Time for Uncle Sam to stop subsidizing unions
President Biden is an old-line pro-union politician. Thanks to the Democratic Party, the Government at all levels has become union advocates and recruiters. Biden’s cliché promise is to “create jobs – good union jobs.”
I am not suggesting that we should be anti-union, but only that the question of unionization should be left to the unions and employers to work it out on a case-by-case basis – with management and workers making the decision. Government should not be putting a thumb on the scale in favor of unions – and it is a very heavy thumb, indeed.
Private sector unions
To better understand the issue, it is important to see the role unions play in America today. Approximately 7.1 million workers belong to unions. That is approximately 6.3 percent of the work force. That is right. Approximately 94 percent of private sector workers do NOT belong to unions – and that does not include the freelance workers.
That may come as a surprise to most folks in view of the emphasis Democrat politicians place on union membership. There is a significant distinction between private sector unions and public sector unions – a distinction in both numbers and impact. But first we will deal with the private sector unions.
The political power of the private sector is obviously not in the numbers of members. It is even less than the number since many union workers do not vote as their Democratic-aligned union bosses demand The union power is in the money – the control of huge pension funds and MASSIVE donations to Democrat politicians.
The Democratic Party kowtows to the unions because of the campaign contributions. Simple as that. From the private sector’s rather puny place among the working class, unions still control the Department of Labor (DOL). The Secretary of Labor is almost always from the union ranks – and unions have the eight-ball power over any nominee – from the Secretary to the many subordinate positions.
I have often said that either the DOL should be renamed “The Department of ORGANIZED Labor” or the DOL’s mandate should be expanded to represent ALL American Labor – especially small employers that are the backbone of the American economy, and are relatively powerless in Washington.
Even as they have shrunk in their coverage of workers, the private sector unions have maintained one huge benefit – an unjustified one, in my opinion. Virtually all government contracts require unionized contractors. This is nothing more of less a government subsidy. The decision to be unionized is no longer an issue between management and labor — but is forced unionization by government. In other words, private workers hired by government must be drawn from that six percent of the working population – eliminating 94 percent of the potential workers.
That means not that government (the taxpayers) have only a small pool of contractors from which to draw. It also means a much higher cost. With lots of government money chasing limited contractors and you know what you get — inflation. Higher cost and more waste and graft. The current policies are not only unfair, they are … I will say it … stupid.
Biden’s Climate Change legislation goes one step further than merely requiring government contractors to be union shops. It creates a scheme to give union shops a significant marketing advantage over other manufacturers even when NOT working for the government. The Biden bill provides a $7500 rebate to purchasers of an all-electric vehicle. BUT the car buyer gets an additional $4500 if they purchase a car from a unionized car manufacturer.
The idea of meddling in the car market by offering a massive cost benefit for electric vehicles is bad enough – but to add another large chunk of change to push consumers to unionized manufacturers as a competitive advantage has a tinge of fascism – in which government and business merge into an unholy alliance.
Biden’s political commitment to “good union jobs” is a slap in the face of the many more workers who labor in non-union enterprises. Perhaps it is time for the vast majority of workers – the non-union variety – to revolt and put candidates who only seek to create “good union jobs” out of office and force Uncle Sam to play fair. It would benefit both the taxpayers and the consumers.
Public Sector Unions
Then there are those public sector unions. Many view them as just another unionized working class. That is a big mistake. Public sector unions have no more in common with private sector unions than private enterprises have commonality with government operations.
Government unions were not always a part of the American fabric. They are a Johnny-come-lately to the union movement. In fact, there was a lot of good arguments made over the years as to why government should not be unionized.
As a disclaimer, I agree with those voices in the past who believed government workers should not be unionized. There was no greater opponent of government unions than President Franklin Roosevelt – a strong advocate of private sector unions. He said, unions having the ability to strike against the government was “unthinkable and intolerable.” Union powerhouse, George Meany, head of the AFL-CIO said, “It is impossible to bargain collectively with government.” They were both correct.
A much higher percentage of bureaucrats are members of unions than their private sector counterparts – It is a 34.2 percent to that 6.3 percent in private sector unions.
There are several reasons why government bureaucrats ae more unionized – and why they should not be unionized.
- The basic problem is that unionism is about bargaining for a share of the corporate profit. There is a fixed pool of money and therefore a limit on demands. There is no need to consider profits when bargaining for public sector wages and benefits. Since public sector concessions are drawn from the seemingly unlimited resources of the taxpayers’ money, there is no limit on what can be paid in wages and benefits. That is why bureaucrats have moved from the lowest paid workers to the highest paid with the greatest (most expensive) benefits.
- There is no distinction between management and labor. In my experience with school unions, members of the board (management?) were also members of the union – eager to concede to any union demands no matter how outrageous or economically impractical.
- Public sector unions rely on the member of Congress to fund their demands in the form of appropriations. Since they are political figures rather than management figures, they have no vested interest in the outcome of labor negotiations – no concerns over the costs. It is not their money. In fact, it is to the politicians benefit to give union bureaucrats whatever they demand.
- We also do not allow essential services to strike – including the military, police and fire. Unions often ignore the law and call for Illegal walkouts. That is what happened recently in Chicago when the school unions called for an illegal walk-out over Covid issues. When I consulted for the Detroit Board of Education, Michigan law prevented teachers’ unions from striking. They did so anyway – without any repercussions from prosecutors and courts. In other words, public sector unions are able to ignore the law.
- Because public sector unions represent government bureaucrats, they are very political. The union leaders use their influence to engage in political activities far beyond their responsibilities to members and job-related issues. You will see the American Federation of State, County and Municipal Employees (AFSCME), the National Education Association (NEA) and the American Federation of Teachers (AFT) participating at a wide range of Democrat and leftwing demonstrations and protests – from abortion to voting issues. They are essentially a lobbying organization for big government/big spending Democrats – those who give the unions all those unearned benefits.
Summary
Unions are often believed to be important to protect workers rights, safety and compensation. Maybe so in the past, but they have evolved into a negative force in the marketplace. A good example is the auto industry, where aggressive union tactics – and pressure on management from Democrat politicians — made auto workers among the highest paid in the world. Good news … eh?
It also made American cars the most expensive in the world – and led the growth in the sale of foreign cars. To keep competitive, American automakers turned to robotics – significantly reducing the number of employees. The auto union’s “success” has all but destroyed the American auto industry. Remember how Chrysler and GM had to be bailed out by Uncle Sam. That was thanks to the auto unions. Not so good even for workers … eh?
Because workers are generally served well by employers these days, unions are limited to creating a self-serving political power base from the money they extract from workers. In many cases, workers are forced to pay union dues even if they would prefer to not be a union member. They resent their dues being used to finance political campaigns and causes with which they do not agree.
Unions are punching far beyond their weight. They represent a minuscule number of American workers. That is why every time Biden promises to create “jobs, good union jobs,” I cringe.
So. There ‘tis.
40 million workers quit
100,000 workers went on strike
AND
550+ unions formed
2021 was the year of the worker.
But most importantly, the economy grew 5.7%, in 2021, rebounding from trump’s recession. Proving that if you put money in the average Joe’s paycheck, everyone benefits.
It is no coincidence that the demonization of unions by the right and the subsequent right to work laws coincided with the largest wealth disparity since the 1920’s. It’s time to correct Reagan’s regressive trickle down policies. The people are have had enough, we are tired of eating cake and demand a living wage!
I would fire people for trying to unionizing my company
Doug,
I think your employees, their attorneys, and the NLRB would be interested in this comment…. Being that actions are illegal.
Will never happen. If so, I would lock the doors and enjoy my life with my millions And most of it’s offshore.
Doug: and you would go to jail, do not pass go, go directly to jail……
Unions, powerful, Larry, WAH…. Now you know how Democrats feel about the NRA. Or Trumpers…. Low numbers, loud mouths…. Think this one is BUSTED but only because I think your basic premise of all government contractors are unionized is just not true. I am not 100% sure but I don’t think it ever was. Union membership for direct hires is also voluntary and they still get many union benefits even if they don’t join.
Does the 34% Unionized for public sector include contract workers? State? Because a giant share of the Federal public sector is contract workers; therefore if 34% includes them, they ain’t 100% for sure. If it doesn’t include, they are such a huge part of the Federal workforce, thank you small government NOT Donald Trump, that the 34% would be misleading since such a large portion is contract.
Frank … you say busted and then admit you do not know the facts. There are government contracts that go to non-union folks. It is usually in a service area where unions virtually do not exist — lawyers, professors, etc. But the vast majority of procurement and construction jobs are limited to union shops. The point is, government should NEVER require contracts be let to only union bidders. You missed the point. So, your response is … BUSTED.
Larry: “Think this one is BUSTED” as in I think it is, “but only because I think your basic premise of all government contractors are unionized is just not true.” as in I think it’s busted because I think contractors don’t have to be union, ” I am not 100% sure but I don’t think it ever was.” as in I think it’s busted because I think contractors don’t have to be union although I am not 100% sure it ever was.
Not sure how much clearer I can make my caveat starting with “think this one is busted.” I would “think” you would know BUSTED by now, you’ve been there so many times :>)
On this one, I still don’t know except that you said so, and then you said well, except for service area. I guess if Larry says so, everyone knows it :>) so it must be so. One point of discussion is to learn new things, new facts. And now I know what Larry says about the union demographic for contract workers. And I have yet to find the statistic to support Larry. Think he is BUSTED but I just don’t know except Larry says so.
Yes. I know how stupid democrats are. You don’t have to explain it. If democrats hate the NRA tell Chuck Schumer to surrender his carry license And union membership should only be voluntary. Go to jail? I don’t think so. In my state I only have to say that I don’t need them anymore. I offer great pay and benefits and have given multiple chances to sorry ass employees. And paid them to be off for emergencies. And match 5% for their retirement. And I really give a shit about all of my people. And bullying or any harassment is a huge no no. My turnover rate is lower than most places. But don’t bring a union into my workplace.
Doug… you are a good example why unions have dwindled. Th do not reflect the need of 100 years ago. The business culture has changed. Competition for employees has changed. The demands of workers and the offerings of business are now more of a one-on-one relationship. Virtually all the benefits provided by employers are based on the corporate culture. They are provided without the need for intermediaries … unions.
Larry,
You almost got it right. He is the reason we need unions.
Let the workers decide if they want a union, not the employer, not the government. The more power the wage slave has, the better off everyone is.
Workers should decide about unions? That’s a great argument for right to work laws. And I pay what I can afford. With a union, I would have to downsize.
Whoa Ben. We have found agreement!!! “Let the workers decide if they want a union, not the employer, NOT THE GOVERNMENT” (Mu emphasis) That was the whole point of the commentary. Keep the government out of the deal. I just would not characterize the worker as a “wage slave.” Sounds like you want people to live without being productive. We already have too much of that — and that is why we have a record number of people who are not taking jobs. I will probably deal with that in a future commentary.
“Workers should decide about unions? That’s a great argument for right to work laws.” Ok, that’s just funny. Apparently Doug really just does not get. it. And he thinks Democrats are the stupid ones. Hint Doug: that was a really stupid thing to say except to show ignorance. “And I pay what I can afford. With a union, I would have to downsize.” Yet, places with Unions often thrive. Doug, I guess they are just better businessmen than you who can afford better total compensation packages while making a decent profit as well.
Of course Doug admits most of his stuff is from off-shore, not US made. So he hates unions because he has to pay more than he can afford. He hates Americans because he has to pay more than he can afford. I wonder when he gets to affordable 12-year old’s from Vietnam :>) But he’s not a bully, he’s fair. Unless you are Union or American and then you just plain cost too much…
Sometimes less is more Doug….
Larry, I’d reply to the post this is directed at, but your website is fucked up again.
This is the largest wealth disparity in a hundred years. Wages have not kept up with the cost of living over the last 30 years. If minimum wage were to have kept up, it would be roughly $27 an hr. We have unparalleled productivity and we are subsidizing large corporations by paying for food stamps and Medicaid with our tax money. (Sounds like socialism) all while they make record profits.
If shit doesn’t change, unions are going to be the worst of your worries. There’s already talk of a national strike… I don’t see things continuing like this and there not being one.
Can’t wait to read your take on a national strike.
If we are the stupid ones, then why does your ilk have to stoop to name calling to support your rants?
Nonetheless, I stand corrected. Until the doubtful passage of the bill that just cleared the House, employers have a lot of leeway on who they fire and how. They can even make some of your nasty choices. There are Federal Laws that you can still easily transgress, and you have, in writing, so I would tread lightly, especially from putting such thoughts into words.
I love how you and Larry are all the rhetoric stereotyping Unions as the bane of worker’s existence with hardly a number between you. Doug tells us what a great employer he is, how he doesn’t need Unions (no shit Sherlock, you’re the employer….), he has great pay, great benefits, and even a 5% match on 401ks. He’s kind, he’s fair, there’s no bullying. Of course, he also says: “I know how stupid democrats are. You don’t have to explain it” but hey, he’s kind, he’s fair, he does not bully even if he knows you are a dumb-shit-Democrat. He treats dumb shits just like himself no doubt. Sure.
I worked in a Union shop although management was not Union. My match was 20% higher than Doug’s and my salary from which we were matching was far higher than Doug’s. Low paying employers with below average benefit packages love Right to Work States; employees not so much unless work is scarce.
Larry says the demise of the Unions is because workers don’t like or need them anymore. They’re corrupt and their time has passed. Old and in the way. Just like Larry And me :>) Yet, in the private sector, from 1965 to 1985, private worker wages grew by over 80% each decade according to the FRED. From 1985, to current, wage growth is about 30% per decade. Less Unions, less wage growth. More Right to Work States that curtail Unions, less wage growth. Amazingly though, proprietors in Right to Work States, on average, bring home more $$$$ than the same in Union States. Now there’s a good reason to open up shop there.
I am not saying all Unions are good. They are not. But unlike Larry and Doug, I don’t think all Unions are bad. Same can be said for proprietors like Doug. Unions tend to raise salaries and benefits well beyond their membership ranks too. As an employee, one needs to ask, is it better to make more money, have better benefits, than to have less. People bitch about public sector benefits draining the tax coffers. Shouldn’t the real question be: “why doesn’t my shop offer that type of compensation?” Where’s mine? Or is it better to continue getting the same pay every year as your benefits shrink every year listening to Doug tell you what a great guy he is to pay you what he does. It’s your Right to Work, right? Wink, wink, nudge, nudge.
A simple question: as a worker, not an employer like Doug, are you against higher pay and better benefits? As an employer, do you like the same, or like Doug, talk a big game, say the right things, but never divulge any numbers. The truth is Unions are not getting giant raises and great benefit uplifts every year. The private sector non-Union employee is getting less.
Used to be a time Republicans embraced Unions, today everything is about picking a scapegoat, targeting your enemy, injecting hatred, all trying to get over the frustration of things don’t go your way. Somebody stole your cheese…
Eisenhower once said: “In the years since, unions, cooperating with employers, have vastly improved the lot of working men and women.”
The first Federal law mandating worker’s rights to organize for bargaining was supported then signed by Coolidge in 1926. It was the Railway Labor Act. During the cold war, Republicans touted the strength of American Unions creating the American way of life as superior to Communist states that tell people they are paid well, have great benefits and even a meager match to their personal savings plan —- no pensions though, not like a Union.
Nixon dined with Union leaders at The White House for a Labor Day dinner signing OSHA with full Union Support. Ford signed some very pro-labor, pro-Union legislation too.
Regan was the first Republican President to foster big time animosity to Unions during his firing of the Air Traffic Controllers. Many Republicans in Congress still supported labor, but the worm had turned and was totally crushed when Newt totally burned the Union bridge after 120 years of Republican support.
The GOP has never looked back and today excludes, via punditry, planks, and processes many different demographics —- Unions being one of them. Worse yet, Republicans actively speak against not only Unions, but most pro-labor laws like the one supporting Unions that just passed the house. To his credit, in words, Trump tried to correct that. Mostly it was either lies or failures like Infrastructure Week to support American jobs in construction. Trump never could get it up for infrastructure. Republicans highlight “Right to Work” States that have been established in half the country to basically end Unionization in their States.
Amazingly, in their brilliance, Republicans picked “right to work,” as their rallying cry. It is a Socialist term. Ironic that what used to mean a human’s basic right to work is now replaced by a term meaning Unions can’t work here. RtW States have lower wages, less benefits, about 15% less as a total package. Basically, RtW means you can work just as hard for less money.
What else might you find in these States: higher workplace fatality rates, higher poverty rates, less educated employees, weaker school systems, higher bankruptcies, even higher infant mortality. Question is chicken and egg: were these places shitholes that RtW helped or were these places made into shitholes by RtW laws. Perhaps some of each, a bit of both, but what is certain is they are creating a second class society that makes less money per hour.
Think about it. You live in a shithole State. People are leaving. You issue RtW and voila, more jobs, more employment, more people, more GDP, all good. Then you find government expenses are higher than the amount of tax dollars per person. Education funding is a typical first cut. People make less, bankruptcies are higher, more people work and live below the poverty line, jobs become more dangerous, just what one might expect for a long term effect of having more people making less money and having less benefits. This is why these States take more Federal Tax dollars than they give; it’s why these States take more Federal Child Tax Credits from the tax trough.
Maybe some employers are fair, like Doug, but not all and one can see that shithead employers might flock to RtW States rather than face a Union. Why? Bottom line is RtW proprietors make more than Union State proprietors.
But the big fly in the RtW ointment is recession. When recession hits, RtW States, and workers, face massive unemployment much faster, much harder, than Unionized States. That’s bad for the State but life threatening for the worker. Recession hits lower pay workers harder and faster than higher paid workers.
Unions can be good, can be bad, just like the NRA was good, then bad. There are management problems with excess, no different than Doug’s beloved NRA, happens everywhere. There are overreaches where Union’s demand and get too much hurting the company and the employees. Obviously, the opposite is true for RtW Employers providing too little in salary, benefits, and work safety.
But to unilaterally hate Unions to the point of legally ending them seems to be throwing the baby out with the bath water leaving you a more cost effective, but empty tub.
If they strike, hire scabs. They make better employees
Reagan fired the air traffic controllers because they violated federal law. He gave them warning to not strike. They did and he did. And the unions from several years ago were different than the ones today. More communist and socialism have hijacked organized labor. And don’t be misled. The union contracts have language that allows employees to be disciplined and fired. Yes, it requires jumping though more hoops but in the end it will happen. I’ve known several union people who were fired and lost their cases in arbitration. And Toyota and Nissan have rejected unions here in America for many years. RJ Reynolds tobacco in North Carolina have voted down unions for many years. In the early days of industrialized America the factories and coal mines ect were slave labor shit holes and death houses. But public opinion wouldn’t stand for that today. And a union doesn’t do a damned thing for you when you get laid off because of not being able to compete. Cheap imported steel and coal almost wiped out our industries in the 80’s. Trump was moving America to the greatest job market in many years. We were energy independent for the first time in over 70 years. And the list goes on. And then along came Joe Biden and the voter fraud. But why did they push Biden into the White House? They have a moron that they can control. Back to unions, Trump didn’t have anything against them. He had dealt with New York trade unions for many years. He even offered to reach out to them. But having said that, the naysayers will be posting busted and crickets. But most of us know the truth.
The Trump economy was not that good based on the numbers for the bottom line. His GDP was the worst since Hoover. He extended the Obama economic trend, a good thing, while buying a better economy with the largest tax cuts which led to the largest deficits ever leading to the largest US debt, with more foreign ownership of US assets, than ever in history. Obama’s total debt addition was a tad higher, he was handed The Great Recession and it took him eight years. Trump ran up a tab as large as Obama’s eight year in four years. That’s why you feel so economically sound, Trump borrowed massively basically from the Chinese, to buy that illusion. Trump was handed a good economy on a good path, and with covid, ran up two of the highest deficit years ever. Even without the covid spending, his numbers suck, except for unemployment — which again, followed the Obama trend. His unemployment numbers are a bright spot but even there, job creation records have already been surpassed by Biden who is also bringing down Trump’s yuge deficits in his first year in office.
I realize your personal economy might be better, Trump talks a good tune, but the numbers really don’t support what you think the nation experienced. Trump’s numbers do not match his rhetoric which the faithful believe without looking at the actual numbers.
Even on “energy independence,” that’s North America independent, we get a lot of oil from Canada. And the lack of “independence” is pretty small imports, not due to closing down any pipelines or stopping NEW leases from our National Parks and lands, but more for a spike in demand starting last Spring as the vaccines’ strength added demand for an uptick in gas usage. It’s not like we are going under on that one. Have coal and steel come back under Trump? In 2020, last year of Trump, coal production decreased 24%. Good job as 25% of all coal employees were downsized. Steel production basically flatlined during Trump, crashing by a 20% drop in 2020.
Like I said, the facts don’t seem to match your fantasy of belief in Trump rhetoric. I suggest “trust, but verify.”
Back to Unions. Yes, Reagan did that to the ATC’s. But the point was that was a singular moment in how Republicans viewed organized labor that Gingrich basically ran with to completely destroy the great relationship Republicans had with organized labor up to that point. It’s as much Democrats listening to organized labor as it is Republicans waging war on organized labor that got us to this point.
Hating organized labor does not necessarily help labor but it helps employers and big business every time to lower total compensation packages for the same amount of work.
Frank I don’t receive anything from the other countries. My business is strictly service and repair. True, I purchase parts from local supply houses that are made in other countries. I have no control over that. So you don’t know what you’re talking about. I would buy strictly USA made stuff if I could. But unions chased many manufacturers off shore or south of the border.
Doug,
Which is it. Do You pay you workers as much as you can afford? Or do you have millions stashed in tax havens over seas?
Because it can’t be both.
Which are you lying about?
Frank you’re so delusional that it’s funny. You spouted lies and it shows that you’re just another brain washed fool
Gotta love a guy who laughs at the delusional. What lies, Reubin?
You mean the one were “The Trump economy was not that good based on the numbers for the bottom line.” Here’s ten charts to show what a fool you are: https://www.cnn.com/interactive/2020/10/business/us-economy-trump-vs-other-presidents/
Or maybe the: “His GDP was the worst since Hoover.” Here’s even the UK showing you as delusional: https://www.independent.co.uk/news/world/americas/us-politics/gdp-growth-trump-worst-hoover-b1895500.html
How about this one: “He extended the Obama economic trend, a good thing, while buying a better economy with the largest tax cuts which led to the largest deficits ever leading to the largest US debt, with more foreign ownership of US assets, than ever in history. Obama’s total debt addition was a tad higher, he was handed The Great Recession and it took him eight years. Trump ran up a tab as large as Obama’s eight year in four years.” Oh no, this time it’s Forbes, the conservative financial rag saying — Reubin is a delusional fool: “https://www.forbes.com/sites/christianweller/2020/01/29/trumps-wasteful-tax-cuts-lead-to-continued-trillion-dollar-deficits-in-expanding-economy/?sh=477dc6f566c4
I dunno chief, you seem to be All Bull, No Horns. Freakin flaccid feckless without a shred of evidence for you scolding.
What lies, Reubin?
Doug, yup I assumed you made stuff. Of course you do receive stuff, like money, from other countries if you said most of your business is overseas. I guess. Oh well, nothing else changes unless you are hiring 12-year olds from Vietnam to fix stuff…..
How does that work? You get them to ship broken stuff? You fly personnel in? Or all online? I can see why you like the business, sounds interesting. It’s not enough to change my mind about Unions still having a place in America. I also think a number of white collar jobs, the ones that need industry licenses, accreditations, etc. are a new type of “union” where you figure out best salaries and benefits as a group, pass tests for accreditation and training, job security via networking, etc. You may some of these guys working for you too. Same with lawyer, cpa’s === pass the bar, get your license, join the team. Sooner or later there will be excesses there too. Unions are older than the Masons, it’s a natural occurrence in man to group for shared resources and added security.
And single proprietors like Doug sounds like come in all flavors: beneficent, evil, cheap, criminal, generous, or like Doug — fair to all but Democrats are considered really stupid sort of guys :>)
Thanks for the correction, guess you agreed to the rest :>)
I didn’t say that most of my business is overseas. I have an offshore account to protect me from greedy vultures in the democrat party. And it’s all legal. And yes, given the opportunity I would do business with certain countries. But not communist countries like China and some others. I know that you hate capitalism and believe that what we earn should belong to the government or corrupt union bosses.
So many pronouns, so little time. Sorry, my misread. So, you moved all your money on 1.20,2021 to avoid Democratic vultures who have not raised taxes on you yet. Got it. FYI — they are after the 1% rich, not multi-millionaires, big business, not yours…
So, can you invest with that money sheltered from US taxes overseas? Or does it just sit there? Is it FDIC insured? Just never met anyone who shelters in this way.