Union Wages v. Low Prices and Productivity
September 5th, 2008
Bernie O’Hare runs a good blog called Lehigh Valley Ramblings and a few weeks ago he reported that Mack Trucks was leaving the Lehigh Valley and that Democratic Challenger Bennett slammed incumbent moderate, super nice and super smart (even if we disagree on some issues ) Representative Charlie Dent for failing to bail out Mack Trucks.
FreedomWorks Joe Hilliard makes some good points on effect of unionization on jobs and wages.
“Be careful with the declaration that wages are much lower in RTW states. That is the AFL-CIO line and their study is flawed for many reasons.
It does not account for cost of living differences. Nor does it count the benefits of greater economic prosperity in RTW states. Examples: Poverty is lower in RTW states. Unemployment is lower in RTW states. And taxes are typically much lower in RTW states.
The choices are simple. Would you rather have a better chance at a job, or should we merely preserve few, and dwindling, high paying jobs? (Dwindling? Mack 5c plant closed because of the union. Now the HQ has left. Why is the Beth Steel plant becoming a casino and retail area? I know an office worker at the HQ. If you ask the wrong clerk to grab a file, you get slapped with a grievance. You have to ask the CORRECT clerk to grab the CORRECT file…. ridiculous work rules.)
Also, would you rather pay lower taxes and no union dues or have a higher wage that is eaten up with higher taxes and union dues?
The more reasonable studies I have seen show about a 2-3% difference in wages. A lack of union dues makes up this difference immediately.
The battle should be about jobs and economic growth. Not job killing policies. Wait till card check comes (no secret ballot for unionization). Do you think more plants will open overseas and close here? The answer is pretty simple.”

