Chicago faces union work rule dilemma

American Thinker ^ | April 2, 2010 | Thomas Lifson

[jazusamo]

Barack Obama's home town is hemorrhaging jobs thanks to union work rules and outlandish pay scales, and even government officials are concerned. Conventions used to be a big business in Chicago, but absurd union pay scales and work rules have been steadily driving major conventions to cities with no such union problems, especially Las Vegas and Orlando. This has created a dilemma for the government entity, the Metropolitan Pier and Exposition Authority, run by the city and state.

Yesterday, a 16-member Illinois State Senate-House committee was looking into how to save McCormick Place, the vast convention facility in Chicago, and the city and state economies, from ruination at the hands of greedy unions. The Chicago Tribune editorialized:

What was different and refreshing Thursday was a sense of urgency that punctuated testimony over three hours at the packed-to-capacity hearing run by Senate President John Cullerton, D-Chicago.

Five organizations testified: the National Restaurant Association, American College of Surgeons, International Housewares Association, Society of Manufacturing Engineers and Graphics Arts Show Co. Their shows brought nearly $300 million worth of economic activity to Chicago last year.

The Trib cited some of the uncompetitive practices foisted upon unlucky conventions by the avarice of unions:

• Contracting for electrical service at Orlando's convention facilities costs 40 percent less than in Chicago, said Mary Pat Heftman of the restaurant association: "I can't explain that 40 percent differential to my exhibitors. Exhibitors in other cities can drive up to the dock and unload equipment themselves. Not in Chicago."
• Setting up a stage for an opening ceremony (with black drape, logos, flags, lighting, etc.) costs $46,000 in Chicago - and $32,000 in San Francisco, said Felix Niespodziewanski of the College of Surgeons. Organizers have to deal with a bewildering array of unions with different minimum rates, overtime rules, break times, etc.
• Chris Price of the Graphic Arts Show Co. said the quality of work at McCormick Place is top-notch, but the work rules make it uncompetitive. Example: 100 Chicago laborers are being flown to Orlando to help set up the plastics show there. "They will be put up in hotels, fed, and all the rest, and it's still cheaper to do business there than here," he said.
• Setting up an ice machine in Orlando costs $720. Setting one up in Chicago costs $1,700, said Eric Holm of Manitowoc Foodservice. Ordering power for the company's booth in Orlando costs $9,200. Chicago? $12,800, plus $5,000 for labor. The cost for 24-hour service for one refrigerator is $48 in Orlando, $400 in Chicago.

The hearing yesterday was the very same day that California's last auto assembly plant, the NUMMI facility, closed its doors, ending thousands of union jobs. Toyota, which was stuck with the unionized (UAW) facility when joint venture partner GM pulled out, opted to concentrate production at nonunion facilities.

[jazusamo]

Obama's working to strengthen all unions around the country to Chicago unions levels.

[Da Coyote]

There are absolutely, positively NO liberal ideas which work.

None.

Nada.

Gasp, I’ve committed an Oxymoron - I grouped liberal and ideas.

[Gaffer]

Unions are conglomerations of scum

[Nachum]

When the cities die and the Unions are still there, everyone else will have moved away.

[whitedog57]

Look at Detroit. Unions + government “help” = disaster

[Last Dakotan]

Everybody who has ever exhibited anything at McCormick Place in Chicago has stories to tell. You have to pay and wait for a union electrician to plug in a lamp.

[mlocher]

Detroit?

[1rudeboy]

Example: 100 Chicago laborers are being flown to Orlando to help set up the plastics show there.

What is this? Offshoring with cheap labor from onshore? (I'm looking for the equivalent).

[jazusamo]

No better example than Detroit.

[RC2]

I did a couple of conventions in Las Vegas. It’s the same there. The unions will block the doors and not let you bring in your own products unless you contract with them. They tried to stop me one time, after the convention, from taking my products out to my truck. I asked to use their cell phone to make a call. The union guy asked who I was going to call? I told him the “FBI because he was kidnapping me and wouldn’t let me out of the building.” He let me go. I don’t do conventions in Las Vegas any longer. It’s a corrupt town.

[mlocher]

This has created a dilemma for the government entity, the Metropolitan Pier and Exposition Authority, run by the city and state.

This is an issue only because a government entity is having difficulty. Had this been Union vs. Private Industry, the IL state gov't would be taking an entirely different tact.

[Cletus.D.Yokel]

Unions just deepen the tribal mindset found in these cities.

[jazusamo]

Please bump the Freepathon and donate if you haven’t done so!

[HiTech RedNeck]

Unions had a valid humanitarian purpose a century ago in wilder and woolier days. Now they are a relic ensconced in law and at the minimum should not have this advantage any more. Unions should have to compete on the open market for membership.

[Toddsterpatriot]

I’ve seen several union members on TV the last few weeks talking about how little they make. Blaming the expense on the firms that are marking up the cost of exhibits.

[Apercu]

Not to mention don’t dare try to bring in ANY equipment on your own or you will find no electricity in your booth, it will cost you $500 to solve the problem or your display will be trashed overnight.

[1rudeboy]

Riiiight. That’s how those McCormick guys next to me at the bar managed to spend $100-$150/day on booze.

[AmishDude]

It's occurred to me, for a long time that the laws of economics do not apply properly to the legal profession. Lawyers produce neither a good nor a service that you want. They primarily serve as members of a protection racket. Their activity slows economic growth. There is no innovation possible, nobody is going to invent a better subpoena. They are rent-seekers. Their business is exclusively based on government activity and favorable government rules.

This would not be so bad if they didn't have a stranglehold on the government.

To wit, I've had several proposals:

• Tax the lawyers with a surtax. It is not only economically justifiable but it would be the only tax increase to cause economic growth.
• Single-payer for legal services. See how they like it. Then we could keep costs as low as we like and people would not seek out the low-paying profession of law and instead seek out productive work, like begging on the street.
• Unionize legal secretaries, legal aides and law clerks. Again, see how they like it. This could also be imposed as a condition of being a member of the bar in private practice. My guess is that any state that does this will instantly become right-to-work.

[glorgau]

Three contractors are bidding to fix a broken fence at the White House in D.C.; One from Illinois, one from Tennessee, and a third from Kentucky.

They all go with a White House official to examine the fence.

The Tennessee contractor takes out a tape measure and does some measuring, then works some figures with a pencil. ‘Well’, he says, ‘I figure the job will run about $900: $400 for materials, $400 for my crew and $100 profit for me.’

The Kentucky contractor also does some measuring and figuring, then says, ‘I can do this job for $700: $300 for materials, $300 for my crew and $100 profit for me.’

The Illinois contractor doesn’t measure or figure, but leans over to the White House official and whispers, ‘$2,700.’

The official, incredulous, whispers back, ‘You didn’t even measure like the other guys! How did you come up with such a high figure?’

The Illinois contractor whispers back, “’$1000 for me, $1000 for you, and we hire that guy from Kentucky to fix the fence.”

‘Done!’ replies the government official.

And that my friends, is how it all works ! !

[Toddsterpatriot]

I saw a woman this morning saying she only made $15 an hour, so the big money wasn’t going into her pocket.