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August 25, 2015


Title: Part 2 of 3 - Every Business Will Have to Change
Topic: Joint Employer
Discussed by Iain Murray
with Competitive Enterprise Institute www.cei.org

It is probably the biggest change in American employment law since the National Labor Relations Act and its reform in the 1930s and ‘40s, but it could happen without the general public realizing it.

The whole American business model of contracting out non-essential services would be overturned overnight. Firms that have spent decades flattening their structures would be forced to vertically integrate. One employment owner told The Hill, “Every company will have to reexamine their business relationships."

It is not just staffing and contracting that are threatened by the NLRB’s actions on joint employer. Other targets include franchise businesses like McDonald’s. If franchise businesses are designated joint employers, then that business structure will also be overturned, with significant effects on one of the main avenues for American entrepreneurs.

Listen in as Iain lays out the power-grab by the NLRB. Obama promised change, and this will call massive unemployment.



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Title: Part 3 of 3 - Every Business While Have to Change
Topic: Joint Employer
Discussed by Iain Murray
with Competitive Enterprise Institute www.cei.org

Companies will probably vertically integrate to cut down on transaction costs between franchises and corporate management. As a spokesman for the National Federation of Independent Businesses also told The Hill, “All of the sudden, a local business person who has built a franchise up for 20 years is a middle manager.”

It is not just staffing and contracting that are threatened by the NLRB’s actions on joint employer. Other targets include franchise businesses like McDonald’s. If franchise businesses are designated joint employers, then that business structure will also be overturned, with significant effects on one of the main avenues for American entrepreneurs.

Viewed this way, the joint employer cases can be seen as a way of rewarding the administration’s political allies in the union movement. To do so, the last four decades or so of American business development need to be written out of history in a move that will force the re-adoption of monolithic corporate structures that were shown to be inefficient in the 1970s and ‘80s. That appears to be a small price to pay in the eyes of the NLRB and the administration.



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