By Bernard Rapoport, Chairman and CEO, American
Income Life Insurance Company In these days where the greed instinct seems to
be ever increasing, and there is less understanding of what unions are all about, my
conservative friends often ask me, "Why are you so pro-union?" I quickly respond
that, "I am pro-people."
What do I mean?
We talk about fairness in America and in order for that to be possible, the playing
field has to be level. Simply stated, that is what unionism is all about, leveling the
playing field. From a business perspective, the equation looks like this: Workers offer
their labor. Management supplies the capital. An individual, standing alone, cannot win
against big capital.
Many business people understand this equation and do all in their power to convince
workers that they can do better as individuals. Of course, they cannot. Workers who join
together, however, produce a situation where both labor and big capital can benefit. That,
more than anything else, explains what unionism is all about. Those from both unions and
business who understand this, contribute to making America a place where a good life is
possible.
One of the purposes of democracy is to insure that most of its citizens enjoy the
fruits of economic progress. But despite unprecedented economic growth over the past six
years, American workers are not broadly sharing in this so-called "economic
miracle." I have become deeply concerned over the apparent acquiescence of working
Americans to this condition.
In nearly every measure of economic and social progress, millions of American
families are falling further and further behind. And they don't even seem to realize it.
Or, if they do, they feel powerless to make a change.
Take a look at the specifics:
- Economists may argue about the exact numbers, but some 80 percent of the workforce now
earns lower real wages compared to 1973. All of the extra income produced by the economy
during that time has gone to the top 20 percent of the population, and most of it to the
top 1 percent.
"Probably no country has ever had as large a shift in the distribution of
earnings without having gone through a revolution or losing a major war," says
economist Lester Thurow of the Massachusetts Institute of Technology.
- Again, despite one of the greatest periods of economic growth in our nation's history,
the number of uninsured people increased to 41.7 million Americans in 1996 and is growing
by one million people each year. The National Coalition on Health Care (NCHC) recently
reported that fewer workers have access to health care coverage and most Americans are
paying more for fewer benefits. "Our country's health care sytem, which was described
as in 'crisis' in the early 1900s has not improved, but actually has become worse,"
reports NCHC President Dr. Henry E. Simmons.
- Remember 18 months ago when the hottest fight in the nation was raising the
minimum wage? Critics had argued that a higher minimum wage would squeeze profits and cost
jobs. Never happened, of course. On September 1, the minimum wage increased by 40 cents to
$5.15-an-hour. But it still needs to be higher, at least $6 an hour to make up for lost
buying power. In fact, we should have a "living minimum wage" which should be 20
percent above the poverty line.
- The shift away from defined benefit plans to 401(k) plans poses a dangerous threat to
the retirement security of American workers. Few younger workers, particularly families
just starting out, have the extra money to set aside for a 401(k). And how many workers
understand the market well enough to invest soundly? Now we are told that Social Security
should be "privatized" and turned into a 401(k)-type program in order to save
it. Social Security does not need to be saved and workers should be outraged by these
suggestions.
- Unemployment also may be at an historic low, but not for everyone. The Department of
Labor reports that although the national jobless rate may be around 4.5 percent,
unemployment for black males is over 12 percent. The rate for high school graduates is
more than 7 percent. So, even unemployment is unfairly distributed.
No wonder American workers share a sense of insecurity, frustration and
hopelessness. I strongly believe the elections of 1994, when the voters gave
Republicans control of the Congress, was in reaction to these feelings. I am less certain,
however, that the "Contract With America" or anything else that I have seen
which has come out of this conservative-led Congress will adequately correct these
problems.
I urge working people to take it upon themselves to reclaim the prosperity that they
should be sharing. This is an election year. Demand that political candidates address
these issues. Our discontent with government is not an ideological argument over the role
of government in society. It's based on our frustration that government isn't active
enough in dealing with our concerns.
Every union worker also should cherish, value and fight for their union card. It is the
best investment that you can make for your family and your future. In September The
New York Times studied the impact of union membership.
Overall, the hourly wages of union workers are twenty percent greater than those of
nonunion workers and their fringe benefits are typically worth two to four times as much.
Eighty-five percent of union members have a form of employer provided health care as
opposed to 57 percent in the nonunion companies.
"Turning a nonunion job into a union job very likely will have a
bigger effect on lifetime finances than all the advice employees will ever read about
investing in their 401(k) plans, buying a home or otherwise making more of what they
earn," the Times concluded.
From a business point of view, I can assure you that this is true. Why do you think
some business people fight so hard to keep a union out of their workplace? They do not
want to share the prosperity. It is a matter of who has the power. Through a union,
workers gain power.
AIL is a company built on a belief that unions are vital and necessary to economic
fairness and social justice. Only through unions, can workers hope to level the playing
field. So, we wear the union label proudly. As the old saying goes, "You can't be
half a union member. You are either union all the way or you are not." The same is
true of a company. At AIL, we are UNION ALL THE WAY. |