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Rep. Earl Blumenauer

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Unions Are (Not!) Destroying America

Posted: 09/15/11 01:56 PM ET

It is unfortunate that we are seeing an attempt in Congress to scapegoat America's unions for the economic problems that beset us.

After all, it was not America's grocery clerks, nurses, teachers, postal workers and electricians that nearly caused the meltdown of the economy. It wasn't America's labor unions that were pushing for tax loopholes that made our revenue system a hopeless, inefficient mess. It wasn't unions that pushed for shortcuts for worker safety that produced the tragedies that we have seen in our mines. America's working men and women didn't engineer poor loans, cheat consumers, and transform financial institutions into giant casinos.

No doubt there are some consumers who took unfair advantage of the system, as well as others who were not as vigilant as they should have been before the meltdown, but the truth is that they were part of an unprecedented economic scheme that played on those weaknesses, gullibility and often greed, turning it into a vast industry.

Are there some areas where unions have been too effective in securing benefits for their members? It probably depends on who you ask about the give and take of the collective bargaining process. The leadership structures of unions are in fact much more democratic than their corporate counterparts. Officials are routinely challenged for reelection, and there are insurgents in even the most powerful and entrenched unions -- something one seldom sees in a corporate boardroom. How many of those directors are defeated? It's not easy to even have opposing nominees through today's shareholder democracy. It's much less democratic than what happens with unions.

There is a very direct remedy in the negotiation process. I've been on both sides of this issue and I've had ups and downs with some of my friends in organized labor. For 18 years I was a local elected official, part of that time responsible for the collective bargaining program. I like to think that I bargained tough and fair. But the point is that I bargained. I've supported collective bargaining rights for public employees from my first session in the Oregon legislature and still believe that honest, tough, principled negotiation will lead to the best results. Having somebody dictate working conditions is not calculated to enhance productivity. It matters how people are treated and how they feel. Employee-owned corporations, particularly those that also have unions, illustrate this principle in spades.

One of the best-performing economies in the world is Germany, where they still manufacture and have a huge export market for high-value products. Germans work hard to integrate labor and business with government in the decision-making process, something that is all too rare in the United States.

Unions are not the answer for every employee and every company, but every employee and every company deserves to make that choice. That fact is that even non-union companies benefit from the strength of collective bargaining in our economy. I have had executives at successful manufacturing companies candidly tell me that they treat their employees right because they don't want them to unionize. Even these non-union companies' employees benefit from higher wages, better benefits and a system that respects the worker because it is a strong part of our culture.

Yet instead of treating employees fairly by allowing them to organize, far too many corporations have chosen instead to attack the fundamentals of collective bargaining. It is an art form to stall, delay, intimidate, and even to flagrantly violate the laws of collective bargaining in this country, weak and ineffectively enforced as they are. Collective bargaining has been under systematic attack from my Republican colleagues in Congress, and Republican administrations have sought to transform the National Labor Relations Board into a toothless, passive entity that is unable or unwilling to protect the rights of employees to organize. This is not calculated to produce a spirit of cooperation, and it is not clear that people need to cheat the system in order to avoid any excesses of collective bargaining.

I would argue the opposite is true. It is not just workers who benefit from unionization -- it is society as a whole. It was organized labor that spearheaded efforts for a 40-hour work week, and it is not just rhetoric when people say that unions were the ones who brought you the weekend. Unions have played a key role in extending health security to millions of Americans, workplace safety to millions of employees, and consumer and environmental protections to our families.

I don't pretend that unions are perfect, and I've had some differences with them over the years. But make no mistake: unions are amongst the few who stand up for justice in the workplace, protecting the unorganized, and fighting for a livable minimum wage. It's important to reflect upon our collective bargaining system. I'm all for fine-tuning, but I am adamantly opposed to gutting the rights and protections of workers. We all should start by acknowledging the debt we owe to unions, and work to stop this wholesale assault on the American worker.

 

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HUFFPOST PUNDIT
Jannsmoor
10:27 PM on 09/16/2011
Representative Blumenhaur, Another excellent article. I commend my fellow anti-unionists to Sweden - the minimum wage is $19.00 per hour, unemployment is well below the US. Yes they pay higher taxes but they receive lifetime medical care, free education for as long as they wish to continue, a generous safety net should they be injured or become sick, 1 year maternity leave, a minimum of 6 weeks paid vacation. And just to add the icing to the cake - they are happier people than Americans. Yes, unions are a good thing. Too bad the right wing radicals have propagandized so many people into believing the rich will trickle down well being to them.
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11:21 PM on 09/16/2011
Blumenhaur and his ilk are trapped in the 1920's. Unions no longer have any valid function.
10:00 AM on 09/16/2011
To the writer... so you think it is right for the National Labor Board to tell Boeing that they can't open up antoher plant in a right to work state? So the people in these right to work states don't matter? When a company is going under, like the USPS, it's right for the unions to demand that the workers get their 40 hours a week, even if it cost 10 million dollars in standby time be paid while the company is on the brink of disaster? The union demands had nothing to do with the failing care companies? The unions were originally started with good intentions and like anything else power went to their leaders head as their pockets filled with money from dues. Just watch everything they do.
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HUFFPOST PUNDIT
Jannsmoor
09:57 PM on 09/16/2011
At least we know where you stand. Your positions: 1) companies should be able to move in order to break unions, lower wages, lower benefits. Unions should be ended 2) It is fine that Republicans block the USPS from raising their rates like a private company would do, thus sending the USPS careening into fiscal chaos 3) workers should not have the right to receive a living wage. Well, that's the America you want your children to inherit. I happen to have a different hope for my children.
11:57 PM on 10/08/2011
Companies should be able to locate their facilities in any state they choose just like you as a resident of this country have the ability to move to any state you choose. Republicans have not blocked USPS from raising rates - the Board of Governors oversees the postal service which consists of both Democrats and Republicans with 9 of the 11 members appointed by the President. Workers have a right to receive a living wage but if they feel the wage they are receiving is too small they have the right to seek employment elsewhere and such a higher wage. 95% of America operates in this manner. I want to provide my children to inherit an America where you are free to aspire to better jobs and better wages. Unions have not helped this country of late - look at GM and the jobs program. This program was set up by the unions to pay workers in the event that they are no longer needed by GM. The wage paid was equivalent to 60% of the wage they received while on the payroll. So essentially people were paid to not work - how can anyone say this didnt contribute to the financial woes of the company...
09:31 AM on 09/16/2011
The right wing has convinced too many Americans that unions are the enemy when any serious reading of how we have declined shows clearly that as the union movement has weakened so has the middle class been dying. Without the pressure from unions on the politicians there would never had been such a vibrant middle class but you will never hear this on the corporate media.
05:38 AM on 09/16/2011
You can lip-flap all you want and so can I...the bottom line is this: union enrollment is dropping like a stone and American jobs are fleeing these shores.

What do you think offsets the million and millions of dollars spent to relocate production in another country? It is the elimination of the outrageous union salaries.

Keep pandering, but the reality always wins.
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HUFFPOST SUPER USER
sharin
liberal and proud of it
08:59 AM on 09/16/2011
union enrollment is dropping and so are the middle class wages at an almost identical rate. You happy about that ? Why are you pandering to the big corporations that want to pay you less and less instead of being for a strong and vibrant middle class?
09:31 AM on 09/16/2011
The fact is wages are dropping and they have to, to compete with other manufacturing nations. If it costs $20 an hour to create a widget in the US and $3 an hour to create the same widget overseas and you then add shipping and such and the price for the widget is still lower and profits are higher, how can a company justify keeping manufacturing in the US? We need to unionize overseas manufactures.
HUFFPOST SUPER USER
Jesse Wright
09:13 AM on 09/16/2011
aww...luapmi...you must be hoping your corporate overlords hire you as a servant when they take over. Free trade is actually what started the offshoring of millions of manufacturing businesses. Unions actually fight for livable wages and when companies started off-shoring, the economy began to tank. We got lucky in the 90s with the tech boom, but here we are again. Of course companies are going to pay the lowest wages, but do you really want to make the same salary as someone does in China or India??
04:00 AM on 09/17/2011
Jesse, what you want and what constitutes "a liveable" wage are unrelated to reality. The only thing that matters is the cost of a replacement for an article manufactured in America.

And since it is too expensive (with union wages) it will cease to exist. The system is working, OUR system is working. The fatcat, lazy union workers need to start producing or they are toast.
12:01 AM on 10/09/2011
We have created this environment ourselves - do you walk into a store and say I want to pay 3X for a shirt made in the US vs a shirt made in China or India? No, we demand cheap goods and services and since union wages are typically more than non-union wages you see 2 things happening - companies moving to right to work states (look at all the foreign auto manufacturers - they seem to be doing quite well down south) and companies moving oversees. When GM went bankrupt janitors were getting paid $30 per hour with full health benefits and guaranteed retirement. Many people including teachers don't make that much money - is it fair to pay people more in jobs that do not require any skills vs. people in jobs that require skills like teachers?
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IBEW1377
So long and thanks for all the fish
12:19 AM on 09/16/2011
Thank you Rep. Blumenauer
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11:03 PM on 09/15/2011
Earl Blumenauer voted for DOMA.
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HUFFPOST SUPER USER
justanoldhippie
sarcasm, intended
10:21 PM on 09/15/2011
Uh, after reading the final FCIC report of THE CAUSES OF THE FINANCIAL CRISIS OF THE UNITED STATES OF AMERICA, I am gonna go with our current crisis as having nothing to do with overpaid teachers, firefighters, laborers (legal or illegal), nurses, etc, or the unions that aim to represent their best interests. Nor public workers, nor every day middle and working class Americans.

There are more likely "suspects" for our ongoing financial crisis (other than elementary teachers, hospice nurses, hotshots that jump into burning forests from helicopters, police officers, etc)

If you look at the predatory behavior of private lenders (and everyone who was trying to profit in the loan process), you will understand [just] how much money what was in play (real or imaginary), what little regulation was in place (due to fears of recession) and just how much risk actually existed (that consumers were not aware of).

I am so embarrassed at the greed and utter lack of concern for the economic stability of our country and fellow Americans!

I am also saddened that today it is uncool to even call out for consumer protections, let alone justice (for fear that we will lose job creators) while our citizens still suffer under the effects of this economic crisis.

As if because some of us got taken, we must be dumb, and so we got what we deserved?

Here is the full report: http://fcic-static.law.stanford.edu/cdn_media/fcic-reports/fcic_final_report_full.pdf
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WI Patriot
Defending the Constitution.
10:58 PM on 09/15/2011
Unfortunately "the average person did contribute to the mortgage crisis. Its a little more complicated that thru your rosey glasses:
http://www.npr.org/blogs/money/2010/07/22/128700329/mortgage

At any rate - the money is gone and revenues are down. Bottom line is if tax revenues are down, sometimes cuts to public funds are required. If cuts to public funds are required then public employees will take cuts in compensation. If public unions get in the People's way - the public unions will be crushed.
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HUFFPOST SUPER USER
justanoldhippie
sarcasm, intended
12:57 AM on 09/16/2011
Really? Did I contribute to the mortgage crisis when I put a 20% down payment on a 30 year fixed rate mortgage in 1999 when the market was NOT at the top?

Are you going to blame me too? A private sector, self employed American who is also paying the price of this financial meltdown between lost pensions, investments, savings and current depressed business income as a result?

You think the average person contributed and so, are okay that they bear this economic burden with lower wages [if they have a job], while Wall Street, Big Banking, Big Business refuse to take a risk on leading this recovery, for fear of regulation while sitting on trillions in cash?

Wow. Good for you.

Cut spending, cut employment, instead of increasing revenue via removing loopholes, credits and subsidies that allow profitable big corporations to create a negative income tax. That's okay with you?

Enjoy your rosey glasses too. No wonder we cannot move forward. There is no in between, no, "well, yeh, we gotta reduce wages, but we need to also increase tax revenue too."

It is one or the other, but not both. This country is doomed. Enjoy another six years of economic depression as that is what we ARE looking at if we cannot find an in between place called "shared sacrifice".

Hope you got enough set aside to weather this ongoing storm. Enjoy.
HUFFPOST SUPER USER
Earl Gray
Lighting up straw men everywhere
11:10 AM on 09/16/2011
Your citation isn't about an 82 year old man who bit off more than he could chew, but "investors" who jumped on the "bigger fool" bandwagon, only to find out that THEY were the "bigger fool".

Many of those defaulting never intended to occupy these homes as their primary residences, AS WAS REQUIRED for federally backing. This was fraud, plain and simple.

Why aren’t these loans investigated and these "investors" prosecuted, especially since it’s still happening every day, especially since there are so many foreclosed houses out there to be bought up cheap.

Foreclosures should determine whether the loan was fraudulently granted, which would not be too difficult to do. Many of these "investors" live in handsome homes in great neighborhoods, while the properties being foreclosed on are in poor neighborhoods and were never worth the loans being taken on them.

The system is out of control. Brokers know when a "buyer", living a ritzy address, is not going to move to a poor neighborhood across town. So does the lender. Kicking back a portion of the "purchase price" to cover the down payment is rampant, as is appraisers’ SOP of starting with the purchase price and "appraising" the property to the value of the purchase price. How’s that an "objective opinion"?

Make mortgage and realty brokers as liable for these frauds as the buyers. Toss a few Realtors and bankers in jail as "fiduciary representatives" of the fraudsters and we'll go a long way to fixing this crisis.
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HUFFPOST COMMUNITY MODERATOR
SageFire
Loves Teachers, Helpers, Protectors
10:17 PM on 09/15/2011
Every day I am filled with gratitude that I live where I live and have the Representatives I have. Thank you Rep. Blumenauer for your hard work over the years for our beautiful and vibrant city of Portland.

You are spot on here. The people who are against unions have no understanding of their history and effectiveness in fighting for the many things we now take for granted like weekends, workplace safety and the 40 hour work week. They also don't understand that every political system, and a union is one, is going to be run by people and people just are who they are. What they can't seem to get their minds around is that unions are voted in by the workers and the workers elect their leaders. Something about Democracy or the like.
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HUFFPOST SUPER USER
wayne the pain
09:51 PM on 09/15/2011
The anti-union Republican propaganda machine has won! Unions are great for the economy but most Americans believe just the opposite. Unions are a necessary balance to laisse faire capitalism and that is a good thing. Unions are a positive good. They protect workers safety, wages, retirement and create middle class families! The propaganda machine has been as effective in demonizing labor unions as Hitler was at selling Germans he was the salvation! Not much difference either!
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WI Patriot
Defending the Constitution.
10:53 PM on 09/15/2011
No one is demonizing private sector unions.....

Everyone is against public sector unions. Big difference.

So go ahead, call the American People hitler.....see how that works out.
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HUFFPOST PUNDIT
Jannsmoor
10:09 PM on 09/16/2011
I'm an American, I'm part of 'everyone' and I'm not against public sector unions. I think you need to stop the overgeneralizations WI and stick with a little more reality.
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08:00 PM on 09/15/2011
Unions are archaic and obsolete.
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PKW57
Independent, free-thinking, clasical liberal.
10:49 AM on 09/16/2011
Exactly. There was a time for unions and that time is long past.

Unions are indeed responsible for many improvements in working conditions & compensation -- although not all of what the pro-union folks claim.

Today there are laws on the books to address all of the issues that caused workers to unionize in the first place. For that, we owe them our gratitude.

However, since the law now addresses these key issues, what is the function of the unions?
1) Drive up their members wages & benefits through legalized extortion (strikes) at the expense of the rest of America.
2) Make the cost of doing business in America prohibitive and drive jobs out of the country.
3) Ensure that even if the industry they work for collapses the tax payers will bail them out so they can keep their jobs, again at the expense of the rest of America.
4) Promote mediocrity in the workplace rather than personal excellence.
5) Ensure that government bloat continues to suck the life out of America's economy (public sector unions).
6) Manipulate the political process through massive campaign contributions and lobbying.

In regards to the last point, why is it that liberals lamenting the SCOTUS decision in Citizens United always point to the evils of the giant corporations but not to the unions, which are now also free to fund politics as they see fit? (For the record, I disagree with Romney and the courts. Neither corporations nor unions are people.)
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HUFFPOST PUNDIT
Jannsmoor
10:14 PM on 09/16/2011
I shake my head in disbelief when I read posts like yours. You obviously have no understanding of how the rich and powerful have taken over our government, how the workers wages have remained stagnant since the 1980's, how the wealth of the richest few has exploded (the richest 5% own $40 Trillion, the bottom 50% own $1.5 Trillion), how bad things are really going to get when you reach your Nirvana. How have we reached such a point? You really think boards of directors are going to give a whit about your life? You really think eliminating regulation is going to protect your retirement from fraud?
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WI Patriot
Defending the Constitution.
06:37 PM on 09/15/2011
This is where Rep. Earl Blumenauer's credibility fails:

"I've supported collective bargaining rights for public employees from my first session in the Oregon legislature"

1st - Colelctive bargaining for public employees is not a "right" - it is a law. Big difference. Why? FDR put it best and this is exactly what we are finding now with today's public unions:

All Government employees should realize that the process of collective bargaining, as usually understood, cannot be transplanted into the public service. It has its distinct and insurmountable limitations when applied to public personnel management. The very nature and purposes of Government make it impossible for administrative officials to represent fully or to bind the employer in mutual discussions with Government employee organizations. The employer is the whole people, who speak by means of laws enacted by their representatives in Congress. Accordingly, administrative officials and employees alike are governed and guided, and in many instances restricted, by laws which establish policies, procedures, or rules in personnel matters."
http://www.presidency.ucsb.edu/ws/index.php?pid=15445#axzz1Y3xZaU00

Also ironically George Meany -- the former president of the A.F.L.-C.I.O -- in 1955 said “It is impossible to bargain collectively with the government.â€
HUFFPOST SUPER USER
cydRN
06:09 PM on 09/15/2011
I come from a pro-union family. My Grandfather helped organize meat cutters in Chicago during the '30's. American perceptions of what unions do has been terribly skewed. A quick reading of Steinbeck should be a remedy for this.

Unfortunately, Big Unions (Teamsters, autoworkers etc..) became as corrupt as the industries they were trying to reform. Organized crime is well documented in relation to these behemoth unions.

We do not have a nurses union in Colorado. I would love to have the collective bargaining power that a union would afford. But I wouldn't want my union dues to go to supporting administrative fat-cats making deals behind closed doors for their personal enrichment.
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WI Patriot
Defending the Constitution.
06:54 PM on 09/15/2011
The unions of yore have made very great contributions to this country, and their blood, sweat, and tears are captured in Federal laws now.

Unfortunately many private-sector unions are in decline, and public unions are destroying the name of those before them - and abusing public employees for their own twisted form and view of governance.

That is why I cannot in good concience support what Rep. Earl Blumenauer - in his own article he talks mainly about the efforts of the accomplishments of the early private sector unions and tries to warp that into the stuggle of today's public sector unions.

Glad more and more people see what frauds public sector unions are.
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HUFFPOST PUNDIT
Jannsmoor
10:19 PM on 09/16/2011
I completely disagree. What outrageous salaries do teachers make that cause you such heart palpitations? The medican salary of a teacher in the US is $40k per year. The average salary of all working people in the US is $48k per year. I just don't see what can get you so bent out of shape.
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WI Patriot
Defending the Constitution.
05:40 PM on 09/15/2011
It is also ironic that Rep. Earl Blumenauer states "employee and every company deserves to make that choice (to be in a union"

And in Wisconsin - when public employees were finally allowed to make that choice - most chose not to join the public union. Wonder why that is........................
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HUFFPOST SUPER USER
Julie Dahlman
Now a self employed, under
06:36 PM on 09/15/2011
Maybe they were being treated well by their employer.
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WI Patriot
Defending the Constitution.
10:49 PM on 09/15/2011
I think you are right!
03:54 PM on 09/15/2011
Doesn't Europe have a Worker's Union that pretty much cover's everyone with a job? Like starting with 6 week's vacation in your first year.?
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WI Patriot
Defending the Constitution.
05:38 PM on 09/15/2011
Yes, its called austerity measures from a blown budget. That 6-week vacation is turning into a 6 month unpaid vacation.

Gee wonder why. Google Greece and Union.
06:52 PM on 09/15/2011
Google Germany and union. Gee!
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HUFFPOST SUPER USER
Phil-EA
03:05 PM on 09/15/2011
It seems the same argument is constantly being made. “Unions may not be perfect, but they did so many great things in the past that it’s okay.â€

It’s a little disingenuous to imply that the state and local compensation hasn’t played a role in the current economic struggle. State and local employees take up a significant of government budgets. That’s not an inherent problem, but when collective bargaining awards state and local employees a total compensation packages that far outstrip those found in the private sector (http://eng.am/pZofYR), you’re left with big problems.

Is curtailing collective bargaining the only way to fix the problem? Probably not. But if there was ever evidence that the public sector needs rethinking it’s in the fact that we’re seeing traditional “blue†states like New York, Connecticut and Massachusetts putting forth significant efforts to save their states money through reform in the public sector (http://eng.am/n5bzkO).

There are a plethora of causes for the current financial woes, but ignoring one of them because they weren’t always a problem would be unwise.
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HUFFPOST SUPER USER
TheIndependenceParty
Cranky yankee and a rehabilitated ex-Republican
03:17 PM on 09/15/2011
What is crushing state and local governments is a loss of revenue due to a failed economy in 2008. Foreclosed properties, abandoned properties, failed businesses and the abandonment of state and local governments by stingy Republicans in Congress have all driven local governments into bnear bankruptcy.

To the extent that Unions can help, they have, by negotiated givebacks on benefits and wages, ... NEGOTIATED, not stolen by the likes of Scott Walker and governors like him. You would steal what they have earned and been promised in the past, and pretend it was fair.

How fair would you feel it was to have your pension disappear after 30 years at a corporation?

Unions represent the smallest proportion of our population in many decades. Those who would have them reduced fuirther or eliminated are like blood thirsty hyenas, ... seeing a weakened animal that is easy prey.

Unions are all that stand between Americans and a virtual Right Wing Plutocracy in America.

It is not surprising that the shadowy Corporatists the Right follows, want their followers to strike a death blow to them. It would make the coup so much simpler.
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WI Patriot
Defending the Constitution.
05:36 PM on 09/15/2011
Progessive policy in Wisconsin found a good compromise between the Public, and Public employees.

(Not to mention public employees were not forced against their will and not forced dues involuntarily taken out of their paychecks anymore).


Funny thing was, after public employees had a choice - the public unions de-certified. Turned out the public unions got so greedy and fat they did not even know who the people they claimed they "represented" were - they didn't even know their names.