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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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