B   M   W   E
JOURNAL
ONLINE VERSION VOLUME 107 - NUMBER 4 - MAY 1998
Restoring A Level Playing Field To America
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.

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