An Open Letter to the California Legistlature; C. Baird

I have written extensively on the issue of so-called union security. I know you under stand the main argument in favor of union security-the so-called free-rider problem but I would like to give you the other side of the story. First, there could be no free-rider problem if it were not for the principle of exclusive representation. If we had a system of mem bers-only bargaining (sometimes called pro portional representation), the CFA would not have to bargain on my behalf. I could not receive any of the alleged benefits of their rep resentation services, because I would be responsible for bargaining for myself or for selecting some other representative to bargain for me. In other words, the union's free-rider problem is an artifact of the law. It is not a problem inherent in collective bargaining. Charles Baird is a professor of economics and the director of the Smith Center for Private Enterprise Studies at California State University at Hayward.

63 Workplace Democracy Now, you are probably thinking that exclu sive representation is simply majority rule in the workplace. It is economic democracy. After all, as I have heard many of my debate opponents say, we elect members of the legis lature by majority vote. A winning candidate represents all eligible voters in his or her dis trict notwithstanding that many voted for another candidate and many more didn't vote at all. That is what democracy is all about. The majority rules. If it is good in politics, it must be good in unionism too. But that conclusion is a non sequitur. Government is a natural monopoly. It has a monopoly on the legal use of force. There can be only one government at a time. Like all monopolists, governments have a tendency to abuse their monopoly power. Historically, democracy evolved as a way for the governed to have some ability to protect themselves againstgovernmentalabuse.I>emocracy-the mandatory submission of minorities to the will of majorities on all matters that are with in the constitutional scope of governmental authority-was never intended to be imposed in the private sphere of human action. There, individual autonomy and free choice are the proper rules. Private persons are free individ ually to associate with private groups that use majority rule to make decisions, but they are also free not to do so.

Unions are not governments. They are pri vate associations. (The last time I checked, civilian employees of government were still 64 THE FREEMAN/IDEAS ON LIBERTY • AUGUST 1999 private citizens.) To impose mandatory sub mission of minorities to the will of majorities in private affairs by statute is to breach the constitutional wall of separation between gov ernment powers and individual rights. On this reading therefore, exclusive representation is illicit. (You cannot take refuge in the U.S. Supreme Court's 1937 ruling in the Jones & Laughlin Steel Co. case, which upheld the National Labor Relations Act. We all know that decision was made possible by the switch of votes by Chief Justice Charles Evans Hugh es and Associate Justice Owen 1. Roberts in an effort to avoid Roosevelt's court-packing plan. This was the switch in time that saved nine.) Do you realize that the United States and Canada are the only two countries in the world with exclusive representation union ism? I have given lectures all over the world on this issue. From South Africa to New Zealand to Austria to England, audiences are appalled that America, supposedly the most free country in the world, denies to individual workers the right to designate workplace rep resentatives of their own individual choosing.

Forced Riders The second reason the free-rider argument is false is the problem of the forced rider. Unions claim to confer net benefits on all workers whom they represent. That is nothing but a big lie. For example, the CFA does not confer net benefits on me. To the contrary, I am much worse off having the CFA represent me than I otherwise would be. Just the psy chic cost of being forced to have people with whom I have profound educational and philo sophical differences speak for me far out weighs any monetary benefits they claim to have secured on my behalf. (Incidentally, I deny that the CFA has secured any monetary benefits for me.) So I suffer net harms from the CFA, and now you want to force me to pay for those net harms through so-called "fair share fees." In economics a forced rider is a person who suffers net harms from some col lective action and is forced to pay for them.

There may be free riders, but there are also forced riders. Don't you, as elected officials, have a moral responsibility to protect the rights of forced riders? We are citizens too. It is telling that SB 1241 doesn't even make the agency shop a subject of bargaining between the CFA and CSU. Instead, it impos es the agency shop burden by force of statute. I guess you don't have much confidence in the CFA's bargaining abilities. The CFA has never been able to accomplish anything without you, their political patrons, giving it special privileges under the law. That is why I have always called the CFA the Cabal of Feckless Academics. Finally, as soon as you empower the CFA to steal money from my paycheck, I and several like-minded colleagues on many CSU cam puses will, with pro bono representation, ini tiate legal proceedings based on the following Supreme Court decisions: Abood v. Detroit Board ofEducation (1977), Chicago Teachers Union v. Hudson (1986), and Lehnert v. Fer ris Faculty Association (1991). These public sector rulings guarantee that no agency fees extracted from public employees can be used for any purpose other than collective bargain ing, contract administration, and grievance processing. In Lehnert, for example, your favorite type of union expenditure-lobby ing-was declared to be an impermissible use of forced union fees. In that same case 90 per cent of union expenditures were held to be impermissible uses of such fees. You'd better tell your union partners to keep good books.

The measly 15 to 20 percent difference between union dues and agency fees you wish to write into the law will not stand up in court. And I, for one, am going to enjoy proving it. Sincerely, Charles W. Baird September 1999 Ideas On Liberty Vol. 49, No.9 8 12 15 20 24 29 32 40 142 46 52 A Better Brand of Parent by Marshall Fritz Independent Schools at Risk by Jacob Huebert School-to-Work: A Large Step Down the Road to Serfdom by Gary Wolfram The Central Fallacy of Public Schooling by Daniel Hager Subsidized Education by Russell Madden The Bathtub, Mencken, and War by Wendy McElroy Ludwig von Mises's Human Action: A 50th Anniversary Appreciation by Richard Ebeling Economic Calculation Revisited by Manuel Ayau "Liberty in Perfection": Freedom in Native American Thought by Amy H. Sturgis Political Accounting by James Bovard Bad Investment by Deroy Murdock 4 18 27 38 150 55 163 THOUGHTS on FREEDOM-Break This Vile Addiction by Donald J. Boudreaux IDEAS and CONSEQUENCES-Taxation by Litigation Threatens Every American Business by Lawrence W. Reed POTOMAC PRINCIPLES-A Superpower's Prerogative by Doug Bandow THE THERAPEUTIC STATE-The Hazards of Truth-Telling by Thomas Szasz ECONOMIC NOTIONS-Speculation and Risk by Dwight R. Lee ECONOMICS on TRIAL-"They Were Right" by Mark Skousen THE PURSUIT of HAPPINESS-A World Without the FDA (Plus a Contest!) by Russell Roberts 2 6 57 Perspective-Voucher Advocates, Take Heed by Sheldon Richman The Wealthy Hurt the Middle Class? It Just Ain't So! by W. Michael Cox and Richard Aim Book Reviews Keeping the People's Liberties by John 1. Dinan, reviewed by George C. Leef; The Structure of Liberty: Justice and the Rule of Law by Randy E. Barnett, reviewed by Bruce L. Benson; The Lost Literature of Socialism by George Watson, reviewed by Antony Flew; Refuting the New Freedom to Trade edited by Edward L. Hudgins, reviewed by Charles K. Rowley; The Roosevelt Myth by John T. Flynn, reviewed by Lawrence W. Reed.