Report: Unions Boost Economy (3/25/09)

A new report released by The Center for American Progress Action Fund shows that union membership boosts wages, increases the purchasing power of working men and women, and helps drive the economy.

"This report shows what we in the labor movement already know: unionized workers make more money and are more likely to have important health and pension benefits, which allows these workers to contribute to the economy," said RWDSU President Stuart Appelbaum 

According to the report, low unionization rates have contributed to the current recession by reducing the buying power of workers.
 
"One of the primarily reasons why our current recession endures is that workers do not have the purchasing power they need to drive our economy. Even when times were relatively good, workers were getting squeezed," the report states, adding that low wages have created an unsustainable debt-driven economy. "What is sustainable is an economy where workers are adequately rewarded and have the income they need to purchase goods. This is where unions come in."
 
According to the report, over the four-year period between 2004 and 2007, unionized workers’ wages were on average 11.3 percent higher than non-union workers with similar characteristics. Union workers nationwide are 28.2 percent more likely to be covered by employer-provided health insurance and 53.9 percent more likely to have employer-provided pensions compared to workers with similar characteristics who were not in unions.
 
"This report is yet another building block in the case for the Employee Free Choice Act, which would help boost unionization rates and help our economy recover and grow stronger than before," Appelbaum added.
 
Read the report: