I do not believe that government creates jobs. However, I do believe that government can set the table for economic growth with smart polices that keep government interference to a minimum. I also believe that too many government regulations have a chilling effect on job creation.
Last year, the National Labor Relations Board (NLRB) approved a rule that would lead to the formation of so-called micro unions. This rule allows for as few as one or two employees to form a union. Worse, this means that there could be multiple micro unions within one company.
That is exactly what is happening in New York right now. The women's shoes department at Neiman Marcus' Bergdorf Goodman store is trying to unionize. That wouldn't be unusual except for this- the women's shoe department is trying to unionize by itself and not with the rest of the store's sales force.
In this case, the store's employees on the second and fifth floors would be unionized, but not the rest of the store. The rest of the sales force could organize as other unions. Perhaps men's wear and undergarments will follow suit and form their own union. However, that's not the end of the micro union story- it's just the beginning. A bigger company like Neiman Marcus will probably be able to handle this type of micro-unionization. But what if it were your local hardware store or diner?
Imagine a small business owner who has his sales force organized in one union, while his machine shop is organized under another. Or imagine a family diner whose cooks are organized in one union and wait staff in another. It may seem absurd, but not so long ago the notion that a women's shoe department would be its own union did too. These are the types of silly and needless regulations coming out of Washington D.C. that are suffocating small businesses. Instead of concentrating on growing the business and adding jobs, the small business owner must now become an expert in union negotiation or hire someone else to do it.
If we want to create jobs, we need to make America the best place in the world to do business. We need to make it easier, not harder on small businesses to expand. The types of rules coming from the NLRB and others are doing the exact opposite.
The House passed legislation last November that stopped micro unions. The Senate has legislation introduced by Sen. Johnny Isakson (R-GA), which would prevent the formation of micro unions. The Representation Fairness Restoration Act would restore the standard rules and regulations governing the formation of a union at a company. These rules, which have been in place for decades, would continue to allow employees to join a union and collectively bargain with management.
The best thing the Senate could do for job creation is to pass this common-sense bill to stop micro unions before too many more get going. I believe that America can get our economy moving. However, first we need to get rid of unnecessary rules and regulations that hold our small businesses and job creators back.