The Union Barons Strike Back with Legal Price Fixing and the Repeal of Right To Work Laws – IOTW Report

The Union Barons Strike Back with Legal Price Fixing and the Repeal of Right To Work Laws

Capitalism Magazine-

What a difference an election can make. In 2022, the Democratic Party was swept into complete control in Michigan, winning the state Senate, House, and the governorship. Organized labor has always been the backbone of the Democrats in Michigan and, upon getting their allies into power, it demanded and got two key policy changes – repeal of the Right to Work statute and the reinstatement of the prevailing wage law.

Both moves will damage the state but benefit the labor barons.

“Prevailing wage laws” are legal price fixing schemes.

Let us begin with prevailing wage. Many states and the federal government laws mandating that on public construction projects, workers must be paid the “prevailing wage.” What is that? It is determined by government officials and the way they do so is to look at union contract rates in the construction area. So if, say, members of the carpenters union are paid $50 per hour in the Kalamazoo, Michigan area, then that is deemed to be the “prevailing wage” that must be paid to carpenters who work on a state project in or around Kalamazoo. It doesn’t matter if non-union carpenters are willing to work for less than $50, or if union carpenters often do. As long as the union contract says that carpenters must be paid that amount, then that’s the “prevailing wage.”

The impact of the prevailing wage law is obvious—it inflates the cost of construction by eliminating competition in an important element of the project, namely labor. In short, prevailing wage laws are legal price fixing schemes. Big Labor wants such laws since they make it difficult for non-union firms to underbid unionized ones for government construction jobs. Because they don’t have the high union wage scales and rigid union work rules, non-union firms have a big advantage; but with a prevailing wage law, that advantage is neutralized. MORE

8 Comments on The Union Barons Strike Back with Legal Price Fixing and the Repeal of Right To Work Laws

  1. In 2022, the Democratic Party was swept into complete control in Michigan…

    Correction: In 2022, the Democratic Communist Party was swept into complete control in Michigan.

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  2. “What a difference an election can make.” You mean election FRAUD.

    We have a trifecta of election-controlling witches in power. We will never have a free and fair state-wide election unless a miracle happens.

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