PRO Act is Full of Cons
President Joe Biden recently released details about the $2.3 trillion infrastructure bill he is calling the American Jobs Plan. It is being touted as a package to create jobs by building our country’s infrastructure in sectors such as manufacturing, construction, and transportation. But really it is a large gift to unions because in the package are job-killing provisions of the Protecting the Right to Organize Act (PRO Act).
An attempt to nationalize the California law that put thousands of independent contractors and gig workers like Uber and Lyft drivers out of a job, the PRO Act is larger in impact than one sector of work in California. This legislation upends American labor law and eliminates the balance of power that currently exists between unions and businesses.
The PRO Act is a union dream list of legal changes that would greatly increase the likelihood of unionization and the subsequent inability for businesses and workers to negotiate reasonable labor contracts. The president’s so-called infrastructure plan is a Trojan horse to get some of the policies in the PRO Act passed while avoiding Senate filibuster of the stand-alone PRO Act.
The PRO Act would reduce the competitiveness of American industry, not just the 93% of the private sector which is currently union-free. Competitiveness against Mexico, Canada, Europe and Asia would take a large hit as labor cost increases and productivity declines due to restrictive work rules. Forced union dues and inflexible work contracts would put businesses and workers at odds with each other, leaving workers empty handed and making job growth an unattainable goal for many employers. Instead of promoting more American jobs, the incentive to automate would increase which would result in fewer factory jobs, quite the opposite of what the president claims as his intent.
Perhaps an even more alarming impact of the passage of the PRO Act would be the legalization of conspiracy to commit extortion & facilitate corruption. Labor unions could easily exploit their unfair organizing and bargaining advantages to extort worker paid dues. In turn, these unions can fund Democrat politicians who passed the Act. Written into the bill is the ability for unions to take money from companies – and if they don’t comply, the unions can shut them down. It’s a power grab that only benefits unions and their political interests.
One might think that is a stretch but look no further back than December 2020 for proof that unions have already attempted to walk down this path. The United Auto Workers (UAW) reached a proposed agreement with the U.S. Justice Dept. in December which provides for (a) six years of federal monitoring of the union, (b) reform in the voting process, (c) making certain payments including $1.5M to the IRS after already (d) having paid $15M for reimbursement of improper payments for union leader expenses and (e) had corruption convictions of 15 persons including two past presidents of the UAW.
The PRO Act would harm American industry and increase corruption – neither of which are good for America. What is the upside? Funding for Democrats and power for union bosses.
Fred Young is former CEO of Young Radiator Company.
