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Friday, December 12, 2008

Poor Labor Unions?

Poor Ron Gettelfinger. The president of the United Auto Workers union held a press conference on Friday, December 12. Not only did he discuss the state of the auto company bailouts, but he complained about all those nasty people on the “right wing” who have demonized labor unions.

After all, Gettelfinger indicated that the only way employees can have a say in their workplace is through labor unions. For good measure, he signaled his preferences for government industrial policy and protectionism on the trade front.

Of course, Gettelfinger’s job is to defend his union. But talk about being completely disconnected from economic reality.

Labor unions are in decline in this nation not because of some “right wing” cabal or conspiracy, but because unions make businesses less competitive and restrict the opportunities of employees. In a dynamic, fast-paced, global economy, labor unions raise costs, and restrain innovation. That’s not good for business, workers or our economy in general.

The decline in labor union membership has been breathtaking over the past 35 years. Consider that, according to Unionstats.com, labor union members as a share of private sector employment went from 24.2 percent in 1973 to 7.5 percent in 2007.

That’s not about businesses and conservatives keeping unions down. Instead, it’s about individuals not wanting to be union members. Apparently, people can have a say in their work and workplace without being a union member.

So, labor unions, as usual, are left going to the government to get what they want – whether that be a bailout or the imposition of assorted mandates and regulations on business.

Raymond J. Keating
Chief Economist
Small Business & Entrepreneurship Council

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