America’s working class is in desperate shape, and its longtime protectors — unions — have lost much of their power.
President Trump talks a good game about helping American workers but has pursued arguably the most anti-labor agenda of any modern president. Now he has doubled down by choosing for secretary of labor a corporate lawyer who has spent his career battling workers.
This is a bit like nominating Typhoid Mary to be health secretary.
The official mission of the Labor Department emphasizes the promotion of “the welfare of the wage earners,” but Trump’s mission has been to promote the exploitation of wage earners.
So Eugene Scalia is a perfect fit. Scalia, a son of the late Supreme Court Justice Antonin Scalia who has fought unions on behalf of Walmart and other companies, is a talented and experienced litigator who upon assuming office will be in a position to disembowel labor.
There’s a larger issue: The relentless assault on labor has gained ground partly because, over the last half-century, many Americans — me included — became too disdainful of unions. It was common to scorn union leaders as corrupt Luddites who used ridiculous work rules to block modernization and undermine America’s economic competitiveness.
There’s something to those critiques. Yet it’s now clear that the collapse of unions — the share of employees belonging to unions has plunged to 10 percent in 2018 from 35 percent in the mid-1950s— has been accompanied by a rise of unchecked corporate power, a surge in income inequality and a decline in the well-being of working Americans.
For all their shortcomings, unions midwifed the birth of the middle class in the United States. The period of greatest union strength from the late 1940s through the 1950s was the time when economic growth was particularly robust and broadly shared. Most studies find that at least one-fifth of the rise in income inequality in the United States is attributable to the decline of labor unions.
Unions were also a formidable political force, and it’s perhaps not a surprise that their enfeebling has been accompanied by a rise in far-right policies that subsidize the wealthy, punish the working poor and exacerbate the income gap.
“Labor unions, and their ability to create a powerful collective voice for workers, played a huge role in building the world’s largest, richest middle class,” notes Steven Greenhouse in his superb, important and eminently readable new book about the labor movement, “Beaten Down, Worked Up.”
“Unions also played a crucial role,” Greenhouse adds, “in achieving many things that most Americans now take for granted: the
- eight-hour workday,
- employer-backed health coverage,
- paid vacations,
- paid sick days,
- safe workplaces.
Indeed, unions were the major force in ending sweatshops, making coal mines safer, and eliminating many of the worst, most dangerous working conditions in the United States.”
Greenhouse, who covered labor for 19 years for The Times, acknowledges all the ways in which labor unions were maddening and retrograde. But he notes that corporations run amok when no one is minding them.
Union featherbedding and rigid work rules have been real problems. Yet without unions to check them, C.E.O.s engage in their own greedy featherbedding and underinvest in worker training, thus undermining America’s economic competitiveness.
Sure, it’s frustrating that teachers’ unions use political capital to defend incompetent teachers. In New York City, the union hailed its defense of a teacher who passed out in class, her breath reeking of alcohol, with even the principal unable to rouse her.
It’s also true that states with strong teachers’ unions, like Pennsylvania and Vermont, have far better student outcomes than states with feeble unions, like South Carolina and Mississippi. Teachers’ unions have also been heroic advocates for early childhood education, and Red for Ed strikers forced states like West Virginia, Oklahoma and Arizona to improve their school systems.
Remember, too, that manufacturing workers in Germany are unionized and earn $10 more an hour than their American counterparts. Mercedes-Benz autoworkers earn $67 an hour in wages and benefits, and German workers are guaranteed a presence on corporate boards. Unions don’t detract from Germany’s economic system and competitiveness but are a pillar of it.
The bigger picture is that America’s working class is in desperate shape. Average hourly wages are actually lower today, after inflation, than they were in 1973, and the bottom 90 percent of Americans have seen incomes grow more slowly than the overall economy over the last four decades. The reasons are complex, but one is the decline of unions — for unions benefit not only their own members but also raise wage levels for workers generally.
So I’ve come to believe that we need stronger private-sector unions — yet the Trump administration continues to fight them. Greenhouse notes that nearly 20 percent of rank-and-file union activists are fired during organizing drives, because the penalties for doing so are so weak: A corporation may eventually be fined $5,000 or $10,000 for such a wrongful dismissal, but that is a negligible cost of doing business if it averts unionization.
That’s why we need a secretary of labor who cares about laborers. Trump campaigned in 2016 as a voice for forgotten workers, but he consistently sides with large corporations against workers, and his nomination of Scalia would amplify the sad and damaging war on unions.
Yes, America Is Rigged Against Workers
No other industrial country treats its working class so badly. And there’s one big reason for that.
The United States is the only advanced industrial nation that doesn’t have national laws guaranteeing paid maternity leave. It is also the only advanced economy that doesn’t guarantee workers any vacation, paid or unpaid, and the only highly developedcountry (other than South Korea) that doesn’t guarantee paid sick days. In contrast, the European Union’s 28 nations guarantee workers at least four weeks’ paid vacation.
Among the three dozen industrial countries in the Organization for Economic Cooperation and Development, the United States has the lowest minimum wage as a percentage of the median wage — just 34 percent of the typical wage, compared with 62 percent in France and 54 percent in Britain. It also has the second-highest percentage of low-wage workers among that group, exceeded only by Latvia.
All this means the United States suffers from what I call “anti-worker exceptionalism.”
Academics debate why American workers are in many ways worse off than their counterparts elsewhere, but there is overriding agreement on one reason: Labor unions are weaker in the United States than in other industrial nations. Just one in 16 private-sector American workers is in a union, largely because corporations are so adept and aggressive at beating back unionization. In no other industrial nation do corporations fight so hard to keep out unions.
The consequences are enormous, not only for wages and income inequality, but also for our politics and policymaking and for the many Americans who are mistreated at work.
To be sure, unions have their flaws, from corruption to their history of racial and sex discrimination. Still, Jacob S. Hacker and Paul Pierson write of an important, unappreciated feature of unions in “Winner-Take-All Politics”: “While there are many ‘progressive’ groups in the American universe of organized interests, labor is the only major one focused on the broad economic concerns of those with modest incomes.”
As workers’ power has waned, many corporations have adopted practices that were far rarer — if not unheard-of — decades ago:
- hiring hordes of unpaid interns,
- expecting workers to toil 60 or 70 hours a week,
- prohibiting employees from suing and instead forcing them into arbitration (which usually favors employers), and
- hamstringing employees’ mobility by making them sign noncompete clauses.
America’s workers have for decades been losing out:
- year after year of wage stagnation, i
- ncreased insecurity on the job,
- waves of downsizing and offshoring, and
- labor’s share of national income declining to its lowest level in seven decades.
Numerous studies have found that an important cause of America’s soaring income inequality is the decline of labor unions — and the concomitant decline in workers’ ability to extract more of the profit and prosperity from the corporations they work for. The only time during the past century when income inequality narrowed substantially was the 1940s through 1970s, when unions were at their peak of power and prominence.
Many Americans are understandably frustrated. That’s one reason the percentage who say they want to join a union has risen markedly. According to a 2018 M.I.T. study, 46 percent of nonunion workers say they would like to be in a union, up from 32 percent in 1995. Nonetheless, just 10.5 percent of all American workers, and only 6.4 percent of private-sector workers, are in unions.
But this desire to unionize faces some daunting challenges. In many corporations, the mentality is that any supervisor, whether a factory manager or retail manager, who fails to keep out a union is an utter failure. That means managers fight hard to quash unions. One study found that
- 57 percent of employers threatened to close operations when workers sought to unionize, while
- 47 percent threatened to cut wages or benefits and
- 34 percent fired union supporters during unionization drives.
Corporate executives’ frequent failure to listen to workers’ concerns — along with the intimidation of employees — can have deadly results. On April 5, 2010, a coal dust explosion killed 29 miners at Massey Energy’s Upper Big Branch coal mine in West Virginia. A federal investigation found that the mine’s ventilation system was inadequate and that explosive gases were allowed to build up. Workers at the nonunion mine knew about these dangers. “No one felt they could go to management and express their fears,” Stanley Stewart, an Upper Big Branch miner, told a congressional committee. “We knew we’d be marked men and the management would look for ways to fire us.”
The diminished power of unions and workers has skewed American politics, helping give billionaires and corporations inordinate sway over America’s politics and policymaking. In the 2015-16 election cycle, business outspent labor $3.4 billion to $213 million, a ratio of 16 to 1, according to the nonpartisan Center for Responsive Politics. All of the nation’s unions, taken together, spend about $48 million a year for lobbying in Washington, while corporate America spends $3 billion. Little wonder that many lawmakers seem vastly more interested in cutting taxes on corporations than in raising the minimum wage.
There were undoubtedly many reasons for Donald Trump’s 2016 victory, but a key one was that many Americans seemed to view him as a protest candidate, promising to shake up “the system” and “drain the swamp.” Many voters embraced Mr. Trump because they believed his statements that the system is rigged — and in many ways it is. When it comes to workers’ power in the workplace and in politics, the pendulum has swung far toward corporations.
Reversing that won’t be easy, but it is vital we do so. There are myriad proposals to restore some balance, from having workers elect representatives to corporate boards to making it easier for workers to unionize to expanding public financing of political campaigns to prevent wealthy and corporate donors from often dominating.
America’s workers won’t stop thinking the system is rigged until they feel they have an effective voice in the workplace and in policymaking so that they can share in more of the economy’s prosperity to help improve their — and their loved ones’ — lives.