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With All Eyes On Trump, Republicans Are Planning To Break Unions For Good (Demo)

On February 2, 2017, Michael Paarlberg writes on The Guardian:

Alternative facts are nothing new; politicians have been making stuff up since they first crawled out of the primordial swamp. One of the most successful lies in modern US politics has been that of “right to work” laws, which break unions under the guise of protecting workers, one of which was introduced in Congress on Wednesday afternoon and will probably break unions in the country for good.

A national right to work law has been a pipe dream of corporate lobbyists, the chamber of commerce, the Koch brothers, and the politicians on their payroll for decades, and is about to become a reality. Right to work laws already exist in more than half the states in the country, where unions are weak or nonexistent, wages are correspondingly low, and workers are correspondingly disposable. In theory, these laws are about guaranteeing workers’ freedom of association. In practice, they’re about keeping workers from forming unions, by making unions financially unsustainable.

The main lie told by right to work proponents is that such laws put an end to “compulsory union membership”. It’s flat-out false; there is no such thing, and hasn’t been since 1947, when the Taft Hartley Act made the closed shop – a type of contract where union membership was a condition of employment – illegal. Nowhere in the US, whether you’re in a right to work state or not, can you be forced to be a member of a union, or fired for refusing to join one.

The second lie is that such laws protect workers from having their dues money go to political causes they don’t support. Nowhere in the country can you be forced to donate to a politician, campaign or political organization you don’t support. If you’re a dues-paying union member, you already have a right to simply not donate to your union’s political fund, and plenty of union members exercise it.

What right to work laws, including this bill, do is outlaw a specific type of voluntary, private employment contract that employers and employees may agree on. Under this agency shop contract, which must be voted on and approved by a majority of employees, workers agree to pay a fair share provision – a fraction of the dues amount that union members pay – to cover the costs of bargaining and enforcing the workplace contract.

The reason such contracts exist at all is because, under the same 1947 law that banned compulsory union membership, unions are bound by what are called “duties of fair representation”. Under DFRs, they are legally required to provide the same services to everyone in a workplace, such as filing grievances, providing legal counsel, or defending someone if they’re disciplined, whether they are union members or not.

This also assures that everyone gets the same benefits from a union contract: health insurance, vacations, rules that say your boss can’t just fire you if he wakes up one day and decides he doesn’t like your face. The idea is to prevent unions from discriminating against those who choose not to join. Obviously, if you’re going to receive a benefit automatically whether you join or not, the incentive is to free-ride. Agency shop contracts are set up to make sure everyone shares the costs so that those grievances get filed. Right to work laws encourage everyone to free-ride until the union is broke, can’t provide those benefits to anyone, and eventually ceases to exist.

Right to work proponents often point to the money unions throw at politicians, mostly Democrats, as justification for starving unions financially. But right to work laws don’t defund political activities, because no worker is compelled to fund them in the first place. The only union functions this law will defund are things like contract bargaining and grievance filing: precisely those everyday workplace activities that Republicans say unions should be restricted to doing.

It bears repeating: the contracts this law will ban are voluntary and agreed on democratically. They are not imposed on anyone by the government, the union or the company. Normally, outlawing a voluntary business contract between private parties is the kind of thing Republicans consider government meddling. And there’s something distinctly unconservative about forcing an institution to provide benefits to non-paying non-members while encouraging them to freeload. But if it’s about crushing unions, they always manage to find an excuse.

Certainly bill sponsors Steve King and Joe “You Lie” Wilson would never let ideological consistency get in the way of an opportunity to crush their opponents. Nor would President Trump, who was elected promising to fight for American workers. Unions are, after all, the only real vehicle for workers to defend their interests, whether in the workplace or the political arena. Taking that away from them leaves workers at the mercy of their bosses and politicians. Which is the whole point, and the only thing this law was ever designed to do.

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https://www.theguardian.com/commentisfree/2017/feb/02/republicans-unions-right-to-work-bill?CMP=share_btn_fb

Gary Reber Comments: Progressive should be advocating for transforming the labor union movement into a producers’s ownership union movement.
None of the outrage would be happening if the labor union movement had transformed to a producers’ ownership union movement and embraced and fight for worker OWNERSHIP stakes in the corporations that employ them.
It is not too late. They should play the part that they have always aspired to––that is, a better and easier life through participation in the nation’s economic growth and progress. As a result, labor unions will be able to broaden their functions, revitalize their constituency, and reverse their decline.
Unfortunately, at the present time the movement is built on one-factor economics––the labor worker. The insufficiency of labor worker earnings to purchase increasingly capital-produced products and services gave rise to labor laws and labor unions designed to coerce higher and higher prices for the same or reduced labor input. With government assistance, unions have gradually converted productive enterprises in the private and public sectors into welfare institutions. Kelso stated: “The myth of the ‘rising productivity’ of labor is used to conceal the increasing productiveness of capital and the decreasing productiveness of labor, and to disguise income redistribution by making it seem morally acceptable.”
Binary economist Louis Kelso long ago argued that unions “must adopt a sound strategy that conforms to the economic facts of life. If under free-market conditions, 90 percent of the goods and services are produced by capital input, then 90 percent of the earnings of working people must flow to them as wages of their capital and the remainder as wages of their labor work…If there are in reality two ways for people to participate in production and earn income, then tomorrow’s producers’ union must take cognizance of both…The question is only whether the labor union will help lead this movement or, refusing to learn, to change, and to innovate, become irrelevant.”
Unions are the only group of people in the whole world who can demand a real Kelso-designed ESOP, who can demand the right to participate in the expansion of their employer by asserting their constitutional preferential rights to become capital owners, be productive, and succeed. The ESOP can give employees access to credit so that they can purchase the employer’s stock, pay for it in pre-tax dollars out of the assets that underlie that stock, and after the stock is paid for earn and collect the capital worker income from it, and accumulate it in a tax haven until they retire, whereby they continue to be capital workers receiving income from their capital ownership stakes. This is a viable route to individual self-sufficiency needing significantly less or no government redistributive assistance.
The unions should reassess their role of bargaining for more and more income for the same work or less and less work, and embrace a cooperative approach to survival, whereby they redefine “more” income for their workers in terms of the combined wages of labor and capital on the part of the workforce. They should continue to represent the workers as labor workers in all the aspects that are represented today––wages, hours, and working conditions––and, in addition, represent workers as full voting stockowners as capital ownership is built into the workforce. What is needed is leadership to define “more” as two ways to earn income.
If we continue with the past’s unworkable trickle-down economic policies, governments will have to continue to use the coercive power of taxation to redistribute income that is made by people who earn it and give it to those who need it. This results in ever deepening massive debt on local, state, and national government levels, which leads to the citizenry becoming parasites instead of enabling people to become productive in the way that products and services are actually produced.
When labor unions transform to producers’ ownership unions, opportunity will be created for the unions to reach out to all shareholders (stock owners) who are not adequately represented on corporate boards, and eventually all labor workers will want to join an ownership union in order to be effectively represented as an aspiring capital owner. The overall strategy should assure that the labor compensation of the union’s members does not exceed the labor costs of the employer’s competitors, and that capital earnings of its members are built up to a level that optimizes their combined labor-capital worker earnings. A producers’ ownership union would work collaboratively with management to secure financing of advanced technologies and other new capital investments and broaden ownership. This will enable American companies to become more cost-competitive in global markets and to reduce the outsourcing of jobs to workers willing or forced to take lower wages.
Kelso stated, “Working conditions for the labor force have, of course, improved over the years. But the economic quality of life for the majority of Americans has trailed far behind the technical capabilities of the economy to produce creature comforts, and even further behind the desires of consumers to live economically better lives. The missing link is that most of those unproduced goods and services can be produced only through capital, and the people who need them have no opportunity to earn income from capital ownership.”
Walter Reuther, President of the United Auto Workers, expressed his open-mindedness to the goal of democratic worker ownership in his 1967 testimony to the Joint Economic Committee of Congress as a strategy for saving manufacturing jobs in America from being outcompeted by Japan and eventual outsourcing to other Asian countries with far lower wage costs: “Profit sharing in the form of stock distributions to workers would help to democratize the ownership of America’s vast corporate wealth, which is today appallingly undemocratic and unhealthy.
“If workers had definite assurance of equitable shares in the profits of the corporations that employ them, they would see less need to seek an equitable balance between their gains and soaring profits through augmented increases in basic wage rates. This would be a desirable result from the standpoint of stabilization policy because profit sharing does not increase costs. Since profits are a residual, after all costs have been met, and since their size is not determinable until after customers have paid the prices charged for the firm’s products, profit sharing [through wider share ownership] cannot be said to have any inflationary impact on costs and prices.”
Unfortunately for democratic unionism, the United Auto Workers, American manufacturing workers, and American citizens generally, Reuther was killed in an airplane crash in 1970 before his idea was implemented. Leonard Woodcock, his successor, nor any subsequent union leader never followed through.

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