Déjà vu for airline industrial relations

Fifteen years after deregulation, labor relations in the airline industry returned to thestatus quo ante, as union power, particularly ALPA’s, still dominates. Without a long-term shift in bargaining power between the parties, costs and productivity have not changed much. Labor accounts for 60 percent of the cost difference between strong and low-cost carriers. American, Delta, United, Northwest, and USAir would require some combination of labor cost concessions or productivity increases of $1.6 billion to match the productivity-adjusted labor costs for low-cost carriers’ flight crews. To remain competitive, strong carriers and unions must develop strategies to deal with anachronistic work rules, provisions to contract out work, and premium pay for airline employees.     

The estimated cost of project labor agreements on federal construction

I estimate the cost of President Clinton’s June 1997 executive memorandum encouraging federal departments and agencies to use project labor agreements (PLAs) on “large and significant” construction projects. Based on the higher wage costs associated with PLAs, the cost of federally owned construction will rise by 1.7 to 7.0 percent annually. Over the three years for which the memorandum will apply, federally owned construction costs will increase by $844 million to $3.44 billion. If the memorandum is interpreted to apply to state and local construction projects funded with federal money, the cost could range between $3.2 and $13.0 billion. The author thanks Ken Deavers, Anita Hattiangadi, Edward Potter, and Gary Shiu for their suggestions and help in the preparation of this paper.     

IMF Gold and the World Bank's Unfunded HIPC Deficit

The World Bank is to forgive $12.24 billion in IDA debt payments from HIPC borrowers. It has received $1 billion from the HIPC Trust Fund to help offset these losses, but still has a $11.6 billion unfunded liability. The IMF has gold worth $38 billion on hand for which it has no actual use. This article proposes that a small portion of IMF gold be sold annually, just enough to offset IDA's annual HIPC deficit, over the next twenty years. The new money would be additional and predictable, and would eliminate the prospect that IDA would have to cut back its future flow of aid because the HIPC programme had drained its resources.     

The impact of labor unions on the passage of economic legislation

This paper examines the political power of labor unions. A model of the decision of an interest group to contribute to a political campaign is developed and tested. The empirical evidence indicates that interest groups, and unions in particular, use political contributions in a systematic and coordinated manner. Unions give money to candidates with relatively little seniority (who might otherwise not be elected) and to candidates from districts with about the average number of union members. Such candidates might otherwise not vote as the union would desire. The influence of campaign contributions and of union membership on the voting of congressmen on issues of interest to unions is also investigated. Union membership is sometimes significant and campaign contributions are always significant in explaining voting on minimum wages, wageprice controls, benefits for strikers, and OSHA and CETA appropriations. The indirect economic effects of labor unions — those effects which occur because unions influence legislation — may be as important as the direct effects which occur through collective bargaining.     

What does $8 billion for coronavirus say about opioid funding?

Last week, Congress gave $8 billion to the fight against coronavirus, seemingly overnight. Certainly, compared to the extra $2 billion a year for addressing the opioid epidemic, the money came much faster. It took years for the State Targeted Response to the Opioid Crisis (STR) grant to be included, as it was in the Cures Act passed by Congress in 2016 and signed into law by President Obama in December of that year. The State Opioid Response (SOR) grants continue. How did the coronavirus $8 billion — $6 billion more than the White House had asked for — materialize so quickly? We asked two Capitol Hill experts.     

The economic status of union workers in the United States

Although American labor unions evolved out of poverty, today’s typical union worker is relatively affluent. Current Population Survey data show that average annual household earnings in 2002 for full-time union workers were nearly $79,000, nearly double the median of all households (including ones with non-workers), and more than for nonunion worker households. While relatively few union workers are truly “poor,” a larger proportion (over one-third for members of teachers’ unions) comes from households with over $100,000 in annual income. A puzzle: why do union members tend to support liberal policies and politicians far more than their relative affluence would predict? Perhaps it partly reflects rent-seeking behavior.     

Union wealth: The bargaining power implications

Conventional wisdom holds that U.S. unions are in crisis. Recently, however, unions have shown both boldness and initiative, remarkably in the proposed merger between the Auto Workers, Steelworkers, and Machinists. Regardless of whether labor is genuinely on the rebound, unions need money in order to retain clout and expand. I explore the financial wealth of the 28 largest U.S.-based unions during the period 1979–1993, and find that these unions, overall, maintained their wealth during a period of substantial membership decline even after adjusting for inflation. At the same time, however, unions vary widely in terms of both their wealth and related trends over the past decade and a half, but wealth has nonetheless remained substantially concentrated among a small set. Yet, several unions possess a seemingly robust financial capacity to sustain a strike, and the pursuit of additional union consolidations might reinforce this capacity. These consolidations may also have political implications.     

STR grants: How one physician in rural Florida is trying to help

If the State Targeted Response (STR) and State Opioid Response (SOR) grants from the Substance Abuse and Mental Health Services Administration (SAMHSA) grants are like an elephant — large, especially relative to funding for addiction treatment in general — they are also almost impossible to generalize about. But seeing one piece in context of the whole is essential in trying to find out where the money is actually going. The money goes to the single state authority (SSA) in charge of the Substance Abuse Prevention and Treatment (SAPT) block grant in each state, the person who knows most about what is needed in that state. The funding comes from the Substance Abuse and Mental Health Services Administration (SAMHSA). These grants added $2 billion‐plus to addiction treatment services for opioid use disorders for four years — and many expect this number to be doubled. For perspective, the entire SAPT block grant is under $2 billion and has been for decades.     

Health savings accounts and health reimbursement arrangements: assets, account balances, and rollovers, 2006-2011

ASSET LEVELS GROWING: In 2011, there was $12.4 billion in health savings accounts (HSAs) and health reimbursement arrangements (HRAs), spread across 8.4 million accounts, according to data from the 2011 EBRI/MGA Consumer Engagement in Health Care Survey, sponsored by EBRI and Matthew Greenwald & Associates. This is up from 2006, when there were 1.3 million accounts with $873.4 million in assets, and 2010, when 5.4 million accounts held $7.3 billion in assets. AFTER LEVELING OFF, AVERAGE ACCOUNT BALANCES INCREASED: After average account balances leveled off in 2008 and 2009, and fell slightly in 2010, they increased in 2011. In 2006, account balances averaged $696. They increased to $1,320 in 2007, a 90 percent increase. Account balances averaged $1,356 in 2008 and $1,419 in 2009, 3 percent and 5 percent increases, respectively. In 2010, average account balances fell to $1,355, down 4.5 percent from the previous year. In 2011, average account balances increased to $1,470, a 9 percent increase from 2010. TOTAL AND AVERAGE ROLLOVERS INCREASE: After declining to $1,029 in 2010, average rollover amounts increased to $1,208 in 2011. Total assets being rolled over increased as well: $6.7 billion was rolled over in 2011, up from $3.7 billion in 2010. The percentage of individuals without a rollover remained at 13 percent in 2011. HEALTHY BEHAVIOR DOES NOT MEAN HIGHER ACCOUNT BALANCES AND HIGHER ROLLOVERS: Individuals who smoke have more money in their accounts than those who do not smoke. In contrast, obese individuals have less money in their account than the nonobese. There is very little difference in account balances by level of exercise. Very small differences were found in account balances and rollover amounts between individuals who used cost or quality information, compared with those who did not use such information. However, next to no relationship was found between either account balance or rollover amounts and various cost-conscious behaviors. When a difference was found, those exhibiting the cost-conscious behavior were found to have lower account balances and rollover amounts. DIFFERENCES IN ACCOUNT BALANCES: Men have higher account balances than women, older individuals have higher account balances than younger ones, account balances increase with household income, and education has a significant impact on account balances independent of income and other variables. DIFFERENCES IN ROLLOVER AMOUNTS: Men rolled over more money than women, and older individuals had higher rollover amounts than younger individuals. Rollover amounts increase with household income and education, and individuals with single coverage rolled over a slightly higher amount than those with family coverage.     

Labor Union Political Strategy in an Era of Decline and Revitalization

U.S. labor unions faced sharp membership losses over the last few decades, and some responded by ushering in a new, revitalized model of organizing. Yet we know little about how these forces may be shaping the political activities of the labor movement. Has crisis prompted unions to take aim at public policies inhibiting union vitality, or have unions turned outward to embrace broader social causes? This paper uses an original dataset of union appearances in congressional hearings to analyze unions’ legislative advocacy activities. Findings suggest substantial differences between those unions that are likely to appear in hearings on core labor‐related topics and those that appear in hearings on broad social issues: AFL‐CIO unions are more likely to participate in hearings on core labor issues, while unions commonly cited as “revitalized” and public sector unions are more likely to appear in hearings on broad social issues.     

Health savings accounts and health reimbursement arrangements: assets, account balances, and rollovers, 2006-2010

ASSET LEVELS GROWING: In 2010, there was $7.7 billion in health savings accounts (HSAs) and health reimbursement arrangements (HRAs), spread across 5.7 million accounts. This is up from 2006, when there were 1.2 million accounts with $835.4 million in assets, and 2009, when 5 million accounts held $7.1 billion in assets. AFTER LEVELING OFF, AVERAGE ACCOUNT BALANCE DROPS SLIGHTLY: Increases in average account balances leveled off in 2008 and 2009, and fell slightly in 2010. In 2006, account balances averaged $696. They increased to $1,320 in 2007, a 90 percent increase. Account balances averaged $1,356 in 2008 and $1,419 in 2009, 3 percent and 5 percent increases, respectively. In 2010, average account balances fell to $1,355, down 4.5 percent from the previous year. AVERAGE ROLLOVER DECLINES, WHILE TOTAL ROLLOVERS INCREASE: Despite a decline in the average rollover amount in 2010, total assets being rolled over have been increasing. $4.2 billion was rolled over in 2010, up from $4 billion in 2009. The average rollover increased from $592 in 2006 to $1,295 in 2009, and fell to $1,029 in 2010. The percentage of individuals without a rollover decreased from 23 percent in 2006 to 10 percent in 2009 and increased slightly to 13 percent in 2010. HEALTHY BEHAVIOR MEANS HIGHER ACCOUNT BALANCES AND HIGHER ROLLOVERS: Individuals who exercised, those who did not smoke, and those who were not obese had higher account balances and higher rollovers than those with less healthy behaviors. It was also found that individuals who used cost or quality information had higher account balances and higher rollovers compared with those who did not use such information. However, no relationship was found between either account balance or rollover amounts and various cost-conscious behaviors such as checking pricing before getting services or asking for generic drugs instead of brand names, among other things. DIFFERENCES IN ACCOUNT BALANCES: Men have higher account balances than women, older individuals have higher account balances than younger ones, account balances increase with household income, and education has a significant impact on account balances independent of income and other variables. DIFFERENCES IN ROLLOVER AMOUNTS: Men rolled over more money than women, and older individuals had higher rollover amounts than younger individuals. Rollover amounts increase with household income and education, and individuals with single coverage rolled over a higher amount than those with family coverage.     

The economic toll of intimate partner violence against women in the United States

This study provides estimates of the economic cost of intimate partner violence perpetrated against women in the US, including expenditures for medical care and mental health services, and lost productivity from injury and premature death. The analysis uses national survey data, including the National Violence Against Women Survey and the Medical Expenditure Panel Survey, to estimate costs for 1995. Intimate partner violence against women cost $5.8 billion dollars (95% confidence interval: $3.9 to $7.7 billion) in 1995, including $320 million ($136 to $503 million) for rapes, $4.2 billion ($2.4 to $6.1 billion) for physical assault, $342 million ($235 to $449 million) for stalking, and $893 million ($840 to $946 million) for murders. Updated to 2003 dollars, costs would total over $8.3 billion. Intimate partner violence is costly in the US. The potential savings from efforts to reduce this violence are substantial. More comprehensive data are needed to refine cost estimates and monitor costs over time.     

Migration,development and remittances in rural Mexico

The argument is that remittances to Mexico from migrants in the US contribute to household prosperity and lessen the balance of payments problem. The purpose of this article is to provide an overview of the incentives and constraints to development and individual economic well-being in rural Mexico. Examination is made of the financial amount of remittances, the use of remittances, the impact on development of remittances, models of migration, and migration historically. The viewpoint is that migration satisfies labor needs in developed countries to the detriment of underdeveloped countries. $2 billion a year are sent by illegal migrants from the US to Mexico. This sum is 4 times the net earning of Mexico's tourist trade. 21.1% of the Mexican population depend in part on money sent from the US. 79% of illegal migrants remitted money to relatives in Jalisco state. 70% of migrant families receive $170/month. In Guadalupe, 73% of families depended on migrant income. In Villa Guerrero, 50% of households depended on migrant income. Migrant income supported 1 out of 5 households in Mexico. Money is usually spent of household subsistence items. Sometimes money is also spent on community religious festivals, marriage ceremonies, and education of children or improved living conditions. Examples are given of money being used for investment in land and livestock. Migration affects community solidarity, and comparative ethic, and the influence on others to migrate. Employment opportunities are not expanded and cottage and community industries are threatened. Land purchases did not result in land improvements. Migration models are deficient. There is a macro/micro dichotomy. The push-and-pull system is not controllable by individual migrants. The migration remittance model is a product of unequal development and a mechanism feeding migration. Mexican migration has occurred since the 1880's; seasonal migration was encouraged. There was coercion to return to Mexico after the economic recession of World War I; the door was firmly closely during the Great Depression of 1929-35. The 1980 estimates of illegal Mexican migrants totaled 2-9 million, which is the largest flow in the world. US industrial presence and Mexican development have reinforced migration flows. Regional and international capitalist requirements govern migration.     

Labor unions in the american economy: An analytical survey

Study of labor unions again is moving to the forefront of economists’ attention. This resurrection of interest stems from two sources. First, econometric studies indicate that the impact of unions on wages is varied. Further, the absence of theoretical foundation for analysis of labor unions now is appreciated widely. But recent developments in theories of agency, of public choice, and of property rights promise progress toward a better model of labor unions. That model built, the impacts of unions can be ascertained. Allen Dalton and Don Leavens provided able research assistance.     

The State of the Unions in Mexico

Significant developments during a period of transition for the labor movement in Mexico are described, including general declines in union membership; expansion of the maquiladora system accompanied by determined opposition to union-ization; and the effects of global labor markets, as reflected in limited ability of unions to raise wages and improve working conditions. Effects of the end of the 70-year rule by the Institutional Revolutionary Party in which party-aligned unions exploited their own members are examined. The development of independent unions and federations are described as significant forces which, along with reformed unions previously aligned with the PRI, now provide alternatives for legitimate representation of the interests of their members.     

Union Organizing and Labor Outreach in the Contemporary United States

Despite their long decline, labor unions increasingly find themselves in the news. From the spirited debate over income inequality, to fights over minimum wage and the unlikely mobilization of fast food workers at the very bottom of the American labor market, labor issues are of great public interest. In this article, I review scholarship on contemporary union organizing and outreach activity. This work suggests that while innovative organizing and outreach strategies, sometimes lumped together under the rubric of “social movement unionism” and “alt‐labor,” are demonstrated to be effective in advancing union causes, only a handful of unions appear to have the will and resources to utilize them. Moreover, while the implementation of new organizing and outreach strategies has been uneven and has not boosted union membership nationally, organized resistance to unions, from court rooms to state legislatures, has increased substantially.     

Irish Credit Unions: Exploring the Gender Mix

Credit unions are voluntary cooperative financial institutions. At present there are 621 credit unions in Ireland serving two million members. Credit unions espouse the principle of gender inclusiveness, which is viewed as a fundamental cooperative concept. Based on a survey of 500 Irish credit unions, this study explores the role of women in credit unions. Judged against participation rates for women in the labor market and in specific organizations such as trade unions, the study suggests that gender balance in credit unions is superior to that elsewhere in Irish society. There is, however, some evidence of gender imbalance in the composition of credit union boards with this being most visible for key decision-making positions such as Chair and Vice-Chair. It also emerges that gender imbalance becomes more pronounced for larger credit unions supporting the contention that women are found in greater numbers on small and less well-connected not-for-profit boards.     

Managerial Hostility and Attitudes Towards Unions: A Canada-US Comparison

We use a cross-country survey of attitudes toward work and unions, which includes a sample of managers in both the US and Canada, to explore whether there is greater attitudinal hostility to unions in the U.S. Our estimates indicate that American manager’s attitudes towards unions are, perhaps surprisingly, less hostile than those of Canadian managers. We explain this first finding by the differential effect of perceived union power, which is greater in Canada than the US and which is correlated negatively with union approval. We also find that US managers are less likely to use extreme methods to oppose union organizing drives, implying that the lower union rates in the US as compared to Canada are not likely the result of greater negativity towards unions themselves but rather some other factor or combination of factors. The implication is that if Canadian managers faced the same labor relations playing field as their US counterparts, they would likely find it easier to thwart union certification drives as well. Alternatively stated, Canadian-style labor relations reforms (such as card-check systems or quicker certification votes) could perhaps tip the balance in favor of unions when organizing in the US.     

Making Child Care "Affordable" in the United States

Two alternative federally financed plans are presented as modelsfor a program which would make child care of acceptable quality"affordable" for millions of American families. Taking a cuefrom currently operating state programs, care is defined as"affordable" if it costs parents no more than 30 percent ofthe amount by which their income exceeds the poverty line. Thefirst plan would cost the government $25 billion per year andwould concentrate help on families with incomes up to twicethe poverty line. The second would cost $39 billion per year,would provide higher quality care, and would allow all UnitedStates families to have access to care that was "affordable"by our definition. Costs of these magnitudes preclude financingof any significant part by employers or philanthropies. Whilesome government savings might result from the beneficial effectsof these programs, the main rationale for them rests, not onthe calculation that they will save the government money (althoughthey might), but on the fact that they will prevent considerablemisery to children and their families. Making quality childcare affordable to all families would result in safer, moreeducational, and more enjoyable care for children, and wouldgive a financial boost to families pitifully short of resourcesin a non-stigmatizing way. It would reduce child poverty andreduce enrollment in welfare-type programs. It would also giveparents a chance to particiopate in the world of work and toachieve the gains in resources and status that such a participationwould alllow.