The Lexington column in the Economist this week runs a vicious attack on the US unions and their lobbying for increased federal spending on ‘unemployment benefits, on roads, on schools, on green energy projects and on aid to state and local governments’.
AFL CIO leader Richard Trumka “the President’s recent budget proposal was all very well, but it needs at least another $400 billion in immediate job-creating investments. Too much attention is paid to the budget deficit and not enough to the jobs deficit. Funds can be found by squeezing Wall Street and the super-rich, who must pay their fair share…to rebuild the economy that they destroyed “
The Economist attacks the union membership wage premium quoting a right wing Cato Institute pundit bemoaning that “per hour worked, state and local government workers enjoy 34% higher wages and 70% more benefits than their private-sector counterparts."
http://www.economist.com/world/united-states/displaystory.cfm?story_id=15497990
Meanwhile, US Secretary of Labour Hilda Solis has reiterated the Obama administration’s commitment to introduce pro-union reforms despite recent political setbacks for the Democratic Party and much speculation about backtracking on the legislation by the US Senate.
“In order to rebuild the middle class, we need to level the playing field and restore fair play for all working people. The growing inequality in wages and benefits is partially due to the increasing obstacles workers face in forming unions and engaging in collective bargaining. We need to restore their freedom to do so. This is why the President and I support the Employee Free Choice Act. I know from personal experience that union jobs are good jobs, pay higher wages than non-union jobs, and provide flexibility and benefits like paid leave, child care, education assistance, and retirement security. This legislation can help give workers a voice in the workplace.”
http://www.seiu.org/2010/02/labor-secretary-soliss-first-ever-testimony-before-house-ed-labor-committee.php