THE COMING SEIU TSUNAMI

From the desk of Stephen Cabot: According to an article in The Wall Street Journal (www.wsj.com), the Service Employees International Union, which presently has 2 million members, intends to launch a major offensive against corporate America that will “peak in the summer of 2012.”

The Union intends to recruit new members to its ranks in 10 to 15 major American cities, including Cleveland, Milwaukee, Miami, and Detroit. Its recruitment efforts will take place at political primary events, town hall meetings, and other gatherings. No doubt, its focus will be at Democratic Party events, for the SEIU is a stalwart contributor to Democratic candidates. In the last presidential election, the SEIU spent $70 million! It is reportedly prepared to spend tens of millions of dollars on its aggressive new recruitment efforts.

Many of its members are public sector workers who will receive inordinately large pensions upon their retirement, which will further contribute to the near bankruptcy of states. The Union, obviously, hopes to defeat any legislative measures that will curtail the size of those tax-payer funded pensions. Hence, its forthcoming efforts to beef up its membership rolls and deliver the maximum number of votes to its Democratic allies in 2012.

It is essential that both legislators and Corporate America prepare effective survival strategies to defeat the deleterious efforts of the SEIU. If not, public service pensions will indeed bankrupt one state after another leading to financial devastation throughout the land.

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A GROWING TREND: MORE RIGHT TO WORK STATES

From the desk of Stephen Cabot: Right-to-work states are growing faster than states where unionization is the norm. A study by Richard Vedder, published in the Cato Journal, found that 4.7 million U. S. citizens moved to right-to-work states from forced-union states during the years 2000 to 2008. In addition, his study found that there is a “statistically significant relationship between right-to-work laws and economic growth.” In fact, during the years 1997 to 2007, those right-to-work states enjoyed a 23% more rapid growth rate for per capita income than states in the Northeast and Midwest.

Not only are jobs and people leaving the forced-union states, but companies, domestic and foreign, are choosing to build new manufacturing facilities in right-to-work states, primarily in the South. Such trends do not portend an economic resurgence for forced-union states. The onerous deficits that are hurting those states will only get worse.

And governors and state legislatures realize that one ailment keeping their economies on life support are unions. It is no wonder then that three states are considering becoming right-to-work states. They are Indiana, Michigan, and Wisconsin. Those states, like their neighbors in the northeast, desperately need new businesses, greater employment, and more tax dollars. The only way they will grow their economies and achieve their goals is to become right-to-work states. Other states should take notice and join the trend to economic growth.

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