There has not been a lot of coverage of this. It happened back in July and is only now winding its way through the federal system.
Barack Obama and his administration are about to significantly drive up the costs of federal building construction. This is an astonishing reach. The Office of Management and Budget has directed that any federal construction over $25 million benefit unions.
The order would make all federal construction projects 10-20% more expensive by requiring all contractors to either use union workers or apply inefficient union apprenticeship and work rules to their employees. Contractors would also be required to make contributions to union pension funds and other union programs that non-union workers will never benefit from.
This will hugely drive up the cost of construction of federal buildings and line the pockets of unions without even having union workers involved in the projects. The Bureau of Labor Statistics shows that only 15.6% of private construction workers in America belong to unions. In other words, 8 out of 10 construction workers in America will be legally denied the right to work on federal building projects.
This is appalling.
Great news in the midst of a recession, right?