The construction industry is still facing high unemployment (27.1%) and the future looks even bleaker. While the Obama Administration should be helping the industry, several proposals are poised to accelerate its decline: A soon-to-be-approved Obama Executive Order encouraging union-favoring Project Labor Agreements will make it extremely difficult for nonunion contractors to compete for big federal construction jobs. If successful in winning, nonunion contractors will have to pay health and pension benefits twice – once to the union and once to its workers – while nonunion workers also pay union dues. The Administration is considering a “High Road Contracting Policy” favoring unionized company bids on federal projects and increasing contracting costs. Obama’s support of Big Labor’s aggressive push for passage of the Employee ‘Forced’ Choice Act – which forces unionization on workers and jeopardizes their salaries and benefits – may push contractors out of business entirely. Brett McMahon of the Associated Builders and Contractors details the facts.
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