Shadowbosses: Government Unions Control America and Rob Taxpayers Blind

by Mallory Factor

  We also want to thank the many, many people who shared with us their own experiences with government employee unions, but who wished to remain anonymous for reasons that we understand too well.

  I want to thank Mia Haugen for her support of my interview series with leading conservatives at TheStreet.com, which gave me many of the ideas that I develop in this book. I am extremely grateful to Bill Shine of Fox News for his guidance on the media and also to Eric Shawn of Fox News for his insights.

  I am grateful for my association with The Citadel, South Carolina’s military college. It has been one of the greatest honors of my life to serve as the John C. West Professor of International Politics and American Government at The Citadel. Although I am not a graduate, I am a huge believer in the power of a Citadel education to transform the lives of young men and women. I want to thank everyone at The Citadel for their support of all my endeavors, particularly Lt. Gen. John W. Rosa, Brig. Gen. Sam Hines, Brig. Gen. Thomas J. Elzey, Dean Bo Moore, Col. Gardel Feurtado, Col. Jeffrey Perez, DeBose Kapeluck, Brad Collins, Gary Hassen, my other colleagues, and the wonderful alumni.

  I want to thank each and every student that I have worked with at The Citadel, the fine young men and women who will be our future leaders. Thanks specifically to all the wonderful students who have journeyed with me through my course on The Conservative Intellectual Tradition in America. I want to acknowledge my honored guest lecturers for the course, many of whom offered their thoughts and suggestions for Shadowbosses: Alfred S. Regnery, David A. Norcross, Speaker Newt Gingrich, Michael Barone, Burton Folsom Jr., David A. Keene, Douglas J. Feith, Gen. Edwin Meese, Ken Cribb, Daniel J. Mitchell, Phyllis Schlafly, Secretary Donald Rumsfeld, Senator Rand Paul, Ralph Reed, and Director R. James Woolsey. I also want to thank Christopher Long and Jeffrey Nelson of the Intercollegiate Studies Institute, Alan R. Crippen and Doug Minson of the John Jay Institute, and Susan Burdock and Ellen Schweiger of C-SPAN for their support of my course and for bringing it to America.

  I am indebted to James Higgins, with whom I started The Monday Meeting in New York City over ten years ago. And also to Grover Norquist, who gave us the inspiration for the meeting, and O’B Murray and Andrew Boucher, who have helped us run it all these years. And to the participants of The Monday Meeting, thanks for your support and continued interest in conservative politics election cycle after election cycle. Thanks also to Senators Jim DeMint and Lindsey Graham, Representatives Tim Scott and Joe Wilson, Governor Nikki Haley, Lt. Governor Glenn McConnell, Speaker Bobby Harrell, and Representative Chip Limehouse for their leadership on right-to-work issues and legislation against union violence.

  Special thanks are required for all the wonderful friends, family, and colleagues who support us in our life. And to our friends who carefully read our manuscript and gave us their comments, we owe you our special gratitude. We particularly appreciate the careful review and help of Tommy McQueeney, Steve Matthews, Mary Ann and Eddie Taylor, Pamela Meisel, Michelle Condon, Dede Waring, Margaret Brockinton, Chris Yegen, Herb Kozlov, Carol Stewart, Rhonda Steinfeld, Julie Groves, Nicole Papst, and the initial read by John Gardner. And for other friends who guided us through the process of writing and launching a book, including Judge Andrew Napolitano, Frank Abagnale, Sally Pipes, Max Boot, Rich Miniter, Frank Miniter, Matt Kibbe, Elizabeth and Jim Pinkerton, Jack Hunter, Jameson Campaigne, Ellen Ratner, Anita and Burt Folsom, Colleen Holmes, Lynn Bradshaw, Doug Stafford and many others.

  Finally, we want to thank our five children who graciously allowed us to devote so much time and effort to this project. Thanks to them also for testing out the fables peppered throughout our book. And hopefully, we will someday be able to write the children’s book that they have asked us to tackle next, an illustrated tale of the “big bad Shadowbosses who are blowing our fiscal house down,” one of their favorite bedtime stories.

  About the Authors

  Mallory Factor is the John C. West Professor of International Politics and American Government at The Citadel. He is a Forbes columnist, the senior editor of money and politics for TheStreet.com, a political commentator, and a businessman. Mallory Factor is the co-founder of The Monday Meeting, an influential group of conservative political leaders, journalists, donors, think tank heads, and grassroots leaders in New York City—the largest meeting of its type in America.

  Elizabeth Factor is an attorney and consultant.

  Praise for

  SHADOWBOSSES

  “With impressive detail, Mallory Factor uncovers how government employee unions have saddled the American taxpayer with billions of dollars of crushing debt and sapped efficiency from our government. Even the Department of Defense has come under the influence of unions that have erased pay-for-performance in the civilian workforce. This is a story that needed to be told, and Factor tells it with force.”

  —Donald H. Rumsfeld, Former U.S. Secretary of Defense

  “SHADOWBOSSES shows how government unions are driving us down the road to serfdom, increasing the role of government in our lives, and putting into place an endless, expensive bureaucracy that will be difficult to dismantle. By explaining the complex problem of government unions in plain and simple terms, Factor shows us how these unions and their political supporters are endangering America and what we must do to restore faith in our republic. SHADOWBOSSES is a must read for anyone who cares about America.”

  —Newt Gingrich, Former Speaker of the House

  “This book is a must-read for anyone who stands for truth and transparency in government. SHADOWBOSSES masterfully exposes the cozy relationship between public sector unions and the Democratic Party, and the unethical misuse of compulsory union dues to elect those who cater to the special interests of union bosses. Step one: read this book. Step two: Get out there and find more Gov. Scott Walkers who can help us get this country back on the road to economic recovery!”

  —Dick Armey, Former House Majority Leader and Chairman, FreedomWorks

  “If you care about the future of America, read Shadowbosses. In this often amusing and always compelling book, Mallory Factor gives us the simple truth about how government employee unions are driving our country down the wrong path—towards the poor house instead of towards prosperity. Shadowbosses is a vital wake up call for all American taxpayers and workers, and shows us how we can turn our ship around before it is too late.”

  —Herman Cain

  “If you want to discover how labor unions have stolen the liberty and property of their members, and of American taxpayers as well, and gotten away with it, read SHADOWBOSSES. With his witty and take-no-prisoners style, Professor Mallory Factor uses hair raising tales to demonstrate the age old truism that when your partner is the government, you can get away with anything.

  —Judge Andrew P. Napolitano, Senior Judicial Analyst, Fox News Channel

  “In SHADOWBOSSES, Mallory Factor has written a compelling and alarming account of the growing power of these radical leviathans, and of the heroic efforts of individuals, like Wisconsin governor Scott Walker, to oppose them. This is a disturbing book, and an indispensable one.”

  —David Horowitz, Author, Founder of Freedom Center

  “In Atlas Shrugged Ayn Rand described what happens when the looters and moochers gain control of society and of government: destruction. In SHADOWBOSSES, Mallory Factor shows in frightening and dramatic detail how one group of looters is coming to dominate our political lives—the government employee unions. SHADOWBOSSES uncovers one of today’s most dangerous threats to our liberty—and it shows us how to stop that threat before it’s too late.”

  —Yaron Brook, President and Executive Director, The Ayn Rand Institute

  “Witty, insightful and timely, Mallory Factor’s SHADOWBOSSES exposes the venality of today’s government union leaders. Their lust for power threatens the very foundations of our democracy.”

  —Colin A. Hanna, President, Let Freedom Ring

  “In SHADOWBOSSES, Mallory Factor provides a chilling expose of th
e power of unions and their tremendous influence on government and politicians…. This country can no longer afford the outrageous salaries, health, and pension benefits of government employees that far exceed those paid to employees in the private sector. If you are concerned about the future of our country, this book is must reading.”

  —Sally C. Pipes, President & CEO, Pacific Research Institute

  “SHADOWBOSSES is the first book to explore and expose the secret, sometimes violent, world of government unions and the way they run our democracy. The mainstream media is afraid to cover this story. You should be afraid not to read this book. Buy it now and give extra copies to your friends, family, neighbors and countrymen. It is just that important.”

  —Richard Miniter, Forbes.com Columnist, Bestselling Author of Losing bin Laden and Shadow War

  “Mallory Factor’s SHADOWBOSSES puts the torch to the political keg of dynamite beneath the Democratic Party. No better book has ever been written on the unions. No more important book has ever been written for the American taxpayer.”

  —Ben Shapiro, Breitbart News Editor-At-Large, Bestselling Author of Primetime Propaganda

  “Wonder how the anti-capitalist Obama administration brought rampant socialism to the White House? SHADOWBOSSES reveals the real power behind the Obama throne—the government employee unions and their bosses. SHADOWBOSSES is a game changer.”

  —Mark W. Smith, Bestselling Author and Constitutional Lawyer

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  Notes

  Introduction

  1 Briefing by White House Press Secretary Robert Gibbs, January 11, 2010, http://www.whitehouse.gov/the-press-office/briefing-white-house-press-secretary-robert-gibbs-11110, accessed April 2012; “POTUS Meeting With Labor Leaders, Monday, January 11, 2010,” internal White House document, https://www.judicialwatch.org/files/documents/2010/HHS_combined-3.pdf, accessed April 2012. Additional labor union bosses who attended this meeting were: Anna Burger, chair of Change to Win (now retired); Joe Hansen, president of United Food and Commercial Workers; Terry O’Sullivan, president of Laborers International Union of North America; Leo Gerard, president of United Steelworkers; Ed Hill, president of International Brotherhood of Electrical Workers; and Larry Cohen, president of Communications Workers of America. Every single union at this meeting represents some government employees (most in addition to private sector workers).

  2 Andrew Kreig, “AFL-CIO President Says Courage Missing in Health Care Debate,” The National Press Club, January 12, 2010, http://press.org/news-multimedia/news/afl-cio-president-says-courage-missing-health-care-debate, accessed January 2012.

  3 Sheryl Gay Stolberg and Steven Greenhouse, “President Signals Flexibility on Health Plan Tax,” New York Times, January 12, 2010, http://www.nytimes.com/2010/01/12/health/policy/12health.html, accessed February 2012.

  4 Erica Werner, “Labor Leaders Fight White House, Senate Democrats on Plan to Tax Workers’ Insurance Plans,” Associated Press, January 12, 2010, http://cnsnews.com/news/article/labor-leaders-fight-white-house-senate-democrats-plan-tax-workers-insurance-plans, accessed February 2012.

  5 As an extra bonus, the Administration would waive the burdensome new requirements of Obamacare for many unionized workers. In May 2011, it was reported that of all 3.1 million people for whom Obamacare waivers applied, over half were union members. Mark Hemingway, “Over Half of All Obamacare Waivers Given to Union Members,” Weekly Standard, May 16, 2011, http://www.weeklystandard.com/blogs/over-half-all-obamacare-waivers-given-union-members_561115.html, accessed November 2011.

  6 “Cadillac Plans,” editorial, New York Times, January 15, 2010, http://www.nytimes.com/2010/01/16/opinion/16sat1.html, accessed February 2012.

  7 In 2011, there were 477,000 unionized post office workers and only 219,000 unionized workers in the entire domestic auto industry, according to James Sherk of the Heritage Foundation.

  8 Charles Krauthammer, “ ‘Magnificent Turmoil’ Threatens Union Privilege,” Full Comment, National Post, February 25, 2011, http://fullcomment.nationalpost.com/2011/02/25/charles-krauthammer-magnificent-turmoil-threatens-union-power/, accessed January 2012.

  9 Larry Margasak, “STOCK Act: Senate Passes Insider Trading Ban Bill,” Huffington Post, March 21, 2012, http://www.huffingtonpost.com/2012/03/22/stock-act-senate-insider-trading-ban_n_1373081.html, accessed April 2012.

  10 “Where Is the Civility?” transcript, Sean Hannity Show, February 25, 2011, http://www.hannity.com/article/where-is-the-civility/12769, accessed March 2012.

  11 See Steve Moore, “We’ve Become a Nation of Takers, Not Makers,” Wall Street Journal, April 1, 2011, http://online.wsj.com/article/SB10001424052748704050204576219073867182108.html, accessed April 2012.

  12 John C. Henry, “Fat Cat Union Salaries Exposed!” Fox Nation, Fox News, March 3, 2011, http://nation.foxnews.com/politics/2011/03/03/fat-cat-union-salaries-exposed, accessed March 2012.

  13 Matthew Kaminski, “ ‘The New Tammany Hall,’ ” Wall Street Journal, November 26, 2011, http://online.wsj.com/article/SB10001424052970203716204577016092542307600.html?mod=WSJ_Opinion_LEADTop, accessed November 2011.

  14 Michael O’Brien, “DeMint: Collective Bargaining Has No Place in Government,” The Hill, March 2, 2011, http://thehill.com/blogs/blog-briefing-room/news/146927-demint-collective-bargaining-has-no-place-in-representative-government, accessed January 2012.

  15 Both quotes cited in James Sherk, “Majority of Union Members Now Work for the Government,” WebMemo #2773, Heritage Foundation, January 22, 2010, http://www.heritage.org/Research/Labor/wm2773.cfm, accessed January 2012.

  16 Arthur Laffer, “The States are Leading a Pro-Growth Rebellion,” Wall Street Journal, February 11, 2012, http://online.wsj.com/article/SB10001424052970203711104577201391354733460.html, accessed April 2012.

  17 Joel Klein, “The Failure of American Schools,” Atlantic, May 10, 2011, available at http://www.nationaljournal.com/the-failure-of-american-schools-20110510, accessed April 2012.

  18 “Can I Be Required to Be a Union Member or Pay Dues to a Union?” National Right to Work Legal Defense Foundation, http://www.nrtw.org/a/a_1_r.htm, accessed March 2012.

  19 Technically, workers covered by collective bargaining agreements in forced-dues states have the option of not joining the union and paying agency fees to the union (instead of joining the union and paying dues). But agency fees are generally set at the same amount as union dues (or slightly less than union dues), so there is generally not much practical difference between paying dues or fees to a union.

  20 Already, unions like the American Federation of State, County and Municipal Employees (AFSCME) promote “retirement unions,” which lobby the government to increase and protect retiree benefits including Social Security and Medicare. See http://www.afscme.org/union/retirees. People join these unions voluntarily, but future organizing efforts may force retirees and other groups into unions under a new organizing model discussed in chapter 8.

  21 Bureau of Labor Statistics, Union Member Survey 2011, table 3, http://www.bls.gov/news.release/union2.t03.htm, accessed April 2012.

  22 “State Debt Per Capita, Fiscal Year 2010,” Tax Foundation, February 16, 2012, http://www.taxfoundation.org/research/show/268.html, accessed March 2012 (latest data is from 2010). Two right-to-work states are among the top twenty states in terms of debt per capita as a percentage of GDP: #14, South Dakota; and #20, Louisiana.

  23 “Testimony of Mark A. Mix, President, National Right to Work Committee,” House Committee on Oversight and Government Reform, April 14, 2011, p. 3, http://oversight.house.gov/wp-content/uploads/2012/01/4-14-11_Mix_Testimony_full_hearing.pdf.

  24 “Back to School Statistics,” U.S. Department of Education, National Center for Education Statisti
cs, http://nces.ed.gov/fastfacts/display.asp?id=372.

  25 Jason Riley, “Was the $5 Billion Worth It?” Wall Street Journal, July 23, 2011, http://online.wsj.com/article/SB10001424053111903554904576461571362279948.html. “ ‘The overall impact of the intervention, particularly the measure we care most about—whether you go to college—it didn’t move the needle much,’ he says. ‘Maybe 10% more kids, but it wasn’t dramatic… We didn’t see a path to having a big impact, so we did a mea culpa on that.’ ”

  26 Walter Isaacson, Steve Jobs (New York: Simon & Schuster, 2011).

  27 Sid Johnston, “Teacher of the Year Fired in Lincoln Park Due to Budget Issues,” Newjersey.com, June 13, 2010; Mary Ellen Flannery, “I Thought I’d Stay Forever,” NEA Today, January 23, 2010. New Jersey is not the only state to fire promising young teachers ahead of all older teachers—almost all states do the same. See, e.g., Erin Richards and Amy Hetzner, “Seniority System Cuts Fresh MPS Teachers amid Budget Crunch,” Milwaukee Wisconsin Journal Sentinel, June 14, 2010, http://www.jsonline.com/news/education/96349689.html, accessed April 2012.

  28 Bureau of Labor Statistics, Union Member Summary, January 21, 2011; Steven Greenhouse, “Union Membership in U.S. Fell to a 70-Year Low Last Year,” New York Times, January 21, 2011.