Colin McNickle At Large

Union extortion, kicked cans & ‘windbag’ economics: Just another day in Pittsburgh

These cats just don’t get it.

The Post-Gazette reports that “Pittsburgh leaders seek to add union protections to a $50 million Downtown redevelopment plan.”

Specifically, the O’Connor administration is asking City Council to guarantee that “that building service employees — anyone whose work involves the care or maintenance of the property — must be represented by a collective bargaining agreement,” the P-G says.

“However, each of the agreements must contain a no-strike clause, which would prohibit any work stoppages by the union members until the TRID financing has been repaid. Any disagreements would be resolved through an arbitrator,” adds the P-G.

“TRID” stands for a “Transit Revitalization Investment District” that will be funded by a $50 million bond to be paid off by taxpayers, if approved by city, county and city schools taxing bodies.

Says Dan Gilman, Mayor Corey O’Connor’s chief of staff: “If the public is going to subsidize these projects, and essentially be investors, it’s really important we create family-sustaining jobs in our buildings.”

And to be shaken down yet again by organized labor? All this “deal” is? The latest union extortion racket to make the city – and taxpayers – buy organized labor “peace”— and at an inflated price.

The bottom line here is that such a proposal points to these officials’ “lack of responsible and honest thinking,” says Jake Haulk, president-emeritus of the Allegheny Institute.

Here’s what kicking the can down the road gets you: A likely nightmare for Allegheny County taxpayers.

As we previously noted, the county pension system is darn near bust – just under 33 percent funded with a deficit of $1.4 billion. Sans a major overhaul and funding infusion, the fund is expected to founder like a dead flounder by 2043.

The Tribune-Review says a report by a working group of the Retirement Board of Allegheny County indicates “paying down the pension debt will require Allegheny County and its Airport Authority to dedicate annually at least $140 million to $150 million combined to the plan over the next 20 years, which is roughly $90 million to $100 million more each year than they currently contribute.”

We are struck by the fact that while the report identifies several possible new pension-funding revenue sources – payroll, earned income, sales or property taxes – few if any county officials appear to be seriously talking budget cuts to aid the pension-reform process.

A higher tax – or will it be taxes? – on top of last year’s 36 percent property tax hike? On top of attempts to force private employers of any size to pay for 18 weeks of parental leave? On top of still-stagnant jobs and population numbers? On top of continued kowtowing to the farcical anti-market forces of public-sector unions?

There might as well be “Closed for Business” signs put up at the Allegheny County border.

From the email inbox, a regular reader and correspondent writes:

“I always find it amazing how, when the windbags talk about any event, be it a sports game or a quasi-government festival, they always talk about economic impact.

“Let’s say that I and my spouse go to a baseball game and between the tickets, parking and the inevitable consumables, both in the venue and in the adjacent eateries, we spend $100. That is $100 of direct economic impact.

“But wait, the windbags also include the amount of money that the various people who worked the event, as well as the employees of the ancillary establishments also spent for parking, consumables, etc. Since there is no way to accurately track all that secondary spending, the ‘economic impact’ always seems to be much higher than reality.

“Also, the athletes and many of the festival vendors are from out of town, meaning that they take those dollars home with them.

“Now, let’s say that instead of going to the game, we go to the local nursery and spend that $100 there instead. Doesn’t that also count as direct economic impact? And isn’t there a secondary economic impact from those employees as well?

“In reality, both cases involve consumption.

“I hear the argument that the sporting event attracts people from out of town but the nursery expenditure does not. What they don’t mention is that when the team plays an away game, the locals around here will travel out of town, thereby nullifying the theory that sports teams draw money into the region.

“But the windbags don’t want to talk about that.”

Remember the old television public service campaign, “Reading is Fundamental”? So, too, is basic economics, class. Windbags need not apply.

Colin McNickle is communications and marketing director at the Allegheny Institute for Public Policy (cmcnickle@alleghenyinstitute.org).

 

Colin McNickle

Colin received his B.G.S. from Ohio University. The 40-year journalism veteran joined the Institute in October 2016. That followed a 22-year career with the Pittsburgh Tribune-Review, 18 as director of editorial pages for Trib Total Media. Prior that, Colin had a long and varied career in media — from radio, newspapers and magazines, to United Press International and The Associated Press.

Picture of Colin McNickle
Colin McNickle

Colin received his B.G.S. from Ohio University. The 40-year journalism veteran joined the Institute in October 2016. That followed a 22-year career with the Pittsburgh Tribune-Review, 18 as director of editorial pages for Trib Total Media. Prior that, Colin had a long and varied career in media — from radio, newspapers and magazines, to United Press International and The Associated Press.

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