This page was last updated on September 6, 2004.

According to the editor’s note accompanying the letter, “The writer is special assistant to the director, Northeast Region, Field Mobilization Department, of the AFL-CIO.”

As we can expect from union management, the letter is no more than a fairy tale intended to promote Democrat talking points and to scare American workers.

Below is a detailed critique of the subject letter.

“Millions of workers lost their overtime pay eligibility Aug. 23 when the Bush administration’s new changes to the Fair Labor Standards Act took effect.  Now, millions more who may remain eligible for overtime pay face another White House attack on their paychecks.”

[RWC] A net one million workers will gain overtime protection.^{1, 2}  Please read the papers referenced in the footnotes at the end of this critique.  You’ll find far more detailed information in these papers than Mr. Snyder would like you to know.  It’s fine to listen to your labor union officials for information, but you must also reference other sources if you expect to get both sides of an issue.

The other thing we need to remember is that arguments on both sides of the issue are hypothetical at this point.  For example, just because a person loses overtime protection does not mean that worker will lose overtime pay.  Certainly some workers will lose overtime pay, but no one knows the number.  To further their agenda, labor union management wants us to believe that everyone who loses overtime protection will lose overtime pay and that no one who gains protection will receive overtime pay.

“Overtime pay makes up about one-fourth of the average weekly earnings of workers who receive it.  That is an average pay cut of $161 a week and can add up to thousands of dollars a year.

“Can you imagine the government cutting the pay of a moderate-income worker by thousands of dollars per year?  How much would you lose?  These overtime pay cuts are like a giant new tax on working families by a president who, at the same time, works hard to give tax breaks to millionaires.”

[RWC] The government isn’t cutting anyone’s pay.  The decision to continue to pay overtime to workers who lose overtime protection is up to the individual employer.  If it makes economic sense, the employer will continue to pay for overtime.  If labor union management is so concerned, perhaps it will reduce dues to help compensate.  Yes, I know, that will never happen.

So-called “millionaires” got tax cuts because everyone got cuts.  The top 5% of taxpayers – those persons making more than $128,000/year – pay over 53% of income taxes!  The bottom 50% of taxpayers pay only 3.9%.  Please explain to me why the group paying the majority of taxes shouldn’t get a piece of tax cuts.  What Mr. Snyder didn’t write was that the relative income tax burden of the wealthy actually increased.  That is, as a percentage of income taxes paid, the wealthy bear a larger share now than they did before the Bush tax cuts.

“With a failing economy, millions out of work and staggering health-care and prescription drug costs, this is a burden America’s workers should not have to bear.  The overtime rules protect workers from bosses who would impose unbearably long hours if they didn’t have to pay extra for overtime work.”

[RWC] A failing economy?  Mr. Snyder, you lie.  The United States has the fastest growing economy of any “major” country in the world.  The current unemployment rate is 5.4%, 0.2 below that when President Clinton ran for re-election in 1996 and lower than the average for the “good old days” 1990s Democrats like to talk about.  Jobs have increased every month for the last 12 months for a total of 1.7 million additional jobs.  The real disposable income of American workers has increased every month since at least January 2003 with the exception of September 2003.  Home ownership is at its highest point in history and climbing.  That’s a failing economy?

“Millions out of work?”  Duh!  That’s like saying “millions will get sick this year” to indict healthcare.  With a potential workforce of nearly 150 million persons and growing, there will always be “millions out of work” no matter how good the economy is.  Except during war and immediate post war periods, the unemployment rate since 1948 has been rarely below 5.0% for any significant period of time.

Mr. Snyder mentions healthcare and prescription drug prices, but fails to mention labor union management’s contribution to the problem.  The third-party payer system so prevalent in the United States is the direct result of labor union management demands beginning 50 to 60 years ago.

“Last Sunday’s editorial cited many adverse examples to workers as a result of this act.  One of the most compelling statements in the editorial said ‘anyone covered under a separate union contract (would) still have their overtime protected.’

“I couldn’t agree more.  As Labor Day approaches, we are again reminded that a union contract is the only guarantee in today’s workplace that working families have a voice on issues that dramatically affect them.”

[RWC] Is this the same kind of guarantee that covered pension and healthcare plans for unionized workers?  The only thing labor management can guarantee is that they will collect union taxes (a.k.a. “dues”) as long as a person has a job.

“With a union, all people regardless of sex, creed, religion, race and ethnic background are treated as equals with a meaningful voice at work.”

[RWC] This is no more than marketing BS.  If you have any intention of believing this claim, you need to read “Labor Unions.”

1. Who Benefits From the New Overtime Regulations? (Center for Data Analysis Report #04-08); Kirk A. Johnson, Ph.D.; The Heritage Foundation; August 16, 2004.

2. Modernizing Overtime Regulations to Benefit Employers and Employees (Backgrounder #1789); Paul Kersey; The Heritage Foundation; August 16, 2004.

© 2004 Robert W. Cox, all rights reserved.