New Study Shows Card Check Legislation Would Eliminate 600,000 Jobs in 2010

Economist Urges Congress Not to Enact Legislation

WASHINGTON, D.C.—According to a new study released today by noted economist Dr. Anne Layne-Farrar, the Employee Free Choice Act (EFCA)—also known as card check legislation—would negatively impact the landscape of the U.S. economy, increasing unemployment and stifling job growth for all Americans.

"Unions claim they are the ticket to the middle class, but this study confirms that passing EFCA would have a damaging effect on an already weakened economy," said Randel Johnson, vice president of Labor, Immigration, and Employee Benefits at the U.S. Chamber of Commerce. "This legislation is a bad idea any time, but is particularly irresponsible at a time when policy makers should be focusing on creating, not destroying, jobs."

According to the study, An Empirical Assessment of the Employee Free Choice Act: The Economic Implications, an increase in 1.5 million union members in one year would lead to the loss of 600,000 jobs by the following year. Jobs losses directly attributed to the passage of card check legislation would be equal to the entire population of Boston or seventy-five percent of San Francisco. Dr. Layne-Farrar also found that although workers organized under card check will typically receive higher pay than their unrepresented counterparts, the review of the economic literature reveals that these increased costs must be offset by decreases in other areas which go beyond wages and benefits.

An Empirical Assessment of the Employee Free Choice Act: The Economic Implications, was funded by the Alliance to Save Main Street Jobs, which is a coalition of numerous business groups including the U.S. Chamber of Commerce. The author, Dr. Anne Layne-Farrar, is an economist from the non-partisan firm LECG consulting. This study complements a recent report authored by renowned legal scholar Richard A. Epstein titled the Case Against the Employee Free Choice Act.

To view the full report visit: http://ssrn.com/abstract=1353305

The U.S. Chamber is the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.

# # #