Friday, January 26, 2007
What's Wrong with Pittsburgh
That’s what’s wrong with Pittsburgh—the union mentality that still prevails undermines economic growth and development. Public sector unions in the City and with the Port Authority have driven their employers to the brink of financial ruin and are asking taxpayers to bail them out. Union work rules and prevailing wages inflate the cost of public development projects, again requiring more money from the taxpayers.
However, the trend across the country shows that unionism is on the decline. A report from the U.S. Labor Department notes that in 2006, U.S. labor unions lost 326,000 members, dropping the number of employed workers belonging to unions to 12 percent. This has been a decade’s long trend across the nation and even in Pennsylvania, where less than 14 percent of employees are union members.
Yet unions have fostered such an anti-business climate that manufacturing jobs continue to slip away. Heavily unionized states such as Pennsylvania and Michigan continue to languish in job creation and growth while Right-to-Work states such as North Carolina and Virginia prosper.
The negative correlation between unionism and economic growth continues to elude most area policy makers. Only when business-friendly policies, such as Right-to-Work, are enacted and the union mentality is soundly rejected as a way of life, will the economic tide turn. Until then, this “union town” will continue to bleed population. Hopefully, union work rules will allow the last person to turn out the light.
What about the idea that when collective bargaining leads to higher wages, those workers have more purchasing power, put more money back into the economy, and can more easily stay out of debt and buy property, contributing to the tax base?
How can a region, losing population and economic development, continue to prosper with escalating entitlements? I would honestly rather have a demographic working because they care about their trade and community than one who is entitled. (Everyone, everywhere "pays taxes." I hope that's not one's idea of "giving back.")
I hope these discussions continue. I'd like to learn more about how others in the community feel.
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