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Yet Another Reason Why Today’s Unions Suck: Dues Devour Wage Increases

By: LaborUnionReport (Diary)  |  April 26th, 2012 at 06:00 PM  | 

RESIZE: AAA

On the eve of Obama’s NLRB unleashing its new rules giving unions the ability to hold ambush elections—that is, the evisceration of employers’ ability to question or challenge unions in their quest to cherry-pick voting units—more data was just released by the Bureau of National Affairs that calls into question why anyone in their right mind would pay dues to a union today.

In addition to the $369 billion in underfunded union (private-sector) pension plans, the abundant evidence that unions kill companies and destroy jobs, today’s unions are doing such a miserable job at the one thing they’re supposed to do—negotiate contracts—that union members should demand refunds from their union bosses.

According to the April 9th issue of the Bureau of National Affairs Daily Labor Report (subscription required), unions negotiated contracts in 2011 that, in 41% of the contracts, employees received no increase in the contracts’ first year.

While 41% of the contracts negotiated by unions in 2011 contained wage freezes, according to BNA’s survey, of the contracts where increases were negotiated, the average wage increase that was obtained for the first year was a pathetic 1.4%.

According to BNA:

A Bloomberg BNA analysis of collective bargaining agreements negotiated in 2011 found that the average first-year wage increase under contracts negotiated last year was 1.4 percent, compared with 1.6 percent reported in 2010. The average second-year increase in 2011 was 1.7 percent, compared with 2 percent in 2010, and the average third-year increase was 2.1 percent, compared with 2.3 percent a year earlier….

Given that union dues for most union members range from around 1.3% to 5% of pay, once union dues are deducted from members’ wages, the negotiated increases unions “achieved” for their members in 2011 are eaten up (and then some) by union dues.

Of course, union bosses continue to blame “the 1%” for their failure to garner anything better for their union members. However, the reality is, today’s unions have become nothing more than parasites sucking the life out of  job creators and their employees.

_____________

Originally posted on LaborUnionReport.com.

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“Truth isn’t mean. It’s truth.”
Andrew Breitbart (1969-2012)

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  • jakee308

    from a strike.

    I tell folks that unionism relies on OTHER workers not being unionized otherwise all the gains made by unions would go to paying for OTHER workers high wages. Think about it.

    It why unions love illegal immigrants. It’s why they restrict entry to trades as once you learn the trade, you don’t need the union so much.

    Unions are all about RESTRICTING LABOR. that’s why union workers are generally less productive than those who are not. Some will try to convince you that that’s because employers will abuse their workers and sometimes this is true but not so much anymore and not for those who are semi-skilled, skilled or experienced.

    Union workers will do their best to maintain a reduced pace so’s not to “kill the job”. It’s why they ‘re so violent as anyone who opposes them forces them to work for their money and they’ve been taught that’s a suckers game.

    Whoever allowed government unionization should hang alongside the guy who thought up deducting taxes directly from your pay.

    • The_Gadfly

      He worked as a janitor at the Hershey chocolate factory. Every time the contract was up, the union always went on strike “for better wages.” Yeah, he walked the picket line when he was called, but that was for self-protection reasons, not because he believed in it. Whenever it happened he’d go on long rants about how much money he was losing because of the strike, even after he go money back from the strike fund.

      I don’t know if he understood the extended effects, but he did understand how much wasn’t going into his wallet.

  • northeastred

    that the Wal-Mart business model is how it’s going to be in this country. Successful businesses today need to have healthy competition for executive positions, incentivized by higher pay and bonuses based on quarterly/yearly earnings, and an abundance of replaceable, low level jobs. The more middle class/manager types needed to run a business, the more they will drain from profits. We learned this in Detroit where the assembly-line workers, thanks to unions, were soaking the companies. There is no reason to pay $50 an hour in 1990 for that kind of work. Not when you can pay about a third that rate in the South for the same work. It’s a no-brainer. Granted, there will be less people living “the American Dream” in that scenario. But in the South, workers have managed by simply lowering expectations. Their families may have to have two breadwinners now to pay their bills, but that’s the way it is. If they work hard enough, some of them can work their way up the corporate ladder. My father was in a union, but he never went to college and didn’t have many other choices in his field. I grew up in a nice suburb and attended college and became successful by any measure. But when I look back, I feel sad that he didn’t rebel against unions, or try to work his way up to an executive position. I wonder how much money he lost during strikes, and to union dues. There certainly wasn’t much of an inheritance for any of his children. We all had to make it on our own.

  • phototiger

    I’ve often thought of putting a bumper sticker such as this on my car, in response to all of those “Union Yes” stickers I see on cars and trucks. However, I’m certain that some, ahem….”unfortunate accident” would occur to my vehicle in a parking lot or someplace where my freedom of speech isn’t appreciated. Hardcore union supporters don’t like to be challenged, at the polls or on the roads.

    • davesinsanantonio

      and put them over top of the “Union Yes” stickers when you see them in a parking lot.

      • http://www.tinfoilhelicopter.com lunaticrex

        …I would recommend against that, Dave. Especially seeing that many unionized areas are also areas where people are not allowed to arm themselves.

        Also, I’m pretty sure it would be a misdemeanor. So, you’d have law enforcement against you. And remember, those cops are…union!

        Now, a bumper sticker on your own car? Have at it. But be prepared.

  • billstanley

    From 1989 to 2011, each of 9 labor unions made political contributions between $15 million and $47 million, totaling $264 million. Each gave at least 89% of their contributions to Democrats and 2% or less to Republicans. www.newsandopinions.net

    • http://impudent.edublogs.org/ kyle8

      they would all have to be card carrying Commies to be that left wing.

  • dpmaine

    I don’t think this is that useful to the cause of restraining unions.

    If most unions negotiated to hold their jobs and for stable wages, that’s not necessarily a sign that the employers have won.

    Right now there is massive unemployment, which should be driving wages down. Workers should be competing for jobs on pay, skills, and flexibility.

    Instead unions have, I see it, “won” contracts protecting jobs and holding the line on wages.

    How can this possibly be construed as a win for employers?

    • http://www.laborunionreport.com LaborUnionReport

      Unions “sell” workers on the concept that, somehow, they can do better for workers than the workers can do for themselves.

      The reality is, that is no longer true (hence the term today’s unions).

      In fact, by your comment about protecting jobs, you seem to have completely missed the link to this: http://bit.ly/Iq07j9

  • ihateliberals

    At one time the Unions were for the employee’s and their rights and needs. Now the Unions look at employee’s as a necessary evil so they can raid companies. What good is a raise in the company if the Union is just ging to raise it dues and take it away. Unions have been responsible for more jobs lost to the off-shore job market. Another problem with bug Unions is Big Bosses. I know there is no way to accomplish this but it would be nice if top salaries were limited to a fixed amount an that term limits on bosses could be imposed. this would give some ability to break up the Jimmy Hafa style of management. I have worked in states the have Rights-to-work laws and personally I believe that there should be a National
    Rights-to-Work law. no one should have to jin a Union in order to have a job.

    • ihateliberals

      n/t