Monday, September 1, 2014

Private Sector Labor Unions Declining

Labor Unions in the private sector continue to decline.  Today, only about 11% of workers in the private sector belong to Labor Unions.  This is down from 30% in 1950.  The decline has happened for two reasons.  First,  many of the things related to compensation and benefits, work rules etc. that were always the reason Labor Unions existed have been codified into law.   Things like the 8 hour day, prohibition of child labor, minimum wage, unemployment and disability insurance and now ObamaCare are the law.  When given the opportunity to vote most workers in the private sector vote NO related to Labor Unions because they do not want to pay union dues to support Labor Union Bosses.  

In addition, outrageous demands by Unions for more compensation and benefits over the years, along with EPA Gestapo tactics have destroyed manufacturing jobs in the United States that typically may have been unionized.  Those jobs are now in China, or other low wage countries and they are never coming back.   There never has been a realization by big Labor Unions concerning global competition.   No company is going to pay $80 an hour fully loaded for low skilled work that could even be done by a robot that doesn't complain and rarely breaks down.  Sorry, but it is what it is. 

The only growth in Labor Unions has been in the Public Sector where 35% of workers are in unions.  This is only possible because in many cases these workers do not face any competition.   They are often in jobs that cannot be off shored by law, not because the work could not be done overseas; but because their crony Socialist benefactors have made sure that the gravy train keeps coming to buy votes.   So much so that public employees typically earn 40% more in compensation and benefits, including unsustainable pensions, that are common for like work in the private sector.  

Even Socialist President Franklin Roosevelt was opposed to collective bargaining for public sector employees because he knew it would bankrupt our country and that is exactly where we are headed today. 

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