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Jobs & Economy Labor Unions & Right-to-Work

Labor Unions & Right-to-Work

Reads at about grade 6Both sides shown9 sources cited

A labor union is a group of workers who bargain with their boss as one team. A "right-to-work" law says no worker can be forced to pay a union to keep a job.

What it is

A labor union is a group of workers who join together and bargain with their boss as one group -- a process called collective bargaining. The union works out pay, benefits, and job rules for the whole group. Union workers usually earn more than similar workers who are not in a union. This extra pay is called the union wage premium, and in California it runs about 13 percent (CalMatters). Researchers have looked at why: one study of Canadian workers found much of the raise comes from bargaining, with the rest coming from union workplaces being more productive (NBER). Unions pay for their work with fees called dues. A "right-to-work" law is a state law that says a worker cannot be forced to pay a union to keep a job. Many states have these laws; California does not. About 15 percent of California workers are in unions, higher than the national rate of about 10 percent. Studies show right-to-work laws lower union membership -- five years after these laws pass, membership drops by about 4 percentage points (NBER). The effect on wages is debated: one study found little change in hourly pay, but more workers putting in long hours, up about 6 percent (NBER). Whether these laws create jobs and attract business is also genuinely debated.

How it works

When most workers in a workplace vote for a union, that union then speaks for everyone in the group, a rule called exclusive representation. By law, the union must fairly represent all those workers, including people who never joined -- this is the "duty of fair representation." That sets up a hard question about money. In states without right-to-work laws, a worker can be required to pay a "fair-share" fee even if they do not join the union. Unions say this is only fair: they bargain for everyone, so everyone should help pay, and without it some workers get the benefits for free -- what unions call the "free-rider" problem. Right-to-work supporters see it the other way. They say no one should be forced to pay a private group just to hold a job, and to them this is about freedom and choice. So the fight is partly about wages and money, but it is also about values like fairness and freedom -- which is why it is so hard to settle.

The debate — equal weight, both sides

The case for stronger unions
Most often made by labor unions, worker advocates, and the political left.

Unions give workers real power. Alone, one worker has little say over pay or safety, but together workers can bargain as equals with a large company -- and the pay gap backs it up, since union workers earn more than similar non-union workers. Supporters say right-to-work laws are built to weaken this power: when fewer workers pay in, the union has less money to fight for all of them. Labor experts also say the laws help bosses pressure workers to quit the union. As one expert put it, right-to-work "gives employers another point to intimidate, coerce, and threaten employees about being part of the union." Then there is fairness. By law, the union must bargain for every worker in the group, so supporters say everyone who benefits should help pay -- otherwise some ride free on other people's dues. One labor writer says a union's strength is "its ability to unite workers in common fights to better their conditions." Weaken the union, they argue, and pay and voice drop for everyone.

The case for right-to-work
Most often made by free-market groups, many businesses, and the political right.

This side starts with freedom: no worker, they say, should be forced to pay a private group to keep a job. Paying a union should be a personal choice. As one free-market group puts it, workers should "retain control over their hard-earned money, deciding for themselves whether to support union activities." There is a free-speech point too. Unions spend money on politics and causes a worker may strongly disagree with. Supporters argue that workers "who object to their unions' funding of political, social, and ideological activities should not be forced to fund those activities." They also make an economic case: right-to-work states, they say, attract more business and more jobs, since companies like the lower costs and added flexibility. Backers point to "increased business attraction, resulting in higher employment rates," arguing that more investment means more jobs over time. Choice, they add, also makes unions earn members instead of forcing them to pay.

Sources

Behind the summary
Cited by "The case for stronger unions"
Cited by "The case for right-to-work"

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