Yes!    Its not what they call it but what it is that counts and bankers
have unions.

 

REH

 

From: [email protected]
[mailto:[email protected]] On Behalf Of Keith Hudson
Sent: Wednesday, December 12, 2012 12:09 PM
To: RE-DESIGNING WORK, INCOME DISTRIBUTION, EDUCATION; Ed Weick
Subject: Re: [Futurework] Driving out the unions

 

At 14:59 12/12/2012, EW wrote:



Unions used to be a very important part of the economy.  Increasingly, they
no longer are.


Industrial unions, yes, but some unions are still important!  At least they
are in the UK, and those that have become closed shops by acquiring special
privileges from the government and controlling their numbers can obtain high
incomes for their members. Barristers' Chambers, solicitors' Law Society,
doctors' British Medical Association are examples of such. Also there are
groups which are self-selecting for the purpose of boosting their incomes
but which don't have formal membership. One good example of this (which
applies in America, too) is the amorphous group of senior banking executives
which gladly serve on the remuneration advisory committees of competitive
banks. This has enabled them to artificially ratchet one another's salaries
upwards to astronomical levels in recent years and, when, criticized, can
falsely claim "market rates". 

Keith



 
Ed
 
 


The Lansing-Beijing connection




By Harold Meyerson
<http://www.washingtonpost.com/harold-meyerson/2011/02/24/ABvsvmP_page.html>
, 


Dec 12, 2012 01:35 AM EST
The Washington Post
<http://www.washingtonpost.com/opinions/harold-meyerson-unions-still-matter-
in-michigan-just-as-in-china/2012/12/11/d77d9948-43c9-11e2-8061-253bccfc7532
_story.html?wpisrc=nl_opinions#license-d77d9948-43c9-11e2-8061-253bccfc7532>
Published: December 11




China has a problem: rising inequality. The gap between profits and wages is
soaring. Although elements of the government have sought to boost workers'
incomes, they have been thwarted by major companies and banks " that don
<http://online.wsj.com/article/SB10001424127887324640104578161493858722884.h
tml> 't want to give more profit to the country and let the government
distribute it," Qi Jingmei, a research fellow for a government think tank,
told the Wall Street Journal.

Of course, if China permitted the establishment of unions, wages would rise.
But for fundamentally political reasons - independent unions would undermine
the Communist Party's authority - unions are out of the question.
Meanwhile, the United States also has a problem of a rising gap between
profits and wages. The stagnation of wages has become an accepted fact
across the political spectrum; conservative columnists such as Michael
Gerson
<http://www.washingtonpost.com/opinions/michael-gerson-making-economic-advan
cement-realistic/2012/11/19/ab926fae-3283-11e2-bfd5-e202b6d7b501_story.html>
and David Brooks have acknowledged that workers' incomes seem to be stuck.

What conservatives haven't acknowledged, and what even most liberal
commentators fail to appreciate, is how central the collapse of collective
bargaining is to American workers' inability to win themselves a raise. Yes,
globalizing and mechanizing jobs has cut into the livelihoods of millions of
U.S. workers, but that is far from the whole story. Roughly 100 million
<http://prospect.org/article/if-labor-dies-whats-next>  of the nation's 143
million employed workers <http://www.bls.gov/news.release/empsit.t01.htm>
have jobs that can <http://www.princeton.edu/~blinder/papers/07ceps142.pdf>
't be shipped abroad, that aren't in competition with steel workers in Sao
Paolo or iPod assemblers in Shenzhen. Sales clerks, waiters, librarians and
carpenters all utilize technology in their jobs, but not to the point that
they've become dispensable. 

Yet while they can't be dispensed with, neither can they bargain for a
raise. Today fewer than 7 percent
<http://www.bls.gov/news.release/union2.nr0.htm>  of private-sector workers
are union members. That figure may shrink a little more with new
<http://www.washingtonpost.com/business/job-creation-debate-illustrates-voll
ey-of-claims-over-right-to-work-as-michigan-decision-nears/2012/12/10/9f780f
72-4330-11e2-8c8f-fbebf7ccab4e_story.html> "right to work" laws in Michigan
- the propagandistic term for statutes that allow workers to benefit from
union contracts without having to pay union dues.

Defenders of right-to-work laws argue that they improve a state's economy by
creating more jobs. But an exhaustive study
<http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1027987>  by economist
Lonnie K. Stevans of Hofstra University found that states that have enacted
such laws reported no increase in business start-ups or rates of employment.
Wages and personal income are lower in those states than in those without
such laws, Stevans concluded, though proprietors' incomes are higher. In
short, right-to-work laws simply redistribute income from workers to owners.

Why, then, are such laws being enacted? The gap between U.S. capital income
and labor income hasn
<http://www.businessinsider.com/corporate-profits-just-hit-an-all-time-high-
wages-just-hit-an-all-time-low-2012-6> 't been this great since before the
New Deal; why widen it still more? The answer, in Lansing no less than in
Beijing, is political. The Republicans who took control of the Michigan
statehouse in 2010 understand that Democrats' foot soldiers come
disproportionately from labor. GOP efforts to reduce labor's clout help
Republicans politically far more than they help any Michigan-based
businesses or local governments. (The legislation, which Gov. Rick Snyder
(R) signed into law Tuesday evening, establishes right-to-work requirements
for the public sector, too.)

Those who doubt that the intent of Michigan's laws is more political than
economic should consider the two kinds of unions exempted from its reach:
police and firefighter unions
<http://www.lansingstatejournal.com/article/20121208/NEWS04/312080019/Right-
work-bill-exempts-police-fire-unions> . Their contracts are among the
costliest that local governments confront: Police and firefighters generally
(and rightly) retire earlier than do other public employees, with relatively
generous pension benefits. But in Michigan, police and firefighter unions
often endorse Republicans. Shrinking their treasuries and political power by
subjecting them to right-to-work strictures would only damage Republicans'
electoral prospects (and may well play poorly to voters). 

With Snyder's signature, Michigan becomes the second state in the
once-heavily unionized, industrial Midwest
<http://www.washingtonpost.com/blogs/the-fix/wp/2012/12/11/michigan-would-be
-first-blue-right-to-work-state/?hpid=z1>  to adopt such a statute;
hitherto, such laws had largely been confined to states in the South, the
Plains and the Mountain West. The United Auto Workers (UAW) was once the
colossus of Michigan politics, but the union's membership has shrunk to
381,000
<http://www.autoblog.com/2012/04/02/uaw-membership-climbs-1-1-thanks-to-auto
makers-adding-jobs/>  - roughly one-quarter of its size 35 years ago
<http://www.wsws.org/articles/2010/apr2010/uawm-a01.shtml>  - a casualty of
globalization and the legal and cultural obstacles the UAW has encountered
to organizing new members. 

Michigan Republicans have seen a chance to weaken the UAW and labor's power
at election time. Doing so further diminishes the number of workers who can
bargain for a raise. It's nice that conservatives are finally acknowledging
that workers' incomes are stagnating. But workers don't get raises if they
can't bargain collectively, and all the hand-wringing about our rising rates
of inequality will be so much empty rhetoric unless we insist - in Lansing
and Beijing - on workers' right to form powerful unions. 
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