Posts tagged with: labor

Too many regulations: that’s the judgement of Fred Deluca, founder of the Subway restaurant chain. In an interview with CNBC, Deluca said he couldn’t start his business in today’s economic climate.

The Subway founder pointed to a number of government regulations that are degrading the business environment for entrepreneurs. Examples include the Affordable Care Act, an increase in the minimum wages and the end of the payroll tax holiday.

The Affordable Care Act, often referred to as “Obamacare,” is “the biggest concern of our franchisees,” Deluca said. “They don’t know what to expect. It’s causing a lot of concern, but that too will be passed on to the consumer.”

Deluca also said payroll taxes are a burden passed on to customers, and sales then decline. He said that if he were to try and start his business in today’s tangle of regulations and burdensome costs, “…Subway would not exist.”

Read “Subway ‘Wouldn’t Exist’ If Started Today Due to Regulations: Founder Deluca” at CNBC.com.

Blog author: jballor
posted by on Tuesday, February 19, 2013

My friend John Teevan of Grace College sends out a monthly newsletter, “Economic Prospect.” He passes along this in the current edition:

I found this note from a newly retired accountant (age 66) who has not gone on social security yet. His income as a part-time accountant in his town was $60,000.

“My income is $60,000 and my IRS taxes are 10,000, my FICA deduction is $8,000, my state income tax is $2500, and my property tax is $6000. So I pay a total of $26,500 in taxes leaving me $33,500.

However, I have additional costs that I would like to (but can’t) deduct from my income. As I watch ‘government accounting’ I realize that these should be considered real costs.

I have saved $200,000 and invested the money in bonds earning 1% ($2000).

I could have invested that money in CDs earning 5% (10,000), but as the Fed has lowered the interest rate the cost to me is the difference: $8000.

In addition I am now entitled to social security and at my level of income over the years I would have received $28,000 this year, but I have chosen not to take Social Security saving Uncle Sam that money.

So I have contributed a total of $36,000 to Uncle Sam in foregone interest and foregone Social Security payments. Who got the benefit of that $36,000?

Uncle Sam; not me.

So if I add up my total contributions to the government this past year I paid $26,500 in taxes and paid $36,000 in lost income. These two come to $62,500…more than the $60,000 I earned.

While I enjoy my new job, when I think about this, I start to feel like one of Pharaoh’s slaves toiling to roll immense stones up from the Nile to his pyramid.”

Send John a message if you’d like to be added to his “Economic Prospect” list. It’s always a great read.

On National Review Online, Acton Research Director Samuel Gregg reflects on President Obama’s State of the Union address last night, and flags the “reality-denial” that is expressed by “a few token references to free enterprise and rewarding individual initiative (to reassure us we’re still living in America instead of just another declining European social democracy).” More:

Judging from the president’s remarks, you’d never guess we just had a negative quarter of economic growth; or that the unemployment rate just ticked up again; or that millions of Americans have simply given up looking for work; or that Obamacare is (as predicted) already driving up the health-care costs that the president claimed are falling (just ask those businesses busy shifting thousands of employees into part-time positions in order to cap their exploding health-care costs); or that . . . again, I fear I am belaboring the point.

What’s the plan from the White House?

… we hear the president tell us, yet again, that we need to pump more money into universities and colleges. Never mind the higher-education bubble, which is going to implode sooner than most people think. We’re also told that we need to develop high-speed rail. One wonders if anyone has asked people in the People’s Republic of California how that’s working out. Then there is the apparently endless promise of green energy, which, despite the billions of taxpayer dollars poured into it, hasn’t actually created that many jobs at all. In addition to all this, we are now informed we must raise the minimum wage. Never mind all the evidence underscoring just how much damage minimum-wage laws do to the job prospects of the poor and many young people, not to mention newly arrived immigrants who just want a chance to start working.

Read “Rhetoric versus Reality” by Samuel Gregg on NRO.

And pick up a copy of Gregg’s new book Becoming Europe: Economic Decline, Culture, and How America Can Avoid a European Future here.

Thanks to RealClearPolicy for linking.

Video: UAW President Bob King thanks Planned Parenthood, environmentalists, clergy, et al., at anti Right-To-Work Protest

LifeSiteNews.com looks at the — at first blush as least — strange alliance between the United Auto Workers union and Planned Parenthood on the Michigan Right to Work issue. Elise Hilton of the Acton Institute, interviewed by LifeSiteNews reporter Kirsten Andersen, says that the UAW, Planned Parenthood and other like minded groups are afraid that right-to-work laws will help defund the progressive agenda.

“I don’t think people outside of maybe the leadership of the UAW or Planned Parenthood know about the strong ties between unions and Planned Parenthood,” Hilton told LifeSiteNews.com. “I don’t think they realize that the president of Planned Parenthood was the keynote speaker for the UAW conference, or that the UAW says on their own website that they ‘strenuously support a woman’s right to choose.’”

The ties between unions and the pro-choice movement go beyond mutual support. The leadership of the two groups overlaps, as well.

Last year, the UAW appointed Mary Beth Cahill director of its national political efforts. Cahill had previously spent five years running EMILY’s list, a political action committee (PAC) dedicated to electing pro-abortion politicians.

UAW President Bob King showered Cahill with praise for her efforts, saying, “During her five years at EMILY’s List, she helped turn the pro-choice PAC into an unrivaled political powerhouse—the largest in the country at the time.”

Read the entire LifeSiteNews.com article, with more analysis from Hilton, here.

The Michigan legislature passed right-to-work legislation today, a landmark event that promises to accelerate the state’s rebound from the near-collapse it suffered in the deep recession of 2008. The bills are now headed to Gov. Rick Snyder’s desk. The right-to-work passage was a stunning reversal for unions in a very blue state — the home of the United Auto Workers. Following setbacks for organized labor in Wisconsin last year, the unions next turned to Michigan in an attempt to enshrine prerogatives for their organizing efforts in the state constitution. A union-backed ballot proposal was handily defeated by voters in the Nov. 6 election.

rightoworkBut according to some on the Christian left, the right-to-work law is the worst thing that could happen to “workers.” Bishop Thomas Gumbleton, a retired auxiliary bishop of the Catholic Archdiocese of Detroit, argued in an opinion piece that right-to-work “devastates economic justice.” He claims to speak not just for Catholics or for Christians but quite simply for faith communities all over the world:

At the core of Christianity, Judaism, Islam and all great religions are the values of dignity and respect, values from which economic justice and the right to organize can never be separated.

Gov. Rick Snyder’s Presbyterian tradition “affirms the rights of labor organization and collective bargaining as minimum demands of justice.” Similar statements have been made by the United Methodist Church, the United Church of Christ, the Union for Reform Judaism and the Evangelical Lutheran Church in America, to name but a few. (more…)

Solidarity designed by Thibault Geoffroy, from The Noun Project

Solidarity designed by Thibault Geoffroy, from The Noun Project

When I moved to west Michigan, one of the things that struck me the most were distinct cultural differences between the different sides of the state. While I was pursuing a master’s degree at Calvin Theological Seminary, I worked for a while in the receiving department at Bissell, Inc. I remember being surprised, nay, shocked, that a manufacturer like Bissell was not a union shop. (All those jobs are somewhere else now, in any case.)

Before attending Michigan State as an undergrad, I had lived in Detroit, and although I never had a union job myself, the cultural expectations of organized labor were (and still are) deeply ingrained on the east side of the state. My dad is a longtime editor at a suburban newspaper, and one of the reasons he still has a job amid the economic downturn and the upheavals facing that industry is his membership in the guild.

But things really are different on this side of the state. That’s one reason why the protests taking place today in Lansing, the centrally-located state capital, are symbolic of two sides of the state, in many ways divided by culture, economy, and politics. As to the latter, consider some statewide candidates for public office in recent memory that haven’t done so well when trying to move beyond west Michigan, including Pete Hoekstra, Dick DeVos, Dick Posthumus. The fight over Right to Work legislation in Michigan is, in this way, a tale of two Michigans.

It is also a tale about two paths forward for Michigan, though. On the one side is the state’s historic identification with Big Labor and the Big Three. On the other side is a Michigan that embraces enterprising innovation and entrepreneurial competition.

The Wall Street Journal editorialized yesterday on this topic (HT: Ross Emmett), and captures the essence of the choice facing Michigan: “Unions loathe right to work because they know that many workers would rather not join a union.”

I think that the right to organize and therefore unions are fundamental to flourishing societies. But what concerns me is that the argument against Right to Work is not about this fundamental right to organize, but rather about protecting the entrenched and embedded political interests of a particular kind of union.

There is a world of difference between voluntary union membership and mandatory, government-enforced, union membership. If the former is akin to something like the freedom of religion, then the latter is more like the government establishment of a particular religion or church. What we need is the separation of Union and State in the way that we have historically had free churches. We need to disestablish labor in the same way that we have disestablished religion in America, while simultaneously protecting the right to organize and join a union as well as the right to worship and express our religious convictions.
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The Michigan legislature’s historic vote today on the right-to-work issue raises the important question: Do labor unions offer the best protection for the worker? Liberating Labor: A Christian Economist’s Case for Voluntary Unionism by Charles W. Baird answers that question and explains the Catholic social teaching on the issue.

In theory, unions foster good relations between employers and workers and prevent mistreatment or exploitation in the workplace. Pope Leo XIII sanctioned trade unions in Rerum Novarum during the Industrial Revolution; however, his support was very specific and is often misinterpreted. There is a common misunderstanding that Catholic social teaching supports any type of unionism or labor association.

Baird argues that Catholic social teaching supports voluntary unionism and condemns obligatory association—which is exactly what this Michigan legislation addresses. Liberating Labor observes and explains the basic principle of freedom of association and gives a clear and simple economic analysis of labor markets as well as the economic principle of voluntary exchange. It goes on to explain why these economic concepts are consistent with Catholic social teaching. Baird closely scrutinizes the common misconceptions about the process of the labor market that have caused the widespread support of compulsory trade unions. He concludes the essay by offering his own model of unionism that is consistent with papal teaching and sound economics.

Charles Baird is professor of Economics, Emeritus, at California State University, Hayward as well as founder and former director of the Smith Center for Private Enterprise Studies in Hayward, Calif. Liberating Labor is the fifth book in the Christian Social Thought series from the Acton Institute. You can learn more about and purchase the monograph in hard copy or ebook here.

Blog author: jcarter
posted by on Monday, November 19, 2012

Timothy Dalrymple wonders whether education reform should be one of the great objectives for American Christians in the twenty-first century. Taking up that cause will require overcoming the intransigence of the teachers’ unions:

Try firing an ineffective teacher.  Roughly 1 in 50 doctors lose their medical license.  Only 1 in 2500 teachers ever lose their teaching credentials.  Process that for a moment.  It’s much easier to become a teacher than a doctor, yet teachers are fifty times less likely than doctors to be removed from the profession.  One of the statistics cited in Waiting for Superman, an extraordinary documentary on the crisis of American public education, is that only 61 out of Illinois’ 876 school districts have attempted to fire even one teacher, and only 38 of those districts were successful.  The tenure system — designed to give the most accomplished university professors the freedom to advance new ideas in their teaching and writing without fear of reprisal from their employers, and gained only after many years and rigorous examination — has become an iron shield protecting ineffective teachers who earned their tenure after two years.  Good teachers are a national treasure.  Bad teachers who refuse to change their ways are leeches on the system who cannot be removed and who miseducate our children into truancy and joblessness.

Read more . . .

Fr. Z’s Blog has a great post highlighting the Benedictine Monks at Norcia and their new brew.

Here is the motto from the Birra Nursia site. Wonderful stuff, really:

In complete harmony with the centuries old tradition, the monks of Norcia have sought to share with the world a product which came about in the very heart of the monastic life, one which reminds us of the goodness of creation and the potential that it contains. For the monks of Norcia, beer has always been a beverage reserved for special occasions, such as Sundays and Feast days. The project of the monastic brewery was conceived with the hope of sharing with others the joy arising from the labor of our own hands, so that in all things the Lord and Creator of all may be sanctified. In one word, “ut laetificet cor”.

I believe “Ut laetificet cor“ translates “to the heart’s joy?” I went to a Protestant seminary so I struggled with the translation. Here’s a great video on the brewing process Father Z posted. It’s a splendid story of entrepreneurship and labor:

I recently wrote about Hobby Lobby’s billionaire CEO, who, in a recent Forbes profile, made it clear how deeply his Christian faith informs his economic decision-making.

This week, in Christianity Today, HOPE International’s Chris Horst profiles another Christian business, Blender Products, whose owners Steve Hill and Jim Howey actively work to elevate the practices of the metal fabrication business and, above all, operate their business “unto the Lord.”

Their company’s foundational verse? Colossians 3:17: “And whatever you do, in word or deed, do everything in the name of the Lord Jesus, giving thanks to God the Father through him.”

“The metal fabrication business is extremely cutthroat,” says Hill. “Workers are given a singular task, and maximum output is demanded. They’re simply a factor of production. As a general rule, they have no access to management. There is very little crossover between guys on the floor and guys in the offices.”

Hill and Howey aim to subvert the us-versus-them mentality. Many days they walk the shop floor, engaging their workers as peers. Employees on the floor are treated as importantly as the managers, undermining the adversarial culture simmering in many manufacturing businesses.

“The company has tried to abide by a simple philosophy concerning our employees,” Steve said. “Pay them well, provide great benefits, and invest in lives…The guys in our shop… know that I’m a human too. I have many of the same struggles they do. Showing humanness to people is key to disarming those stereotypes.”

And the employees aren’t the only ones who benefit:

The very work that Blender employees accomplish benefits a broader community. On the shop floor, talented metal artisans convert stacks of sheet metal—what looks like an oversized stack of paper—into massive fans that improve the efficiency of machinery by mixing airstreams. Their proprietary mixing designs decrease pollution, reduce machinery fire risks, and improve ventilation wherever they’re installed. Fastened in hospitals, schools, office buildings, and factories, they silently make buildings and machines work better and safer.

But although Hill and Howey’s Christian values inform the way they conduct their business and treat their employees, the approach has impacted far more than employee paychecks, customer satisfaction, and environmental stewardship:
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