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Fact Sheet: Union Monopoly Privileges Linked to Lower Earnings and Disposable Incomes for Workers

Contrary to the usual propaganda union bosses would like you to believe, the National Institute for Labor Relations Research (NILRR) -- an anti-compulsory unionism think tank that exposes the harm forced unionism inflicts on workers -- released a report today entitled "Union Monopoly Linked to Lower Purchasing Power" that details how workers in least-unionized states enjoy the benefits of higher cost-of-living-adjusted earnings and disposable incomes.

You see, not only does government-granted union monopoly bargaining privileges infringe on employees' individual liberty, it also harms employees' economic interests.

According to NILRR:

As of 2008, according to economists Barry Hirsch and David Macpherson, 8.4% of private-sector employees nationwide were under “exclusive” union representation. But in 15 states -- Alaska, California, Hawaii, Illinois, Indiana, Michigan, Missouri, New Jersey, Nevada, New York, Ohio, Pennsylvania,. Washington, West Virginia and Wisconsin --10.0% or more of private-sector workers were unionized.

...

In 2008, cost of living-adjusted average weekly earnings in the states with 10.0% or more of private-sector employees subject to union monopoly bargaining were $770.

That’s $48 less than the average in the states with private-sector unionization of 5.0% or less. (These low-union density states are: Arkansas, Florida, Georgia, Louisiana, New Hampshire, North Carolina, North Dakota, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah and Virginia.) That comes to a roughly $2500-a-year disadvantage for full-time workers in states with high monopoly-bargaining density.

Aggregate cost of living-adjusted weekly earnings for states with private-sector union density of 5.1% to 9.9% were $783, or, for full-time workers, nearly $700 a year more than in the highest-union-density states, but more than $1800 a year less than in the lowest-union-density states.

NILRR also reports that "disposable income data tell the same story."

The economic benefits of voluntary union membership should come to no surprise to regular Freedom@Work readers, as we reported last month in "Compulsory Unionism Bankrupting States: Workers Flee to Right to Work States for Jobs":

NILRR recently found an especially strong correlation between a state’s Right to Work status and its job growth, while employees in Right to Work states are benefiting from faster job growth and higher real purchasing power than their compulsory unionism counterparts.

To view NILRR's fact sheet "Union Monopoly Linked to Lower Purchasing Power", click here.

Compulsory Unionism Bankrupting States: Workers Flee to Right to Work States for Jobs

As the current economic downturn continues, many states across the nation are starting to find it increasingly difficult to stay afloat after having capitulated to the union bosses' extortionate demands.  Last week, the Wall Street Journal cited the National Institute for Labor Relations Research (NILRR) -- an anti-compulsory unionism think tank that exposes the harm forced unionism inflicts on workers -- when discussing Big Labor's contribution toward the severe financial difficulties California, New York, and New Jersey are experiencing and the migration of workers leaving these forced-unionism states:

Powerful unions. Mr. Obama believes union power is a ticket to the middle class. The middle class is getting creamed in all three of these "progressive" states, where organized labor is king. The unionized share of the workforce is 20% in California, 19% in New Jersey and 27% in New York compared to 13% across the country. All three are non-right-to-work states, have super-minimum wage requirements and provide among the nation's most generous public-employee pensions.

Workers in these paradises are indeed uniting -- by leaving. New York ranks first, California second and New Jersey third in moving vans leaving the state. A study by the National Institute for Labor Relations Research found that over the past decade these and other high-union states (mostly in the Northeast) had one-third the job growth of states with low union penetration.

NILRR recently found an especially strong correlation between a state’s Right to Work status and its job growth, while employees in Right to Work states are benefiting from faster job growth and higher real purchasing power than their compulsory unionism counterparts.

Perhaps it's also worth revisiting a Wall Street Journal article penned late last year by National Right to Work President Mark Mix, reminding us that a massive expansion in forced unionism power played a key role in making the Great Depression longer and deeper.

Forced Dues Campaigning in California

The employee-led uproar over forced union dues taken by SEIU Union Local 1000 in California has prompted a top union official to campaign in favor of forced dues.

The article states that a "majority of the employees that attended the event disagreed," citing "non responsiveness" on behalf of the union hierarchy. As we've noted before, aside from protecting freedom of choice, Right to Work laws promote accountability of union officials to rank and file workers.

The artcle also states:

Also, employees were not happy that although state employees recently received a three percent pay raise, the Union countered with a 1.5 union fee increase taking away almost fifty percent of the wage increase.

No wonder these employees aren't happy, almost half of their raise was swallowed up by forced union dues!


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