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Study Looks at the Effect of Unions

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Friday, May 16, 2008   

St. Paul, MN – Minnesota has a higher rate of union membership than most states, and a new study finds union workers are better off. The report, authored by the Center for Economic and Policy Research, also finds that the lowest-paid workers receive the highest benefits from collective bargaining.

Jennifer Munt, with AFSCME Council 5, Minnesota's largest public workers' union, says the benefits of belonging are clear.

"Union workers earn more than non-union workers. They're more likely to have health insurance, paid vacation and a secure pension. Working conditions are usually better and they enjoy less-tangible benefits, such as having dignity and a voice at work."

Munt says Minnesota is a labor-friendly state, and it has paid off.

"Minnesota has the tenth-highest level of unionization in the U.S. In strong union states like ours, there's less poverty. That's because the union advantage gives the biggest boost to lower-paid workers, who have the least bargaining power in our labor market."

The report finds unionization raises the wages of the average Minnesota worker by 12 percent. The lowest-paid workers make 20 percent more; the highest, four percent more than non-union employees.

Critics say unions can be disruptive and drive up production costs, which are passed on to consumers. Munt says that in fact unions are good for business.

"When workers are paid well, productivity is higher. They make a living that allows them to buy the products that we create. You invest more at the front end, but you have more consumers at the tail end when workers are paid well."

Union membership in Minnesota is just under 18 percent, while the national average is around 12 percent.

The study, including a breakdown by states, is online at www.cepr.net.




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