How Much More Will Unions Lose?

 

By Susan Kniep, Former Mayor of East Hartford

President, The Federation of Connecticut Taxpayer Organizations

February 13, 2012

 

 

A recent news report in Connecticut noted that Teacher Tenure No Longer Taboo.

 

In Arizona, a  senate committee voted to ban collective bargaining with public employee unions. 

 

Providence, Rhode Island last week declared it could join the six cities throughout the country which have already filed for Chapter 9 municipal bankruptcy. If they do, union contracts could follow the same path as Vallejo, California as headlines read “Judge Lets Bankrupt Vallejo Void Union Pacts.” 

 

In a January 17, 2012 decision, the Connecticut Supreme Court upheld a 2009 lawsuit brought by Electrical Contractors Inc. which challenged the State of Connecticut’s requirement that union labor be used on public sector jobs.  The decision stipulated that Electrical Contractors could challenge the state’s requirement, giving the company an opportunity to benefit financially.    

 

According to an article in the Hartford Business Journal, “The justices said Electrical Contractors is correct in claiming that PLAs (Project Labor Agreements) are discriminatory and perpetuate fraud, corruption and favoritism, and that Electrical Contractors could challenge PLAs on the grounds of the Connecticut Antitrust Act”.

 

The success of Electrical Contractors could ultimately lessen the impact of contractor costs on state and municipal budgets and taxpayers, while providing a greater opportunity for those seeking employment who do not belong to a union. 

 

Additionally, the State and towns throughout Connecticut which have similar contracts requiring union workers could be at risk as this case progresses.  

 

Last week, the State of Indiana joined 22 other Right-to-work states.  As defined by the State of Connecticut “Right-to-work laws allow employees to decide whether or not to join or financially support a union.”  Connecticut is not a Right-to-Work state.  

 

Recently, it was reported that over the last decade, employment grew 2.3 percent in right-to-work states compared with a 4 percent decline in others.  Income growth  was also 17.5 percentage points higher in right-to-work states. 

 

It is interesting to note that Connecticut’s Office of Legislative Research produced a report in June, 2011 on the issue of Right-to-work States wherein they noted “Studies show that right-to-work laws have a statistically significant positive effect on employment levels and job creation, including faster growth in manufacturing jobs and lower unemployment rates. This may be because right-to-work laws affect where companies locate and manufacturing plants open. For example, all new auto plants built in the United States in the last 10 years were built in right-to-work states (Cooper, at 25).”

 

Connecticut is not a Right to Work State.   Connecticut taxpayers paid to collect $33 million in union dues for the benefit of State employee unions in 2010. 

 

As the majority of Connecticut's State Legislators and  Governor Malloy are allied with the public sector unions  - as demonstrated by burdening Connecticut taxpayers with a 9% wage increase for state employees under a four year no lay off clause - it is doubtful that Connecticut will ever join other Right-to-Work states which are attempting to bring back jobs. 

 

Instead the Governor and state legislators are dedicating $22 million of our tax dollars for an ad campaign to entice businesses to Connecticut.   A more prudent suggestion would be to reform State Collective Bargaining Laws to reduced taxes while also joining other Right-to-Work States.