As ALEC, the Koch Brothers, and other extreme corporate lobbying groups push state legislatures around the country, including in Missouri, to enact Right-to-Worse and other anti-paycheck bills a backlash is growing. Turns out even conservatives don’t like their paychecks getting smaller and their standard of living declining. This sentiment was expressed in a recent opinion piece by Nicholas Kristof – The Cost of a Decline in Unions.
The abuses are real. But, as unions wane in American life, it’s also increasingly clear that they were doing a lot of good in sustaining middle class life — especially the private-sector unions that are now dwindling.
“All the focus on labor’s flaws can distract us from the bigger picture,” Rosenfeld writes. “For generations now the labor movement has stood as the most prominent and effective voice for economic justice.”
I’m as appalled as anyone by silly work rules and $400,000 stagehands, or teachers’ unions shielding the incompetent. But unions also lobby for programs like universal prekindergarten that help create broad-based prosperity. They are pushing for a higher national minimum wage, even though that would directly benefit mostly nonunionized workers.
I’ve also changed my mind because, in recent years, the worst abuses by far haven’t been in the union shop but in the corporate suite. One of the things you learn as a journalist is that when there’s no accountability, we humans are capable of tremendous avarice and venality. That’s true of union bosses — and of corporate tycoons. Unions, even flawed ones, can provide checks and balances for flawed corporations.
Many Americans think unions drag down the economy over all, but scholars disagree. American auto unions are often mentioned, but Germany’s car workers have a strong union, and so do Toyota’s in Japan and Kia’s in South Korea.
In Germany, the average autoworker earns about $67 per hour in salary and benefits, compared with $34 in the United States. Yet Germany’s car companies in 2010 produced more than twice as many vehicles as American companies did, and they were highly profitable. It’s too glib to say that the problem in the American sector was just unions.
Joseph Stiglitz notes in his book “The Price of Inequality” that when unions were strong in America, productivity and real hourly compensation moved together in manufacturing. But after 1980 (and especially after 2000) the link seemed to break and real wages stagnated.
Do weaker unions mean weaker paychecks for nonunion workers too?
It may be that as unions weakened, executives sometimes grabbed the gains from productivity. Perhaps that helps explain why chief executives at big companies earned, on average, 20 times as much as the typical worker in 1965, and 296 times as much in 2013, according to the Economic Policy Institute.
Lawrence F. Katz, a Harvard labor economist, raises concerns about some aspects of public-sector unions, but he says that in the private sector (where only 7 percent of workers are now unionized): “I think we’ve gone too far in de-unionization.”
Get ready for the Mea Culpa…
He’s right. This isn’t something you often hear a columnist say, but I’ll say it again: I was wrong. At least in the private sector, we should strengthen unions, not try to eviscerate them.
I applaud Mr. Kristof for having the strength to look at the facts and reach a new conclusion. To admit it in print is an act only a strong man could commit. Any strong men in the Missouri legislature ready to stand up for worker rights?