Labor pains
While conservatives gloat
July 31, 2005
MYTH: Workers don’t want to join unions
What's missing on both sides, however, is a vision of economic opportunity that might actually make workers want to join a union in the first place.
-- "Very Old Labor", Wall Street Journal, 07/26/05
The bolting unions said the AFL-CIO needs to focus on organizing new members. But even these dissident unions seem clueless on what really ails the shrinking labor movement.
-- Linda Chavez, "Unhappy Birthday", Washington Times, 07/26/05
REALITY
One has to look with skepticism upon Linda Chavez’ attack on the labor movement. President Bush’s original nominee as Secretary of Labor could not have appreciated Labor’s relentless and successful effort to thwart her confirmation. Nevertheless, she is correct in noting that the number of unionized workers in America has been declining for decades, a trend closely linked with the growth of income inequality over the last several years. However, it cannot be argued that workers are no longer interested in joining unions. A poll commissioned by the AFL-CIO indicates that 57 million Americans want to join a union.
It is easy to understand why workers would want to organize since union workers earned 28% more in wages in 2004 than non-union workers, a striking statistic when you consider that a large portion of union workers’ compensation comes not in wages, but in benefits.
The real causes of labor’s decline are complicated. America’s shift from a goods-producing to a service-providing economy is one of the main factors. The labor movement developed at the same time that the American economy industrialized, which led to a heavily unionized manufacturing sector. Manufacturing jobs have been disappearing for the last three decades, diminishing the unionized work force. Many observers see this development as irreversible and conclude the same about the decline of labor. But the fact that 57 million Americans want to join a union proves that labor’s decline is not inevitable or irreversible. It does, however, beg the question: why are these workers not in unions?
The answer to that question reveals the biggest obstacle to a successful labor movement: the inadequacy of American labor laws in dealing with anti-union businesses. According to American Rights at Work, over 10,000 workers have been illegally punished in 2005 for trying to unionize.
When workers believe they will be illegally fired if they try to form a union, organizing workers becomes extremely difficult. Until American labor laws are strengthened, the unionized workforce will continue to decline, and with it, the wages and benefits of the working class.
MYTH: Unions waste money on politics and lobbying and are not held to a high enough standard with respect to financial reporting
All the more so given new Labor Department rules, recently upheld in court after an AFL-CIO challenge, requiring that unions disclose more details about how they spend hard-earned member dues. Some of the nation's largest unions will now have to disclose their spending by specific categories, such as political donations, grievance proceedings, or organizing. This sunshine will expose just how much labor money is being wasted on political activities that have little to do with improving workers' lives.
-- "Very Old Labor", Wall Street Journal, 07/26/05
But the AFL-CIO dissidents are among the worst offenders when it comes to wasting their members' dues on politics. Enforcing union members' right to withhold the portion of their dues that goes to politics would do more to reform the labor movement than any phony bolt from the AFL-CIO. ...
The president of the SEIU, Andy Stern, claims he wants the AFL-CIO to spend more on organizing new members and brags his own union spends half its budget signing up new members, a boast impossible to verify given the arcane methods unions use to hide their finances.
-- Linda Chavez, "Unhappy Birthday", Washington Times, 07/26/05
REALITY
Labor unions do, indeed, spend a lot of money on politics at all levels of government. Why? Because political officeholders make decisions that have a profound impact on American workers. And in spite of this, labor is constantly outspent by business. Construction workers rely on state lawmakers to maintain prevailing wage laws. Manufacturing workers need government leaders that will support policies that discourage outsourcing. Government workers need legislators that oppose the privatization of government jobs. And all workers need politicians that believe in the minimum wage, overtime pay, the right to organize, adequate safety and health standards, and a fair, effective healthcare system. Lawmakers at the local, state, and federal levels address these issues each year so it is essential for workers a voice in the process. Unfortunately, this goal cannot be achieved without money.
Labor Unions are already held to higher discloser standards than other sectors. Financial Reporting for unions is governed by the Labor Management Reporting and Disclosure Act of 1959, which is administered by the Department of Labor. This law requires extremely detailed reporting. For example, unions are required to report the names and salaries of every employee that earns more than $10,000. Consequently, nearly 100% of all union salaries are reported to the Department of Labor and displayed on the internet. Corporations, on the other hand, need only to report the salaries of their principal officers. Yet, the Bush Administration felt compelled to revise the LM-2 form, imposing an even more onerous burden upon labor unions. With the new Labor Department rules that the Wall Street Journal celebrates, unions will now have to break down all expenses into six specific categories, including the name and address of each vendor. The Bush Labor Department, which estimates that compliance with the rule changes will cost each union 710 hours of work, recognizes the extent of the burden. Even the largest unions will struggle to find the resources to meet these new requirements. Of course, making unions spend money and resources to comply with these rules is precisely the Administration’s goal.
