- The Foundry - http://blog.heritage.org -

Morning Bell: Big Labor Is Bankrupting Our Country

Posted By Conn Carroll On November 13, 2009 @ 10:06 am In Enterprise
and Free Markets | 25 Comments

Last month when the White House released its visitor log [1] for the
first six months of the Obama presidency, one name appeared far more
often than any other: Service Employee International Union (SEIU)
President Andrew Stern. Stern has every right to expect to be welcome
in the Obama White House. He has repeatedly bragged [2] about the fact
that under his leadership, the SEIU spent $60.7 million to elect
Barack Obama president. Stern and Obama collectively support ever
expanding federal government programs and state government bailouts
which are rapidly bankrupting our country.

Unlike his predecessor, John Sweeney [3], who came up the ranks after
starting with the International Ladies Garment Workers Union, Stern
entered the labor movement when the SEIU organized his shop when he
was working as a welfare case worker [4] for the State of
Pennsylvania. Stern’s public sector entrance into labor is by no means
an anomaly. In fact, for the first time ever in American history,
preliminary estimates of union membership for 2009 show that most
union members now work for either the local, state, or federal
government [5].
Heritage scholar James Sherk has the numbers [5]: “The overall
unionization rate between January and September 2009 stood at 12.4%
[6], unchanged from last year. However, this difference masks a large
difference between unions in the private and public sectors. Union
membership has fallen to 7.3% [7] of private sector workers – the
lowest rate since Roosevelt signed the National Labor Relations Act
into law. But it is a completely different story in the public sector:
37.6% [8] of government employees belong to unions, up almost a
percentage point since last year. Those 7.9 million unionized
government employees are 51% of all union members nationwide.”

The days when “union member” meant an American working in a steel
plant, or coal mine, or auto factory are gone. Today, unions are
dependent on government, not the private sector, for their livelihood.
Therefore, unions like the SEIU have little interest in private sector
job growth. Private sector jobs don’t help fund $60.7 million
political campaigns. But government jobs do. The change in incentives
has been devastating to American taxpayers. Manhattan Institute senior
fellow Steven Malanga explains [9] why:

In the private sector … employers who are too generous with pay and
benefits will be punished. In the public sector, however, more union
members means more voters. And more voters means more dollars for
political campaigns to elect sympathetic politicians who will enact
higher taxes to foot the bill for the upward arc of government
spending on workers.

Heritage’s Sherk details [5] just some of the ways we have already
witnessed this:

•In Oregon, the labor movement is donating hundreds of thousands of
dollars to fund two ballot initiatives to raise personal income and
business taxes [10]. The unions want tax hikes instead of cuts in the
gold-plated medical benefits for state workers [11].
•In California, the SEIU spent $1 million on a television ad campaign
pressing for higher oil, gas, and liquor taxes [12] instead of
spending reductions.
•However, in Washington, state Democrats have so far resisted the
labor movement’s call for higher taxes. In response labor unions are
threatening to fund primary campaigns against the Democrats who oppose
the tax hikes [13].
The United Auto Workers already made General Motors and Chrysler so
uncompetitive they had to be bailed out by President Obama. But who
will Obama turn to when Stern’s SEIU has bankrupted us?

<SNIP>

http://blog.heritage.org/2009/11/13/morning-bell-big-labor-is-bankrupting-our-country/print/
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