me that these idiots and their Tea-Bagger minions unusually have one thing in common. Hate. Among them it is O.K. if you do not even hate the same thing as the next hater, as long as you hate something.

It is hard to believe that a bunch of misfits with so much hate could somehow form an organization. Groucho Marx said, "I don't care to belong to a club that accepts people like me as members." I pointed this out to a Tea-Bagger. Now he hates me for it."

Would Mr. Schlagheck also apply the Groucho Marx 'logic' to his own union membership? If he did, he wouldn't be a union member.

Remember the line from the article quoted above:

"Why else would Senate Bill 5 contain language to the effect that public union members would only have to pay dues voluntarily?"

Why would any union want a member who didn't want to voluntarily support the organization they were a part of by 'voluntarily' paying dues? The contradiction makes me want to wrap duct tape around my head before it explodes.

Despite giving no evidence of 'hate,' the premise continues to be advanced. But what could be more 'hateful' than to call people you disagree with 'morons,' 'Tea-Bagger,' 'minions' or 'misfits'??? Talk about a lack of civility.

As for his friend, I would have loved to know the entire conversation for I can't help but believe the discussion was filled with 'derangement' on the part of Mr. Schlagheck that drove his friend insane. Further, if the individual was a 'friend,' I doubt the feeling is now 'hatred' as much as frustration. This is the usual reaction of a tea party member to the lack of logic, reason and common sense (like this article demonstrates) promoted by many on the union side.

But that's not all.

Apparently, there is some sanity within the union membership ranks - and that cannot be tolerated by the organizations that preach tolerance to others.

"The thing that bothers me the most about this contempt for labor is that we have some of our own members who listen to this crap and believe it. He votes for those who attack us. He thinks we should settle contracts for less to keep the company competitive. He works overtime for straight time. He skips breaks. He back stabs. He hauls materials and tools in his own truck. He complains about union dues. He complains about "the union." He mows the boss's grass and shovels his snow.

He is in general a brown-nosing ass kisser. You all know this guy. Maybe he is you."

Wow - if that's not 'hate,' I don't know what is.

Notice the 'anti-logic' here: 'we shouldn't settle contracts for less so the company which employs us and pays our wages can continue to be competitive and keep us employed.' Does Mr. Schlagheck not realize that if a company fails to be competitive it goes out of business and all his precious union workers will no longer have jobs? And without jobs, where will his wages, derived from the dues of those members, come from????

Derangement is the only term that applies to such thinking - or lack thereof.

And look at how Schlagheck demeans and belittles someone who doesn't go along - sort of like children on a playground - criticizing a person who chooses to work and not take breaks; who - gasp! - uses his own vehicle for hauling materials and tools; who is the lowest of low - a "brown-nosing ass kisser.' How dare he make the rest of us look bad for not going above and beyond.

That's hate - someone who publicly disparages, mocks, sneers at and vilifies another because they disagree. Mr. Schlagheck should look in the mirror.

It is the hypocrisy exhibited in this piece that bothers me most. I can understand someone disagreeing with me about various positions. I can more than hold my own in the debate about whether or not prevailing wage and project labor agreements add to the costs of government thus requiring more from taxpayers. I can agree to disagree with people who, for their own reasons, staunchly believe that unions are the best thing for them.

What I cannot 'tolerate' though is a headline that calls me a 'union hater' and 'ignorant fool' because I disagree and then goes on to display the most hateful attitude and use the most despicable language to describe those of us who have a different opinion.

In this article, the writer shows himself to the be the 'hater' and the 'ignorant fool' - thus earning the distinction of derangement.

Thursday, February 24, 2011

Prevailing wage and PLAs eliminated for school construction projects

Press Release from the 1851 Center for Constitutional Law:

OSFC agrees to eliminate Prevailing Wage and Project Labor Agreements for School Construction

Agency will also Review Strickland Era Contracts for Corruption


COLUMBUS - The Ohio School Facilities Commission (OSFC) today agreed to adopt OSFC Resolution 11-16, marking the conclusion of a lawsuit brought by the 1851 Center for Constitutional Law, a public interest law firm representing Ohio taxpayers. The Center argued that OSFC's funding of school projects with Prevailing Wage was unconstitutional, and that the Strickland Administration and labor unions engaged in corrupt activity in procuring, at great taxpayer expense, Prevailing Wage (PW) and Project Labor Agreements (PLAs) on school building construction projects around the state.

Under the Resolution, the agency will no longer fund Ohio public school construction projects that implement Project Labor Agreements (PLAs) or Prevailing Wage (PW). The move is expected to save Ohio taxpayers tens of millions of dollars, and level the playing field between union and non-union contractors.

"Project Labor Agreements" require non-union contractors to enroll their own employees as dues-paying members of a local union hall and abide by union work rules for the duration of the project. It is typically infeasible for non-union contractors to bid on projects with PLAs, which results in the elimination of competitive bidding, and drives up the costs of projects.

"Prevailing Wage" is a wage rate that is set based upon the average wage paid to union workers in a particular locality. It is typically well above the market wage rate, and its use reduces competitive bidding and drives up costs on projects.

Richland County taxpayers in Shelby and Madison school districts brought the lawsuit against OSFC, former Governor Ted Strickland, former OSFC Director Richard Murray, and Laborers' International Union of North America. The lawsuit alleged that Strickland and Murray pressured school districts to use union labor, at taxpayer expense, to ensure union donations to Strickland's campaign.

"The adoption of this resolution is a monumental victory for the taxpayers of Ohio, who can expect to save tens of millions of dollars now that they won't be subsidizing inflated union wages on multi-million-dollar school construction projects, and for non-union workers, who can now compete for public contracts on a level playing field," said 1851 Center Director Maurice Thompson. "Ohioans and non-union workers across the state should be very pleased with this outcome, and the Kasich Administration and Attorney General DeWine are commended for their cooperative approach in resolving this matter."

The Resolution OSFC will:

* Prohibit the use of Prevailing Wage on state-funded school projects;
* Prohibit the use of PLAs on state-funded school projects;
* Repeal all of OSFC Resolution 07-98, the Resolution implemented under the Strickland Administration that favored use of PW and PLAs;
* Review existing contracts with PW and PLAs, including those where 1851 has alleged rampant corruption;
* Allow OSFC to rescind PLAs and PW terms on existing school construction projects that OSFC is funding;
* Commit OSFC to the belief that "open contracting for publicly funded construction projects aids in lowering costs of such projects."

The Resolution halts a practice outlined in the 1851 Center's Complaint, whereby local construction unions would ensure the victory of a school district's tax levy campaign to build new schools in exchange for the school district's promise to implement union-friendly PW and PLAs.

"Higher quality schools can now be built for less, and tax levy elections in Ohio will now more accurately reflect taxpayers' wishes, rather than construction union clout," said Thompson.

As a result of the Resolution, the 1851 Center earlier today voluntarily dismissed its lawsuit, Oleksa v. Murray, which was pending in the Richland County Court of Common Pleas.

The Complaint in the case is available here.

More information on the case is available here.

Review new OSFC Resolution 11-16 here.



The 1851 Center for Constitutional Law is a non-profit, non-partisan legal center dedicated to protecting the constitutional rights of Ohioans from government abuse. The center litigates constitutional issues related to property rights, voting rights, regulation, taxation, and search and seizures.

Monday, August 03, 2009

State and local savings down the drain

If you found a way for government to save millions of dollars, had a task force endorse your savings plan and recommend it to the legislature and the governor, only to have the politicians reject it, would you be mad?

You should be, because that's exactly what is happening in Ohio when it comes to a mandated prevailing wage for government contracts.

Marc Kilmer, a policy analyst with the Buckeye Institute for Public Policy Solutions, wrote the following:

Will Common Sense Prevail?

The General Assembly and the Governor just finished work on a contentious state budget where they had to find billions of dollars in savings in order to balance it. It is a testimony to the power of organized labor in Ohio that common sense state construction law reforms were ignored in this process. The power of Big Labor is also why the state's archaic -- and costly -- prevailing wage law is still on the books. But what's a few hundred million dollars in savings for the taxpayer when you can keep union bosses happy?

Taxpayers pay around $3 billion every year for government entities at the state and local level to build schools, government buildings, and university structures. It's a lot of money, especially during an economic downturn when local governments and the State of Ohio are struggling to find ways to balance their budgets.

Given the large amount of money at stake, it makes sense to look for better ways to complete the construction at a lower cost to taxpayers. That's exactly what the Ohio Construction Reform Panel did, and in April its members overwhelmingly approved a set of proposals that have the potential to shave 10% off the cost of government construction. That's a $40 million a year in savings to the state and a $300 million a year in savings when applied to all government entities.

These common-sense reforms were absent from the recently-passed state budget, though. Labor unions and some construction firms are not keen on any reforms that may cut state construction spending. Efficiency and a good deal for the taxpayer do not produce as much money for union workers or some construction firms as does the state's current inefficient process.

This is the same reason why Ohio's prevailing wage law is still in effect. This law artificially inflates wages on some state construction projects, meaning that taxpayers fork over anywhere from 5% to 15% more than they should for these projects.

There are vested interests who do not want these laws repealed. The prevailing wage law and other construction laws benefit firms that are older, well-established, and unionized. These companies and their unions lobby hard against any true reforms to current construction laws.

On the other side are many construction firms that, logically, think they would have a better chance to get state construction jobs if the playing field weren't rigged. They would love to be able to submit lower bids and compete for the chance to work on our communities' schools and other government buildings, but they don't have a fair chance today.

In the end, the problems the state's construction laws cause these firms is nothing compared to the problems these laws cause Ohio's taxpayers. If the recommendations of the Ohio Construction Reform Panel were adopted and the prevailing wage law were repealed, it could mean anywhere from $450 million to $750 million in savings every year for state taxpayers.

Competition for state construction jobs should not be rigged to benefit a few. It should be a fair process that looks for the best quality at the best price. Unfortunately for Ohio's taxpayers, legislators have steadfastly resisted calls to change the state's construction laws to streamline the process, increase competition, and lower costs. Those who benefit from inefficiency have a lot of sway in Columbus.

With everyone, including politicians, saying we need to reduce the costs of government and find ways to save taxpayer money, why are we still insisting on paying an inflated amount for public contracts?

Kilmer's article examines these costs with state and local governments, but not specifically to any city. Many local governments have rules similar to the state's - and even living wages (which are higher than the prevailing wage), like Toledo and Lucas County. How much extra do these policies add to the City of Toledo budget deficit?

No one really knows - because locally, no media outlet or organization - and certainly not government - has spent the time to gather the information and share it with the public.

Proponents of such laws say that they 'help' the 'working men and women' 'earn' a decent wage. However, government only does business with certain companies, so the rest of the entire community is paying more than necessary so that certain individuals can 'earn' a specific wage. The end result is that everyone is paying more so a few can benefit.

My question for all our council and mayoral candidates is this: how much would taxpayers save if Toledo didn't have a prevailing and living wage requirement and what would the savings have to be for you to support the repeal of such mandates?
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