Big Labor's Big Comeback

Aug 27, 2008

The Wall Street Journal has an editorial today saying; "One of the most underreported stories at this week's Democratic National Convention is that Big Labor is making a big comeback."  It's not our fault. The U.S. Chamber has been beating the drum loudly about the union's anti-growth agenda, and while we are certainly seeing more and more coverage, it's no where near the amount you should see given the scope of the union effort.  From the editorial (my bold):

Not long ago, the labor movement was in a state of steady, seemingly unstoppable decline. A global economy and the information age made unions less relevant to more workers. The fall of industrial trades cut into existing union ranks, while service workers saw less need to join. Union membership as a share of the American workforce has been falling since the early 1980s, and today stands at 12.1%. In the more dynamic private sector, only 7.5% of workers carry the union label.  The paradox is that even as union numbers have declined, union political clout has increased, especially within the Democratic Party.
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The question for Americans more broadly is whether a return to widespread unionization is really the way to raise middle-class incomes. The case for card check is that, amid global competition, the balance of organizing power has shifted to business. Giving unions more power will redress this imbalance and let workers grab a higher share of corporate profits.

But this claim is highly suspect, given the record in autos, steel and the rest of unionized American manufacturing. The only sector of the U.S. auto industry that is prospering is the part not organized by the United Auto Workers. Likewise, Europe, with its high jobless rates and slow growth, argues against unionization as a way to lift middle-class incomes. To the extent a country like Germany has modestly reversed some of this, it has been the result of recent labor-law reforms and labor concessions.

As for the U.S., the states with right to work laws have performed better economically for workers of all types. The Mackinac Center for Public Policy has shown that right to work states over the past 30 years have lower unemployment, higher rates of job creation, and faster growth in GDP and per-capita personal income than states with compulsory union membership. Colorado is hoping to get in on this success, with a high-profile ballot initiative this fall that would make it a right to work state.

We have long believed that if workers want to form a union, they have every right to do so. And businesses that get a union often deserve what they get. What Americans need to know this November is that the Democratic Party wants to make it that much more difficult for them not to join a union.

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