Unions Bring Big Benefits to California

Foodora work

If you work in a unionized environment you’re likely doing better than a person in a non-union environment according to a study done in California. You’re also less likely to make use of the state’s welfare system. What’s more this means that the whole state benefits from unions as more economic activity is happening as a result with less costs imposed on the social welfare system. The pandemic has really made it clear that unions can make a big difference in how workplaces react to the economic troubles.

  • Workers covered by a union contract in California earn an average of 12.9 percent more than non-union workers with similar demographic characteristics and working in similar industries.

  • Overall, we estimate that unions increase workers’ earnings in California by $18.5 billion annually through collective bargaining.

  • Unions decrease by 30.6 percent the likelihood that a worker is in a family where at least one member is enrolled in a public safety net program, compared to non-union workers with similar demographic characteristics and working in similar industries.

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A Union in the Kitchen will Improve Your Life

coffee

Thanks to the efforts of billionaires, and other corrupt individuals, union workers have been portrayed as lazy and inept. If anything, the opposite is true. Workers in unions have different goals than business owners insofar that workers just want to earn a good living while owners want to extract profit from consumers. Young workers today have noticed that the profit motive has left behind has the cost of living increase and wages remain stagnant. This has forced many young workers to unionize, and that unionization push is starting where a lot of young people end up working: kitchens.

Public opinion has recently swung in the other direction. Just over 10 percent of Americans are in a union now, considerably less than the 34 percent in 1954. However, more than half of Americans now say they view unions favorably, a number that has risen from around 41 percent since the recession. If there’s a silver lining to the ongoing decline of unionization, it’s that now, “membership in unions has gotten so low that people don’t even have a negative view of unions anymore,” Rogers says. There’s less of the cultural baggage associated with being in one, the slate has been wiped clean. Many of the organizers I spoke to said they’d never been in a union before, and either had no idea what they were about until recently, or a positive impression based on a dictionary definition of a union as a group of people with common cause arguing for their rights.

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Economists: Improve the Economy by Empowering Workers

economic chart

Attacks on unions isn’t anything new, even when workers are asking for safer conditions or a little job security. What is new is that economists are starting to realize that we need stronger worker groups to advocate for labour or the economy as a whole suffers. Over the last few decades we’ve witnessed the rise of massive corporations that bully governments and workers; inevitably this process will gut the productive parts of planet (with fantastic short-term gains!). So, if we want our economy to do well for decades on end we need to ensure that all people involved in it get a share of the benefits.

A complementary approach would be to increase workers’ power. Historically, this has been most effectively done by bringing more workers into unions. Across advanced economies, wage inequality tends to rise as the share of workers who are members of unions declines. A new paper examining detailed, historical data from America makes the point especially well. Henry Farber, Daniel Herbst, Ilyana Kuziemko and Mr Naidu find that the premium earned by union members in America has held remarkably constant during the post-war period. But in the 1950s and 1960s the expansion of unions brought in less-skilled workers, squeezing the wage distribution and shrinking inequality. Unions are not the only way to boost worker power. More radical ideas like a universal basic income—a welfare payment made to everyone regardless of work status—or a jobs guarantee, which extends the right to a government job paying a decent wage to everyone, would shift power to workers and force firms to work harder to retain employees.

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Productive Companies Include Workers on Their Board

Interview

Since the late 1970s (coinciding with the rise of neoliberalism) wages have stagnated while executive pay keeps rising. This has led to inequality being one of the largest issues facing companies and countries in the 21st century. Accordingly, people sick of neoliberalism have been looking into ways to address inequality and the subsequent economic stagnation. One solution is to have workers sit on the board of their employer. This results in better treatment of the workforce while providing more opportunity for growth in efficiencies within the company.

Research has found that the setup reduces worker turnover, boosts salaries and productivity, and supports income equity. Shareholder returns do suffer slightly, but researchers largely agree that tilting the flow of revenue back toward workers is a good thing.

It stands to reason that the concept holds a great deal of sway over the American public. The gulf between CEO and shareholder earnings and that of employees is often as extreme as 25 to one. Wages for regular workers have held largely stagnant over the last three decades, as executive salaries have ballooned. Bringing actual employees to the table where these decisions are made could serve to flatten the cliff between management and workers.

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Don’t Believe the Myths of Minimum Wage

Interview

2018 marked a minimum wage increase in Ontario which follows a trend throughout North America of raising the level minimum companies can pay workers. Large, heartless, corporations like Tim Hortons have released statements that they think paying people more is bad – they are wrong. It’s clearer than ever before: minimum wage increase have historically been good for the economy and people.

We have been raising the minimum wage for 78 years, and as a new study clearly reveals, 78 years of minimum-wage hikes have produced zero evidence of the “job-killing” consequences these headline writers want us to fear.

In a first-of-its-kind report, researchers at the National Employment Law Project pore over employment data from every federal increase since the minimum wage was first established, making “simple before-and-after comparisons of job-growth trends 12 months after each minimum-wage increase.”

What did the researchers find? The paper’s title says it all: “Raise Wages, Kill Jobs? Seven Decades of Historical Data Find No Correlation Between Minimum Wage Increases and Employment Levels.”

The results were clear. Of the nearly two dozen federal minimum-wage hikes since 1938, total year-over-year employment actually increased 68% of the time.

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