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Economy

Union Membership Shrinks To The Lowest Level Since The Depression

Union membership plummeted in 2012 to the lowest level since the Depression, according to the Bureau of Labor Statistics. The membership rate dropped to 11.3 percent from 11.8 percent, while total membership fell by roughly 400,000 workers, largely due to massive layoffs of teachers, firefighters, and other public employees.

Anti-labor measures passed by Republican-controlled governments in historic union strongholds have also played a part in dwindling membership:

Losses in the public sector are hitting unions particularly hard since that has been one of the few areas where membership was growing over the past two decades. About 51 percent of union members work in government, where until recently, there had been little resistance to union organizing. That began to change when Wisconsin Gov. Scott Walker signed a law in 2011 eliminating most union rights for government workers. The state lost about 46,000 union members last year, mostly in the public sector.
[...]
In Indiana, where a new right-to-work law took effect last March, the state lost about 56,000 union members. The law prohibits unions from requiring workers to pay union fees, even if they benefit from a collective bargaining agreement. Michigan lawmakers approved a similar measure in December.

Union membership has been on the decline since the 1980s, with drastic consequences for middle-class Americans. As unions shed members, middle-class incomes have shrunk and income inequality has soared.

While weakened unions are not the sole cause of these trends, employers have gained an outsized advantage in the labor market. Some companies have threatened to do away with benefits if employees even ask about forming a union. Meanwhile, Republican lawmakers continue to strip workers’ protections, despite the fact that anti-union laws tend to be deeply unpopular with the public.

Economy

CHART: Labor Strikes Become Rare As Employers Gain The Upper Hand

According to an analysis of Current Population Survey data by Matt Bruenig, the number of workers exercising their right to strike has plummeted since the 1970s:

Forty years ago, “an average of 289 major work stoppages involving 1,000 or more workers occurred annually in the United States. By the 1990s, that had fallen to about 35 per year. And in 2009, there were no more than five.” Declining unionization certainly plays a role in this drop, but as Chris Rhomberg, associate professor of sociology at Fordham University, wrote, so too does labor law that gives employers all the advantages. “We have essentially gone back to a pre-New Deal era of workplace governance,” he wrote.

Meanwhile, lockouts — when management bars employees from working — are on the upswing, and now “represent a record percentage of the nation’s work stoppages,” according to Bloomberg BNA.

As the number of union workers has declined in recent years, so too has the middle-class’ share of income. Income inequality has spiked during the same timeframe. Bucking the trend, workers at Walmart and New York City fast food establishments, as well as Chicago’s teachers, recently walked off the job in protest of working conditions.

Alyssa

What Fans Should Know About Labor Battles In Sports: They Aren’t, And Shouldn’t Be, About You

The National Hockey League’s 113-day lockout of players is over, and for players, owners, and everyone involved in the game, that’s great news. It is also good news for sports fans, who have endured lockouts in three of the four major American sports in the last two years.

Even better news is that after such volatility in the world of sports, we could be entering an unprecedented era of labor peace. Since 1968, when the National Football League first locked out its players, there have been 19 work stoppages in the four major leagues, but we’re now guaranteed labor peace until at least 2016, when Major League Baseball’s collective bargaining agreement expires. If MLB does what it did in 2011 and negotiates a new agreement without a stoppage, and if both the National Basketball Association and its players union refuse to opt out of their current agreement in 2017, we will make it until at least 2020 without a stoppage, meaning the next eight years could become the longest period of labor peace in professional sports since the players’ union movement began.

Whenever the next dispute rolls around, though, here is something for fans of the four biggest sports to keep in mind: labor disputes in sports aren’t, and shouldn’t be, about you.

Every time sports leagues stop because of a labor fight, fans get up in arms about how they are the only people truly hurt by lockouts and strikes. Observers, including the president of the United States, often urge both sides to come together and strike a deal, ignoring that there are real issues at stake and real points of disagreement. That view couldn’t be more misguided.

Labor battles, in sports and elsewhere, are about workers’ rights — to fair pay, to safety, to health care, to retirement security. They are about workers who feel they are entitled to those rights and owners or executives who feel the workers are entitled to less. Whether those workers are locked out from Caterpillar or from professional hockey, whether they are median wage construction workers or millionaire athletes, doesn’t diminish the importance of their issues. And since, as I’ve written, labor battles in sports reflect the same issues as labor battles elsewhere, the implications of a labor fight in sports often stretch far beyond the playing field.

The idea that fans are the victims also ignores those who are adversely affected by work stoppages. Small businesses — restaurants and bars, fan shops, an assortment of others — lose customers. Arena workers, the people who ensure you, the fan, can watch a game in a safe environment and the people who clean up your mess once you leave, lose paychecks. Some front office workers take pay cuts. Others are laid off. In the case of hockey, it even hurts charities.

Players, who provide the labor that makes our sports so enjoyable (and so profitable), lose paychecks. They face attempts to reduce their pay, to eliminate their pension, to make their health care less generous. Sound familiar? It’s the story of every labor battle in America, played out on a far more public (and far more expensive) field.

You? Assuming you’re not in an industry that depends on one of those sports, you lose the ability to watch a game. That certainly isn’t fun, and I suppose it’s even justified if you choose to stop coming back. But losing a leisurely activity isn’t the same as losing your livelihood, and it’s time to stop pretending it is.

Economy

What You Need To Know About The Impending East Coast Port Strike

Unless a deal is reached with management, some 14,000 East Coast port workers plan to go on strike on Sunday, affecting ports from Boston to Miami. Here’s what you need to know about the impending strike:

1) Management wants to cut workers’ pay. The largest sticking point in the negotiations between the port workers and a coalition of companies known as the United States Maritime Alliance (USMX) is a payment to workers for each container they unload. Instituted in the 1960s, the payments are meant as compensation for the mechanization of America’s ports, which allows one worker today to do what used to take three workers. As the New York Times explained, “The companies want to freeze those payments for current longshoremen and eliminate them for future hires.” The companies also want to cut future raises for workers to below the rate of inflation.

2) Port workers are highly skilled. The companies claim that workers are paid too much, rendering east coast ports uncompetitive. But the workers — whose numbers have dropped from 35,000 to 3,500 due to automation — are highly trained and “cannot be easily replaced.” They also do not work consistent hours. According to the union, “longshore labor cost amounts to between 3% and 4% of the shipper’s total cost.”

3) The economic impact could be significant…or not. As Brad Plumer explained in the Washington Post, it’s hard to figure out the economic impact of port closures. Estimates place the impact of a 2002 West Coast port closure at $1 billion per day, but the cost may have actually been far less than that.

4) Businesses are using political pressure to entice workers to cave. Business leaders and right-wing governors are urging the White House to invoke special powers to end the strike, should workers walk out. President Obama, for his part, urged the two sides to forge an agreement “as quickly as possible.”

The strike would be the first at East Coast ports since 1977.

Update

The two sides report that they have reached a tentative agreement to avert a strike.

Economy

Walmart Tells Workers Who Ask About Unions That Benefits And Vacation ‘Might Go Away’

Walmart staves off unionization attempts in its stores by telling workers who ask about forming a union that they may lose benefits and vacation time, a potential violation of American labor law that could further inflame relations between the company and workers who picketed its stores on Black Friday and have been attempting to organize.

Walmart workers and labor advocates held protests outside the chain’s stores throughout Thanksgiving weekend, protesting the low wages it pays its workers. The company, which paid its chief executive $18.1 million and made $15 billion in profits last year, has fought off union attempts before, and now it tells its workers that unionization could lead to the loss of bonuses and vacation time, a spokesperson told Bloomberg Businessweek:

Walmart has been opposed to unions since Sam Walton opened his first store in Rogers, Ark., in 1962. These days, “we have human resources teams all over the country who are available to talk to associates, and we will get questions about joining a union,” says David Tovar, a spokesman for the company. “We would say: ‘Let us remind you of all that Walmart offers, and of what might go away. Quarterly bonuses might go away, vacation time might go away.’ ”

Such tactics may not be illegal by themselves because they can be seen as predicting outcomes rather than threatening them, The Nation’s Josh Eidelson reported today. But the implication of such a “prediction” — that joining a union could be followed by actions resembling retaliation — is quite clear. Walmart’s anti-labor practices aren’t new: in 2008, the store’s workers spoke out about anti-union meetings they were forced to attend.

Though Walmart has long fought organization efforts in the United States, it sometimes lets workers in other countries unionize — particularly when unionization is contingent on Walmart getting to enter a new country. In the U.S. though, it has responded to unionization efforts by shutting down departments, fighting legislative improvements to labor law, and now, telling workers that joining a union may cost them their bonus.

Alyssa

The NHL Lockout Is Driving Down Donations To Canadian Charities

The National Hockey League lockout is now 93 days old, and there doesn’t seem to be an end in sight, at least not with both owners and the NHL Players Association turning to the legal system to maneuver through negotiations. That is certainly bad news for owners (the NHL is losing an estimated $20 million a day), for players who aren’t being paid, and for people who just want to spend their winter watching hockey.

It’s also bad news for Canadian food banks and charities, who are starting to report that their donation levels are down heading into the holidays. Many charities in Canada benefit from food drives run by teams and by bars and restaurants around arenas, but the lockout has prevented many of those food drives from happening, the Canadian Press reports:

“We’ve received calls from 23 different businesses, mostly sports bars who last year collected food for Sun Youth and this year, because of the strike, they have to lay off people,” said Tommy Kulczyk, director of emergency services at the Sun Youth community centre in Montreal.

“They’re not in the mood to do any kind of collection.”

He also noted that wives of Montreal Canadiens players had in past years organized a successful food drive at a Habs game tapping a potential 21,000 donors.

“It’s not going to happen this year.”

The obvious reaction here is to yell at players and owners to set aside their differences and get back on the ice, but I don’t think it’s useful or accurate to paint labor disputes in sports as simple fights between spoiled millionaires and billionaires. There are important issues at stake, particularly for the players who gave up so much in a lockout just eight years ago, and the outcome of a labor dispute is important whether it takes place in the NHL or at a construction company.

Still, it’s worth remembering that the nature of the sports industry means labor disputes and work stoppages can have huge impacts on people whose livelihood depends on the games being played, from arena workers to front office staff to people who depend on donations to charities. And when those games aren’t being played, it isn’t just the owners and players who have to deal with the consequences.

Economy

Michigan Republicans Re-Pass Anti-Union Law That Voters Repealed Just Six Weeks Ago

Not content to push through an anti-union “right-to-work” law, new restrictive abortion policies, and an anti-Sharia law, Michigan Republicans are now pursuing a revamp of a law voters rejected at the polls barely more than a month ago.

Michigan’s House Republicans today passed a new version of the “emergency manager” law that voters repealed via ballot referendum in November. The initial version gave broader powers to state-appointed emergency managers who oversee townships that are struggling financially.

Among those powers was the ability to void union contracts and labor agreements. The new version, introduced by state Rep. Al Pscholka (R), makes small changes but still includes the provision granting the manager authority over labor contracts, as the Detroit Free Press reports:

The bill says an emergency manager will have the power to undertake “the modification, rejection, termination and renegotiation of contracts.”

The ability for an emergency manager to break or terminate collective bargaining agreements under certain circumstances was one of the most controversial aspects of PA 4.

But Pscholka said a key difference is that the new bill “gives a choice to local officials … on how to keep their heads above water.”

The new law does make changes that give localities more input with their emergency managers, and it includes a provision that gives local officials the option of choosing mediation or bankruptcy over the appointment of a manager once a financial emergency is declared. It also allows localities to remove the emergency manager a year later by a two-thirds vote from the local government.

But by leaving the broad powers over labor contracts intact in the new version, Michigan Republicans are again taking aim at the state’s unions. And they’re doing so in direct opposition to the state’s voters, given that such powers were “one of the most controversial aspects” of the repealed version.

Just as they did with the “right-to-work” law, Republicans attached an appropriations measure to the bill to make it tougher to overturn with a ballot referendum.

Economy

Virginia GOP Official Calls Union Members ‘Terrorists’

Shawn Kenney

Union workers who were protesting the passage of so-called “right-to-work” laws outside the state capitol in Lansing, Michigan are “terrorists,” according to a former high-ranking official in the Republican Party of Virginia who now serves in a county-level elected office.

Shawn Kenney, who formerly served as the communications director for the state GOP and is now the chairman of the Fluvanna Co. Board of Supervisors, posted an entry on his blog titled, “We Don’t Negotiate With (Union) Terrorists.” The post features a video of a brief fight that occurred outside the Michigan state capitol. Before the video, Kenney writes: “…and these people are terrorists.”

The video, the subject of numerous Fox News segments aimed at ginning up anti-union sentiment among the conservative base, shows an isolated fight between union protesters and Steven Crowder, a Fox News contributor who was punched during the dispute. A state employee (who is represented by a union) who witnessed Crowder’s earlier interactions with the crowd while passing by told the Huffington Post that Crowder appeared to be provoking the workers and there is evidence showing that the video may have been selectively edited to portray union members in a negative light. “There was no question he was there just to start a fight, to start some kind of trouble,” the witness said. Crowder admitted to HuffPost that he “definitely provoked them,” but said he did it by “asking them basic questions” and “didn’t expect to be assaulted.”

While it is unfortunate that any violence occurred, local media reports and police painted a picture of the protests that didn’t quite resemble “terrorism.” The protests, which included at least 10,000 workers, were “mostly peaceful” according to media reports, and the Michigan State Police said just three arrests were made.

Another former Republican Party of Virginia official wrote on the same blog this week that by passing “right-to-work,” Michigan had “finally unshackle[d] itself from slavery.”

Economy

Radio Host Stumps Michigan Governor By Asking How Union-Busting Will Help His State’s Economy

Michigan Governor Rick Snyder was happy to sign the union-busting “right-to-work” bill this week, saying that the law would help create jobs in his state. But in an interview with American Public Media on Thursday, Snyder was hard-pressed to give good reasons for why, exactly, the bill would inspire companies to move into Michigan and create new jobs.

Pressed by Marketplace Morning Report host Jeremy Hobson to explain what proof Snyder had that Michigan would see a job boom as a result of the law, the Governor cited neighboring Indiana’s recent job numbers as his only evidence:

SNYDER: This is about more and better jobs coming to Michigan. If you look at Indiana, they did similar legislation in February. And literally, thousands of new jobs are coming to Indiana where this was a major consideration in companies’ decision to move to that state.

HOBSON: Are you saying then that companies decided to go to Indiana, for example, because there’s less union membership in Indiana?

SNYDER: No, and I don’t want to speak for the companies but it is very clear that companies are looking at Indiana that previously did not. [...]

HOBSON: Well, make that connection though. You’re saying that, by not requiring workers to pay union dues, that therefore companies are going to be more attracted to the state. Why would that be?

SNYDER: Well, that’s a question for the companies but there is a strong sense, and companies do look at that. That’s something we’ve suffered here.[...]

HOBSON: Union membership has fallen dramatically in Michigan and across the country and it’s not as though that has translated into some boom in employment. I see the point you’re making, but it hasn’t been borne out in the evidence, has it?

SNYDER: Well, it’s been borne out in the Indiana case.

Listen:

The Economic Policy Institute estimates that right-to-work will cost all Michigan workers — not just those in unions — an average of $1,500 a year, and that there is “no relationship” between right-to-work laws and employment rates.

Health

Michigan’s New Union-Busting Law Will Undermine Workers’ Health Benefits

Michigan’s Gov. Rick Snyder (R) has incited a political firestorm over the controversial anti-union “right-to-work” law that he signed this week. That bill has significant implications for labor rights, particularly for Michigan’s middle class, and may threaten the health care benefits that union workers receive through their collective bargaining abilities.

According to the Employee Benefit Research Institute (EBRI), union workers have much better access to health insurance than their non-union counterparts. In 2005, a full 86 percent of unionized workers had access to health insurance, compared to 59.5 percent of non-union workers:

The report goes on to say that while non-union workers enjoy more health coverage as dependents, unionized workers have a significantly lower uninsurance rate as a consequence of their ability to negotiate with employers. That bargaining power is pretty significant in an era in which employers increasingly try to push the cost of essential benefits such as health care onto their workers. For some context, the Kaiser Family Foundation estimates that Michigan adults have an uninsurance rate of 18 percent.

In fact, a Center for American Progress report estimated that if the states that don’t currently have right-to-work laws lowered their benefit levels to those in anti-union states, 2 million fewer workers would receive health insurance benefits.

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