Obama executive order excludes non-union contractors from government contracts!

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Farmer Brown's picture
Farmer Brown
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Obama executive order excludes non-union contractors from government contracts!

This is perhaps the most shocking thing I've seen this year.  It even trumps the Goldman charges since those weren't a surprise at all.  Why isn't this all over the news?!



Another Obama favor for unions

Examiner Editorial 
April 14, 2010


Barely 15 percent of all construction-industry workers in the United States are union members, while the remaining 85 percent are nonunion, according to the U.S. Department of Labor's Bureau of Labor Statistics. So why has President Obama signed Executive Order 13502 directing federal agencies taking bids for government construction projects to accept only those from contractors who agree in advance to a project labor agreement that requires a union work force? Obama's new order applies to all federal construction projects with price tags of $25 million or more, and it means all such contracts will only be awarded to companies with unionized work forces.

Read more at the Washington Examiner: http://www.washingtonexaminer.com/opinion/Another-Obama-favor-for-unions-90776984.html#ixzz0lVrSfgDG


This was linked to in a related article on Mish's blog:   http://globaleconomicanalysis.blogspot.com/2010/04/executive-order-13502-yet-another-obama.html

joemanc's picture
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Re: Obama executive order excludes non-union contractors ...

I'm not against unions, they do serve a purpose, but this sounds like another way to buy votes. It happened in the city I used to live, and it wasn't just the Democrats who were giving away the kitchen sink to the unions. Every 2 years, there was a mayoral election, so if you wanted to be in good graces with the unions, you would take care of them, in exchange for their votes of course. Didn't matter who was in charge, both parties did it. About 7 or 8 years ago, the state had to take over the city because it was basically bankrupt. An oversight board was created to run the city, and it had the power to re-open and re-negotiate union contracts. Boy where the unions furious! That seemed to help the city's finances for a few years, but the taxes and the cost of doing business in that city are still outrageous.

gsb37's picture
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Re: Obama executive order excludes non-union contractors ...

The same thing is happening in many states as well.

Here in MA, Governor Patrick is a big fan of Private Labor Agreements even though 84% of all construction work is done by non-union companies.



Farmer Brown's picture
Farmer Brown
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Posts: 1503
Re: Obama executive order excludes non-union contractors ...

This has nothing to do with anyone's opinion on whether unions are good or bad.  The point is the President has now declared that only a certain subset of contractors, that is those who comply with unionized employees as defined by the President, will be eligible for government contracts.  

This is blatant cronyism and favoritism carried forward with tax payer dollars.  Tax payers, I will add, who may or may not support unions or who maybe just don't give a damn.  They probably all do give a damn about the costs of the contracts their taxes will pay for - all of which will be higher since only unionized labor will be used - by executive decree.  

I haven't seen this covered anywhere even though 2/3 of the stimulus bill has yet to be spent.  You'd think that with over $500 billion left to spew over America, that non-unionized contractors would be up in arms.  I guess with volcanoes grounding Europe, Goldman going on Judge Judy, and Greece still squirming as they continue to tell us all that they'll pay us tomorrow, that this type of stuff just isn't newsworthy - apparently not on this forum either!

MarkM's picture
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Re: Obama executive order excludes non-union contractors ...


At this point, nothing shocks me anymore.  The federal government will keep pushing as long as there is no real resistance.  They have taken huge chunks of power in the past ten years.  Actions like this one are taken to strengthen their voting block, and it will work.  It is all about securing money for re-election and power through voter support.  Soon, if not already, those beholden to the federal government in one form or another will be so numerous that any agenda will be possible.

Here is a great article on California and it's public-sector union problems.


The camera focuses on an official of the Service Employees International Union (SEIU), California’s largest public-employee union, sitting in a legislative chamber and speaking into a microphone. “We helped to get you into office, and we got a good memory,” she says matter-of-factly to the elected officials outside the shot. “Come November, if you don’t back our program, we’ll get you out of office.’

The video has become a sensation among California taxpayer groups for its vivid depiction of the audacious power that public-sector unions wield in their state. The unions’ political triumphs have molded a California in which government workers thrive at the expense of a struggling private sector.

DrKrbyLuv's picture
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Posts: 1995
Re: Obama executive order excludes non-union contractors ...

I don't know the details of this executive order but it sure looks like this will end up in the courts.  Most states have laws that allow open shops to coexist with their union counterparts under right to work statutes.

In the past, it was very common for state and federal projects to include prevailing wage language in their contracts in order to enforce a union wage even among non-union contractors.  I would think someone is going to sue the federal government but the problem is that the courts are as corrupted as the other branches of government.

This is another example of the U.S. dictatorship - our representative government and constitutional republic are long gone.  It may be time to do as Jefferson suggested "The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants."


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