Category: Labor

Workers Beware!

The measures announced Monday confirm once again that the Obama administration is a government of, by and for the financial elite which exerts a stranglehold over the economy and controls the entire political establishment.

The investment bankers represented by Obama are using the economic crisis as an opportunity to fundamentally restructure class relations in America. Culminating a three-decade offensive against working people, they are destroying whatever remains of the gains made by previous generations of workers so as to intensify the exploitation of the working class.

The attack on auto workers will become the spearhead for similar attacks against workers throughout the country and internationally, in every sector of the economy. Wage cuts, layoffs and cuts in benefits and social programs will be implemented across the board. The Obama administration has already made clear that it is targeting basic entitlement programs such as Social Security, Medicare and Medicaid.

After the auto companies received government loans last year, the UAW promoted the lie that the Obama administration would take a pro-worker position and the union bureaucracy enthusiastically backed his campaign. This, just as every other policy of the union, has proven to be a trap and betrayal of the workers’ interests.

The War of the Collars is approaching……which side of the line will you stand?

Employee Free Choice Could Save The Economy

This is a statement from the AFL-CIO blog:

AFL-CIO Now In a statement delivered today to Capitol Hill and published as a full-page advertisement in The Washington Post, more than three dozen of the nation’s top economists call on Congress to pass the Employee Free Choice Act to help restore an economy that works for everyone, built on a sustainable, wage-based growth.

The statement, signed by 39 of America’s top economists, including two Nobel Prize winners, points to the failure of U.S. labor laws to protect employees’ freedom to form a union and bargain as a major factor in our economic crisis. The statement says in part:

Indeed, from 2000 to 2007, the income of the median working-age household fell by $2,000—an unprecedented decline. In that time, virtually all of the nation’s economic growth went to a small number of wealthy Americans. An important reason for the shift from broadly shared prosperity to growing inequality is the erosion of workers’ ability to form unions and bargain collectively.

These economists, representing respected universities and policy institutions from across the nation, point to the corporate-dominated system for forming unions—and the coercion and anti-union campaigning by management—as the causes for declining wages and a gravely weakened economy.

A rising tide lifts all boats only when labor and management bargain on relatively equal terms. In recent decades, most bargaining power has resided with management. The current recession will further weaken the ability of workers to bargain individually. More than ever, workers will need to act together.

Although current headlines are dominated by the crises in the stock market and the financial sector, working families have been struggling for years under the weight of an unbalanced economy. These economists say that restoring bargaining power and ensuring working people have a voice in their workplace, and in their health care, pensions and wages, is critical to rebuilding our economy.

James K. Galbraith of the University of Texas, one of the economists who has signed on, says the freedom to form unions and bargain has many benefits for the economy and the country.

I support the Employee Free Choice Act for two reasons. First, it levels the playing field after a generation of anti-union policies, and in a world where far more workers are in decentralized, hard-to-organize workplaces than was true a generation back. Second, unions are a proven ally of progress, not only in politics but also in economics: unionized workforces promote technical change and productivity growth, because they make it possible to distribute more fairly and less brutally the costs of change.

Could Unions Save The Economy?

Exerpts from an article written by Joel Wendlad for Ploitical Affairs magazine:

Joining a labor union provides the most direct path to improving a worker’s standard of living. If done on a large enough scale, unionization could help revive the entire US economy, a chorus of voices have argued recently.

In a recent telephone conference to discuss the economic benefits of unionization with reporters last week, former Labor Secretary Robert Reich said, “One big reason we’re in the crisis that we’re in is that consumers have run out of money.”

Median wages dropped over the course of the past decade, making the period after the 2001 recession the first time ever that working-class wages have fallen during a an economic recovery, Reich noted.

The collapse of the housing market and the credit crunch combined with declining wages meant that working families had little or no personal financial safety net to fall back on, worsening the economic crisis to its historic proportions. “The entire economy is in trouble because there simply is not enough demand out there,” Secretary Reich said.

“If [workers] did have higher wages and higher benefits, they would have the purchasing power they need to buy more of the goods and services that this economy produces,” Reich emphasized. “And that would strengthen the economy overall.”
According to congressional Web sites, the Employee Free Choice Act aims to establish or revise three basic labor laws: 1) to give workers a choice about how to certify a union in their workplace, using either a secret ballot or a majority sign-up process; 2) increases and enforces penalties on employers who threaten or harass workers who try to join a union; 3) eliminates red tape by speeding up the process of arbitration and mediation that employers often now delay endlessly at taxpayer expense.

Union members earn an average of about 30 percent higher in wages, are 59 percent more likely to have health benefits and 54 percent more likely to have retirement benefits. Union membership also sharply reduces inequalities in wages and benefits by gender and race.
Beth Shulman, co-director of Fairness Initiative on Low-Wage Work, said that in working with low-income workers, she discovered that as workers joined unions they quickly saw higher incomes, better health care benefits and a sense of dignity and empowerment in the workplace.

“At the end of the day, having a union for millions of workers across the country really is the difference between having a decent wage and impoverishment,” Shulman pointed out. Unions also make a huge difference for communities by raising standards of livings and providing a tax base for improved public services, she added.