For about 20 years, Ray Keating wrote a weekly column - a short time with the New York City Tribune, more than 11 years with Newsday, another seven years with Long Island Business News, plus another year-and-a-half with RealClearMarkets.com. As an economist, Keating also pens an assortment of analyses each week. With the Keating Files, he decided to expand his efforts with regular commentary touching on a broad range of issues, written by himself and an assortment of talented contributors and columnists. So, here goes...
Showing posts with label labor unions. Show all posts
Showing posts with label labor unions. Show all posts

Monday, June 15, 2020

The Ills of Labor Unions, Part II: Public Schools and Policing

by Ray Keating
The Keating Files – June 15, 2020

I wrote weekly newspaper columns for nearly 20 years (for Newsday and then Long Island Business News) specifically covering Long Island politics, policy and economics. And one way to drive home the point of how completely out of whack the costs of government were (and still are) was to ask the following...

Question: What’s a Long Island power couple?

Answer: A cop married to a public school teacher.

In many parts of the country, that might seem bizarre. But consider that, according to a Newsday report last year, for example, the average annual pay for a Nassau County police officer was $104,000, while in Suffolk County, it’s $138,000. (Long Island’s two counties are Nassau and Suffolk.) Just a few years earlier, the average was $145,000 in Nassau, but the recent decline apparently has to do with older, higher-paid cops retiring.


As for public school teachers, the norm is for the median teacher pay in school districts on Long Island to top $100,000 per year (and keep in mind that teachers have summers off, so a true annualized pay estimate is much higher). According to the Empire Center’s SeeThroughNY.net, the median teacher pay in Nassau County public schools ranges from $93,534 to $148,888. In Suffolk, the range goes from $72,026 to $136,733. 

Remember, “median” is the middle point, so that half the teachers make more than that amount. 

So, if a police officer and a public school teacher living and working on Long Island get married, and just stick around in their respective jobs, it’s well within reason that they’d be raking in a cool quarter-of-a-million dollars annually, courtesy of the taxpayers.

Such luxurious compensation is about powerful government labor unions and elected officials who care little about how taxpayer money is spent. And everyone involved in doling out and accepting these big bucks sells it to the public as being about educating the children and providing public safety. But it’s not – in either case.

Make no mistake, labor unions only care about their members. So, during this time of racial strife, if we take a serious look at issues that matter – education and law enforcement – then it’s time to deal with governmental abuses and incompetence, and the roles played by public sector unions in representing police and teachers.

For the police unions, it’s not about serving and protecting the community. Instead, it’s about maximizing pay, including pensions, minimizing the work done by members, and protecting members against disciplinary actions.

On the pension front, the Empire Center noted last year: “Fully three-quarters of the 242 Nassau County and Suffolk County police department officers retiring last year, as well as two-thirds of the 39 newly retired Yonkers city police officers, were eligible for annual pensions of more than $100,000, the data show. The pension amounts do not include added severance payments for accumulated sick or vacation time.” One Nassau County retired cop walked away with an annual pension of $221,086.

Regarding police discipline in New York, consider the following as reported by Ken Girardin, also of the Empire Center:

On June 13, 2019, the Senate unanimously passed a bill  (S5803) that would make the final determination of disciplinary penalties a subject of collective bargaining... 

The bill—which failed to pass in the Assembly and didn’t emerge from committee in this year’s pandemic-truncated session—was the most recent in a long line of attempts by police and fire unions to nullify a unanimous 2006 state Court of Appeals decision affirming the New York City police commissioner’s ultimate power over disciplinary matters in the NYPD...

Between 2006 and 2010, proposals to make all stages of police discipline a mandatory subject of collective bargaining were passed overwhelmingly by the Legislature, only to be vetoed by Governors Pataki, Spitzer and Paterson. When the same measure reached Governor Cuomo’s desk in 2014, he took the more passive approach of leaving it unsigned and allowing it to die via a pocket-veto. The bill passed the Senate in 2018 by a 62-0 vote, but died in the Assembly that year.

And guess what? Police unions lead the charge against reforms that would make real improvements, such as use of body and patrol car cameras; ramping up ongoing training requirements significantly; removing special protections that other citizens don’t have; instituting merit pay rather than compensation being tied to seniority; seriously researching if having police officers live in the local communities in which they work would improve policing; and implementing far more selective hiring practices, such as getting at why someone wants to be a cop (is it a calling to help and protect the community, or something else?).

Meanwhile, the teacher unions not only stand at the forefront of boosting compensation for public school teachers (again, based on seniority detached from performance), but also in actively opposing changes that would help students. In fact, teacher and other education unions have stood against all real solutions to our education problems. While the public education system talks about working to improve, students’ lives continue to suffer year after year in terms of failing schools, and poor education translating into fewer opportunities and lower earnings, on average, over lifetimes.

Real changes in education policies that would start to immediately make improvements in the lives of students – such as school choice via vouchers, tax credits, and homeschooling – are always opposed by teachers unions. Students and families can’t afford to wait for public schools to eventually get around to improving. And factory-like, government schools filled with too many poor and mediocre teachers are recipes for failure. Students and families need options to get out.

On its list of misleading reasons for opposing school choice, the National Education Association (NEA) has the nerve to declare, “Vouchers provide less accountability for public resources than public schools.” In reality, few entities are less accountable than government, including public schools, along with the teachers and their unions. Accountability comes when consumers – not politicians or unions – are in control.

Substantive reforms in both policing and public education likely will require bringing union representation of public sector workers to an end. Public sector unions were long opposed across the political spectrum, even by pro-union Democrats, such as President Franklin D. Roosevelt. But by the 1960s, the move to unionize government employees was pushing ahead. Today, the largest labor union in the U.S. is the NEA, and unions provide enormous campaign dollars and volunteers to politicians – mainly, Democrats. Therefore,  the interests of elected officials wind up being aligned with those of public sector workers, and not in a constructive way. But instead in a way whereby politics supports union efforts to benefit union members to the detriment of those who government is supposed to serve.

No one should be surprised that government labor unions stand as major obstacles to positive reforms in policing and education. But that doesn’t mean these union roadblocks must persist.

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Ray Keating is a columnist, economist, podcaster and entrepreneur.  You can order his new book Behind Enemy Lines: Conservative Communiques from Left-Wing New York from Amazon or signed books at RayKeatingOnline.com. His other recent nonfiction book is Free Trade Rocks! 10 Points on International Trade Everyone Should Know. Keating also is a novelist. His latest novels are  The Traitor: A Pastor Stephen Grant Novel, which is the 12th book in the series, and the second edition of Root of All Evil? A Pastor Stephen Grant Novel with a new Author Introduction. The views expressed here are his own – after all, no one else should be held responsible for this stuff, right?

Also, tune in to Ray Keating’s podcasts – the PRESS CLUB C Podcast and the Free Enterprise in Three Minutes Podcast 

Wednesday, June 10, 2020

The Ills of Labor Unions, Part I: Baseball

by Ray Keating
The Keating Files – June 10, 2020

Confession is good for the soul. So, here goes: This free market economist was once a card-carry member of the Teamsters Union.  Wow, I feel better getting that off my chest.

Anyway, some might ask: What’s the problem with labor unions? Plenty, and assorted current events – including squabbling over a plan to bring back baseball – expose the ills of labor unions.


First, it’s important to understand the basic economics of labor unions. That is, labor unions overwhelmingly are about seeking to maximize the compensation of union members and to monopolize employment in an industry or business under a union, while also pushing to minimize the work being performed by those union members. Hmmm, and how does that work out? Of course, it’s a recipe for reduced competitiveness, lost business, lower profits, less investment in unionized businesses, and lost opportunities and jobs for union members over the long run.

Indeed, keep in mind that labor union membership in the early 1950s stood at about 33 percent of employed U.S. workers, and that tumbled to 10.3 percent in 2019. Even more striking has been the decline into irrelevance for unions in the private sector, with private sector union membership falling from 21.2 percent in 1979 to 6.2 percent in 2019.

As investment moves away from unionized businesses, productivity is reduced, which means less earnings for workers and lost profits for owners. Labor unions operate under the mistaken Marxist assumption that workers and business owners are at odds. But in reality, workers and owners rise and fall together. 

For example, investments made by owners in facilities, tools, technology and other innovations enhance productivity, which boosts both workers earnings and business profits. In addition, when owners and workers are focused on providing excellent products and customer service, both owners and workers benefit.

This is all Economic 101 and Business 101. But labor unions specialize in ignoring such basic lessons.

On the baseball front, Major League Baseball’s team owners and the Major League Baseball Players Association are working at odds – rather than together – to bring baseball back this season. 

Golly, what a surprise. Baseball’s owners and the union have been less than friendly over the years. So, with NASCAR back, the PGA Tour restarting this weekend, the NBA moving ahead with its plan to complete its season in Walt Disney World starting in late July, and the NHL trying to get back on the ice, baseball owners and players publicly bicker. 

What’s the beef? Naturally, the MLBPA is trying to squeeze every last cent out of an abbreviated season for its members in the face of grim financial circumstances.

The owners also are at fault for not being able to see early on in this pandemic shutdown that they might be playing without fans this season, and the resulting financial hit. But after the owners woke up to this harsh economic reality, the MLBPA has exhibited no interest in giving a damn, unwilling to revisit a March agreement for fully prorated salaries. Proposals go back and forth – with CBS Sports reporting that the MLBPA tossed out the latest plan for an 89-game season and expanded playoffs – but strife reigns. 

Meanwhile, baseball fans suffer, and so does the baseball brand and its goodwill – and that, of course, is bad for baseball and the players. This coronavirus pandemic presented an opportunity for the MLBPA to put aside its archaic union thinking, and do what’s right for fans, for the game, for the business of baseball, and for the long-run well-being of its members. But, no. 

It’s a strange thing that one can make the case that the strongest private sector union left in America is the MLBPA – a union representing wealthy athletes that play baseball for a living. Well, if anyone needs a union it would be men playing a children’s game for lots of money – right?

By the way, MLB can implement a season of its own choosing, and there have been rumblings about less than 50 games. That wouldn’t be a big hit with fans – though many would take anything – and the owners would risk further angering the vaunted MLBPA with the current collective bargaining agreement expiring in December 2021.

Team owners and players still have an opportunity to recognize that their fates are tied together. They could step forward in unity to bring back baseball at a time when the country needs it, and by doing so, while taking a short-term financial hit, improve the brand of baseball for the benefit of the game, its customers (the fans), the owners, and the players. It would be smart business, but labor unions have nothing to do with smart business.

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__________

Ray Keating is a columnist, economist, podcaster and entrepreneur.  You can order his new book Behind Enemy Lines: Conservative Communiques from Left-Wing New York from Amazon or signed books at RayKeatingOnline.com. His other recent nonfiction book is Free Trade Rocks! 10 Points on International Trade Everyone Should Know. Keating also is a novelist. His latest novels are  The Traitor: A Pastor Stephen Grant Novel, which is the 12th book in the series, and the second edition of Root of All Evil? A Pastor Stephen Grant Novel with a new Author Introduction. The views expressed here are his own – after all, no one else should be held responsible for this stuff, right?

Also, tune in to Ray Keating’s podcasts – the PRESS CLUB C Podcast and the Free Enterprise in Three Minutes Podcast 

Tuesday, June 9, 2020

PRESS CLUB C Podcast with Ray Keating – Episode #14: Labor Unions Cause Problems in Baseball, Education and Policing


As an economist and political commentator, Ray Keating has long been sick and tired of labor unions – especially government unions – and the ills they generate. Perhaps now lots of other people are as well. Problems in baseball, and more serious troubles regarding education and policing can be tracked to, in part, the actions of labor unions. Keating applies some Economics 101 and Politics 101 to explain why unions, well, suck. Tune in now!