The difference in the percentage of union members in the public sector versus the private sector is even greater than reported. Recently the public sector percentage has been reported as 36% (it is actually over 41% in the state and local government sector) versus 7% in the private sector.
But the 7% figure in the private sector is inflated. First, the federal government in its bailout of General Motors and Chrysler cut deals that strengthened the position of their unions. If the companies had gone into a traditional bankruptcy without federal support they likely would have been reincarnated as non-union businesses.
Then we have government construction projects that require union labor. In 2009, Obama signed an executive order that allowed federal agencies to require that contractors on large federal projects be unionized.
In other words many of the 7% of “private” workers that are reported as union are really quasi-government.
But alas it is like arguing against apple pie and motherhood. A politician today would rather speak out in support of Muammar al-Gaddafi than say publicly: “The time for unions has passed”.
An interesting new college model - Minerva
10 years ago
And this does not even consider the union membership in public utilities like gas and electric companies.
ReplyDeleteCompanies like Pacific Gas & Electric (my old company) has a large union work force and their wages and compensation is in essence (although not directly) approved by the California Public Utilities Commission. PG&E really does not care if the wages are high relative to the market as long as they can pass those costs on to their customers with rates approved by the CPUC.