Union Benefits Beyond Wage Premiums

Reminders are just everywhere that the gut reaction of many Americans to unions, and the labor movement more broadly, is often quite negative. I'm right now at SXSW Interactive in Austin. This afternoon was a panel on the creation and distribution of video content online. When a questioner from a major content producer asked the panel -- all professionals in web video -- if they had a plan for eventually grappling with the Screen Actors Guild, ASCAP, and other performers' unions, one of the panelists jumped right in with a story of how he was injured as a younger man while working in a union shop and his shop steward didn't bother to call to see how he was. Sigh. Labor writ large has a public image problem. Frankly, I don't know if they are taking the right steps to address it.

It's at risk of death by a thousand cuts, it seems. The blog debate this week was about wages. George Mason economist Tyler Cowen cites a paper by John DiNardo and David Lee to argue that "unions really really don't matter that much these days..." Why's that? DiNardo and Lee found, Cowen says, that the wage differences in employment situations where the union just barely won or just barely lost the election were minimal, near zero. Proof, Cowen says, that when it comes to unions, "there simply isn't that much there." I'm no economist, but that doesn't ring true to me. Kevin Drum says I'm right -- common sense and years of research would have to be very far off for DiNardo and Lee to be right. Besides, Cowen's own commenters point out that the unions that barely squeak into existence aren't well-poised to force real big wage concessions. And wages may be inflated even in non-union shops: employers facing an union drive may boost pay checks in the hopes of staving off organizing.

Araceli RomeroIn a way, wages are besides the point. Unions do much more than grow paychecks. Collective bargaining brings health and retirement benefits. Unions give workers a voice in the workplace that can stem employer excesses and abuses. Organized workers have more job security. I've mentioned here a few times that in January I went out to Chicago with the AFL-CIO to observe the organizing drive by workers at the Resurrection hospital chain. The chief complaint there wasn't compensation. For nurses, it was staffing ratios. For other workers, it was having a say in how the hospital was run and how employees were treated.

I interviewed a woman named Araceli Romero. That's her to the right. Araceli's worked in the laundry room at the Resurrection flagship hospital for seven years. She was once a nurse in Mexico, and a leader in the student movement in Mexico City before that. Araceli makes about $9.50 an hour (and pays $97.75 every two weeks for health insurance -- she showed me her pay stub). But she wasn't ticked off about the money. They treat us like "animales del trabajo," "work animals," she said. What she wants? A return to way the laundry used to work, where 8-hour shifts were split into two task rotations. Araceli spends now eight hours a day doing the same repetitive motions, pulling wet laundry from industrial sized washing machines, detangling it, and stuffing it into dryers.

It's not just about wages. Unions bring better workplaces conditions. They agitate for worker safety, for fair scheduling. Unions give employees of every station a voice in the workplace. Union reps help employees file ULPs (Unfair Labor Practice complaints) with the NLRB. Right when I was out in Chicago, AFSCME organizers were pushing OSHA to hold a Resurrection facility responsible for a spill that exposed workers to mercury. In some ways, pumping up paychecks is the least of what unions do.



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Re: Union Benefits Beyond Wage Premiums (none / 0)

I spent my breakfast reading poring over a report from EPI that talked about this exactly.  It lays out the case very well, if data-heavy.  I'll try to find that and post a link (mine was hardcopy).


Help build a stronger and more progressive Democratic Party from the grassroots on up
by Peter from WI on Sun Mar 11, 2007 at 12:16:44 AM EST

Re: Union Benefits Beyond Wage Premiums (none / 0)

That was way easier than I thought.

How Unions Help All Workers


Help build a stronger and more progressive Democratic Party from the grassroots on up
by Peter from WI on Sun Mar 11, 2007 at 12:18:11 AM EST
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Re: Union Benefits Beyond Wage Premiums (3.00 / 1)

I'm a big union supporter, but the unions need to believe solidarity extends to the netroots and stop selling us out.


Bob Brigham Blog
by Bob Brigham on Sun Mar 11, 2007 at 12:32:41 AM EST

Re: Union Benefits Beyond Wage Premiums (3.00 / 1)

Snap.

I totally agree.  1000%.

And while solidarity between workers exists (or should exist) - worker x and worker y are brothers (or sisters) even if x is union and y is not - solidarity needs to exist between elements of the progressive movement.  

Don't forget, union leadership is made up of people - and from people come personal decisions, not monolithic, always forward-thinking and organizationally- and movement-based ones.  Same as in a movement, actually.  


Help build a stronger and more progressive Democratic Party from the grassroots on up
by Peter from WI on Sun Mar 11, 2007 at 12:50:03 AM EST
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Re: Union Benefits Beyond Wage Premiums (none / 0)

Well that should work both ways.  The netroots need to not choose unions as one of the groups to throw under the bus at the first opportunity.  What a beautiful marriage it could be; unions and netroots activists.  We just have to work to get there.


by Demo Dan in Dayton on Sun Mar 11, 2007 at 08:59:40 AM EST
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Re: Union Benefits Beyond Wage Premiums (none / 0)

Has there been an instance or instances where the netroots threw labor under the bus?  


Help build a stronger and more progressive Democratic Party from the grassroots on up
by Peter from WI on Sun Mar 11, 2007 at 11:34:20 AM EST
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Re: Union Benefits Beyond Wage Premiums (none / 0)

The current mess in Colorado jumps to mind.


by Demo Dan in Dayton on Sun Mar 11, 2007 at 11:49:48 AM EST
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Re: Union Benefits Beyond Wage Premiums (none / 0)

If I remember correctly it was the other way around.I'm willing to bet the average Colorado Union members were with the netroots on this one. Have you ever listened to Neal Cavoto or the facists on Faux not the news "The cost of Fredom" Business show? Talk about anti Union, Geeshh!


by eddieb on Sun Mar 11, 2007 at 12:25:48 PM EST
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Re: Union Benefits Beyond Wage Premiums (none / 0)

I'm not trying to be snarky here but how have the unions sold the netroots out?  I'd like to know what issues you are referring to.

I'm pretty sure the feeling is mutual.  For example,  on tpmcafe.com, every pro-labor post by Nathan Newman regularly attracts many more detractors than supporters, mostly spouting conventional wisdom with little experience backing it up.

And let's face it - until maybe this past election cycle pro-choice was a Democratic litmus test issue.  Pro-labor was not.  I'm both pro-choice and pro-labor.  

There has to be more communication between the different progressive constituencies - and labor IS one of them.


by sTiVo on Sun Mar 11, 2007 at 01:01:39 PM EST
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Re: Union Benefits Beyond Wage Premiums (3.00 / 1)

I just finished a course in labour market economics last semester.  I agree with all your points.

I would add three more:
1."Sigh. Labor writ large has a public image problem."

I'm not sure the extent to which this is true.  Public opinion polling actually shows that unions are about as popular in Canada as they are in the states.  I'm not saying they're loved in either country, but I think it's certainly fair to argue that much of the perceived 'hatred' of unions is based on corporate anti union propaganda rather than actual public sentiment.

2.Continuing from point 1, given that overall perception of unions is about the same in the U.S as in Canada, it would make sense for incidence of unionization to be about the same.  But, of course they aren't.  The reason according to my textbook is almost entirely due to differences in legislation surrounding organizing and other things needed to unionize.  The text said that, according to polls, there are actually a significant number of Americans who would like to be in a union but aren't.  I can get you the name of the textbook and its authors if you like.

3.The textbook commented briefly on the dual labour market theory.  That is, workers with good jobs are in the 'primary' labour market and workers with bad jobs are in the 'secondary' labour market.  In addition to pay, all of the other things you mention are problems for workers in the 'secondary' labour market.  This theory explains why there was a story recently that said something like 1/6 people with jobs were still receiving benefits from the government.  


by Adam T on Sun Mar 11, 2007 at 01:39:42 AM EST

Re: Union Benefits Beyond Wage Premiums (3.00 / 1)

Without adding anything to the discussion...

I love that I can come to MyDD at 3 AM on a Saturday night/Sunday morning and read insightful comment on labor markets.

Back to the regularly-scheduled commenting.


Help build a stronger and more progressive Democratic Party from the grassroots on up
by Peter from WI on Sun Mar 11, 2007 at 03:42:45 AM EST
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Re: Union Benefits Beyond Wage Premiums (none / 0)

Unions were mortally wounded by Reagan's assault on the air traffic controllers and "big" unions non response.  As for the dems, they voted to change the name of the DC airport after him--out of disrespect for all of labor.  The unions will continue to decline until they either get a larger voice in dem politics, or they form their own party.  See Europe for details on the use of politics to guarantee union rights.


by melh on Sun Mar 11, 2007 at 11:42:18 AM EST

Re: Union Benefits Beyond Wage Premiums (none / 0)

Unions were not mortally wounded. No sir! They were just knocked down, stomped on and held down by apathy and neglect. I believe unions will make that Rocky Balboa comback and once again become Reigning Champs. God knows, they deserve it and we deserve to help them!


by eddieb on Sun Mar 11, 2007 at 12:17:51 PM EST
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Re: Union Benefits Beyond Wage Premiums (none / 0)

I think Unions are still suffering from the images instilled in the American psyche by the by Kennedy assault on the Corrupt Hoffa union machine. This was then piled on the resurgence of anti Union propaganda, topped off by Regans condemnation and successful crushing of the Air controllers. The Reich Wing and their anti Unionist propagandists have never let up in every single way they can and still operate openly today. I have not heard anyone point out how southern Conservatives have colluded with Foreign Auto makers to build and establish Union busting factories in the south. Look what happen to G.M., Chrysler and Ford as a result! We certainly do need a national Public relations effort to educate the general public. Not only to re-establish the positive role Unions presently play but the history of how Unions saved America from the ravages of unbridled Capitalistic excesses and built a strong national economy for ALL Americans.  We definitely have a long up hill battle against very powerful forces.  But these adversaries are punny compared to forces arrayed against the first Unionist pioneers. SO, Lets get ORGANIZING!


by eddieb on Sun Mar 11, 2007 at 12:07:23 PM EST

Re: Union Benefits Beyond Wage Premiums (none / 0)

<quote>DiNardo and Lee found, Cowen says, that the wage differences in employment situations where the union just barely won or just barely lost the election were minimal, near zero.</quote>

Ummm...no shit Sherlock.

It's all about bargaining power. A close election would of course put the union in a poor bargaining position.

The larger the election result the greater the demands unions would be able to make.

And what about over time? Did they look at the differences in wages between non-union shops and union shops over time?

There might not be a difference early on, but if the union has time, differences are bound to emerge unless the shop stays divided.

I certainly hope they controlled for open versus closed union shop rules...if they didn't, they are engaged in junk science.


by Nazgul35 on Sun Mar 11, 2007 at 12:25:52 PM EST

Clark Suggests a New Paradigm for Unions (none / 0)

Wesley Clark has some very interesting ideas about the future of unions.  Here's what he said in a March 9 interview.

Well, I think that you've got to emphasize employment in this country, but to do that, I'm favoring - and I've been talking to some of the union leaders - about a new paradigm for American labor. You know, when there was an industrial army in the Industrial Age, and you had massed workforces, and when you couldn't off-shore produce and get away with it, because you didn't have to the communications and control of it, then labor had more bargaining power, and unions emerged to exploit labor's bargaining power. Today, that's not the case. Labor doesn't have that bargaining power in most instances. So, the purpose of joining together if you're working is not to go gouge your employer for more benefits. Maybe that is, but it may not work. What you really have to do is have some self-help societies so that the purpose of it is professional development for the workforce. So, everybody who comes in, even if they are just a high school graduate, they should be given a roadmap and a roadmap that says if you work here you get your next level of skill, you'll take some off-duty vo-tech courses and we'll - I said off duty, but that's because we did this in the military, and it works. You've got, you've got- The most precious gift you can give someone is aspirations and show them that there's a way to better themselves and their family. To move from point A to point B, you must do these things, and you can get there. That's what we need - help, because most people in the workforce have no help. A man came to me on an airplane past week. We were flying out of Little Rock. I asked him what the most, biggest problem was in America, He said, "Well, of course, Iraq." He said, "But it's employment." I said, "Well, why?" I said, "Are you unemployed?" He said, "No, because," he said, "I'm trapped in a job. I'm 53 years old, and I can't get out of this job. I'm, I'm gone 28 days a month. I can't get a pay raise. I can't quit, and I don't have time to find another job. And I've got five kids."

And that's what happens in America. We have a myth of labor force mobility, but it's mostly a myth. When you're right out of college, sure it's easy, but when you're married and have family obligations, kids in school and maybe your wife's got a job and you've got sick relatives, and this labor market mobility's not what it's cracked up to be. You need some professional assistance, and we need to form a new paradigm so that ordinary working men and women can get that professional assistance.


by catherineD on Sun Mar 11, 2007 at 05:09:18 PM EST

Re: Clark Suggests a New Paradigm for Unions (none / 0)

Trade unions do that.  The labor movement used to be like that, especially in Germany.  Co-op drug stores, co-op education, co-op groceries, co-op health care and co-op entertainment and clubs from the union choirs to the carrier pidgeon clubs.

There are two challenges.  All of that costs money.  Either we would have to get government to support these efforts or we would have to charge people substantially higher dues.  You can only do that much with three percent.

The other challenge is creative destruction.  It's difficult for co-ops to keep up with an economy that is constantly innovating.

I am with you, though.  A lot can happen in terms of community.  It's not that expensive to have a pot luck or other socials.  People getting together to solve their problems can go a long way to increase people's commitment.


by Hellmut on Sun Mar 11, 2007 at 06:09:54 PM EST
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