By Neal Boortz
The
Heritage Foundation has a great analysis on how labor unions affect jobs
and the economy. What I've done is
pulled just a few facts that you should know about these unions. Read the linked study for more
information. This one needs to be framed
and put on a wall. Ready? OK .. here is what labor unions do for
American business:
- Studies
typically find that unionized companies earn profits between 10 percent
and 15 percent lower than those of comparable non-union firms.
- Some
unions win higher wages for their members, though many do not. But with
these higher wages, unions bring less investment, fewer jobs, higher
prices, and smaller 401(k) plans for everyone else.
- Final
union contracts typically give workers group identities instead of
treating them as individuals. Unions do not have the resources to monitor
each worker's performance and tailor the contract accordingly. Even if
they could, they would not want to do so. Unions want employees to view
the union--not their individual achievements--as the source of their
economic gains.
- Consequently,
union contracts compress wages: They suppress the wages of more productive
workers and raise the wages of the less competent. Unions redistribute
wealth between workers.
- A
better summary of the economic research is that unions do not increase
workers' wages by nearly as much as they claim and that, at a
number of companies, they do not raise wages at all.
- In
essence, unions "tax" investments that corporations make,
redistributing part of the return from these investments to their members.
This makes undertaking a new investment less worthwhile. Companies respond
to the union tax in the same way they respond to government taxes on
investment--by investing less.
- Research
shows that unions directly cause firms to reduce their investments. In
fact, investment drops sharply after unions organize a company. One study
found that unionizing reduces capital investment by 30 percent--the same
effect as a 33 percentage point increase in the corporate tax rate
- The balance
of economic research shows that unions do not just happen to organize
firms with more layoffs and less job growth: They cause job losses.
Most studies find that jobs drop at newly organized companies, with
employment falling between 5 percent and 10 percent.
Wonderful stuff, don't you think? Really makes you want to go to work for a
unionized company. Not.