Study proves unionization can turn low paying jobs with no benefits into middle-class jobs


Posted by AzBlueMeanie:

h/t DC Special Interests Examiner

After decades of disappointing wage growth for many American workers, a new report from the Center for Economic and Policy Research shows that unionization significantly boosts the wages of service-sector workers.

The report, Unions and Upward Mobility for Service-Sector Employees, finds that unionization raises the wages of the average service-sector worker by 10.1 percent, which translates to about $2.00 per hour.

On average, unionization increases the likelihood that the average service-sector worker will have employer provided health insurance by 19 percentage points. Unionized service-sector workers were also 25 percentage points more likely to have a pension than their non-union peers.

"The vast majority of jobs in this country are now in the service sector," said John Schmitt, a Senior Economist at CEPR and the author of the study. "The data show that workers in service jobs benefit as much from unionization as workers in manufacturing do."

The impact of unions on service-sector employees in low-wage occupations was even more substantial. For workers in the 15 lowest-paying occupations, unionization raised wages by 15.5 percent. The likelihood of having health insurance increased by about 26 percentage points and the likelihood of having an employer-sponsored pension increased by about 23 percentage points.

"Unions give the biggest boost to workers in low-paying occupations because these are the workers that have the least bargaining power in the labor market," Schmitt said. "Unionization can turn what would otherwise be low-paying jobs with no benefits into middle-class jobs."

Over the period covered in the report, 13.3 percent of service-sector workers were either members of a union or covered by a union contract at their workplace.

The report analyzed data on workers from the Census Bureau's Current Population Survey for the years 2004 through 2007.

Stephen Lerner of the SEIU on a recent episode of the Ed Schultz Show discussing the Employee Free Choice Act (EFCA). Schultz does a great job of dispelling the myths and lies about EFCA and calls out the Blue Dog Coalition Democrats for being a possible obstacle to this legislation.


  1. Obama’s bail out plans that do not put pension funds who invest capital in car companies first for chapter 11 benefits ; and go to fund wages highlights the letter I just received today:



    This is to inform you that on March 31,2009 the plan actuary to the U.S> Department of the Treasury, and also to the plan sponsor, that the plan is in critical status for the plan year begining January 1,2009. Federal Law requires that you receive this notice.


    The plan is considered to be in critical status because it has funding or liquidity problems, or both.
    More specifically, the plan actuary deturmined that the plan is projected to have an accumulated funding deficiency for the plan beginning January 1, 2011.

    Obama’s ass backwards approach to handling Union negotiated Contracts is destroying the Unions including Card Check!

    Bailing out one part of the contract and not the investors who made the contract possible highlights the stupidity of the Tax Cheat who runs the Treasury Department; showing these jerks are clueless to how labor and management reach contract agreements!

    Also blog genius’s who quote these jerks as all knowing do The union movement no good!

  2. Take a look at phoney advocates like Ed Schultz and Lerner, don’t listen to what they say; look who they are!

    Its like Obama an expert on everything from managing General Motors to screwing the pension funds that invested in Chrysler under chapter 11 where the investor should be first in line for owership because they lent money to chrysler under CONTRACT; not the Union Workers who now own over 55% subverting the U.S. Bankruptcy Court which never handled a chapter 11 bankruptcy where The White house dictated the terms!

  3. Unionization does NOT= Card Check!

    Don’t start equating organizing a Union with Card Check!

    Alot of Union Workers do not want to be blindsided by non-Union Workers who use card check to subvert Union Wages and benefits with management driving Card Check!

    Card Checks failure will mean a nationwide failure in the eyes of potential Union members when I never needed card check to Unionize Costco;Frys Food Stores;Safeway or the Arizona Sonora Desert Museum just to name a few.

    Don’t by into this ANTI-UNION scheme called Caed Check!

  4. One thing that this swine flu scare highlighted is the fact that half of the workers in America get absolutely no paid sick days. If you are low wage or a woman you are likely to get no sick days at work. Low wage workers are also the least able to lose a days pay, and many face instant firing if they don’t make it to work.
    Now it looks like we dodged a bullet with this flu, but with a bad one, low wage workers aren’t going to stay home, and they are going to spread disease that is going to affect rich and poor alike (a busboy with the flu spreads disease to the entire country club).