
Month in Review | |
| March 1997 | |
Growing Power of Federal Employees' Unions |
Public employee unions are starting to muscle-in to government policy
decision-making, government officials say. And they are being aided in
their efforts by President Clinton himself. Moreover, before Clinton took office, union members could not use paid
government time to lobby Congress -- but they can now, thanks to a Federal
Labor Relations Authority ruling. Source: David A. Price, "Federal Unions' Growing Clout," Investor's
Business Daily, March 7, 1997. |
Union's Seek to Stem Membership Decline |
John J. Sweeney, president of the largest labor union organization in
the United States, the AFL-CIO, recently announced a major redirection of
union resources toward recruitment of new members. The goal is to stop the
hemorrhaging of union membership as a share of the U.S. labor force (see
figure). This represents a drop of 91,000 union workers just since 1995 -- 0.4
percent of total employment. For many years, the industries where unions were strong were those where
employment was stagnant or declining. Overall manufacturing employment,
for example, has fallen by about 2 million since 1980. By contrast, industries
where unions traditionally have been weak have grown sharply. Thus employment
in services virtually doubled between 1980 and 1996, from 17.9 million to
34.4 million. The only major growth area for unions has been government,
where almost 40 percent of workers are now union members. Another factor leading to union weakness is the declining wage premium
for union membership. In fact, in some industries there is virtually no premium at all. Union
workers in finance, insurance and real estate -- an industry where employment
has grown rapidly --made $534 per week in 1996 while non-union workers made
$520. Changing trends in pensions may also be a factor. During the heyday
of unions, most pensions were of the defined-benefit variety -- companies
took responsibility for investing pension assets and workers were promised
a fixed monthly benefit. But over the last 20 years, growing numbers of
pensions have been converted to defined-contribution plans in which workers
must make their own investment decisions. With many defined-contribution
plans invested heavily in corporate stock, workers may now view themselves
more as owners than wage-slaves. Unions often blame Washington for their problems. If only more union-friendly
legislation could be passed, they believe, there would be a turnaround in
union strength. Hence, vast resources have been poured into anti-NAFTA
and anti-Republican efforts -- but to no avail. The trends toward globalization
and government downsizing have been too strong to resist. This suggests
that Sweeney's new recruitment strategy has more promise. Source: Bruce Bartlett, Senior Fellow, National Center for Policy Analysis,
March 10, 1997. For more analysis by Bruce Bartlett, go to http://www.ncpa.org/oped/bartlett.html |
Union Membership Declines in Private Sector |
American workers appear to be shunning union halls in record numbers. Unions participated in fewer elections to certify themselves as bargaining
agents during the first nine months of 1996 than in the same period of 1995,
and lost more of them. Political observers say that President Clinton could help friendly unions
by issuing an executive order permitting federal unions to charge non-members
a fee for services rendered -- which would generate huge sums for the unions.
But, they say, there is little he can do to shore up unions in the private
market. Source: Leo Troy (Rutgers University), "Unions 'Charge' Into the
21st Century," Wall Street Journal, March 18, 1997. For more on Unions go to http://www.ncpa.org/pd/unions/unions.html |
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