Trumka: Unions Key to Creating New Middle Class
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As the nation works to recover from recession and move into the decades to come, will we simply re-create the old economy or we will build a healthy new economy for the 21st century? And what role will the union movement have in answering that question? These issues were the subjects of a conversation with AFL-CIO Secretary-Treasurer Richard Trumka this morning.
In an address sponsored by the Center for American Progress Action Fund, Trumka discussed health care, the Employee Free Choice Act, economic recovery and the future of unions. (You can read Trumka’s speech here.)
We’re not going to get ahead by mimicking the mistakes of the past and re-creating the cycles of debt bubbles and busts, Trumka said, but by giving workers the chance to earn their way into the middle class.
Report: Higher Union Membership = Higher Wages = Better Economy
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Workers’ freedom to form unions and bargain will be critical to rebuilding a strong economy, says a new report released today that examines the effect of unions on wages and state economies.
Unions Are Good for the American Economy, written by researchers Karla Walter and David Madland for the Center for American Progress Action Fund, says that increasing union rates would put more money in workers’ pockets, reversing the sharp growth in income inequality that has undermined our economy. In fact, if union membership was as high as it was in 1983, Walter and Madland suggest, employees would earn an estimated $49 billion more in wages and salaries.
The report also provides a state-by-state analysis of increased union membership on wages. An increase in the rate of union membership of just 5 percent would increase total wages by $176 million in Nebraska, $503 million in Wisconsin and $852 million in Pennsylvania.
These wages would be spread across the entire labor market.
