While unions have been given credit for some excellent changes in various workplaces, it is likely that many of the changes would have come to fruition at some point without union involvement.
Workplace safety, eight-hour workdays, five-day work weeks, healthcare coverage, workers compensation, retirement savings, and more have all been good changes. But, as competition drives markets, it also drives demand for workers. With workplace protections commonplace and with the provision of additional resources for workers, unions’ roles as necessary advocates for workers has diminished.
Notably, if they want to keep taking dues from their members, unions need to give their members a reason, and so, they focus on partisan politics. They charge workers dues and oftentimes negotiate the terms of labor contracts that simply make themselves look good, all to fuel their bureaucracy and Democratic Party. We have seen just how entangled unions are with the party, as Democratic vice presidential nominee Kamala Harris makes the circuit authoring pro-labor, pro-Democratic editorials with national union leadership for outlets such as CNN and the Detroit News.
What we are seeing in the midst of a global pandemic is truly frightening. Teachers unions are threatening strikes, suing state officials, and making unrealistic demands in labor negotiations that put the education of our children at risk. Aside from that, the Service Employees International Union launched a $150 million nationwide campaign focused on defeating President Trump. Rather than advocating for meaningful policies to protect the health and safety of front-line workers, unions like the United Food and Commercial Workers have continued to put politics before the best interest of members and instead focused their efforts on demanding the indefinite reinstatement of “hazard pay.”
At the onset of the pandemic, Kroger, the nation’s largest grocery store chain, stepped up and made the decision to pay its employees an additional $2 per hour as well as bonuses. Its workers were going into stores at a time when everyone else was staying home. These workers continue to play a critical role in ensuring consumer access to fresh food and other essentials.
But now that we know more about COVID-19, and with the significant investments companies like Kroger have made to safeguard their employees, “premium pay” has been phased out of these companies as wages returned to pre-pandemic levels.
Even though “pre-pandemic” levels are what the unions had negotiated, they are not happy with a return to normal, as shown by protests and demands made on the national stage. This is a short-sighted argument that is more about justifying their existence to their membership rather than considering the long term and protecting their members’ jobs and workplace conditions.
This isn’t just economic theory. When there was a forced minimum wage increase in Seattle, the average worker made less money. He or she made less money due to working fewer hours, and there were fewer hours available.
Wages aren’t magically decided by “greedy” business owners. Wage rates depend on several factors, namely, supply, demand, and productivity. They depend on how many people are looking for jobs, how important it is that the job is filled, and what the employee will add to the bottom line.
In response to COVID-19, supply was low, and demand was high. In economic theory, that would result in a pay bump, and in the real world, Kroger’s workers got a pay bump. Kroger, likely many other employers, also felt compelled to recognize and reward the commitment of its employees on the front lines through this premium pay and bonuses.
However, now that the supply of workers is higher again and demand is back to normal, wages should return to normal too. Perhaps the most surefire way that unions could get more money to their members would be waiving or reducing union dues, a topic the unions have conveniently avoided addressing for the past six months.
We need businesses like grocers competing with each other. We don’t need unions holding them all back. Employers should be able to increase wages and decrease wages with these ups and downs, with the understanding that employees are free to come and go with those ups and downs.
For now, though, the unions need to get out of the way of the pandemic recovery. Essential workers have faced enough challenges this year. They don’t need unions blocking progress and playing politics at their expense.
Charles Sauer (@CharlesSauer) is a contributor to the Washington Examiner’s Beltway Confidential blog. He is president of the Market Institute and previously worked on Capitol Hill, for a governor, and for an academic think tank.
