September 6, 2011
Labor Day means a bit less this year, with 14 million Americans unemployed. While President Obama was preaching to big labor in Detroit on the importance of collective bargaining, millions of Americans were looking for work in an environment where the economy is at a standstill.
It is no surprise that unions are strong allies of the President, whose policies from the stimulus to Obamacare have included privileges for organized labor. Having spent $1.1 billion on politics and lobbying in the last election cycle, unions will continue to hold a prominent seat at the table in 2012.
The labor unions have helped lead to the staggering loss of manufacturing jobs in the United States, and the demands they have made on employers and governments helped create conditions of high unemployment in Detroit and across the country.
In a new report, the Heritage Foundation’s Rea Hederman Jr. and James Sherk explain what it means for a business to unionize:
Unions make businesses less competitive and discourage investment. This reduces job growth. Studies show that jobs fall by 5–10 percent at newly organized firms. Going forward, employment grows by three to four percentage points more slowly at unionized businesses than at otherwise identical non-union companies.
Neither businesses nor workers seem to approve of this. Since 1970, unionized manufacturing has fallen 80 percent, while non-union manufacturing jobs have only decreased by six percent. In 2010, union membership fell by over 600,000 workers. Sherk explains why:
Union membership has fallen because traditional collective bargaining does not appeal to most workers. Polls show that only one in 10 non-union workers wants to organize. This makes sense: in the competitive private sector, unions can do little to raise their members’ pay. Additionally, most workers like their jobs and believe they are on the same side as their employers.
The unions aren’t going down without a fight, however. They hope to use the power of government to reduce worker choice and make it easier for unions to organize.
It is time for Congress to step up and promote job growth. Big Labor doesn’t have to be the only player in the game.
What are your thoughts on the declining labor market? Do you think big labor is to blame?
Steve Fitzmaurice - September 6, 2011
I’ve been on the opposite side of the table from unions for the last 30 years. You win some and you lose some but mainly it’s an unnecessary and harmful intrusion into the workplace. This recently hit home in a layoff we had to make.
We called in the Business Agent because we didn’t want this blowing up in our faces. We had two current workers being laid off and we were creating a new position. Despite one individual being much more qualified than the other, we were forced to take the employee with more seniority because they both had the “minimum experience” required for the job. If we did otherwise we probably would have lost a costly arbitration.
Unions – they’re all about mediocrity and job preservation. We wonder why our kids are so screwed up and they’re being taught by unionized teachers. They’re simply not necessary in this day and age!