Newt Gingrich: Arbitration is the Real Threat in EFCA
On the same day that Ben Smith identifies him as one of the Democratic Party's "bogeymen," elsewhere in Politico, former Speaker Newt Gingrich pens a piece identifying mandatory interest arbitration as the "real threat in EFCA." The Speaker, of course, is referring to Section 3 of the Employee Free Choice Act which provides that if an employer and union are unable to come to agreement on a contract within 120 days, the union may submit the matter to the Federal Mediation and Conciliation Service for binding resolution. The Service would be authorized to refer the matter to a panel of arbitrators empowered to set contract terms for up to 2 years.
In the history of this country, government has never proved its capacity or capability to exceed the performance and productivity of those engaged in private enterprise. Why, then, should we trust government to know enough about the nuances and market forces at play in a particular industry to set wages and benefits for workers?
The sad truth is that EFCA is being moved only as part of an effort to reward union bosses who have invested billions of dollars into the coffers of politicians. These same bosses — who almost exclusively stand to gain from this power grab — have bankrupted the industries they represent, most notably the auto industry, and have proved completely incapable of complying with the pension and benefit promises they have made to their own members.
EFCA’s imposed binding arbitration would irreparably wound one of the most extraordinary features in American society, the willingness to take risk to build an enterprise that generates prosperity for one’s family and community. It must never be allowed to be signed into law.
Previous related EFCA Report posts:
- "Highlights from Senate Republican Committee Hearing" -- March 24, 2009
- "ShopFloor on Mandatory Interest Arbitration" -- March 18, 2009
- "Clinton NLRB Chair Criticizes EFCA" -- March 10, 2009
- MLA White Paper "The Employee Free Choice Act in the 111th Congress" -- Section III. D.
