Thursday, February 25, 2010

Unions and Government jobs facing populist backlash

Feb. 24 (Bloomberg) -- Move over, investment bankers. The next victims of populist backlash are going to be state- and local-government workers.

As usual, it’s all about the numbers, except this time we’re not talking about dollars in a bonus check. No, this time it’s about numbers of jobs.

Businesses have fired 8.5 million people, or 7.4 percent of those on the payroll when employment peaked in December 2007. Local governments kept hiring through September 2008, and since then have fired 141,000 workers, less than 1 percent of the 14.6 million they had at the top, according to the U.S. Bureau of Labor Statistics......

Unlike the outrage provoked by Wall Street’s bonus babies, there’s no element of class warfare here. The hard-working men and women whose jobs, retirement savings and benefits have been whittled away in the recession won’t be too sympathetic to the men and women who have eight-hour days, overtime pay, guaranteed pensions and full health plans.

13 months ago, Obama signed executive orders unionizing the Feds:

President Barack H. Obama signed three executive orders during a ceremony at the White House on January 30, 2009: Economy in Government Contracting, Nondisplacement of Qualified Workers under Service Contracts, and Notification of Employee Rights under Federal Law. The three executive orders focus on federal contractors, but the pro-labor slant of the President's action signals a dramatic shift in labor policy at the highest levels of the federal government. In announcing the executive orders, Mr. Obama said, "I ... believe that we have to reverse many of the policies towards organized labor that we've seen these last eight years, policies with which I've sharply disagreed. I do not view the labor movement as part of the problem, to me it's part of the solution...."

Yesterday, Obama told the Business RoundTable that he was "an ardent believer in the free market." In other words, he wasn't as Fox news intimated, (but not Bill O'Reilly) a socialist.

Greece is trying to get its fiscal house in order, but its met by work strikes and increasing anarchy.

Pretty soon people here will connect the dots.

Is Greece the Tip of the Iceberg? (Wells Fargo Securities)                                                                   


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