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The Right to Organize is Key to Democracy

By Dean Baker, AlterNet. Posted August 27, 2007.


For decades, the U.S. government has been at war with organized labor. It's time to level the playing field.

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For the last quarter century, corporate America has been at war against the labor movement. After a long period in which unions were an accepted part of the economic and political landscape, most corporations adopted a much more hostile attitude toward unions. Where unions already were present, employers sought to weaken or break them. In workplaces without unions, employers were prepared to do whatever was necessary to prevent workers from organizing.

This anti-union drive has largely enjoyed the support of the government. For example, it is now a standard practice for employers to fire workers engaged in an organizing drive. A study by John Schmitt and Ben Zipperer, of the Center for Economic and Policy Research, found one in five organizers will be fired during an average organizing drive. Such firings are illegal, but enforcement is sufficiently slow, and the penalties sufficiently small, that most employees eagerly embrace this effective anti-union tactic.

Government policies have also supported anti-union practices in other ways. A main purpose of trade agreements like NAFTA was to make it as easy as possible to relocate factories overseas. The high dollar policy Robert Rubin initiated in the Clinton era also put US manufacturing, and its unionized workers, at a huge disadvantage. A 30 percent over-valued dollar effectively imposes a 30 percent tariff on goods exported from the United States, while providing a subsidy of 30 percent on goods imported into the United States.

As a result of these policies, much manufacturing has, in fact, been moved overseas in the last quarter century, giving the country a trade deficit of more than $700 billion annually. And the jobs lost in manufacturing have been disproportionately union jobs. While the unionization rate in manufacturing was more than 40 percent in the sixties, in 2006 it was just 11.6 percent, less than the 12 percent average for all workers, although still somewhat higher than the 7.4 percent average for the private sector as a whole.

The weakening of the labor movement is not just bad news for the workers who lose union jobs. According to polling data, there are tens of millions of workers who would like to be represented by a union at their workplace, but don't currently have the option. The best way to get a guide as to how many workers would be in unions if they could opt to do so, in the absence of employer threats and harassment, is to look at the unionization rate in the public sector.

While public sector managers are not generally friendly to unions, they can't fire union organizers or use the other harsh anti-union tactics that are now standard practice in the private sector. As a result, more than 36 percent of public sector employees are members of unions. Given the freedom to choose, it is likely a comparable share of private sector workers would also be in unions. This would imply an additional 30 million workers in unions.

In addition to directly benefiting the workers they represent, unions also benefit the larger workforce and society as a whole. In an industry with a strong union presence, non-union firms know they must maintain comparable wages and benefits if they are want to keep their workers from joining a union. The decline of unions has undoubtedly been an important factor in the growth of inequality in the last quarter century.

Unions have also been essential to a wide range of political initiatives over the post-war period. Programs like Medicare, Medicaid and Head Start would not have been possible without the strong support of the labor movement. The same is true of the key civil rights legislation of the sixties. More recently, the labor movement was at the center of the effort to prevent President Bush from privatizing Social Security. It will be difficult to make much progress on a wide range of social and economic issues without the support of a strong labor movement.

Congress is currently debating a bill that would take an important step toward re-establishing the right of workers to join a union. The Employee Free Choice Act (EFCA) would require a company to recognize a union once a majority of workers have signed a card indicating they want to be represented by a union. This gets around the election process, which gives employers a chance to intimidate workers and fire the leaders of an organizing effort. (Under the EFCA, workers can still request an election supervised by the National Labor Relations Board.)

The EFCA would restore some meaning to the right to organize. The bill that has been passed by the House by is currently being blocked by a Republican filibuster in the Senate. While the EFCA is not likely to become law under this Congress (President Bush would almost certainly veto the bill even if it did pass), progressives should recognize the importance of legislation. The right to organize is not the concern of just a small special interest group; it is a basic right that should concern us all. In the same vein, all progressives have an interest in seeing a strong labor movement. For this reason, the EFCA and other measures that level the playing field between labor and management should be top items on the progressive agenda.

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Dean Baker is co-director of the Center for Economic and Policy Research.

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Union problems
Posted by: ahmlco on Aug 27, 2007 1:48 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
Fine, but can we discuss the problems with unions? Once created to "solve" the issues faced by workers, they tend to self-perpetuate, each year needing to demand more and more concessions in order to justify their existence (and the continued payment of union dues).

From my perspective, that feedback loop is as much to blame for putting "US manufacturing, and its unionized workers, at a huge disadvantage" as is the government. Too many unions fail to realize that their employers don't have unlimited resources, and that the benefits they're demanding have to paid for by sales in the marketplace.

If one company makes X for $50, and another the same X for $75, the later company, sooner or later, is going to be in trouble unless it can manage it's costs.

For years, unions have told workers that they're entitled to more money, more benefits, more breaks, more vacations... and all for the same amount of work (or less).

Is the end result not obvious?

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EFCA is important due to the role of Unions in supporting progressive policies and candidates.
Posted by: yellow on Aug 27, 2007 1:54 PM   
Current rating: 4    [1 = poor; 5 = excellent]
Restoring the labor movement is essential if American society is ever to be reformed in favor of the poor and middle classes. There is no doubt that the strong dollar, which is now weakening with expectations of pent up inflation due mostly to the various large and growing deficits and debt, is an effective tax on exports. Imports of goods from the foreign subsidiaries of US manufacturing firms are thus favored hurting domestic US manufacturing jobs which are generally higher wage union jobs. This has harmed the current US labor movement.

Since the beginning of the recovery in the last quarter of 2001, various estimates of manufacturing job loss range from 2.8 million by the liberal Economic Policy Institutie to about 3.1 million by the conservative National Association of Manufacturers. The EPI cites imports from China while the NAM cites slack demand for US goods in the EU and Japan. It also notes a slowdown in the rate of increase of output with a marked increase in labor productivity which has added up to low employment in the US manufacturing sector. There is a consequent slackening of demand in the home market for such manufactured goods. It must also be noted that the employment threshold is higher meaning that more and more growth can take place at lower levels of employment due to high labor productivity. That is it takes a long time before low employment rates become a constraint on GDP growth rates. The NAM is sure that another 3 million manufacturing jobs would have been added to the US economy if productivity growth rates and manufacturing output rates during the current recovery had equaled those averaged during the previous four recoveries since the early 1970s. This, interestingly, seems to be an admission that the much vaunted lean production of the US manufacturing sector has cut domestic effective demand and thus output by lessening employment. This has resulting in cutbacks in investment causing increased industrial overcapacity.

NAM claims that since 2004 annual output has averaged about 4.8%, less than the annual average productivity increases of over 5% but enough to keep manufacturing employment stable. But with leaner production, slack demand at home and abroad for US manufactured goods, imports from abroad due to a strong dollar, and continued offshoring NAM's prediction of more or steady manufacturing employment is optimistic indeed.

The current situation looks grim for the growth of high paying union jobs. Foreign firms are as likely to be unionized as domestic ones and the direct foreign investment by Japanese auto makers has kept up some union employment. The key is that the growth of unionized US manufacturing is increasingly for skilled workers. The combination of lean production and offshoring has dealt a serious blow to the US union movement. One approach is to insist that China observe far higher labor standards by using the vast US market as economic leverage. Another is to devalue the dollar way down to spur exports as was done in The 1985 Plaza Accords. Such a devaluation would run counter to the overall economic strategy of financing the imports of US manufacturers located overseas with a strong dollar and US Treasury Bond sales to China and other investors. We are due for a change in economic strategy. The new strategy must consider the needs of the broad masses of people and not big capital. This also requires an entirely new political agenda.

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The Right to Organize is Key to Democracy
Posted by: ahmlco on Aug 27, 2007 2:10 PM   
Current rating: 1    [1 = poor; 5 = excellent]
BTW, I love how a paean to unionization was paired with "Democracy". Great way to sneak in a bit of flag-waving in support of your cause. Bush would be proud.

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» Which flag would that be? Posted by: Joshua Holland