Politics

The Battle to Reform Wisconsin Public Unions

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In February 2011 more than 70 percent of Americans had heard of the Wisconsin protests over Governor Scott Walker's budget reform bill aimed to curb public employee union bargaining and balance the budget.[i] For many Americans, this was the first time they had heard of public sector unions, that they negotiate contracts, or that they are distinct from private sector labor unions.

Despite low information, polls soon revealed early support for public employee unions over state governors.[ii] A February 2011 Pew poll found that a plurality's (44 percent) "first reaction" was to "side with unions" after hearing of a "disagreement between state or local governments and unions that represent government workers."[iii] A myriad of subsequent polls found upwards of 55 percent oppose eliminating "collective bargaining rights" as they were so described.[iv]

With this data alone, many concluded reform of public sector unions was not possible. However, this is only part of the story. A comprehensive analysis of public opinion data shows that the public may well indeed be open to reform. These data also explain the public's initial knee-jerk defense of public sector unions.

Summary Policy Preferences for Public Sector Union Workers

 

 The Gilded Memory of Labor Unions

Americans tend to have a favorable view of labor unions in general. Consequently, when they learned of the Wisconsin dispute and witnessed the union members' public outcry, many assumed unions would not clamor over the law unless provisions were unfair. Americans' partiality toward unions runs deep and has a long history.

In January 1940 the People's Research Survey asked Americans,

"Which one of these is the best thing labor unions have done? …They have improved working conditions. They have raised wages and living conditions. They have made collective bargaining possible. They protect and help labor against injustices. They have shortened working hours."[v]

 

 At this time in 1940, 63 percent of Americans approved of labor unions. Even today, when people talk about unions, they tend to hearken back to previous times, and explain how unions protected the workers from unsafe work environments and exploitative employers. Americans also tend to assume the best of unions' intentions. A February 2011 Pew poll asked if "union agreements give union workers unfair advantages" or "ensure that union workers are treated fairly." 55 percent assumed the later.

The legacy of goodwill toward unions continues today, demonstrated by a March 2011 Fox News poll finding that 60 percent of Americans believe unions "are still necessary to protect workers." In fact nearly half of Americans think labor unions "mostly help" companies and states where workers are unionized.[vi] Although labor union favorability has declined, an August 2011 Gallup poll still finds a majority (52 percent) "approve" of labor unions.[vii]

This generally favorable view of labor unions may well explain the public's propensity to side with unions over state governments in disputes. For instance, a simple odds ratio calculation of the February 2011 Pew poll data indicates those with "favorable" views of labor unions were six times as likely to say their "first reaction" was to side with unions upon learning of a dispute with state governments.

These data paint a picture suggesting Americans heard about the Wisconsin dispute, were unclear of the details, but were concerned by the unions' passionate response. Without knowing all the facts, many Americans assumed unions wouldn't be clamoring over changes unless they were unfair. 

"Rights"

Numerous pollsters took the Wisconsin debate national when asking Americans if they favored or opposed Wisconsin's attempt to take away "rights" of union collective bargaining. Given Americans' rich historical narrative of protecting individual rights, it is not surprising that upwards of 55 percent opposed measures to "take away," "eliminate," "reduce," or "weaken" "collective bargaining rights." However, when the word "rights" was not used to describe policy changes, responses flipped and pluralities supported initiatives to "limit" the "bargaining power of state employee unions."

The following tables show results from querying the Roper Center iPoll database for "collective bargaining" and "unions." Questions that used the word "rights" found majorities opposing state legislation to curb public sector union bargaining, yet questions not using the word "rights" found pluralities favoring such legislation.

Survey Questions Using Word "Rights"

Survey Organization Percentage Opposed Wording using "rights"
CBS News/NYTimes Feb 2011 60% Taking away some of the collective bargaining rights
Gallup/USA Today Feb 2011 61% Take away some of the collective bargaining rights
NBC News/WSJ Feb 2011 62% Eliminate right to collective bargain over health care, pensions, and benefits
Rasmussen March 2011 57% Weaken collective bargaining rights
Bloomberg March 2011 64% (Should) have right to collectively bargain for wages
NBC News/WSJ March-April 2011 54% Reduce collective bargaining rights and pay
Reason-Rupe March-April 2011 43% Take away some of the collective bargaining rights ("Neither" was an additional option) 

Survey Questions Not Using Word "Rights"

Survey Organization Percentage Favor Percentage Opposed Alternative Wording
Gallup March 2011 49% 45% "limit the bargaining power"
Quinnipiac University Feb 2011 45% 42% "limiting collective bargaining"

Part of the difficulty understanding public opinion on this issue is that most Americans do not really understand what collective bargaining is. For instance, a March 2011 Reason-Rupe poll found only 20 percent of Americans reported being "very familiar" with the collective bargaining process. However, when pollsters ask concrete policy questions related to collective bargaining a nuanced consensus emerges.

Openness to Reform

Americans believe workers have a right to unionize, even public employees (67 percent).[viii]  In the absence of public dialogue explaining important differences between private and public sector union employees, most Americans think they are essentially the same. This is bolstered by February 2011 Pew data finding identical favorability (48 percent) of both private sector and public sector unions.[ix] Consequently, Americans overwhelmingly think both kinds of unions should be treated the same. A February 2011 NBC/Wall Street Journal poll found 77 percent think public sector unions should "have the same right to bargain when it comes to their health care, pension, and other benefits" as private sector union employees.[x]

Americans want unions to have the opportunity to sit down and talk with their employers about health care benefits (69%), salary and wages (69%), and pensions and retirement benefits (68%).[xi] However, this does not mean they think unions should get whatever they want. In fact, Americans often oppose what unions want.

Several state-level polls ask specific policy questions of Wisconsin and California voters. Analyzing these polls suggest what Americans in general might think about various policy changes for public sector unions.

Wisconsin voters overwhelmingly support reforms that require public employees to contribute more toward their own retirement benefits and pensions. A February 2011 Wisconsin Policy Research Institute poll found 81 favor "requiring public employees to contribute to their own pensions." Similarly a January 2012 Marquette Law School poll of Wisconsin voters found 74 percent favor "requiring public employees to contribute to their own pension and pay more for health insurance."

According to Rasmussen 57 percent of Wisconsin voters oppose requiring school districts to buy health insurance from a union-created insurance company.[xii] According to the same poll, upwards of 60 percent of Wisconsin voters oppose initiating disbursement of lifetime retirement benefits before early-retired government workers are 65 years old.  This also suggests these voters would oppose "double-dipping," in which retired government workers collecting lifetime retirement benefits in their 40s and 50s go back to work and receive a paycheck in addition to the retirement benefits.

Wisconsin voters also are open to voter referenda before implementing enhancements to public union benefits. They are evenly divided over whether pay raises for state workers that would increase government spending should require voter approval (41 percent oppose, 40 percent favor).[xiii] However a plurality (48 percent) of Wisconsin voters do think increases to pension benefits that increase government spending should require voter approval.  This suggests many respondents understand the difference between long-term obligations, such as retirement benefits, and annual pay raises.

Although Wisconsin voters would prefer public employees contribute more toward their pensions and retirement benefits, they are uncomfortable with "reducing" worker pay and benefits (Gallup 54 percent oppose).[xiv] Somewhat ironically, requiring public employees to contribute more toward their pensions and retirement benefits is a form of a pay cut. It seems framing these kinds of reforms as increasing contributions rather than decreasing benefits increases public support.

Many Americans are also uncomfortable with breaking agreements on what pensions will pay current retirees.[xv] However, a UC Berkeley Field Poll of California voters found that 58 percent favor reducing promised retirement benefits for new employees and future unworked years of current employees.[xvi] According to the same survey, 52 percent approve of giving state and local governments legal authority to modify existing pension agreements with their current workers.[xvii]

California voters are open to several reforms to reduce the overall cost of public employee retirement benefits. Seventy-three percent of California voters favor establishing a salary cap when calculating pension benefits of public employees.[xviii] Sixty percent favor increasing the minimum age at which public employees can receive pension benefits.[xix] Fifty-six percent favor replacing the current pension system for public employees with a new system that would combine 401k-style benefits with reduced guaranteed payments. [xx]

In sum, although a cursory overview of major public opinion polls in 2011 indicate a national public opposed to Wisconsin-type reform, when concrete policy questions are asked, Americans are open to reform.

Why Open To Reform?

Over the past decades, union membership has plummeted from 20.1 percent in 1982 to 11.8 percent by 2011.[xxi] Back in 1982, 51 percent of non-unionized workers wanted to join a union if possible.[xxii] However, by 2011 a plurality of Americans say they prefer not to be in a union.[xxiii] A fast-paced, upwardly mobile, and increasingly globalized economy has shown the benefits to non-union membership. Individuals can be compensated for their own work ethic and merit, rather than be tied to the production of their co-workers. (VERIFY).

Today, only 6.9 percent of private sector workers are unionized. An astounding 37 percent of public employees, however, are unionized, five times higher than the private sector. In the private sector, expectations for compensation adjusted with economic and social changes. However, much of the public sector continued using a collective bargaining model, promising retirement benefits in the form of guaranteed pension payments and using collectivized negotiation over pay and health care benefits. This divergence in private versus public sector union membership and benefits likely played a critical role making clear the stark contrast between public and private sector compensation.

The perception of overpaid public employees has also increased. A November 2011 UC Berkeley Field Poll poll found that a plurality (41 percent) of Californians thought California public workers' pensions were "too generous," up from 32 percent in October 2009. A national Reason-Rupe poll in March 2011 found 50 percent of Americans thought "public sector employees" have "better benefits" than those with similar jobs in the private sector.

Favorability toward unions has also steadily declined from a high of 75 percent in October 1953 to 52 percent in 2011.[xxiv] Disapproval nearly eclipsed at 45 percent in August 2009. An August 2011 Gallup poll found 55 percent of Americans expect unions to become weaker in the future and 67 percent did not think this was a "bad thing."[xxv]

Americans also tend to believe unions have a negative impact on the economy and global competitiveness. An August 2011 Gallup poll finds a plurality (49 percent) believe "labor unions mostly hurt the United States' economy in general."[xxvi] Although a significant number (35 percent) of Americans think labor unions did little to impact the economy in 2011, a plurality (40 percent) thinks labor unions did "more to hurt the economy." Likewise a plurality (36 percent) also think labor unions have a "negative" effect on American companies' ability to compete globally.[xxvii] Interestingly, a survey conducted by Gallup for Phi Delta Kappa found that nearly half of Americans think teachers' unions "hurt" the "quality of public school education in the United States." In contrast, only 26 percent thought teacher unionization has helped and 25 percent think it has made no difference.[xxviii]

There is also concern over labor union power. A clear plurality of Americans, 43 percent, believe labor unions "have too much power" about half of that believe they don't have enough and 28 percent think they have an adequate amount.[xxix] A plurality of Americans (36 percent) also says "labor unions have too much influence on American life and politics today."[xxx] An August 2011 Gallup poll found a plurality (42 percent) want labor unions to have "less influence than they have today."[xxxi]

A combination of declining union membership, declining union favorability, perception of unions' negative economic impact, combined with the stark inequality in compensation between public and private sectors, have likely created an environment ripe for reform.


[i] NBC/Wall Street Journal Poll, Feb 24-28, 2011.

[ii] Please see, Pew Research Center for the People & the Press, Feb 24-27 2011; Gallup Poll March 25-27 2011.

[iii] Pew Research Center, Pew Research Center for the People & the Press & the Press Political Survey, Feb 2011

[iv] Please see CBS/New York Times Feb 2011, Gallup/USA Today Feb 2011, NBC News/Wall Street Journal Feb and March 2011, Rasmussen March 2011, Bloomberg March 2011.

[v] People's Research Survey, Jan 1940.

[vi] Gallup, August 11-14, 2011

[vii] Gallup Organization, http://www.gallup.com/poll/12751/Labor-Unions.aspx

[viii] ABC News/Washington Post, March 2011.

[ix] Pew Research Center Feb 2011

[x] NBC News/Wall Street Journal  Feb 24-28, 2011

[xi] Fox News Poll, March 14-16 2011.

[xii] Rasmussen, March 6 2011, Likely Wisconsin Voters

[xiii] Rasmussen March 6, 2011, Likely Wisconsin Voters

[xiv] Gallup/USA Today, Feb 21, 2011; Gallup, Mar 3-6 2011

[xv] Bloomberg, Mar 4-7, 2011.

[xvi] The Field Poll, UC Berkeley Feb 28-Mar 14, 2011, California Registered Voters

[xvii] The Field Poll, UC Berkeley Feb 28-Mar 14, 2011, California Registered Voters

[xviii] The Field Poll, UC Berkeley Feb 28-Mar 14, 2011, California Registered Voters

[xix] The Field Poll, UC Berkeley Feb 28-Mar 14, 2011, California Registered Voters

[xx] The Field Poll, UC Berkeley Feb 28-Mar 14, 2011, California Registered Voters

[xxi] Bureau of Labor Statistics, Economics News Release, January 27, 2012., at http://www.bls.gov/news.release/union2.nr0.htm, accessed May 22, 2012

[xxii] ABC News/Washington Post, January 1982

[xxiii] Fox News Poll, March 14-16 2011, (48% prefer not to be in a union, 44% prefer to be in a union).

[xxiv] Gallup Organization, http://www.gallup.com/poll/12751/Labor-Unions.aspx, accessed 05/16/2012

[xxv] Gallup Poll, August 2011; Public Religion Research Institute, Millennials, Religion & Gay and Lesbian Issues Survey, July 14-30, 2011.

[xxvi] Gallup, Aug 11-14, 2011

[xxvii] Pew Research Center for the People & the Press, Feb 2011.

[xxviii] Phi Delta Kappa, Conducted by Gallup Organization, June 4-June 13, 2011.

[xxix] Gallup Poll, Mar 25-27, 2011

[xxx] CBS News May 20-23, 2011

[xxxi] Gallup Poll, Aug 11-14, 2011.