Thursday, January 5, 2012

Private sector unions under attack in U.S. states

   As budgets become tighter U.S. states have been attacking the power of unions. Perhaps most in the news was Republican controlled Wisconsin legislature's measures that curbed the power of public sector unions. This legislation prompted huge demonstrations.  Several other states also passed legislation that was directed against the power of public sector unions. Now new attacks are being mounted against unions but this time in the private sector even though the U.S. has one of the lowest levels of unionization in developed countries.
   In Indiana the Republican dominated legislature is to push through a right-to-work-law. A right-to-work-law would prevent unions from having contracts that required employees to pay any dues or fees to unions. Naturally the title of the law evokes positive feelings. After all surely everyone should have the right to work.   Why it should apply to legislation that requires certain deductions from pay is a mystery. Perhaps all deductions required under contracts should be included in the legislation including those to the government, pension plans, health plans, etc. The legislation might more aptly be described as the free rider law. Employees can enjoy benefits negotiated by the union while not having to help pay for the union's costs.
    If the Indiana bill passes it will encourage other states contemplating similar laws including Maine, Michigan and Missouri. New Hampshire too might again try to pass such a law. Corporations naturally see states with right to work laws as being favorable to business because they make it more difficult for unions to operate and take away a source of financing for unions. Indiana is in the traditional manufacturing belt. If the legislation passes it will show that even in areas that have been in the past pro-union that worker power is being eroded. Indeed it is as capital has gone global and workers compete with each other on a global scale resulting in the erosion of benefits gained by unions in the developing countries over many decades. For more see this article.


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