Democrats Paid a Huge Price for Letting Unions Die

Eric Levitz:

The GOP understands how important labor unions are to the Democratic Party. The Democratic Party, historically, has not. If you want a two-sentence explanation for why the Midwest is turning red (and thus, why Donald Trump is president), you could do worse than that.

With its financial contributions and grassroots organizing, the labor movement helped give Democrats full control of the federal government three times in the last four decades. And all three of those times — under Jimmy Carter, Bill Clinton, and Barack Obama — Democrats failed to pass labor law reforms that would to bolster the union cause. In hindsight, it’s clear that the Democratic Party didn’t merely betray organized labor with these failures, but also, itself.

Between 1978 and 2017, the union membership rate in the United States fell by more than half — from 26 to 10.7 percent. Some of this decline probably couldn’t have been averted — or, at least, not by changes in labor law alone. The combination of resurgent economies in Europe and Japan, the United States’ decidedly non-protectionist trade policies, and technological advances in shipping was bound to do a number on American unions. Global competition thinned profit margins for U.S. firms; cutting labor costs was one of the easiest ways to fatten ’em back up; and breaking unions (through persuasion, intimidation, or relocation) was one of the easiest ways to cut said costs.

Nevertheless, there was lot that Democrats could have done — through labor law reform — to shelter the union movement from these changes, and help it establish a bigger footprint in the service sector. At present, employers are prohibited from firing workers for organizing or threatening to close businesses if workers unionize — but the penalties for such violations are negligible. Further, while they must recognize unions once they are ratified by workers in an election, employers can delay those elections for months or even years — and, even after recognition, face no obligation to reach a contract with their newly unionized workers.

Democrats could have increased the penalties for violating labor law, enabled unions to circumvent the election process if a majority of workers signed union cards (a.k.a. “card check”), and required employers to enter arbitration with unions if no contract was reached within 120 days of their formation — as Barack Obama promised the labor movement they would, in 2008.

Related: Act 10.