Wall St. Journal: U.S. Unions: Still a Political Power?

[Omaha Steve]

http://online.wsj.com/article/SB119101303675643054.html?mod=googlenews_wsj

General Motors Corp. and the United Auto Workers tentatively agreed to a new contract that hands responsibility for retirees' health-care benefits to the union, but not before the union led a two-day national strike, the first against the company since 1970.

Contract negotiations centered on closing the $25-an-hour wage and benefit gap that General Motors faces with foreign auto workers, largely by reducing the costs of retirees' health benefits. The move comes as more U.S. companies are shifting rising health-care costs onto their employees.

Unions haven't had it easy in recent years. Once seen as the most powerful interest group in Washington, labor unions have seen their membership decline steadily, to 12% of the work force last year from around 20% in 1983. Internal dissension further undermined their clout two years ago, when several of the largest unions split from the AFL-CIO umbrella federation.

But unions' fortunes may be improving thanks to the Democratic takeover of Congress last year, propelled partly by union voter-mobilization efforts, and the prospect Democrats could solidify those gains and take control of the White House next year. Here's a closer look:

Why has union membership declined in recent years? Unions have been clobbered in recent years by globalization. Bankruptcies in the steel, auto and airline industries have eliminated jobs and benefits for tens of thousands of workers, and the manufacturing sector has lost three million jobs since 2000 as a result of increased productivity, competition from overseas and other reasons. The UAW alone has seen its ranks reduced by 40%, to 180,000 from 310,000, since the previous contract was negotiated in 2003. Overall, private-sector union membership has fallen to 7.4% of the private work force from 20% in 1980.

Has that reduced unions' political clout? Shrinking membership hasn't deterred unions from pledging to fund raise and mobilize in record numbers for next year's elections. The AFL-CIO has promised to spend $53.4 million next year, and the American Federation of State, County and Municipal Employees said it will spend $60 million, up from the $48 million that each organization spent in 2004.

FULL story at link.