Quotulatiousness

June 3, 2015

The great Los Angeles minimum wage experiment

Filed under: Business,Economics,USA — Tags: , , , , — Nicholas @ 02:00

I missed this post a few weeks back from Kevin Drum at Mother Jones, pointing out that we won’t really know the full impact of the Los Angeles experiment with significantly higher minimum wages:

So my near neighbor of Los Angeles is poised to raise the minimum wage to $15. How should we think of that?

Personally, I’m thrilled. Not because I think it’s a slam-dunk good idea, but because along with Seattle and San Francisco it will give us a great set of natural experiments to figure out what happens when you raise the minimum wage a lot. We can argue all we want; we can extrapolate from other countries; and we can create complex Greek-letter models to predict the effects — but we can’t know until someone actually does it.

So what do I think will happen? Several things:

In the tradeable sector, such as clothing piece work and agriculture, the results are very likely to be devastating. Luckily, LA doesn’t have much agriculture left, but it does have a lot of apparel manufacture. That could evaporate completely (worst case) or perhaps migrate just across the borders into Ventura, San Bernardino, and other nearby counties. Heavier manufacturing will likely be unaffected since most workers already make more than $15.

In the food sector, people still need to eat, and they need to eat in Los Angeles. So there will probably be little damage there from outside competition. However, the higher minimum wage will almost certainly increase the incentive for fast food places to try to automate further and cut back on jobs. How many jobs this will affect is entirely speculative at this point.

Other service industries, including everything from nail salons to education to health care will probably not be affected much. They pretty much have to stay in place in order to serve their local clientele, so they’ll just raise wages and pass the higher prices on to customers.

Likewise, retail, real estate, the arts, and professional services probably won’t be affected too much. Retail has no place to go (though they might be able to automate some jobs away) while the others mostly pay more than $15 already. The hotel industry, by contrast, could easily become less competitive for convention business and end up shedding jobs.

While I’m certainly in favour of people being able to afford to live on their base income, I’m afraid that this experiment is going to hurt a lot of already at-risk poor people who will have few other options if their jobs go away. I’m especially amused that LA-area union reps are now reported to be pushing to exempt the businesses where their members work (so that unions will have an effective monopoly on low-wage jobs because non-unionized companies would have to pay a higher wage). That, after putting all their organizational muscle behind getting the minimum wage raised in the first place. That’s a high grade of cynicism.

March 19, 2015

Thirty years on, what was the impact of the Miners’ strike in Britain?

Filed under: Britain,Economics,Government,History,Politics — Tags: , , — Nicholas @ 05:00

Frank Furedi points out six ways that Britain’s political scene has changed as a result of the year-long miners’ strike:

To defeat the National Union of Miners, UK prime minister Margaret Thatcher and her Conservative government had to use almost every available resource, including the mass mobilisation of the police. The Miners’ Strike became the defining event of British politics in the 1980s. And in retrospect, it’s clear that it was the last class-focused dispute of its kind.

Over the past three decades, the political climate, culture and institutions that served as the background for the Miners’ Strike have fundamentally altered. Here are six things that changed enormously in the wake of that industrial conflict.

1) The defeat of the Miners’ Strike signalled the end of the era of militant trade unions

[…]

2) The demise of the British labour movement was paralleled by the decline of the left

The Labour Party has survived the post-1985 tumult, yes, but only by reinventing itself as the party of the middle-class, public-sector professional. Thanks to the vagaries of the electoral system, Labour can still have MPs in many of its traditional working-class seats. The decline of labourism also coincided with the implosion of the Stalinist communist movement and the collapse of the Soviet Union.

[…]

3) Paradoxically, the demise of the left has not benefited the right

Thatcherism, which was very much the dominant force during the Miners’ Strike, has lost its authority. Today’s so-called Conservatives regard Thatcher as an embarrassment and self-consciously distance themselves from her legacy. So defensive is the right today that it continually protests that it is no longer a ‘toxic brand’.

February 4, 2015

CP Rail offering engineer training to office staff

Filed under: Business,Cancon,Railways — Tags: , — Nicholas @ 04:00

Laura Spring linked to this interesting bit of news that CP Rail is “encouraging” non-unionized employees to take training on how to operate locomotives:

A Canadian railway company is training its managers and office workers to drive locomotives and load trains, a move one labour lawyer says could be an attempt to prepare for a possible work stoppage.

Documents show CP Rail has encouraged office employees to step away from their desks and cubicles and sign up for training both on the trains and in the rail yards.

The use of office workers driving trains could be a major safety concern, said Wayne Benedict, a former railroader who now works as a labour lawyer in Calgary.

“You’ve got them climbing onto a train that’s a mile and a half long, with a hundred and some cars, weighing 16,000 tonnes, with dangerous goods, going through our cities,” he said. “And they are not professional, running trades employees. They are running human resource professionals, or other managers and supervisors.”

CBC News has obtained an internal CP Rail document dated Feb. 19, 2014, encouraging non-union employees to sign up for training as a locomotive engineer or conductor. It calls the training “a requirement at Canadian Pacific. It is also the single best way for a management employee to learn what the business is truly about. It is a fundamental cornerstone to the development of our railway culture.”

The document also suggests, “no matter what your role is at CP, this experience will make you better at what you do.”

The program is targeted mainly towards mechanical and engineering workers, but open to any non-union employees.

December 30, 2014

How did so many episodes of Doctor Who go missing?

Filed under: Britain,History,Media,Technology — Tags: , , , , , — Nicholas @ 02:00

At Samizdata, Patrick Crozier explains how the cost of a new technology and the union work rules of the 1960s led to so many great (and not-so-great) British TV shows being lost to posterity:

Something like two fifths of the Doctor Who episodes produced before 1970 are “missing” from the BBC archive. Although it is now 20 years since I found out about it, I still find it difficult to believe that such an act of cultural vandalism was allowed to take place. But it was.

So why are so many missing? In Wiped! Richard Molesworth describes the whole sorry tale in exhaustive (and some times exhausting) detail. It begins with Doctor Whos being recorded on videotape. In the 1960s videotape was a new technology and as such, expensive. Broadcasters were understandably keen to re-use the tapes whenever they could.

Another factor in this was the deal that the BBC had made with the actors’ union Equity. Younger readers may be unfamiliar with this but in the 1960s and 1970s unions were extraordinarily powerful. The deal between Equity and the BBC meant that an episode could only be repeated for two years and after that only with Equity’s specific permission. So, you’d have a situation where after 2 years you would have videotapes that effectively could not be broadcast and an engineering department banging on the door demanding they be allowed to wipe them. As a consequence every single inch of 1960s Doctor Who was wiped. It was far from alone. Episodes of Top of the Pops, the Likely Lads, Not only but also…, Z-Cars, Til death us do part and many others met a similar fate.

In the interests of fairness I should point out that when it came to wiping TV programmes the BBC was far from the only offender. There is almost nothing left of the first season of the Avengers for instance. Or Sexton Blake. About half of the highly-rated Callan (played by Edward Woodward) is also missing. However, all the Saints and Danger Mans are still with us. Meanwhile, my understanding is that most American TV, even from the 1950s still exists.

And compounding the problem … even when the BBC wanted to get rid of old episodes of TV shows, they still held the copyrights:

One thing that particularly sticks in my craw is the fact that even after the BBC did everything in its power to destroy these episodes it still has copyright to them. This has some very peculiar effects as I shall explain.

As I said, many episodes no longer exist as films or tapes. But all the audios exist (recorded off-air by fans), as do the scripts and a large number of photographs, otherwise known as “tele-snaps”. Over the years a cottage industry has grown up assembling these disparate elements into what are known as “reconstructions”. Now, they’re not very good and they are really only for the dedicated fan – people like me in other words – but right now they are the best we’ve got. Sadly, these too are affected by BBC copyright. For many years they were only available on videotape and on a non-profit basis. The producers were wary of annoying the BBC. And then one day someone (quite reasonably you’d think) decided to start putting them up on YouTube. Oh dear, the BBC really didn’t like that. Not only did they force YouTube to take a whole load of them down but seem to have closed down the reconstruction business temporarily if not permanently. Bastards.

December 19, 2014

QotD: The twin rise and fall of unions and manufacturing

Filed under: Business,Economics,History,Quotations,USA — Tags: , , — Nicholas @ 00:01

Unions only help if the underlying economic situation is that the employer is able to charge a great deal more for the amount of product generated per worker-hour than the worker is getting — there is headroom for the worker’s wage to expand into while the manufacturer still makes a net profit. (If the manufacturer doesn’t make a net profit the business collapses and nobody gets paid.)

During the age that manufacturing nostalgisists remember nostalgically, this was true. For most of that period (roughly 1870-1970), the capital goods required to manufacture in a way price-competitive with the U.S. were so expensive that almost nobody outside the U.S. could afford them, and in the few places that could they were mainly preoccupied with supplying their domestic markets rather than the U.S. World War II prolonged this period by hammering those “few places” rather badly.

In that environment, U.S. firms could profit-take hugely, benefited by being scarce suppliers not just to the U.S. but (later on) to the whole world. And unions could pry loose enough of that margin to make manufacturing jobs comfortably middle-class.

All that ended in the early 1970s. A good marker for the change is the ability of the Japanese to make cheap cars for export and sell them for the U.S.

In the new world, the profit margins on manufactured goods narrowed dramatically. The manufacturing firms could no longer effectively ignore overseas competition in the U.S. domestic market. U.S. consumers no longer had to to pay the large price premiums required to sustain domestic manufacturing wages at pre-1970 levels, and they jumped right on that option.

In this environment, unions don’t help because they have almost no negotiating room. If they bid up workers’ wages, the jobs will evaporate or move overseas – not because corporations are being “greedy” but because they can no longer charge the prices that would allow such high wages to be sustained. Too much foreign labor and capital is ready to pounce on the first hint of price-taking.

Eric S. Raymond, “Why labor unions have lost their moxie”, Armed and Dangerous, 2014-11-29.

December 18, 2014

A mandatory registry that might actually do some good

Filed under: Law,USA — Tags: , , , — Nicholas @ 00:03

At Reason, Ed Krayewski suggests that a Police Offenders Registry might be an excellent start to reduce some of the worst interactions between the police and the public they are supposed to serve:

This week, the Department of Justice announced new guidelines against racial profiling. The changes don’t actually change all that much. As regular incidents of police brutality get more and more mainstream media attention, it’s time for a bold move from the White House.

There’s a moral obligation to keep bad cops off the streets. A job with a police department is not a right and shouldn’t be treated like one. Police unions that push for permissive rules that end up protecting bad cops pose a serious public safety threat. Nevertheless, dismantling them where they’ve taken root is a difficult prospect even in the long-term. There are other ways to keep bad cops off the streets. The federal government, and state governments, ought to create and encourage the use of a police offender registry list. Such a list would register individuals who while employed as law enforcement officers were found unfit for duty or faced serious disciplinary issues they may have resigned to avoid. Just as any other component of comprehensive police reform, this won’t eliminate excessive police violence, but it’s a start.

When actually identified, a surprising (or not) number of officers involved in controversial, high-profile use of force incidents have previously disciplinary history. Officer Daniel Pantaleo, the New York City cop who put Eric Garner in a fatal chokehold, had been previously accused, at least twice, of racially-motivated misconduct, including strip searching a man in the middle of the street and allegedly hitting his testicles. The police union in New York City is among the strongest in the country. When a rookie cop shot Akai Gurley in apparent panic last month, he didn’t think twice to reportedly contact his union rep first. A man lay dying in a stairwell for no other reason that he startled a rookie, and the fact that the officer called his union representative before calling for assistance isn’t shocking enough to lead to the officer’s termination. Even if it were, it would still be impossible to terminate the officer immediately. While all this is happening, the state of New York is on the verge of placing even more of the disciplinary regime that applies to cops under the purview of the police unions.

October 15, 2014

The pay gap issue, again

Filed under: Business,Economics — Tags: , , , — Nicholas @ 09:28

There’s been a lot of moaning on about inequality recently — some are even predicting it will be the big issue in next year’s Canadian federal election — but the eye-popping figures being tossed around (CEOs being paid hundreds of times the average wage) are very much a case of statistical cherry-picking:

Before retiring to their districts for the fall, the House Democratic Caucus rallied behind the CEO/Employee Pay Fairness Act, which would prevent a public company from deducting executive compensation over $1 million unless it also gives rank-and-file employees raises that keep pace with the cost of living and labor productivity.

Meanwhile, the AFL-CIO and its aligned think tanks have made hay of the huge difference between the pay of CEOs and employees. One of the most widely cited measures of the “gap” comes from the AFL-CIO’s Executive Paywatch website.

  • The nation’s largest federation of unions laments that “corporate CEOs have been taking a greater share of the economic pie” while wages have stagnated for the rest of us.
  • As proof, it points to a 331-to-1 gap in compensation between America’s chief executives and the pay of the average worker.

That’s a sizable number. But don’t grab the pitchforks just yet, says Mark J. Perry, economic professor at the University of Michigan-Flint and resident scholar at the American Enterprise Institute, and Michael Saltsman, research director at the Employment Policies Institute.

The AFL-CIO calculated a pay gap based on a very small sample — 350 CEOs from the S&P 500. According to the Bureau of Labor Statistics, there were 248,760 chief executives in the U.S. in 2013.

  • The BLS reports that the average annual salary for these chief executives is $178,400, which we can compare to the $35,239-per-year salary the AFL-CIO uses for the average American worker.
  • That shrinks the executive pay gap from 331-to-1 down to a far less newsworthy number of roughly five-to-one.

July 14, 2014

When unions took over the public sector

Filed under: Bureaucracy,Business,Economics,Government,USA — Tags: , , , , — Nicholas @ 09:09

Dmitri Melhorn says the union movement is missing an opportunity to be more relevant in the private sector, because public sector unions don’t help poorer workers (because public sector union members are middle class professionals, not working class):

Progressive hostility to [Harris v. Quinn], however, is shortsighted. Harris and decisions like it have the potential to revitalize progressive politics by restoring the relevance and political potency that labor held in the early-to-mid-20th century. The great labor leaders of that era — AFL-CIO President George Meany, President Franklin D. Roosevelt, and the like — agreed with the majority in Harris: it was both impractical and inadvisable to afford public employees compulsory collective bargaining rights.

Roosevelt said that collective bargaining and public workers’ right to strike would be “unthinkable and intolerable.” Meany said it would be “impossible.” In the view of these leaders, civil service laws from the Progressive Era of the 1890s to 1920s had made government jobs good and safe. Labor and progressives, therefore, needed to focus on blue-collar workers’ need to fight collectively for basic safety, dignity and living wages. Through this focus, the United States saw historic gains in the well-being of workers and the country’s middle class.

That labor heyday lasted through the 1950s, but starting in the late 1960s labor lost ground. Public-sector unions grew rapidly, but private-sector unions shrank. By 2012, public-sector workers had union membership rates more than five times higher than rates among private-sector workers.

Essentially, the public-sector unions sucked up all the oxygen. Talented labor organizers opted to work with government workers: their members were relatively prosperous and well connected, so they were easy and lucrative to organize. As explained in Jake Rosenfeld’s book What Unions No Longer Do from earlier this year, this shift to public-sector unions meant that unions no longer fought primarily for the working poor. Instead, much of their muscle was devoted to improving the status of middle-class professionals.

July 5, 2014

So how would they react to a strong pro-liberty Supreme Court decision?

Filed under: Law,Liberty,USA — Tags: , , , — Nicholas @ 10:43

Shikha Dalmia says that the relatively mild pro-liberty decisions from the US Supreme Court in this session have driven progressives wild. It’s hard to justify going to DEFCON-5 over Hobby Lobby or Harris … isn’t it?

This week, the United States Supreme Court handed down two rulings that are a victory for the liberties of religion, speech, and association enshrined in the First Amendment. That ought to be cause for a double celebration on July 4. But instead, the rulings, issued on the narrowest possible grounds, constitute a victory so modest — and have elicited a response from the left so hysterical — that anyone serious about liberty can’t help but be a little depressed right now.

The case that has attracted disproportionate attention is informally known as Hobby Lobby, and it challenged ObamaCare’s contraceptive mandate. This mandate requires all for-profit companies to provide all 20 forms of birth control approved by the FDA, including pills and “abortifacients,” even though they violate the Christian (Assembly of God, to be precise) convictions of the owners of Hobby Lobby, an arts and crafts chain in Texas, who were willing to cover “only” 16.

[…]

None of this, however, prevented the left from throwing a collective hissy-fit. Social media erupted into tiresome taunts of fascism. Ann Friedman called the ruling a “blow to reproductive rights” that made her want to issue “an outraged scream, sort of a combination groan-wail…while beating my fists against the desk on either side of my laptop.” (Hey Ann, be careful: A new laptop will cost you several years’ of contraceptive pills. Generic versions sell at Costco for $25 a month.)

Such moral huffing and puffing was also on display in response to the Supreme Court’s ruling in Harris vs. Quinn. That case involved the right of family members of disabled loved ones to offer care without having their state aid garnished by public unions. Harris, a mom who was providing home care to her 25-year-old disabled son, had sued the state of Illinois for forcing her to pay dues to a government union.

But what in the name of Jimmy Hoffa does looking after her son have to do with the union?

Apparently, because she receives state subsidies for caring for her son, Illinois, along with a dozen other states, considers her a “home health care worker.” This means she must submit to the exclusive representation of a government union in collective bargaining negotiations — even though she supports neither the union nor its goals.

June 13, 2014

Ontario embraces scandal, mismanagement and deficits

Filed under: Cancon,Politics — Tags: , , , , — Nicholas @ 07:25

Well, that happened. As Elizabeth said to me when I got up this morning, at least it means we see the back of Tim Hudak. Aside from that, not a lot of encouraging news from the polls. We have set our acceptable political standards to a much lower notch, and we clearly don’t think it’s a bad thing to spend hundreds of millions of dollars on party purposes. Noted.

Premier Kathleen Wynne didn’t win the election so much as Horwath and Hudak lost it. Horwath was cut off at the knees by her own party (and organized labour), while Hudak tried on a set of fiscal conservative policies for size … and they didn’t fit at all. Things must have been more desperate inside the Liberal war room earlier in the campaign, if they felt they had to get the Ontario Provincial Police and the media unions to both declare for Wynn (if any two organizations should stay out of politics, they’d be the ones). And yet, once the votes were counted, they clearly didn’t need to force those two organizations out of their traditional neutral stances after all.

And, to top off the sudden acceptance of a much lower standard of political conduct by the provincial government, we get to watch (and suffer financially) as the province introduces a mandatory pension scheme on the false basis that Ontarians aren’t saving enough of their own money for retirement. That’s going to be fun. I wonder what the job market is like in Alberta…

Paul Wells offers his take on the election:

Kathleen Wynne’s victory is historic, it is almost all hers, and its meaning is a little opaque, because there is a tension between her platform and her record that will be resolved only by her actions, now that she has the length of a majority mandate to show Ontarians what kind of premier she wants to be.

Historic: She is Ontario’s first elected woman premier. Almost all hers: People who make a living proclaiming their knowledge of strategy said she was crazy to put herself at the centre of her party’s messaging and communication to the extent she did. She voiced her own attack ads. To voters upset about the mess McGuinty left behind, she offered her person as sufficient guarantee that the past would stay past. It’s what Paul Martin attempted in 2002-2006, but Wynne offered none of Martin’s creepy intramural fratricide and never benefited from the fast-burning personal popularity that seemed, at first, to be Martin’s greatest asset until he ran out of it. The funny thing about a cult of personality is, sometimes it works better if you don’t have quite as much personality. Rule One in Bill Davis’s Ontario is, don’t get on people’s nerves.

But there are a lot of Conservatives in Ontario who have forgotten the province was ever Bill Davis’s. There are a lot of people who accreted around Mike Harris in 1990 like barnacles — the Little Shits, Frank magazine used to call them — and they’ve never really grown up. They were at Trinity College or Upper Canada College or Hillfield Strathallan or some other dreary Anglo-Saxon dumping ground in the early ’80s when Ronald Reagan came on TV and fired the air traffic controllers, and they’ve spent the rest of their lives looking for an excuse to play Ayn Rand Home Edition. It even worked in 1995, when Mike Harris came back from his 1990 drubbing and years of the worst recession, combined with the worst government, Ontario had seen in ages. Harris’s “Common Sense Revolution” worked because by 1995, thanks to Bob Rae, common sense seemed revolutionary.

[…]

But back to Wynne. She ran on activist government, and celebrated victory by congratulating those who want to “build up Ontario.” But Ontario can’t afford the Ontario it’s got. Wynne’s own platform quietly acknowledges this. Hard public-sector wage freezes and a new program-review exercise won’t feel much like building up. If she abandons them for more spending, she simply postpones harder choices. She has proven herself a redoubtable politician; now she had better be a very good premier, because she’s put herself in a fix to get the mandate she just won.

But that’s a high-class problem, one she would not trade for the simpler life Hudak can now look forward to. (A word on the NDP’s Andrea Horwath: she is in trouble with some New Democrats for forcing this election and losing the bargaining power she had in a minority-government legislature. But the balance of power is not a comfortable place to be after a while, and Horwath was well into the zone where, every time she propped Wynne up, voters would wonder why. The NDP should cut her some slack.)

June 11, 2014

LA court delivers a major blow against tenure for teachers in California

Filed under: Bureaucracy,Law,USA — Tags: , , , , — Nicholas @ 07:14

The Los Angeles Times on yesterday’s decision:

Teachers union officials denounced a ruling Tuesday by a Los Angeles County Superior Court judge deeming job protections for teachers in California as unconstitutional as a misguided attack on teachers and students.

The ruling represents a major loss for the unions and a groundbreaking win by attorneys who argued that state laws governing teacher layoffs, tenure and dismissals harm students by making them more likely to suffer from grossly ineffective instruction.

If the preliminary ruling becomes final and is upheld, the effect will be sweeping across California and possibly the nation.

Judge Rolf M. Treu ruled, in effect, that it was too easy for teachers to gain strong job protections and too difficult to dismiss those who performed poorly in the classroom. If the ruling stands, California will have to craft new rules for hiring and firing teachers.

[…]

The Silicon Valley-based group Students Matter brought the lawsuit on behalf of nine students, contending that five laws hindered the removal of ineffective teachers.

The result, attorneys for the plaintiffs said, is a workforce with thousands of “grossly ineffective” teachers, disproportionately hurting low-income and minority students. As a result, the suit argued, the laws violated California’s constitution, which provides for equal educational opportunity.

The laws were defended by the state of California and the two largest teacher unions — the California Teachers Assn. and the California Federation of Teachers. Their attorneys countered that it is not the laws but poor management that is to blame for districts’ failing to root out incompetent instructors.

May 24, 2014

First US military union approved, strike imminent

Filed under: Humour,Military,USA — Tags: , , — Nicholas @ 11:29

What The Onion does for civilian news, Duffel Blog does for military news. Here’s their coverage of the US military following European practice and allowing the first military union to be formed:

Duffleblog - 1st US military union, strike imminent

In a historic move, the Department of the Army has recognized the right of service members to unionize.

“Historically, collective bargaining has improved American working conditions and made us the envy of the world economically. We’re pleased to announce that our soldiers can now have that right. In defending democracy, our service members should reserve the right to practice it,” declared Secretary of the Army John McHugh.

McHugh went on to say that the founding of a union had been under way for sometime and required lengthy negotiations with top civilian and military leaders, before an acceptable framework emerged. The first union, the Junior Enlisted Service Members (JESM), almost immediately threatened a strike.

PFC Harry Milton of the 323rd Military Intelligence Battalion is the founder of JESM. The 19 year-old soldier invited Duffel Blog into his new office in the reserve center, just outside Ft. Meade, MD, where JESM is headquartered.

April 5, 2014

Chris Kluwe’s suggestions for more constructive NFLPA texts-to-players

Filed under: Football — Tags: , , , — Nicholas @ 09:16

When they’re not on the playing field or otherwise engaged in preparing for the games, NFL and other high-profile sports players lead normal-ish lives. Most of them manage to blend in to the local community, but some achieve notoriety for their off-the-field antics. Chris Kluwe is still a member of the NFLPA (the union for NFL players), so he gets their occasional communications to the membership like this text message:

Mindful of the opportunity to help out some of those players whose off-the-field activities might get them into trouble, he has a few suggestions:

November 13, 2013

The NFL “closed shop”

Filed under: Business,Football,Law,Liberty — Tags: , , , , — Nicholas @ 10:35

In Reason, S.M. Oliva discusses how the NFL’s exemption from normal labour regulations makes it difficult to assess the rights and wrongs in the Miami Dolphins “bullying” situation:

Many libertarians see nothing wrong with the NFL’s labor system. Even in a pure free market, employers and unions could enter into “closed shop” agreements like the NFL’s CBA. But as we all know, professional sports hardly exist in a free market. The NFLPA itself holds a government-sanctioned monopoly over all current and future NFL players. Indeed, Martin was not even a union member when the NFLPA signed the current CBA in 2011.

More importantly, in a free market any closed shop would face competition from new entrants seeking to exploit the incumbent’s labor restrictions. There’s little risk of that with the NFL given that most of its infrastructure is subsidized by government. This includes not just stadiums built with billions in taxpayer financing, but also player development, as most NFL players are the product of college football programs subsidized by state-run universities.

There’s also the perverse incentives created by federal antitrust law. The collective bargaining process creates an exemption from antitrust law. Without that exemption, most NFL labor policies, such as the draft, would be deemed illegal. Now, that’s hardly a libertarian outcome. But consider the NFL’s position. The more rules and restrictions they can stuff into the CBA, the lower the risk of future antitrust lawsuits. Thus, the exemption encourages the NFL (and the NFLPA) to centralize as much of its labor policy as possible.

That means there’s little motive to experiment with more flexible labor policies. Individual teams can’t offer employee incentives or enforce discipline in any way that conflicts with the CBA. When there are workplace disputes like the Dolphins situation, the bureaucracy acts not to “protect” employees, but to ensure nothing disturbs the government-granted authority of the league and its monopoly labor union.

QotD: Trade unions

Filed under: Bureaucracy,Economics,Quotations — Tags: , , — Nicholas @ 00:01

If they are timid in some respects, the Trade Unions are aggressive in negotiation and cannot be otherwise. To keep in business a union has to do something. Each year there must be a fresh demand, without which the union will lose membership. Members expect to see some return for their subscriptions and union officials are not paid to be inactive. Lacking a grievance, they will have to invent one. Realizing this, the directors must make a show of reluctance, postponing the inevitable concession until it looks like a victory for the employees. If the union is quiescent it will lose membership, most probably to another union. Its officials, honorary or paid, can always gain consequence on the other hand, from their decision to do battle. Any Trade Union has, therefore, a built-in aggressiveness, without which it can hardly survive. Nothing can be more damaging to the union official than the rumour that he is friendly with the management. This can only be the result of blackest treachery, it is assumed, and the official has to stage a conflict in order to secure his own re-election. Aggressive toward management, the unions are almost as aggressive toward each other, competing for membership and staging frontier disputes over the exact territory which belongs to each. Nor is this unrest the fault of individuals. It is a characteristic of union organization and one for which there is no obvious remedy.

C. Northcote Parkinson, “The Feet of Clay”, Left Luggage, 1967.

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