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Leo W. Gerard

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Kicking Underdogs When They're Down

Posted: 02/13/2012 8:07 am

Americans love an underdog. Maybe it's an artifact of the American Revolution, when a rag-tag rabble of farmers and frontiersmen defeated the disciplined and well-provisioned military of the most powerful nation on earth.

Even though the United States has usurped most powerful status, Americans still ally with Davids in contests with Goliaths. They love to see a top dog taken down a notch. They rooted for the perennial loser Red Sox in the 2004 World Series and reveled in the win by America's unseasoned ice hockey team in the 1980 Winter Olympics.

That's why the sudden surge of right-to-work (for less) legislation is so confounding. Right-to-work (for less) laws are perks for the wealthy, for the top dogs. These laws facilitate destruction of unions. The concerted action of a labor union is a tool that workers use to win fair wages, benefits and conditions from the powerful, from the likes of massive multi-national corporations. At a time of dwindling union membership, at a time when labor union participation is so small as to be nearly negligible, state legislatures across the country are taking up right-to-work (for less) laws that will further decimate union ranks. They're kicking the underdog when it's down.

Despite the derisive "big union boss" label that right wingers throw at labor leaders, unions are not the big dogs. Union representation in the United States has declined steadily since the 1950s, following federal legislation in 1947 impeding unionization. Just after World War II, about 35 percent of workers belonged to unions. And those who didn't benefitted from the higher wages and good benefits that union workers negotiated because non-union employers felt compelled to provide competitive compensation. Last year, the percentage of U.S. workers in unions fell to 11.9, the lowest in more than 70 years.

As unions atrophied and the recession raged, the median income of working Americans declined. Meanwhile, at the top, the big dogs who run corporations continued awarding themselves colossal compensation and bonus packages. Median compensation for executives quadrupled over the past four decades. Last year, most executives got big bumps, whether their companies did well or not. Now, income inequality is greater than at any time since the robber baron days of the 1920s.

Still, somehow, legislatures across the country are rooting for CEOs, the top dogs, and bashing unions. Lawmakers in Ohio, Wisconsin, Arizona, Oklahoma, Idaho, New Hampshire, Tennessee, and South Dakota have attacked public sector unions. Politicians in South Carolina, Minnesota, New Hampshire, even Michigan and West Virginia are pushing right-to-work (for less) legislation.

Republican-controlled Indiana actually passed it this year. The law forbids companies and unions from negotiating terms that require every worker benefitting from the contract to pay his or her share of the cost of bargaining it. In other words, these laws allow workers to refuse to pay union dues and simply freeload on those who do.

Right-to-work (for less) is great for CEOs. It enables them to pocket more of the profits because such laws weaken unions, ultimately resulting in lower pay and benefits for workers, both those who are in unions and those who are not. Oklahoma's experience illustrates the sad fact that right-to-work (for less) guarantees lower pay for workers, while not ensuring them more jobs.

Oklahoma adopted right-to-work (for less) a decade ago, the last state to favor the big dogs before Indiana. It joined other right-to-work (for less) states where wages are 3.2 percent lower; the likelihood of employers providing health coverage is 2.6 percent lower, and the rate of employer-sponsored pensions is 4.8 percent lower. These tragic statistics are detailed in the Economic Policy Institute (EPI) report, "The Compensation Penalty of 'Right-to-Work Laws."

Oklahoma workers didn't get additional jobs out of the deal either. That's documented in a study titled, "Does Right-to-Work Create Jobs?" Its authors, a labor expert and an economist at EPI, determined the law had no effect on jobs.

But CEOs, the 1 percent, do benefit. A 2009 study by Hofstra University Business Research Institute Director Lonnie K. Stevans shows that right-to-work (for less) is exactly that for employees but the opposite for CEOs. Stevans writes:

"Wages and personal income are both lower in right-to-work states, yet proprietors' income is higher."

The "proprietors," the top dogs, win. The workers, the underdogs, lose. And they're defeated by a special advantage that lawmakers give to top dogs with right-to-work (for less) legislation.

It doesn't make sense in a society enamored of underdogs. It doesn't make sense to give additional perks to the already-advantaged. It doesn't make sense to turn workers into beggars, but that's what right-to-work (for less) laws do. They eviscerate unions, so that each worker is on his or her own to seek just compensation, benefits, job security and safe working conditions from massive multi-national corporations.

It is Oliver Twist, his gruel bowl upheld, begging of the workhouse overlord, "Please, sir, I want some more." Oliver didn't get it. And workers who are thwarted from collective action by this legislation won't either.

To win fair wages, the underdogs must band together as a team.

 

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11:14 PM on 02/13/2012
Good article Mr. Gerard, unions do make a better workplace.
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WorkinClassDog
Are you going to investigate? or just take the gui
04:24 PM on 02/13/2012
There are pros and cons to working for both union companies and non-union companies and when I sign on I know what I am getting myself into. Everyone should have the right to decide for themselves where they work.
The benefits of Unions do accrue to all workers, at both kinds of companies. Such as the 40 hour work week. We need strong unions here at home and around the globe or we'll return to a feudal society.
03:01 PM on 02/13/2012
why do they call it "right-to-work" when it's really "right-to-fire for no reason?"
02:54 PM on 02/13/2012
Boy with Kodak going down and the Upstate New York economy in a shambles we sure could use of of those non-union Toyota or Honda factories around here. Oh wait-they won't come here because New York Dtate is entirely run by the unions. Oh well, looks like we'll have to go south to get good paying jobs...
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HUFFPOST BLOGGER
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USW Blogger
09:05 PM on 02/13/2012
Hahahah Good paying jobs in the South. Hilarious.
02:33 PM on 02/13/2012
Goodbye Unions..
Hello slave labor !!
One of 2 things will happen after a while......
1) Unions will start to gain power once again.
2) A class revolution will destroy it all.
(Remember, Someone that has nothing, Will have nothing to lose !)

You will be paying higher taxes as private security companies and
secure compuonds will start to spring up, Forget about vacation
travel and going where you please. Just take a look at how safe
the "HAVE's" in Johannesburg are now.
aretoo
My micro-bio only appears to be empty
02:21 PM on 02/13/2012
I have to admit that during the JImmy Hoffa era of unions, I had come to believe that unions may have outlived their usefulness. My mind was changed during the Reagan years when the republicans escalated their attacks on unions with the attack on PATCO. They have continued to rachet up the attacks ever since. Unions remain one of the few bulwarks against the power of the multi-national corporations and the very rich, which is why they are being attacked now. If they can succeed in restricting or eliminating unions, they will succeed in removing one of the last strong voices for the common man. They know that, why don't you?
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HUFFPOST SUPER USER
drgrph
02:17 PM on 02/13/2012
Well cry me a river.
02:01 PM on 02/13/2012
Although I was a small self-employed used bookstore owner most of my life I believe the decline of the middle class can be directly traced to the successful campaign against unions waged by Ronald Reagan and other right wing republicans and that this coupled with the deregulation of wall street under both republican and democratic administrations has led us to where we are today.
01:59 PM on 02/13/2012
'Right-to-Work' is the most perniciously deceptive anti-American, anti-middle class, anti-community, anti-family, anti-worker, calloused, soulless, crass profiteering that right-wing radicalism ever contrived. IMHO. Any state that has enshrined this cancer in their constitution will have a lot to explain to their future serfs.
01:38 PM on 02/13/2012
As a college student, I helped organize a new local to protect the rights of students and others employed by various businesses on campus because I thought (correctly, as it turned out) that a union would help us to get higher wages.

However, it wasn't until many years later, when I was employed in management for a while, that I became truly convinced of the value of unions, because I was able to see from the other side how much a union was able to accomplish for its members with respect to wages and working conditions.
02:14 PM on 02/13/2012
Fanned.
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lenguss
01:25 PM on 02/13/2012
It is the atrocious behavior of public unions, squeezing every city, county and state for absurd pay and benefits that have been so destructive to our economy and cast a pall on all unions. Public unions sell their votes and money to politicians (mostly Democrats) who in turn give them more money and benefits. The outcome has been obvious for years. Get rid of all public unions (which are an offense against the public) and I believe private industry unions will gain members and significance.
02:18 PM on 02/13/2012
What is atrocious about voting your pocketbook? If you have the choice between a candidate that will help you keep your job and your money and the quality of your life would you vote for or against them?

So just government workers should be without unions is that what you are saying?
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lenguss
06:59 PM on 02/13/2012
Yes. The primary weapon of a union is the strike. A strike against the government is not acceptable. Government jobs bear a special responsibility and usually a special status. In return, government workers have NO right to strike against the people, who are the government. Re: Coolidge - police & Reagan - air controllers..Some countries have even tried unions in the military; guess what has happened to them. When teachers first began to strike they lost credibility and sympathy; people used to regard teaching as a calling. Now it is just a job, and a poorly performed one in practucally every major city. Public safety employees have NO RIGHT TO STRIKE and therefore can not use this weapon against the people. Want a union? Get a private job.
02:55 PM on 02/13/2012
Exactly
01:20 PM on 02/13/2012
State legislators in Wisconsin, Indiana Ohio and elsewhere ignored polls show majority public opposition to their attacks on workers and went on pass anti-worker laws. Time and again, they worked behind the scenes to move anti-worker legislation and often shut down the democratic process to do so--locking workers out of the Capitol in Indiana and Wisconsin, throwing Democratic supporters of working people off key committees to get the votes they wanted and silencing working people in multiple ways.

What does that tell yout about these Republicans' beliefs?
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HUFFPOST BLOGGER
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USW Blogger
01:41 PM on 02/13/2012
It tells you the GOP hates workers and democracy.
02:19 PM on 02/13/2012
Buckle up for Arizona --that is going to make Wisconsin look like a picnic.
01:20 PM on 02/13/2012
Continued


Secondly, you have the unions themselves and the internal problems. The union I belong to is allegedly member run. It seems to me like the union staffers dictate the direction not the members. The union leadership does not communicate with the members and when it communicates to the members it is usually to ask for something, more money, protesters, sign this, etc. It's never to ask in what direction we would like to go. We have a strike fund but it protects paid union staffers not the members who contributed to it. I work with people who cannot afford lunch six days at the end of the month, people who have lost their homes due to budget cuts, people who have buried their dead on a payment plan because they cannot afford $400 for a basic creamation. Juxtapose to a leadership that has asked for a half million dollar raise- after a 15% salary decrease and 3% increase in retirement and another $80 a month in healthcare costs. Please add to this rumors of two of the new member elected vice presidents picking out new fabric for their office couches that they use while on union paid leave.

I would worry more about the opinon of people in the union at this point than the public perceptions. Solidarity needs to begin at home.
01:31 PM on 02/13/2012
Good points, and where those problems exist it's time for union leaders to wake up and realize that if there ever was a time to conduct their business that way, this is most decidedly NOT the time.

That said, I'm an ardent union supporter, and will continue to support them and oppose right-to-work-for-less laws wherever they spring up.

I'm a retired HR manager from an adamantly anti-union company. But we made it a point to check with all the union employers in the area every year and then adjust our pay scale so we always paid at or slightly above union scale. That was in order to avert any possible union organizing attempt.

Without strong unions, there's no need for my former employer or any other employer to pay living wages or provide good benefits. I wish more people understood, as Leo Gerard said so well, that unions help EVERYONE, unionized or not. It's the demise of the unions that has allowed wages to fall through the floor in this country.
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HUFFPOST BLOGGER
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USW Blogger
01:44 PM on 02/13/2012
"We have a strike fund but it protects paid union staffers not the members who contribute­d to it. "
I doubt this is true. Have you ever been on strike and been denied strike benefits? What is your union?
01:52 PM on 02/13/2012
YOU ARE SO WRONG! Had I wished to identify my union I would have. Please do some homework.
HUFFPOST SUPER USER
MassWG
01:13 PM on 02/13/2012
A discussion of unions has little meaning without bringing globalization into the picture. If the primary objective of unions can be to change trade policy and tax code to reinvigorate domestic investment, unions can accomplish something for all domestic workers. Otherwise, unions will remain special interest groups that secure benefits for themselves at the expense of others.
01:33 PM on 02/13/2012
Globalization is the primary elephant in the room. When you can take an American job and ship overseas and pay one tenth to one twenty-fifth of what it would cost to keep here-that's the issue.
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HUFFPOST BLOGGER
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USW Blogger
01:47 PM on 02/13/2012
The benefits that union members secure actually accrue to others. They do not exist at the expense of other workers. As union wage and benefits rise, so does compensation for non-union workers at similar employers who know they must compete to keep workers there.
When workers get more money, it is true, however, that the 1 percent gets less. To me, that sounds like a good thing in a society with more income inequality than at any time since the gilded age.
HUFFPOST SUPER USER
MassWG
02:48 PM on 02/13/2012
"at similar employers" - but what about NON-similar employers?

How do you know that when union workers get more money that it is the 1 percent who gets less, and not other workers who get less? How do you know that when union workers get more money that some workers don't become unemployed as an indirect result? Your intuition might contradict the actual facts.

As union wages and benefits rise, so does offshoring and unemployment. And if wages rise without an increase in real productivity (common with unions), then so does inflation, which hurts all workers. What our country needs to do is increase production relative to consumption.

http://www.thefreemanonline.org/columns/labor-unions-aggravate-inflation-by-lowering-wages/
01:10 PM on 02/13/2012
First I want to thank Mr. Gerard for his article That said I am a current Union member. The problem I see is two fold. First you have a union public relations mess. The vast majority of the public think that union members are receiving unfair benefits, wages and privieges that they don't have. They don't have job protection, they don't have retirement, they don't have a bargained for equal contract with their employer, they have a take it or leave it option, many don't have healthcare and they surely as individuals have organized and funded political power to ensure worker friendly politicians are elected. This creates some resentment and an "it's not fair" attitude".
01:34 PM on 02/13/2012
Sorry,that was suppoed to read : and they surely as individual­s DO NOT have organized and funded political power to ensure worker friendly politician­s are elected.
03:44 PM on 02/13/2012
I'm not anti-union. I appreciate the effect they have had and continue to have on working conditions. But to me, today it's not a Union Public Relations mess...its a Public Union, Public Relations mess, primarily. Its about rotten teachers being protected. Its about Pension spiking by Police and Fire departments. Not all of this is new but it is coming to light more.

The rest of what you mention have been part of the perception of the unions forever. But the 'unfair' also comes within a union when and where minimal performance is encouraged and workers are let go based on seniority rather than actual merit
10:08 PM on 02/13/2012
Something is missing here!!! The CEO's and managers of big corporations and financial firms make hugh hugh bonuses regardless of how rotten a job they do! And THIS is just coming to light! Minimal performance is encouraged!!!! What we all need to realize here is this. If the top 1% don't pay their fair share WE MAKE UP THE DIFFERENCE!!!!! That is true wealth redistribution!!!!