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Trivia Tidbit of the Day: Part 600 -- Unions Versus Productivity.

Unions Ruin America-

Productivity goes up as unions wane:

There are many reasons for the surge in productivity since World War II, including a better-educated population, more worker training and soaring investment in new technologies. But one reason often goes unremarked: The long-term decline in union membership — with its productivity-killing rules and above-market wages — which appears strongly linked to the powerful upward surge in worker productivity.

Unions end up hurting companies:

The National Bureau of Economic Research studied unionized public companies between 1961 and 1999, focusing on stock performance 24 months before their union votes to 24 months after.

It found the average loss per company was $40,500 in 1998 dollars for each worker eligible to vote. Equity values fall, the study concludes, for two reasons: (1) "A combination of a transfer to workers," and (2) "lost profit due to inefficiencies caused by the union."

The losses aren't limited to firms with organized workers. Research indicates a doubling of unionization in the U.S. would "lead to a 4.3% decrease in the equity value of all firms at risk of unionization."

Big labor is bad for America.

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Posted by Will Franklin · 29 May 2009 03:44 PM

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