Labor Pains Replace Growing Pains

By William L. Garvin

This Labor Day celebration had a muted and hollow ring to it.  Maybe it was because the latest data shows that there were zero jobs created last month.  Maybe it's because the only reason the unemployment rate remained at 9.1% is so many of the long term unemployed have simply given up looking for a job!  Maybe it's because the present Administration's economic policies of the past have been such a dismal failure and their future plans will simply be more of the same.

It might also be because union members are becoming disenchanted with union leadership and their self serving ways.  Maybe they are wondering why over half of the waivers from ObamaCare have gone to union entities after they saw so much of their union dues spent to get it enacted.  Maybe it's why, despite spending $35 million on recall efforts in Wisconsin, union leaders were only able to unseat TWO Republicans!  Maybe it's because union members are seeing that what is actually occurring does not come close to resembling the apocalypse their union leaders predicted.

For instance, let's take a look at what happened in the Hartland-Lakeside School District, not far from Milwaukee.  The HLSD bargaining contract required that health insurance be purchased from the "WEA Trust."  The teachers found that health insurance could be purchased much more cheaply on the open market and overwhelmingly voted to change their coverage to United HealthCare.  The District approached the union with a mid-term change but union leaders refused their offer.

After Governor Scott Walker signed the Republican sponsored collective bargaining law, HLSD's contract expired on June 30.  The District then was able to change the health insurance coverage to United HealthCare.  "It's going to save us $690,000 in 2011-2012," said Superintendent Glenn Schilling.  Pewaukee School District said it will save $378,000 by changing their WEA Trust coverage and Menomonee School District will save a whopping $1.3 million!  Oh, by the way, "WEA" stands for "Wisconsin Education Association," the largest teacher union in the state.  In essence, they have been exploiting their own membership by extracting exorbitant health care premiums in addition to their previously mandated union dues.  Can anyone say "corporate cronyism"?

Speaking of corporate cronyism, look for the green bubble to burst.  Despite all the hype, solar and wind remains inefficient, unreliable, and expensive.  The only way these alternative energy sources remain on life support is with massive government infusions of cash.  Look closely at Solyndra, a California based solar panel manufacturer (the third such operation to fail over the last month).  President Obama personally visited Solyndra mid-2010 and declared them to be a gleaming example of green technology.  Solyndra has declared bankruptcy, closed its doors and thrown 1,100 workers out on the streets with no severance pay, no health insurance, and no advance notice.  This is despite having received $535 billion dollars in loan guarantees from the Federal government.

Now here's the fun part.  In January of this year, Solyndra only had about a month of operating capital left despite having "only" received $460 million from the feds.  The Department of Energy became involved in the restructuring and refinancing of the company and subsequently noted that DOE "believes that the restructuring plan represents the best possible course of action to achieve the highest return on its invested capital."  They continued to finance the company but curiously allowed $75 million from private investors to take precedence as "senior debt" in front of all but $150 million of taxpayer financing.

There's more.  The George Kaiser Family Foundation owns 35.7% of Solyndra.  The Foundation is supported by George Kaiser who just happens to have been a "bundler" raising campaign funds for President Obama's campaign in 2008.  Draw your own conclusions.

In summary, central planning "experts" should stop trying to pick winners and losers in a free market economy.  Union leadership should stop feathering their personal nests at the expense of their union members.  The political "ruling class" should stop meddling in areas where they have no expertise.  If not, next Labor Day will be even more depressing.  The labor pains are increasing and the economic contractions are coming with frightening frequency.