Thursday, August 20, 2015

Fwd: Loophole

'The Tony Soprano Enabling Act

Labor gangsterism—mob-run labor unions that loot pension funds, make back-room deals with both politicians and companies that favor union management over workers, and support crooked big city machines as part of a strategy to keep law enforcement at bay—is one of America's oldest union traditions. How important has the mob been in labor history? Ask Jimmy Hoffa, if you can find him.

Now, a recent rash of minimum wage laws have created a huge new opportunity for mafia enrichment: laws that hike the minimum wage to utterly unrealistic levels, but allow companies to pay less than the minimum wage—if the low wages are part of a collective bargaining agreement with a labor union. WSJ:

More than 20 U.S. cities and counties, recently including Los Angeles and Kansas City, Mo., have set minimum wages above state and federal levels. Some will eventually reach more than twice the federal rate of $7.25 an hour.

In at least a half-dozen of those communities, the pay-floor ordinances include a provision allowing unions to waive the wage mandates as part of a collective-bargaining agreement.…

the real answer is the exemptions create an incentive to force companies like hotels and fast food chains to recognize labor unions precisely so they can keep labor costs down..

One way to stop that would be for state governments to intervene and outlaw minimum wage laws that offer labor loopholes. There should not be two classes of workers in American states, and private organizations like labor unions should not be able to grant exemptions to public laws.'


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