Saturday, December 15, 2012

The right-to-work dilemma

For all the fury and fistfights outside the Lansing Capitol, what happened in Michigan this week was a simple accommodation to reality. The most famously unionized state, birthplace of the United Auto Workers, royalty of the American working class, became right-to-work. - Charles Krauthammer/NATIONAL POST

...There’s a reason Detroit went bankrupt while the southern auto transplants did not. This is not to exonerate incompetent overpaid management that contributed to the fall. But clearly the wage, benefit and work-rule gap between the unionized North and the right-to-work South was a major factor.

President Obama railed against the Michigan legislation, calling right-to-work “giving you the right to work for less money.” Well, there is a principle at stake here: A free country should allow its workers to choose whether or not to join a union. Moreover, it is more than slightly ironic that Democrats, the fiercely pro-choice party, reserve free choice for aborting a fetus, while denying it for such matters as choosing your child’s school or joining a union.

Principle and hypocrisy aside, however, the president’s statement has some validity. Let’s be honest: Right-to-work laws do weaken unions. And de-unionization can lead to lower wages.

But there is another factor at play: having a job in the first place. In right-to-work states, the average wage is about 10 percent lower. But in right-to-work states, unemployment also is about 10 percent lower.

Higher wages or lower unemployment? It is a wrenching choice. Although, you would think that liberals would be more inclined to spread the wealth — i.e., the jobs — around, preferring somewhat lower pay in order to leave fewer fellow workers mired in unemployment.

...rigidity and nostalgia have a price. The industrial Midwest is littered with the resulting wreckage. Michigan most notably, where its formerly great metropolis of Detroit is reduced to boarded-up bankruptcy by its inability and unwillingness to adapt to global change.

It’s easy to understand why a state such as Michigan would seek to recover its competitiveness by emulating the success of neighboring Indiana. One can sympathize with those who pine for the union glory days, while at the same time welcoming the new realism that promises not an impossible restoration, but desperately needed — and doable — recalibration and recovery.