Posts tagged taxpayers

    The UAW Might Drive the Big Three off a Cliff

    September 14, 2023 // Automakers face this reality every day. General Motors is losing money on every electric vehicle, a situation that it hopes to change by 2025, though the path is far from certain. Ford’s EV line is expected to lose $4.5 billion this year, up nearly 50 percent over last year. Stellantis’s CEO has said the costs of the EV transition are “beyond the limits,” meaning the industry can’t continue down this road without making EVs prohibitively expensive.

    As Auto Strike Looms, Biden Admin Announces $15.5 Billion For Electric Vehicle Manufacturers

    September 6, 2023 // President Biden has a couple of problems. Electric vehicles aren’t flying off the lot. Autoworkers’ unions are mad at him for pushing EVs which could kill their jobs. So, what’s Biden’s administration’s solution to this two-tiered conundrum? To put it bluntly, he is now speeding up the delivery of $15.5 billion — courtesy of the U.S. taxpayers — to artificially hold up the market in hopes of appeasing his political allies.

    How Public Employees Learned to Stop Worrying and Love to Strike

    August 22, 2023 // The issues in all these cases aren’t the same and dynamics are different between government and the private sector. Government strikes are illegal in 39 states and there are a bunch of hoops — arbitration, mediation, fact-finding — that are mandated prior to strikes even in some states where strikes are legal.

    Biden’s New ‘Prevailing Wage’ Rule Will Cost Taxpayers, Benefit Unions, and Hike Inflation

    August 18, 2023 // Actually, the changes are a significant step backward. Biden is effectively undoing a major change made by the Reagan administration—changes that were made, fittingly, to help combat inflation. That change, made in 1982, repealed the "30 percent rule" that guided the process for determining what wages would be paid on which projects. Under the 30 percent rule, the prevailing wage for any particular area would be based on the highest wages paid to at least 30 percent of workers within the same area. You don't need an advanced degree in accounting to see how that mandate could artificially hike wages on federal projects. The government barred itself from even considering bids that might pay average wages, thereby obligating taxpayers to pay more than they might have had to in an open market.


    August 15, 2023 // Similar to the claim that Biden is the “most pro-union president” ever, utilizing the NLRA to justify measures that mitigate worker choice betrays either a fundamental misunderstanding or complete disregard for American history. Ultimately, claims that the NLRA mandates governmental support of collective bargaining are an attempt to short-circuit debate over radical labor legislation disguised as inconsequential “cosmetic updates” to the NLRA. While the Biden administration continues to tout its pro-union bias, public- and private-sector workers alike deserve a pro-worker administration in the White House.

    OPINION: Pritzker risks bankrupting Illinois to curry favor with Big Labor

    August 14, 2023 // Members of AFSCME Council 31 eagerly voted in local union meetings over the past two weeks to ratify the contract, which negotiators had tentatively agreed to on July 1. And who could blame them? The contract also includes a $1,200 “stipend” paid to every worker merely for ratifying the contract. Pritzker, a Democrat, included these bonuses in his last contract negotiation in 2019, ostensibly to compensate workers for the financial “hardship” of being state employees under his Republican predecessor, Bruce Rauner. Predictably, such payoffs have now become standard operating procedure. The governor celebrated his and AFSCME’s windfall by tweeting out, “Illinois is a pro-worker state through and through.” The pronouncement was eerily reminiscent of Biden’s one-time campaign promise to become the “most pro-union president you ever saw.”

    End the Practice of Federal Government Serving as Unions’ Bill Collector

    August 9, 2023 // The Paycheck Protection Act would help federal employees by requiring their unions to be more transparent and accountable to them. It would protect taxpayers by no longer requiring them to foot the bill for a private organization’s bill collections. And it would eliminate the special-interest bill collection subsidy granted to federal employee unions.

    ABC: Final Davis-Bacon Rule Undermines Taxpayer Investments in Infrastructure

    August 9, 2023 // “The final rule comes in the midst of challenging economic conditions facing the construction industry, including high materials costs and a skilled labor shortage of more than half a million in 2023,” said Brubeck. “The onerous new requirements and artificial inflation of construction costs imposed by this rule will only exacerbate these headwinds and undermine taxpayer investments in infrastructure.” ABC submitted nearly 70 pages of comments on the DOL’s proposed rule, and its more than 50 significant changes, urging the DOL to withdraw the proposal. The 1931 Davis-Bacon Act and related regulations require contractors and subcontractors that perform work on federal and federally funded construction projects of $2,000 or more to pay a government-determined prevailing wage and benefit rate on an hourly basis to on-site construction workers. According to the DOL rulemaking, the Davis-Bacon Act and 71 active Related Acts collectively apply to an estimated $217 billion in federal and federally assisted construction spending per year—about 63% of all government construction put in place—and provide government-determined wage rates for an estimated 1.2 million U.S. construction workers. The Congressional Budget Office estimates that repealing the 1930s-era Davis-Bacon Act would save the federal government $24.3 billion in spending between 2023 and 2032. A May 2022 study found that the Davis-Bacon Act costs taxpayers an extra $21 billion a year, increases the price tag of construction projects by at least 7.2% and inflates construction workforce wages by 20.2% compared to local market averages if the DOL calculated prevailing wages using modern and scientific methodology via the U.S. Bureau of Labor Statistics.

    In Philly, VP Harris details new labor rules for federal construction projects

    August 9, 2023 // Vice President Kamala Harris, on Tuesday, visited Philadelphia to announce changes to labor rules that could give higher wages to construction workers on federal projects. At the headquarters of labor union DC 21, in Northeast Philly, Harris detailed the Labor Department's first update in decades to the Davis-Bacon Act of 1931, a law that requires the payment of prevailing local wages on public works.

    As Illinois budget comes together, total costs of migrant health care, union contracts not known

    May 26, 2023 // For pensions, the state plans to spend $10.2 billion, short of the actuarial estimate of what should be paid. “I think that is somewhere in the neighborhood of $16 billion,” Sims said of the actuarial estimate. During a committee hearing on the budget, state Sen. Chapin Rose, R-Mahomet, asked how a looming union contract with state workers will impact the budget. “This is going to hit us eventually, right, presumably in ‘24,” Rose said. “So is it the … departments, plural, are gonna have to live within the means of this budget or are we anticipating another supplemental down the road whenever the contract is released?” Sims said it’s not uncommon for legislators to pass supplemental appropriations if issues arise. Rose said unless the governor is able to curb union employee cost increases, that’s going to be likely.