B   M   W   E
JOURNAL
ONLINE VERSION VOLUME 107 - NUMBER 1 - FEBRUARY 1998
Labor vs. Corporate Contributions to Federal Campaigns

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Labor unions have always been under attack from business organizations. One of the primary weapons they use is getting anti-labor legislation passed in the U.S. Congress and state and local legislatures.

As BMWE members know all too well, gains won at the bargaining table can be wiped out by actions of politicians. They haven't forgotten that the harmful recommendations of Presidential Emergency Board 219 were imposed on them by Congress. Our members have learned through bitter experience that there is a powerful link between the bread box and the ballot box.

That is why the BMWE and all of labor is in politics--to protect the welfare and security of their members. If working people can help elect labor friendly candidates, passage of anti-labor legislation is less likely.

That is why we continuously urge our members to contribute to the Maintenance of Way Political League (MWPL). We must have a strong MWPL to support our strong legislative/political department and all our efforts.

That is also why the New Voice Team (Sweeney/Trumka/Chavez-Thompson) first elected to AFL-CIO leadership in 1995 made building a strong political voice for workers in our nation one of their top three major goals.

The New Voice Team began a number of initiatives leading to this goal but none caused as much screaming and howling by business politicians about union political activities as AFL-CIO President John Sweeney's announcement that labor would give $35 million in the 1996 election campaigns. In fact, they're still screaming and howling and attacking labor even harder over a year later.

All the noise somewhat obscures the fact that corporations give 11 times as much as labor. And that's not counting the millions given by such ideological or single -issue groups as the National Rifle Association, which opposes gun control.

The Political Department of the AFL-CIO prepared a study of the financing of federal elections from 1992 through 1996. They found that in the 1992 elections, corporations gave nine times as much as labor to federal candidates and parties. Since 1992, labor has stepped up its contributions by 25 percent but corporate spending increased even more. By 1996, corporations contributed 11 times as much as labor. "The bottom line: we're spending more than we ever have and we're still falling behind quickly."

In the 1996 elections, candidates and parties raised $1.6 billion, of which labor contributed only $60 million.

Total Corporate and Labor Contributions

(Hard and Soft Money)

SOFT MONEY = Money given to political parties. Almost no restrictions.

HARD MONEY = Money given directly to political candidates. Strict restrictions on who can give and how much. Corporations and labor unions can't give or use treasury funds.


Corporate Labor Ratio

1992 $447,594,985 $48,152,256 9 to 1

1994 $492,956,181 $48, 319,054 10 to 1

1996 $677,442,423 $60,352,761 11 to 1

Soft Money

Between the 1992 elections and the 1996 elections, labor increased its soft money contributions to the federal parties by more than 100 percent, from $4.3 million to $9.5 million. But at the same time, corporations increased their soft money spending by almost 200 percent, from $66.3 million to $176.1 million. In 1992, corporations gave 16 times as much soft money as labor did. Now, corporations give 19 times as much as labor gives.

Even though almost all of labor's soft money contributions went to Democratic party committees, labor is are losing ground there too. In 1992 corporations spent six times as much as labor did. In 1996, corporations spent nine times as much as labor did. Indeed, labor soft money accounted for only 11 percent of the soft money raised by the Democratic Congressional Campaign Committee, seven percent of the soft money raised by the Democratic National Committee, and five percent of the soft money raised by the Democratic Senatorial Campaign Committee.

Soft Money Contributions

Corporate Labor Ratio

1992 $ 66,342,241 $4,251,334 16 to 1

1994 $ 64,753,971 $,293,459 15 to 1

1996 $176,108,186 $9,505,745 19 to 1

Soft money is growing much faster than hard money. According to a study reported on in USA Today on August 22, 1997:

"Soft money. The unregulated megabuck contributions to Republican and Democratic committees totaled $34.3 million from January to June, more than 2 times the rate of the last comparable period in 1993 ... At the current pace, special interests will 'invest' a staggering $675 million in run-up to the 2000 presidential election."

Hard Money

Hard money spending has increased at a slower rate than soft money. But corporations are still outspending labor by 10 to one.

Hard Money Contributions

Corporate Labor Ratio

1992 $381,252,744 $44,067,720 9 to 1

1994 $428,202,210 $44,025,595 10 to 1

1996 $501,334,237 $50,847,016 10 to 1

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