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Fast Money & Foreign Objects
Fact Sheet: The Value of Unions and the
Consequences of Right-to-Work Laws
SOURCE: AP/Paul Sancya
A silent protester wears a sticker to signify loss in wages from the "right-to-work" law
in Lansing, Michigan, Wednesday, December 12, 2012.
By Katie Murphy | December 13, 2012
The passage of so-called right-to-work legislation in Michigan fails to take into
consideration the real impact unions have on both states and the nations economies
and on middle-class Americans. Right-to-work laws weaken unions by making them
provide services to union and nonunion members alike, without making all beneficiaries
pay their fair share. By severely weakening unions, which are vital to strengthening the
middle class and improving the economy, right-to-work laws have broad negative
consequences.
Here are the key facts you need to know about unions value for the economy and the
middle class.
1. Unionization increases incomenot just for union workers but also
for the entire middle class. A study conducted by the Center for American
Progress Action Fund controlled for a host of other factors that also impact the strength
of a states middle classsuch as education, unemployment, and types of industries12/13/12 Fact Sheet: The Value of Unions and the Consequences of Right-to-Work Laws | Center for America
americanprogress.org/ /fact-sheet-the-value-of-unions-and-the-consequences-of-right-to-work-laws/ 2/3
of a states middle classsuch as education, unemployment, and types of industries
and found that if unionization rates increased by 10 percentage points, the typical
middle-class household, unionized or not, would earn $1,501 more each year. To put
that figure in perspective, we found that a 10 percentage-point increase in the share of
the population with a college degree would increase the average middle-class income
by $1,664 a year.
2. In non-right-to-work states, workers are more likely to receive
employer-provided health insurance and pensions. Workers in right-towork states are significantly less likely to receive employer-provided health insurance
and pensions. If benefits coverage in non-right-to-work states were lowered to the
levels of states with these laws, 2 million fewer workers would receive health
insurance and 3.8 million fewer workers would receive pensions nationwide.
3. Unions improve workplace policies and have beneficial policy
effects more broadly. Unions advocate for broader worker protections needed
for families to make human-capital investmentsstrong public education, social safety
nets, minimum wages, paid leave, and even civil rights and efficient regulation.
4. Unions balance structures of power in the workplace, resulting in
greater efficiency. Unions support high-productivity workplaces where information
can flow from the bottom-up to improve business performance.
5. Right-to-work legislation fails to grow state economies. The laws
have failed to increase employment growth in the 23 states that have adopted them, and
in states more recently adopting right-to-work policies, employment growth and
business relocations have reversed their previous expanding trends. In other words, the
economic evidence shows that unions and union membershipnot right-to-work
lawsare what are conducive to broad economic growth.
6. Unions strengthen businesses and the economically vital middle
class by giving workers a voice in both the workplace and our
democracy. Unions do this by pushing for fair wages and good benefits, and also by
encouraging citizens to advocate for middle-class-friendly policies such as a strong
Social Security system and family-leave benefits.
Katie Murphy is an intern with the Press team at the Center for American Progress.
Fact Sheet: The Value of Unions and the Consequences of