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Increasing Union Membership Would Boost Middle-Class Incomes: Study

The Huffington Post     First Posted: 09/27/11 05:26 PM ET   Updated: 11/27/11 05:12 AM ET

If the incomes of the union rank-and-file rose by just a tenth, middle-class incomes would go up $1,479 per year -- even for those who aren’t members, according to an analysis of Census data from the Center for American Progress.

The boost in income, while slightly lower than if college-attainment rates went up by 10 percent, is higher than if the unemployment rate dropped by four percentage points -- a scenario that would increase middle class incomes by $772 per household, according to the study.

The share of income going to the middle class is below average, in the states with the lowest unionization rates, The Center for American Progress also found.

Union rights have come increasingly under fire as unemployment remains high and companies and municipal governments look to curb spending. In August, a Gallup poll found that approval of unions was just above its lowest-recorded level, dating back to the Great Depression, while union membership dropped to a 70-year low in 2010, according to The New York Times.

In a February poll by the Pew Research Center, though, the number of respondents saying unions have a negative impact on the availability of jobs was the same as those saying they have a positive effect. Opinions like these may be why union influence is dwindling in states including Wisconsin, where last week major state employee unions lost their official status, according to Reuters.

The waning influence of private-sector unions, such as the United Auto Workers, could have something to do with their dwindling numbers, according a Harvard University and University of Washington study. The researchers found that private-sector union membership dropped to 8 percent from 34 percent among men between 1973 and 2007 and to 6 percent from 16 percent for women during the same period.

The effect? A more than 40 percent increase in wage stratification, according to the study.

Here's where a boost in unionization would most help middle-class incomes, according to the Center for American Progress:

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If the incomes of the union rank-and-file rose by just a tenth, middle-class incomes would go up $1,479 per year -- even for those who aren’t members, according to an analysis of Census data from th...
If the incomes of the union rank-and-file rose by just a tenth, middle-class incomes would go up $1,479 per year -- even for those who aren’t members, according to an analysis of Census data from th...
 
 
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10:26 AM on 10/08/2011
If your born without monies, it's always best to vote democratic and join a union.

I would rather pay and endorse a union and get something back then endorse a Republican and get nothing back.
01:42 PM on 10/06/2011
union jobs..you mean government jobs that are driving property taxes up so high the eldery can't afford to own a home and too a point where towns are bankrupting.

Figures they have to piggy bank on the backs of the young and angry American who want to see Wall Street be shamed into doing what is right for our country. To attention to the greedy taking from the needy.. isn't unions being there a bit like the kettle calling the pot black?
05:29 PM on 10/05/2011
"Increasing Union Membership Would Boost Middle-Class Incomes", sure, for any middle class workers still employed after the layoffs due to increased operating expenses, lower sales (thanks to higher prices) and general frustration by company owners...all of whom shake their heads at how easy it still is for wealthy crypto-Marxists like Arianna Huffington to frame the debate, define terms, and bullshit the masses through their media outlets. Only a little more time before the US starts looking more and more like her home country (the first to go down thanks to this kind
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looneydoone
not a "cookie"
01:30 PM on 10/10/2011
>>"crypto-Marxists like Arianna Huffington ..." ?

Ms Huffington was, is, and will always be an Orange County, CA Republican
04:55 PM on 10/05/2011
Oh, can we also discuss the companies that have gone out of business because of union strong-arming? How about the thousands of works, and their families, who are harassed because they aren't interested in joining a union? Sometime to the point of physical violence. Or maybe we can talk about how, during the most recent snow storm, people died because the unionized city employees who were supposed to remove the snow, instead decided to have a nice little slow-down right then and there, leaving the brave members of the paramedic crew to literally claw their way over mountains of snow to help save lives.

Unions are fine; I have no problem with unions, but their powers should be limited. I'm tired of teachers who can't be fired, who sit in a room and get paid, because the union is too strong. Was any of that mentioned in this study? I bet not.
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kanook67
The future is not what it used to be.
03:04 AM on 09/30/2011
In the 30 year span from the 50's to the 70's when union membership was at an all time high, America experienced it's greatest economic boom of all time. In the present, when union membership is at a 70 year low, the American economy is in it's worst shape since the Great Depression!! I rest my case.
03:07 PM on 10/10/2011
You're absolutely right. I guess nothing else, but a decline of union membership got us into the economic shape we are in right now. Let's call everyone back from Wall Street...apparently Wall Street is blameless.
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kanook67
The future is not what it used to be.
04:04 PM on 10/10/2011
A good strong union movement is just one necessary piece of a strong vibrant economy. The other, and maybe more important piece is a highly regulated banking system & Wall Street that existed up until the 80's so don't call back those brave protesters just yet, they're on the right track. (See, I can think of 2 things at the same time! Pretty cool, don't ya think?)
07:55 PM on 09/29/2011
The #1 City in America going broke is because of: drum roll please............unfunded pensions, 'nuff said.

1. Central Falls, RI
> Credit rating: Caa1
> 2009 revenues: $17,601,000
> 2009 debt: $18,753,000
> Median household income: $33,520

In August 2011, Central Falls declared bankruptcy largely because of the city’s pension plan, which promised $80 million in retirement benefits. According to the New York Times, the “pension fund will probably run out of money in October, giving Central Falls the distinction of becoming the second municipality in the United States to exhaust its pension fund, after Prichard, Ala.” This $80 million is approximately five times the city’s general fund budget.
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08:09 PM on 09/29/2011
change the word 'unfunded' to 'defunded' and you are getting closer...

cherry picking the worst case scenario does little to discuss a national issue.
08:31 PM on 09/29/2011
It isn't "cherry picking" the worst case scenario", ever watch the news lately? And did you ever think that they are one in the same, here let me spell it out for you: THEY ARE NOT ABLE TO PAY whether it is "unfunded" or "defunded".

May do little for you, but for those of us wokring on this issue daily of trying to figure out how to pay for it, it says a lot. Deciding whether to raise property taxes, raise user fees, raise sales taxes, hotel and bed taxes, etc. etc. in order to do that doesn't usually sit well with the average tax payer. But, you probably know nothing about that, you probably wouldn't even blink an eye on raising taxes in order to do that - and it probably wouldn't matter to the likes of you if people were able to pay them or not.
03:10 PM on 10/10/2011
Not worse case, but another example. My mom works for this school district and employees there are able to "buy" five years seniority. How does that make any sense?

Pension costs to hurt Dearborn Schools next year
http://www.pressandguide.com/articles/2011/01/25/news/doc4d3f1da072f16353315193.txt
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ASherbuck
market anarchist
06:21 PM on 09/29/2011
That's just not possible.

It would lead to lay offs. The money to pay these people would come from somewhere. If a job is unionized and the wage goes from $10 / hour to $20 / hour half the employees are going to get axed to pay for the other half's raise.

Why is this so difficult to understand?
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Joe Padilla
If you disagree with me, you're wrong
11:49 AM on 09/30/2011
So you want unskilled labor to build these bridges? Do you think anyone can build a bridge? Just go fill up some trucks with bums and go build a bridge?

Ha. That's laughable how little respect some people have for construction work. You haven't a clue.
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ASherbuck
market anarchist
01:30 PM on 09/30/2011
Are you saying that upon receiving a union card you are endowed with the ability to build a bridge?

I think people have been building bridges for quit some time. I don't see anything that shows unionization helps the process.
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Eugene Berkovich
Unapologetic Socialist
07:51 PM on 10/03/2011
Unions make sure that people get an HONEST wage. Just because you think people should work for pittance does not mean that it is good.

The states with stronger unions have a higher average salary. Guess what, that means a stronger consumer. That means more consumers can buy more things. That means a more vibrant economy. What is so hard to understand?
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ASherbuck
market anarchist
08:15 PM on 10/03/2011
The cost of union workers getting a higher wage usually comes at the expense of workers being laid off.

It may increase the average income of the middle class but it lowers the number of people who are middle class and increases the number of poor.

The means weaker economy.

Just because someone demands they be paid more doesn't mean the consumer of the goods they make are willing to pay more or that the money magically appears. Why is that so hard to understand?
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bagman29
Meritocracy FTW!
05:10 PM on 09/29/2011
Libs would crawl back in the womb if they could.
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Eugene Berkovich
Unapologetic Socialist
07:52 PM on 10/03/2011
Conservatives could not make sense even if they tried.
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blueken
Finger Picking blues man
04:10 PM on 09/29/2011
I mourn the lost of unions in this country as much as anyone. I often wonder why us IT people never did it. That being said, union management has shot itself in the foot a lot of times. The people that are running a lot of unions are as corrupt and self serving as the CEO's they are up against. I sat through some union negotiations. The union management would do anything to protect health and welfare (a huge pile of money they get to handle). Includeing lower wages and tougher working condtions. All management had to say is we want our union people to get the same health care plan our other employees get, and we want them in the same 401k, and the union management started offering up hourly wages and working conditions. It became quite apparent that they were more interested in keeping that money coming in, then getting a good deal for the rank and file.
11:29 AM on 09/29/2011
Ban all unions and why is there not one story about the ILWU/EGT conflict on huffpo. Is it becuase it would expose the union tactics that are being used to extort an employer. Or the violence and felonies being committed.
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HUFFPOST SUPER USER
lwallis
Obama/Biden 2012.
12:50 PM on 09/29/2011
Yeah, like the new big Black Panther movement that consists of 2 guys, please turn off fox, it's not really a news station.
01:22 PM on 09/29/2011
So there is no violence how about that ILWU strike. What is funny is the cops pepper spraying those foolfs and taking them to jail. The sheriff issuing a statement that all citizens should follow the law including ILWU members.
07:46 PM on 09/29/2011
You obviously have never served on a City Council, or governing body that has to deal with the same kinds of things Greg34 is referring to. It happens (and I hate Fixed News), and not only do the workers lose out (because all the Unions care about are getting as much union dues out of the worker as possible) the local government (or entity) loses out for having to pay for crazy, unrealistic, shortsighted contracts that end up bankrupting them. In the end, the taxpayer loses the most since they are stuck with having to try and figure out how to pay for it all.

Look at California, look anywhere for that matter. Fat, overstuffed pensions and contracts have crippled a lot of governments' ability to function. And if you didn't know, you haven't been paying much attention.
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lwallis
Obama/Biden 2012.
12:55 PM on 09/29/2011
Paranoia?
01:09 PM on 09/29/2011
No it is just funny that there is no mention of it on here. Personally I think it is hilarious that those unions goos are getting pepper sprayed and told they are not above the law. Saw a video today of a fat union good getting tossed to the ground by some police officers. I thought union goons were supposed to be tough he looked like a crying little girl.
09:25 AM on 09/29/2011
A boost in union membership would bring the country down another notch. Abolish the unions and the country will be neaded in the proper direction.
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TFlint
09:53 AM on 09/29/2011
Why stop at unions? Abolish the Constitution.
07:48 PM on 09/29/2011
Oh please, get a grip.
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lwallis
Obama/Biden 2012.
12:51 PM on 09/29/2011
No, abolishing unions is the reason we are in this mess.
01:07 PM on 09/29/2011
I dont think so. unions have gotten out of control and now cost jobs because they are too expensive to maintain.
07:51 PM on 09/29/2011
Is your post a joke? If not, research California's economic crisis and get back to us. If you can figure out how to pay for union pensions and contracts that have brought a lot of state and local governments to their knees, then please, let the rest us know what the sulotion is because we've been down that road, and it's been a fiscal failure.
zSpin2001
All your base are belong to us.
08:16 AM on 09/29/2011
I guess ignorance really is bliss. We seem to have forgotten Upton Sinclair's The Jungle. My great grandfather worked in the meat packing industry during those times and he told me things that would help you appreciate unionization.
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goozled
Stand up to the Corrupt status quo
06:10 AM on 09/29/2011
During the period 1945-1973, when a high percentage of workers had unions, wages kept pace with rising productivity, prosperity was widely shared, and economic growth was strong. Since 1973, union density and collective bargaining have declined, causing real wages to stagnate despite rising productivity. This decline in union density and bargaining contributed to our current severe recession. With low paying non-union service sector jobs a worker has very little or no discretionary, and that is what turns an economy....
04:50 AM on 09/29/2011
Increasing union membership would offshore more jobs that were meant for Americans. Increasing union membership would mean higher unemployment and higher prices. Not every company oput there is cash rich. If you sweep a floor for a job, you get floor sweeping wages. If you put a peg in a hole, you get a peg in a hole wage. Being employed does not guarrantee you to middle class wages. Education, hard work, responsibility and a good work ethic should be the only reasons why you get a raise. Being forced to join a union to be able to get a job is UN AMERICAN.
zSpin2001
All your base are belong to us.
08:13 AM on 09/29/2011
No evidence supports this statement. Let me illustrate: Increasing union membership would bring more jobs to the US meant for the Chinese. Increasing union membership would mean lower unemployment and lower prices. Most of the companies out their are cash rich. If you sweep a floor for a job, you get floor sweeping wages. If you put a peg in a hole you get a peg in a hole wage. Being employed guarantees you middle class wages. Education, hard work, responsibility, and a good work ethic should be the only reasons you get a raise. Being afforded the right to join a union to be able to get a job is both UN and AMERICAN.
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HUFFPOST SUPER USER
woody7
Always a Dem, but..............
09:48 AM on 09/29/2011
yea tell that to all the college grads without jobs , but with the training and education. you are un American
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TFlint
09:54 AM on 09/29/2011
You have no right to judge another's patriotism.
hgus
It's not about the economy, stupid
12:37 AM on 09/29/2011
Corporations are exceedingly profitable. They have had their best 2 years in corporate history. In the last 2 years a LOT of citizens (Workers or labor) of this nation, are losing their homes, their jobs, and their dignity.

Dosen't that complete disconnect make you think, "that can't be right?"