Posts tagged government contracts
Economically Devastating Rent-Seeking in America’s Labor Markets
June 9, 2026 // Nowhere is rent-seeking more pervasive—or more costly—than in America’s labor markets. From compulsory unionism to occupational licensing, prevailing-wage laws, gig-worker reclassification rules, and strategic minimum-wage campaigns, concentrated interest groups (often unions and incumbent professionals) routinely use state power to extract “rents” from workers, employers, taxpayers, and consumers. These are not abstract economic theories. Rent-seeking is an everyday mechanism that distorts wages, limits opportunities, and transfers trillions of dollars every year, creating harmful economic inefficiencies penalizing employees, employers, taxpayers, and consumers. Compulsory Unionism: The Textbook Case of Labor-Market Rent-Seeking Compulsory unionism
Federal lawsuit challenges New Jersey’s discriminatory hiring mandates and forced union speech requirements
May 3, 2026 // Contractors who do not meet the race- and sex-based hiring goals must either enter a referral agreement with a union—obtaining assurances that the union will supply the required minority workers—or complete 25 separate compliance actions. This structure pressures contractors to work through state-favored unions even though their employees chose Earle precisely because of its open-shop structure. The Fourteenth Amendment’s Equal Protection Clause explicitly forbids race- and sex-based classifications.
Unionization Wave Hits Nonprofit Sector
December 17, 2025 // ASeveral key economic factors are driving this current union organizing trend, including inflation and job security. In this environment, employees are motivated to seek the protections that higher pay and increased benefits offer. However, about one-third of nonprofit museums and cultural institutions are also struggling to confront the loss of government grants or contracts. More than half of museums reported fewer 2025 visitors than in 2019, according to a Novemberreport by the American Alliance of Museums. In spite of these conflicting economic difficulties, employees are continuing to push back, feeling that they have been taken for granted for many years. Bottom line: unions continue to seek out new groups of workers to organize as their traditional targets, such as manufacturing and production jobs, wane or move overseas. Nonprofit employers would be well advised to stay engaged with their employees, keep an eye on employee morale, and look for ways to reward employees' hard work even when funds are scarce.
Op-Ed: Greszler: Harris, Walz policy records undermine pro-worker rhetoric
August 23, 2024 // the Biden-Harris Administration is also picking winners and losers among blue-collar workers. Its regulations governing wages and labor agreements on government contracts are disastrous. They almost exclude non-union workers from federal contract jobs, including 89% of construction workers who aren’t unionized; force many workers who perform federal contract jobs into unions, including requiring them to pay into union pensions they’ll never receive. Not only that, but despite the Biden-Harris Administration’s efforts to empower and unionize more workers, the unionization rate hit a new record low of 10% in 2023 (6% among the private sector), and the gap between union and non-union wages also hit a record low. That’s because union wages increased 6.4 percentage points less than non-union wages between 2019 and 2023. For Walz’s part, he’s signed a slew of labor laws ostensibly aimed at helping workers, but by driving up the costs and legal liabilities of employing people in Minnesota, they have instead hamstrung job growth in the state.
California legislators seek corruption law exemptions for unions, developers
May 7, 2024 // In California, the three largest donor types by sector are organized labor, including public sector unions representing state and local government employees, real estate, including developers seeking permits or regulatory changes, and healthcare, which includes healthcare providers and healthcare worker unions with lucrative government contracts. By exempting unions and most real estate, the new bill would allow unions representing government employees or workers with government contracts to donate to candidates who will support paying them more, and developers to more transparently donate to politicians who will approve their projects; while businesses and unions typically oppose each other on legislation, their shared interest in maintaining political access have created an unusual alliance.
Inflationary Davis-Bacon Prevailing Wages Cost Taxpayers More for Public Works Projects
May 16, 2022 // The DBA turns federal construction spending into a costly welfare system for union workers in some markets,” according to the report. “The DBA gets periodic attention from Congress and various critics as an archaic policy resulting in waste, favoritism and reduced competition for government contracts.”
Sanders pressures Biden on Amazon unions: ‘The time for talk is over’
April 27, 2022 // The Vermont senator sent Biden a Tuesday letter, obtained by POLITICO, asking the president to cut off federal contracts to Amazon until the massive company stops what he calls its “illegal anti-union activity.” As the Senate Budget Committee chair, Sanders will also hold a hearing next week dedicated to calculating how many federal contracts go to companies that are fighting back against unionization efforts, with a focus on Amazon.