Diary

EFCA: This is Lunacy

Patrick McIheran has a short piece on the Milwaukee Journal Sentinel’s website that is a pretty good read. I think you should all check it out in its entirety here.

The piece has several links to other articles in it, but the main point is about the overgenerous and unfunded pension plans that unions all across the country have been foolishly allowed to negotiate. These pensions are simply untenable and always were but most businesses and unions kept kicking this can down the road until it is finally hit a dead end.

McIheran quotes Diana Furchgott-Roth as she discusses how these pension obligations will pretty much destroy any new business that ends up forced into a union via the Employee Free Choice Act (EFCA).

“If the arbitration panel were to require a firm to join one of the many underfunded plans, the firm could well become liable for the pensions of workers, some already retired, of other firms. This would generate an inflow of new cash to the plan but harm the financial position of the firm. According to Brett McMahon, vice president of the construction company Miller and Long, ‘Strengthening underfunded plans is an unstated union motive for seeking mandatory arbitration.’”

The EFCA really needs to be shot down or this depression in which we are in will get far, far worse.

So, go on over to the Journal Sentinal and read it all.