True Cost of the Employee Free Choice Act
Posted Under: Uncategorized
WedNEWSday - April 1st, 2009
A Billion Here… A Billion There - by Jacob Ingalls
Since President Barack Obama first put his backing behind the Employmee Free Choice Act during his presidential campaign it has been one of the most highly contested issues in the American Political landscape. Late last week FedEx became the leader (and hero) in the fight against this potentially devastating piece of legislation by threatening to cancel an order for up to 30 Boeing 777’s citing feasibility and cost effectiveness if the company where to unionize. The retail price of this order is $7.7 billion or about 23% of Boeing’s current market cap. Unionizing rules for FedEx are currently governed by the Railway Labor Act which forces a companywide vote to bring in a union; unlike their main competitor UPS who’s employees can unionize on a location by location basis.
Much can be made of the Teamsters efforts to unionize this company and much can be made over the lack of production that will most likely result if FedEx where to be unionized, however this is one of few times that a true number has been placed on the cost of unionization. By saying that FedEx will not be able to afford the jets if they are unionized, FedEx is saying that each employee if unionized will cost FedEx $27,012.54 in investment capital. Boeing is sure to feel the effect of this cancelation tool; in 2008 Boeing’s net Income was only $2.67 billion with total revenue of $60.9 Billion. The FedEx order would constitute roughly a 12% increase in total revenue.
The cost per employee when translated to other companies is devastating. Wal-Mart, the golden goose of labor unions with its 1.3 million US employees is staggering. If Wal-Mart has to deal with an equivalent cost of investment capital that FedEx does; Wal-Mart will be looking at a loss of $35.1 billion. The increase in cost at places like Wal-Mart will have a crushing ripple effect through our economy effecting every person and corporation along the way.
At AmericanSolutions.com, you can join the nearly 180,000 people who have signed the petition being sent to the U.S. Congress to ensure that every worker has the right to a secret ballot when deciding whether to organize a union, as well as the right to ratify the contract terms of their employment, rather than be forced to accept a contract through binding arbitration. By doing so you can help save nearly 600,000 American jobs. Please take a few seconds to sign the petition.
I did.
Thank you for standing up for fundamental American freedoms. Together we must save American jobs, and protect the rights of American workers.
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This from The Democrat - March 31st, 2009
http://www.thedemocrat.com/site/news.cfm?BRD=1867&dept_id=124331&newsid=20289203&PAG=461&rfi=9
This from The Wall Street Journal - March 30th, 2009
http://online.wsj.com/article/SB123846513600072399.html
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