Let's All Sing to the Death of a Clown: The Decline of Private Unions
From a high of around 18 million in 1975, private sector union membership has declined to around 8 million today. Presuming the UAW will effectively be wiped out by the latest dictums on Detroit, that will knock out another 465,000 or 6% of the total. (Sure, Ford's UAW membership could still exist, but that will be a rather toothless tiger).
It's been a steady fall for the UAW since its peak in 1979 at 1.5 million. Reagan ushered in the anti-union spirit, especially with his mass firing of flight controllers in 1983. But the steady decline of manufacturing and the non-unionization of computer jobs has turned the US into a largely non-unionized workspace today. And despite the IT field being largely non-unionized, that didn't save it from being scapegoated as "too high salaries" in the early 2000's, with more calls for more H-1B's from India. Demonization of unions has become standard fare for describing our ills even as unions have largely turned ineffectual.
And conservatives hate unions as much as they hate the National Endowment of the Arts. The destruction of the UAW is not the last stone. Unions in education are consistently blamed for our educational ills (with school vouchers being one way to suck air from that system, No Child Left Behind being a way to kill off local and thus union control). Health Care unions will certainly be a target of any attempts at national health care, under the sad refrain that insurance companies just can't make a profit as long as health care workers insist on making decent salaries. Pilots have sucked up cuts in recent years to keep airlines afloat. It's just not an easy time to negotiate contracts that benefit workers, and with the trillions that have spearheaded efforts to ensure "stockholder value" (read: "short-term profits"), you can bet that workers don't have money to fight back both against internal and external efforts.
As for public unions, now up to 8 million, just remember: 1983. And 2001. We won't let you shut down government. That would abet the terrorists. It's a time of war, you know.
Fortunately the trend is now for workers to have 401(K) and 403(B) retirement accounts to move around. Unfortunately, those accounts are getting battered between stock and real-estate crashes as well as normal pension raiding. Fortunately workers now have COBRA to ensure they can pay $1500/month to keep medical benefits in times of inevitable layoffs, which if they don't quite manage lead them to have half their care labeled "pre-existing conditions" if they happen to find replacement work. Fortunately we have a court system that's sympathetic to workers' complaints in wrongful firings and treatment. Fortunately unions are no longer needed because the needs of the average citizen are universally recognized and protected by both government and corporations themselves.
Laa-la-la-laa-laa, laa-la-la-laa, let's all sing to the death of a clown...
[PS - on my previous posts I made the mistake of saying auto companies got roughly 0.2% or 0.5% of the bailout money, depending on what figures you use. Sorry, they got repayable loans instead, along with severe conditions on reorganization, layoffs and forced wage and benefits cuts to union. It was AIG that got the no-conditions free money with big bonuses to upper staff. Mea culpa.]
[PPS - for the inevitable testimonials, the best cars I owned were an Olds 98, a Ford Maverick (bought for $100 and driven across the country several times), a Ford Econoline van for $400 that spewed smoke and had loose steering but was invaluable for a poor musician, and a Renault van that drove nicely. Had a Subaru that absolutely sucked, a Dodge van that was pretty awful, a Toyota that isn't quite all there. I don't go to consumer reports for any of this stuff, just plop my nickel down, takes my chances.]
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Just an FYI the monies to AIG are a loan too. The original $85B gave the Fed a 79% stake in the company, now up to 85%, I believe.
April 1, 2009 9:11 AM | Reply | Permalink
In theory:
"The Obama Administration claims AIG is to big to fail, however, their is no plan for the survival of AIG. AIG is being split up and sold off to the highest bidder. The assets from those sales will come up at least $100 Billion short of repaying taxpayers.
In addition, there is no transparency concerning the sales of the assets and the Management of AIG is being undertaken by 3 Government appointed Trustees behind closed doors in Washington.
As there is no rescue plan for AIG - it is to be split up and sold off in pieces - and as the value of the assets will fall $100 Billion short of repaying the US Government - the holders of AIG common stock will receive nothing. That explains why the stock is trading for 50 cents a share.
...
The assets AIG is attempting to sell is its American and Foreign Insurance units. The sale of these assets will only generate $17.4 Billion in revenue, leaving a $166.6 Billion shortfall on repaying the American Taxpayer. The proposed sales are hoped to generate the following revenue - 3 Japanese life insurance companies - $9.5 Billion; Chinese Insurance Companies $2.5 Billion; US Personal Insurance $2 Billion, US AIG Investments - $2 Billion; Phillipine Life Insurance $1 Billion, Canadian Insurance Comanies $400 Million - Total $17.4 Billion."
Yes, those assets look pretty toxic and unfilling right now. A loan guaranteed to be defaulted on.
April 1, 2009 9:43 AM | Reply | Permalink
Hence, why I left off any comment as to whether or not we would see a return on our investment.
Just as a snarky aside as of today, had you bought AIG at .50 you would have almost doubled your money. Trading at .98. Maybe that's what the treasury should have done ;)
April 1, 2009 9:53 AM | Reply | Permalink
May have a momentary spike with another $30 billion in US assets pumped in (think the common share holders are betting on US support and not actual sales performance?). I don't recall anyone taking seriously in October the idea that we might get our money back, so I guess that's why I dropped "loan" from my feral brain.
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The sale of the Asian life assurance assets of American International Group Inc.
Last: 0.98-0.02-2.04%
9:45am 04/01/2009
AIG 0.98, -0.02, -2.0%) is expected to be delayed or scrapped in the aftermath of the stricken insurer's latest $30-billion bailout by the U.S. government Monday, the Financial Times reported, citing unnamed people familiar with the process.
As part of the revised terms, AIG is to hand to the U.S. government a large stake in American International Assurance, the leading pan-Asian foreign insurer, the newspaper reported on its Web site.
AIG was in the process of selling AIA to raise funds to help repay debts, and three groups made first-round bids before last week's deadline. However, none of the bids is understood to have been close to AIG's valuation of the asset, which is seen as the company's crown jewel, the newspaper said.
April 1, 2009 10:01 AM | Reply | Permalink
Good post! Rec'd!
April 1, 2009 10:26 AM | Reply | Permalink
I am going to be banned from the Official Catbert Evil HR Person Society, but I am a Human Resources girl who has always valued the contributions of unions. As complicated and difficult and hair-rippingly frustrating it sometimes is to go through endless process and hoops and negotiations, it is easier to negotiate a fair-er deal for workers when they have an advocate fighting on their behalf.
The auto workers unions are forced to make even more concessions on health care, pension, a living wage in order to avoid sending the auto company into bankruptcy. We make baby steps towards asking Wall Street to maybe think about their screwy compensation structure if they feel like it. Wall Street workers don't need a union to protect their income security - Geithner & team are doing it for them.
April 1, 2009 11:56 AM | Reply | Permalink
And with respect to Geithner, el al having the back of the rich parasites of Wall Street, as one of my history profs used to say: "Twas ever thus!"
April 1, 2009 4:05 PM | Reply | Permalink
Dijamo:
Please understand that you are not alone. I have had the good fortune of meeting countless numbers of folks across the table who understand the value of the unions representing their employees. It doesn't mean everything is always rosie, and oftentimes, things ain't, but there's nothing like that mutual respect that can help to move a company forward in good times and bad.
By the way, I'm just back from Cafe left-page hell. How the heck are you? I feel as if I've been living in a nightmare for the past several months. You people still exist? Who knew?
Bruce
April 2, 2009 12:28 PM | Reply | Permalink
Hey Bruce, good to see you drifting into the right side of the Cafe. I've been lurking on the Israel/Palestine threads but not commenting. I only comment where I have all the answers :) But I appreciate your comments and balance over there. Hope to see more of you around.
Dija
April 2, 2009 2:01 PM | Reply | Permalink
You have a rather dark disposition and you are seem to be a nuclear bomb. Atomic or Hydrogen? tra la la la
The death of a clown you say...tra la la la
I'm going to bet that this bomb guy knows The Seventh Seal. He might be the director's cousin ... tra la la la
April 1, 2009 2:36 PM | Reply | Permalink
This place is getting to be a porcile. When you lay down with pigs, you get eaten by pigs. Tra la la la.
April 1, 2009 3:41 PM | Reply | Permalink
Pasolini or Lector? Hardly Bergman. OK. I googled the Pasolini. But I'll watch it.
tra la la la
April 1, 2009 4:14 PM | Reply | Permalink
Food? Did I hear somebody say it's dinner time?
April 1, 2009 5:00 PM | Reply | Permalink
Estupendo, ya tengo mucho hambre. Aquí se presente un poco más - no las secciones que he buscado, tra la la la, pere asi suficiente para estimular la curiosidad. Buen gusto. À tavole, a porcilga.
http://www.youtube.com/watch?v=bN0yME1h564&feature=related
April 1, 2009 5:26 PM | Reply | Permalink
Perfecto, pero prefiro a comer sus familiares que mio. Sabe?
April 1, 2009 6:20 PM | Reply | Permalink
Claro que sí. Todos amamos nuestros parientes, pero algunos tienen más gusto que otros. Tra la la.
April 2, 2009 2:53 AM | Reply | Permalink
Always a mistake to assume human groups are defunct, even when it looks that way. There will be new ways of associating, and of negotiating.
Then there is Employee Free Choice. We'll see.
April 1, 2009 8:14 PM | Reply | Permalink
No union organizers at TPM, Des, but plenty of deaf ears, it seems.
April 1, 2009 9:56 PM | Reply | Permalink
I'm a union member for 30 yrs.
April 1, 2009 10:30 PM | Reply | Permalink
I know you probably mean the commenters on this thread, but others should know that a bonafide union organizer/labor advocate, Nathan Newman, is a contributor on TPMCafe-
http://tpmcafe.talkingpointsmemo.com/talk/blogs/nnewman/
He used to post very frequently, but cut way down around the time the presidential campaigns heated up as this site slanted more to horse race issue, but still does post from time to time.
April 1, 2009 10:49 PM | Reply | Permalink
I'm not sure if I should take offense at that characterization, as a commenter on the thread, (even though I was the second person to rec it). p.s. Former member of Intl. Assoc. of Machinists & Aerospaceworkers, and Intl. Union of Painters & Allied Trades for what it's worth.
April 2, 2009 12:16 AM | Reply | Permalink
Okay, good to know. Just trying to flush you guys out since no one (except for dijamo) was addressing the demise of unions.
Me, I was watching Pete Seeger vids earlier, and I came across this blog from 2007 about protest songs:
YouTube might be changing this.
Anyway, here's an updated Which Side Are You On?
April 2, 2009 2:23 AM | Reply | Permalink
I remember seeing a long TV set by Willie before he hit it big - once upon a time he was known more for his guitar playing than his songs/singing. Great attitude as well.
April 2, 2009 5:08 AM | Reply | Permalink
RTBG:
You've made me feel very, very guilty. I'm not an organizer but, as a union attorney for over twenty years I have participated in many organizing campaigns and am pretty much in touch in real life with the state of the union movement as it lives and breathes.
Thing is, I generally have trouble writing about labor stuff for two reasons: (1) sometimes you just want to forget about work; and (2) I'm consrained to write about certain things because of client issues. Of course, for the past year and a half, I've been obsessed with other things on here--really in a diseased kind of way--first with the presidential elections and, since Gaza, with Israel-Palestine stuff. But in real life I live and breathe unions (writing this at a client's office right now), and I guess I should say that at least here in NYC, while private sector unions face real challenges, they still live and still, and in many cases, are strong. I just posted this in another context, but now that the dust has settled from a year ago, this NYTs article reflects what I did on my summer vacation a few months back (when I'm not incessantly arguing with folks about silly stuff on here):
http://www.nytimes.com/2008/07/02/nyregion/02concrete.html?n=Top/Reference/Times%20Topics/Organizations/I/International%20Brotherhood%20of
Sometimes in some industries, strikes are necessary and they can still be effective, and I wish I could right more contemporaneously but it ain't possible. In any event, I should try and post more about labor stuff, particularly since I'm such a regular around here I'll try.
And thanks to you for waking me up with your little comment big time, and to des and to dij and to Tom and whoever else still cares and wants to hear about the American labor movement. It ain't ready to call it a day.
And now for one of my favorites, Pete Seeger and Talkin' Union:
http://www.youtube.com/watch?v=syQTLxk4uGU
Bruce
April 2, 2009 12:22 PM | Reply | Permalink
typos galore--should be, for "write" instead of "right", etc.
April 2, 2009 12:24 PM | Reply | Permalink
Thanks for the links, Bruce.
But please don't feel guilty; you do plenty of heavy lifting in real life.
Seeger turns 90 this year, so let's enjoy him while we can. He's a gifted musician in addition to being a great activist. You can see that in this video and this one. I think so anyway. Enjoy.
April 3, 2009 11:54 PM | Reply | Permalink
Unions like anything else that has been around for a long time need to reinvent themselves. History tells us that anything that cannot change and adapt will die. I believe they will and will become better and stronger and play a major part in rebuilding our country.
April 2, 2009 7:39 AM | Reply | Permalink
I'm not sure where your optimism comes from. The US population is 150% its size in 1975, and the private unions are about 45% their 1975 size, so basically about 30% their former representation (probably was greater as a percentage in the 1960s).
The steady cry against our educational system is often simply ignoring reality - just test kids more in math and science and they'll improve. People simply ignore the effects of different levels of funding, different home conditions, big increases in immigration, and just lump it on teachers and by default, the unions.
April 2, 2009 8:38 AM | Reply | Permalink
The sad irony regarding teaching is that so many feel called to do it that even at slave wages there are people who will teach. This makes it even harder to maintain salaries or working conditions against right-wing demonizing of unions. When salaries hold, during a contract year, class size goes up and funding for materials and facilities drops.
Teaching shares this with nursing, another humane and civilizing tendency of humans, which is barely paid for, but held to doctor-like standards.
April 2, 2009 9:40 AM | Reply | Permalink