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Fact Sheet: States with High Rate of Union Monopoly Bargaining Suffering a Horrific "Lost Decade"

Last week, the pro-worker think tank National Institute for Labor Relations Research (NILRR) released a Fact Sheet entitled “Negative Employment Growth Since November 2001” that details how highly-unionized states are suffering a "lost decade" in terms of private-sector job growth, while the least-unionized states have benefited from a nearly 1.5 million private-sector job growth:

As of 2001, the year of the last national recession prior to the current one, 9.7% of private-sector employees nationwide were under “exclusive” union representation. But in 16 states – Alaska, Hawaii, Illinois, Indiana, Iowa, Michigan, Minnesota, Missouri, New Jersey, Nevada, New York, Ohio, Pennsylvania,. Washington, West Virginia and Wisconsin – 11.0% or more of private-sector workers were unionized.

From November 2001, the trough of the last recession, through June 2009, the most recent month for which non-preliminary, state-by-state payroll jobs data are available at this writing, these 16 heavily unionized states suffered an aggregate private-sector job loss of 990,000 – or 2.2% of their November 2001 total. Ten of the 16 states, or nearly two-thirds, had fewer private-sector jobs in June 2009 than they had had nearly eight years earlier.

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The overall job losses in states with average private-sector unionization were far smaller than in heavily unionized states, and the 16 states which had private-sector unionization of 6.0% or less in 2001 actually gained jobs.

These low union-density states are: Arizona, Arkansas, Florida, Georgia, Louisiana, New Hampshire, New Mexico, North Carolina, North Dakota, Oklahoma, South Carolina, South Dakota, Texas, Utah and Virginia. They gained an aggregate of nearly 1.5 million private-sector jobs from November 2001 through June 2009. That constitutes a 4.5% increase.

Even with recent setbacks taken into account, fifteen of the 16, or 94%, of the lowest union-density states have experienced net job gains since November 2001.

Putting aside the inherent abuse of workers' rights, the data clearly indicates that job growth is negatively impacted by Big Labor's government-granted monopoly bargaining special privileges.  Yet NILRR's findings should come to no surprise to regular Freedom@Work readers, as we reported recently:

NILRR recently found an especially strong correlation between a state’s Right to Work status and its job growth, while employees in Right to Work states are benefiting from faster job growth and higher real purchasing power than their compulsory unionism counterparts.

History clearly demonstrates how union monopolists have hindered the creation of new jobs with costly operating procedures and wasteful work rules, especially during times of financial hardship.  Meanwhile, union bosses use their monopoly bargaining and other special forced-dues privileges to fill their political coffers while proliferating Big Government-mandated regulations on job providers and higher taxes on employers and employees alike. 

Research Institute Finds ‘Card-Check’ Forced Unionism Threatens Job-Based Private Health Insurance

The National Institute for Labor Relations Research (NILRR) recently published a fact sheet discussing U.S. Census Bureau data from 1999 to 2007 that shows the "Card Check" Forced Unionism Bill and similar legislative "compromises" actually endanger workers' access to health insurance.

According to NILRR's observations:

As of 1999, according to economists Barry Hirsch and David Macpherson, 10.2% of private-sector employees nationwide were under “exclusive” union representation.  In 10 states -- Alaska, Hawaii, Illinois, Indiana, Michigan, Nevada, New Jersey, New York, Ohio and Washington -- 14% or more of private-sector employees were unionized. From 1999 to 2007, these states suffered an aggregate decline of 3.0%, or 1.44 million, in the number of people with private, job-based health insurance.

The 22 states with 1999 private-sector unionization of between 7.0% and 13.9% also experienced an overall decline in access to job-based insurance, but the decline was substantially less
severe. The employment-based insurance rolls in these states -- Alabama, California, Connecticut, Delaware, Idaho, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Minnesota,
Missouri, Montana, New Mexico, Oregon, Pennsylvania, Rhode Island, West Virginia, Wisconsin and Wyoming -- fell by 843,000, or 1.2%, from 1999 to 2007.

Meanwhile, the 18 states with 1999 private-sector unionization of no more than 6.9% -- Arizona, Arkansas, Colorado, Florida, Georgia, Mississippi, Nebraska, New Hampshire, North Carolina, North
Dakota, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont and Virginia -- had a very different experience. These least-unionized states enjoyed an increase of 2.96 million, or 5.2%,
in the number of people with job-based private health insurance.

NILRR sums up their findings by stating, "there is a strong negative correlation between the growth in the ranks of the privately insured within a state and the share of its private-sector employees who are subject to union monopoly bargaining."  In other words, in states where union bosses are more likely to hold their grasp on private-sector workers in the workplace by claiming monopoly bargaining privileges over them, the more likely the number of those employees and their families receiving private health insurance from their employer will decrease -- i.e. forced unionism threatens workers' access to private-sector job-based health insurance. 

Enter Big Labor's latest compulsory-dues power grab: card check forced unionism.  Card check forced unionism (and similar legislative "compromises" being floated in the U.S. Senate right now) intends to help Big Labor herd more workers into compulsory unionism by making it easier for union bosses to use coercion and intimidation to claim monopoly-bargaining power over millions of additional workers.  However, NILRR's research illustrates that President Barack Obama and Congressional compulsory unionism advocates are working steadily to sell out not only workers' rights -- but also their well-being -- to continue to dole out paybacks for Big Labor's political support.

For more on NILRR's findings, click here.


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