Published on National Right to Work Legal Defense Foundation (http://www.nrtw.org)
Fact Sheet: Union Monopoly Privileges Linked to Lower Earnings and Disposable Incomes for Workers
By Anthony Riedel
Created 28 Aug 2009 - 2:12pm

Contrary to the usual propaganda union bosses would like you to believe, the National Institute for Labor Relations Research [1] (NILRR) -- an anti-compulsory unionism think tank that exposes the harm forced unionism inflicts on workers -- released [2] a report today entitled "Union Monopoly Linked to Lower Purchasing Power" that details how workers in least-unionized states enjoy the benefits of higher cost-of-living-adjusted earnings and disposable incomes.

You see, not only does government-granted union monopoly bargaining privileges infringe on employees' individual liberty, it also harms employees' economic interests.

According to NILRR:

As of 2008, according to economists Barry Hirsch and David Macpherson, 8.4% of private-sector employees nationwide were under “exclusive” union representation. But in 15 states -- Alaska, California, Hawaii, Illinois, Indiana, Michigan, Missouri, New Jersey, Nevada, New York, Ohio, Pennsylvania,. Washington, West Virginia and Wisconsin --10.0% or more of private-sector workers were unionized.

...

In 2008, cost of living-adjusted average weekly earnings in the states with 10.0% or more of private-sector employees subject to union monopoly bargaining were $770.

That’s $48 less than the average in the states with private-sector unionization of 5.0% or less. (These low-union density states are: Arkansas, Florida, Georgia, Louisiana, New Hampshire, North Carolina, North Dakota, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah and Virginia.) That comes to a roughly $2500-a-year disadvantage for full-time workers in states with high monopoly-bargaining density.

Aggregate cost of living-adjusted weekly earnings for states with private-sector union density of 5.1% to 9.9% were $783, or, for full-time workers, nearly $700 a year more than in the highest-union-density states, but more than $1800 a year less than in the lowest-union-density states.

NILRR also reports that "disposable income data tell the same story."

The economic benefits of voluntary union membership should come to no surprise to regular Freedom@Work [3] readers, as we reported [4] last month in "Compulsory Unionism Bankrupting States: Workers Flee to Right to Work States for Jobs":

NILRR recently found [5] 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 [6] from faster job growth and higher real purchasing power than their compulsory unionism counterparts.

To view NILRR [7]'s fact sheet "Union Monopoly Linked to Lower Purchasing Power", click here [8].

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Source URL: http://www.nrtw.org/en/blog/nilrr-union-monopoly-linked-lower-purchasing-power-08282009

Links:
[1] http://www.nilrr.org/
[2] http://www.nilrr.org/node/95
[3] http://www.nrtw.org/en/blog
[4] http://www.nrtw.org/en/blog/big-labors-bankrupting-agenda-07012009
[5] http://www.nilrr.org/node/89
[6] http://www.nilrr.org/node/85
[7] http://www.nilrr.org/
[8] http://www.nilrr.org/node/95