Friday, December 14, 2012

Trouble for Labor Unions in Michigan

According the Economist, Right to Work (RTW) legislation was passed in the Republican controlled state of Michigan this week. RTW’s enactment in Michigan, the heart of the US car industry and the heart of labor unions themselves, seems to be a direct assault against labor unions at its root. RTW makes it illegal for unions to require union dues of its members as a condition for employment and union representation.

With the increased polarization of political parties the corresponding increase in the level of partisanship in labor unions in general, this may seem like a good idea. Dues paid to unions sometimes go to support certain political agendas, parties, candidates, or ideas in addition to the other purposes that the monies have. Union members being able to opt out of paying dues, especially if their own constituencies do not coincide with those of the union as a whole, may be more socially liberal than the alternative. One would be able to express their personal individualism by choosing whether or not to contribute.

On the other hand, if the requirement of dues is outlawed, unions are bound to lose a steady flow of income from their members. This would definitely reduce their political power and decrease their ability to bargain with the major industries that employ them. Opponents of the bill widely believe that this legislation will eventually drive down wages, while proponents cite that these measures are more fair and would help make Michigan a more business friendly state.

What is interesting about this legislation is its swiftness. According to the New York Times, Governor Snyder had not considered the bill to be on his agenda and usually projected some air of neutrality where labor unions were concerned. On December 6th, during the last days of the Legislature’s meetings, Snyder announced his support of the measures, which he signed into law 6 days later.

Though thousands protested in front of the state house, this very sudden course of action may not have given potential opponents enough time to mobilize to try to maintain the labor union’s status-quo within the state. Also, the abrupt manner in which the RTW legislation was introduced and passed is alleged to have a lot to do with the influence of powerful, wealthy interest groups and donors.  

So what is this really about? There seems to have been some internal lobbying that affected this outcome, perhaps dramatically. With the FTW measure, the bargaining power of labor unions may decrease. Capacity to negotiate contracts and benefits could be undermined, and to what avail? Are the financial security of unions and the business environment of the state a zero-sum issue? That is, an issue where one cannot prevail without the sacrifice of the other. What is this really about? It may have taken some non-arbitrary under-the-scenes lobbying or compromising to have had this measure introduced and enacted so quickly. This is probably more about politics than it is about the workers. As I have pointed out, unions are more aligned with the Democratic Party.  Labor unions may have become a throwing stone for political parties to use as they please. This would be at the risk of the union workers themselves.


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