Obama’s Dividing of America-The Role of Unions

The Topics:

Federal Employees’ Total Compensation $51,000 Higher than Private Sector!

Senate Bill 3194

$26 Billion Dollar “Emergency” Teacher-Police-Fire Union Bailout


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Yesterday the headlines were all about the growing disparity between the public sector (government) and private sector (business) salaries and wages.  The real headline should have been that Obama and this Congress is rapidly turning over this country to the Unions.  The unions in turn are returning millions back to these politicians to insure their re-election.  It is a vicious circle and if gone unchecked will insure the eventual total decline and failure of this country.  Obama and the Congress are rapid firing so many issues simultaneously at you it is difficult to step back and connect the dots.  Yesterday’s vote on the $26B “Emergency” funding for the Teachers, Police and Fire Fighter unions; the eventual passage of SB 3194; and Obamacare all have the same goal in common, get members, money and power to the public sector unions.  These unions are the fastest growing union movement in America today.   

$26B Union Bailout:

               Why did this have to take place in an emergency session of Congress?  Why was Obama already schedules ahead of time to make speeches in support of this bailout?  If Obama is the smartest president we have ever had and if this was some kind of an emergency, why didn’t anyone see this coming?  Ah, the democrats did.  The entire bailout was to funnel taxpayer money into democrat re-election coffers.  How, simple:  

  • $26B goes out to Federal, State, County and City agencies to fund payments to their Union Pension funds, pay teacher, fire and police salaries AND TO INCREASE UNION DUES BACK TO THE UNIONS.  The unions, in turn, skim off some of the dues into their PACs, political action committees, and then give the money to threatened democratic candidates for the midterm elections.  Sick?  Yes.  Immoral? Yes.  Illegal, not with this Administration and Congress.  Consider if only 1% of the $26B is returned back to the democrats, this would amount to $260,000,000 ($260 Million); if 5% finds its way back into the democrat candidates paws, this amounts to $1,300,000,000. ($1.3Billion)  They only have a little over 2 months left until the election so that is a lot of money to spend in a very short period of time.  If there are 100 races that need funding, this would amount to between $2.6M and $13M PER RACE! That is more than most congressional candidates spend in the general election.

Senate Bill 3194:

               This is the bill dingy Harry (Reid) is hand carrying through the Senate and it is potentially the most damaging bill to our States since Obamacare.  (Amazing, Obamacare seems like such a long time ago)  Why, IT FORCES EVERY STATE, COUNTY AND CITY employee to be represented in collective bargaining agreements.  This means that every STATE, COUNTY AND CITY worker or teacher will be a member of the “Obama National Public Employee Union”.  Take the mere $26B bailout above and multiply it 1,000 fold and you are still not close to the political power, ie money, this bill will create for the progressive movement of the left.   

               Take a quick look at California.  The unions began to choke California back in the 1970’s under the “guidance” of Jerry Moonbeam Brown.  Legislation like the Rodda Act that forced teachers to unionize and other such legislation enabling the unionization of the public sector work force in California are huge contributors to the deficit of this state.  The unfunded liability of the public sector unions alone is estimated to be almost a trillion dollars.  Much of the $26B bailout above will go to California to help the Brown and Boxer campaigns that are both in trouble.   

Public Sector Employees Compensation Is Almost Double that of the Private Sector: ($111,000 vs 60,000)

 The headlines today pointed out that Federal employees’ total compensation (wages and benefits) is $51,000 higher than the private sector.  Why would the average total compensation for Federal workers be $111,000/year while the private sector average total compensation is $60,000?  There are two underlying causal factors  

  1. Government, Congress and the Administrations protect their own workers
  2. Tight Union control over the Federal (and local government) employees.

The disparity in compensation is not defendable. Period.  There is no greater risk in working for the government, quite the contrary.  Longevity is orders of magnitude higher in the public sector when compared to the private sector.  Benefits in the public sector are much more generous in the public sector versus the private sector.  Follow the money.  The higher the compensation that is paid to the public employees the more employees you can attract; and the more union dues that can be paid to unions;  and the more union dues that can be funneled to progressive democrat candidates.  Also, you create a new “class” in the US that is a somewhat monolithic voting block and a cohesive political force.  More on the class in a bit.  

               The bottom line with Federal employee compensation is this.  When you compare like job to like job, BLS (Bureau of Labor Statistics) data indicates that there is at least a $14K difference in salary per position.  Multiply this by the 2.7M federal workers and this comes out to $37,800,000,000!  Yes, that is BILLION!  Do the normal 10 year projection that the CBO like and you come up with almost $400 Billion Dollars.  Even in Washington speak that is a lot of cash.  This is just for Federal, non military Federal workers.  I think I learned in economics 1A that the private sector produces goods and services while the public sector merely diverts capital from the private sector so does not create any tangible products.  

Management OVERHEAD in the Federal Government Is DOUBLE that in the Private Sector:

If you look at the BLS job classifications and their comparison to private industry, you will find that there are twice as many “management” positions in government than that in the private sector.   


The private sector could not come close to making a profit with this excessive overhead.  Are the government processes so difficult as to require twice the management oversight? No, private companies do the same work every day.  Does the high level of government overhead produce smooth running government agencies?  Yea right, look a the Post Office, Medicare, Medicaid, the DMV, etc. etc..  The overhead can only be attributed to the need to create a large class of priveledged (hightly compensated) bureaucrats to control the federal employees and to provide the administration with a large and loyal political force.  


               Why is this part of the discussion of Unions and public sector compensation?  Because this is the single largest gift to SEIU and other private and public sector unions EVER!  Every healthcare worker; every healthcare supplier; every healthcare facility will be union eventually.  It will start relatively slowly, probably a few days with this bunch, then Congress (if controlled by the progressive democrat party) will find an emergency to create another SB 3194 that will make it mandatory for anyone who is involved in any capacity to be unionized.  This will include hospitals, day care (already is a law in some states), drug companies, EMT (already are in many states and will be under 3194), nurses, doctors, candy stripers etc..  This will create another union “class” that will be formidable in terms of political clout, contributions, and most of all, contribute a huge pool of voters.   

               Obama and the progressives focused on healthcare because it is 1/6th of our economy.  If they control it, this is a huge chunk of political power.  The unions will play a vital role in controlling the human resources of healthcare and your lives.  


The End Results:

               Why/how is all of this interconnected?  The goals of left in the unionization of America are fairly simple:  

  • Democrat Voting Bloc:  Create a monolithic (or close to it) voting bloc that is formidable and one that contributes solely to the cause of the progressive democrat party through union dues that are channeled to union PACs then to the democrat candidates.  The idea of tenure for teachers will permeate this entire group of public employees granting them lifetime membership to this club.
  • Obama Class Warfare:  To create a new powerful CLASS of citizens that can be used against their private sector counterparts.  You saw and heard this already today.  There were public employees calling into talk shows complaining that they (the public employee) did in fact create value and earned their wages.  This should not be the debate.  The debate should be how little government (work force) we can get by with and how can we even out the compensation. 
    1. We have seen Obama and the left use racism; black against white; Hispanic against white; etc.
    2. We have seen Obama and the left use class warfare:  Wall Street vs Main Street;
    3. We have seen Obama and the left use group warfare;  Big Phama, Health Insurance Companies; Doctors; Big hospitals; Big Oil; Big Automakers; Big Business versus the average citizen. 
    4. Muslim versus Christian

The power that Obama gains in dividing us and conquering us group by group is immense and one that can and will be used to conquer us, by our own actions.  Don’t take the bait.  Don’t assume someone or something is bad just because a politician says it is.  Question the motive.  We all hat paying premiums or being told something is not included in what we think we have paid for.  That is no reason for the power of the federal government to come down and crush or take over that person or company.  WE HAVE LAWS FOR THAT.  

  •       Control over the States:
    1. Federalism will eventually disappear when the Federal government forces States to unionize and build huge deficits and unfunded liabilities like those seen in California and other states.  Obamacare will create even more unfunded mandates onto the already strapped States and increase their insolvency. Once the Federal government comes in and assumes control over the finances of a state, that state will in essence become a ward of the state or more like a District like Washington DC.  
    2. Federalism will eventually disappear if the union money can insure the re-election of progressive democrats like Jerry Brown and Barbara Boxer.  This will create a cancer within the states whereby these officials will work with the Federal Government to allow for the eventual takeover of the State by the Federal Government.  THE POTENTIAL FOR THE STATES TO CALL FOR A CONSTITUTION CONVENTION, AS WRITTEN IN ARTICLE V OF THE US CONSTITUTION, TO COUNTER BALANCE AGAINST FEDERAL POWER WILL BE SORELY DIMINISHED.  THE POSSIBILITY OF A FORCING A CONSTITUTIONAL CONVENTION WILL BE LOST.  Lights out…

Anthony Walton said:  

“America’s greatest strength, and its greatest weakness, is our belief in second chances, our belief that we can always start over, that things can be made better.”

 Our second chance is on November 2nd, 2010.  We have to start to reclaim this nation…


RD Pierini


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