The U.S. Bureau of Labor Statistics announced last week that for the first time, the number of government employees in unions exceeded the number in the private sector, which fell to a new low of 7.2 percent, down from 7.6 percent in 2008. At the same time the number of government employees in unions rose from 36.8 percent to 37.4 percent.
But private sector union membership has been on a slow and steady decline for decades. While union leaders decry the numbers, saying that good union jobs are disappearing, the reality behind unions is much more complex. To an extent, they have become a victim of their own success.
The AFL-CIO, the largest union federation in the U.S., claims on its Web site that unions help “build stronger workplaces” and “give workers a voice on the job about safety, security, pay, benefits — and about the best ways to get the work done.” Further, it says, unions “represent working families before lawmakers, and make sure politicians never forget that working families voted them into office.”
All of that, it turns out, is somewhere between misleading and blatantly untrue.
“They artificially increase wages in unionized industries, limit employment opportunities, depress wages in nonunion jobs, lower rates of return on investment in unionized firms, and slow the growth of productivity,” writes James A. Dorn, professor of economics at Towson University and editor of the Cato Journal. “Unions politicize labor markets and have used the threat of violence to protect their wage premiums. In addition to using their monopoly power to secure higher than market wages, unions spend huge sums of money to maintain their power and limit competition.”
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