Economists: Public Employee Union Membership Is Bound To Drop
Compulsory union dues are a thing of the past due to a U.S. Supreme Court ruling. But some say a pro-union culture in the islands will prevail.
The U.S. Supreme Court鈥檚 聽concerning union membership poses a critical question for government employee unions in Hawaii: Will workers continue to pay union dues when they don鈥檛 have to?
The court鈥檚 decision in Janus v. American Federation of State, County, and Municipal Employees essentially overturns a 41-year-old 聽that said government workers didn鈥檛 have to pay dues to cover a union鈥檚 political activities, but still had to help cover costs related to contract negotiations between the union and the government employer.
Under Janus, government workers now can enjoy the benefits of union contracts 鈥 wages, benefits and the like 鈥 without having to pay dues or be a member of the union.
Union leaders and economists are sharply divided on what that will mean over the long run for Hawaii鈥檚 powerful government unions, which have tens of thousands of members.
Some economists say the ruling will lead many people to drop out of the unions and quit paying dues. In economic parlance, such people are known as 鈥渇ree riders.鈥 A classic example is someone who tunes in to a listener-supported public radio station without contributing.
“Of course they鈥檙e going to free ride. Who wouldn’t?” said , principal of Tropic Zone Economics and the former chief economist for Bank of Hawaii. 鈥淵ou’d have to be living in a cave not to know people are going to free ride after this.鈥
But local union leaders downplayed the effect in Hawaii.
For one thing, nonunion members who choose not to pay fees won’t receive certain services like representation when filing grievances, said Kristeen Hanselman,聽executive director of the ,聽which represents about 3,400 faculty members.
“All of them will be covered equitably by a collective bargaining agreement, but when it comes to implementation and someone having a problem in the workplace such as a grievance, UHPA will not have to provide services for free,” Hanselman said.
The , the state’s fourth-largest union, has a 99 percent rate of membership, counting 13,700 individuals, according to president Corey Rosenlee. Slightly more than 100 Department of Education teachers are not members.聽Before Wednesday鈥檚 ruling, all DOE teachers, whether they were HSTA members or not, were required to pay the approximately $800 in annual union fees.
That now changes.
鈥淏efore, you were not required to join a union, but you were required to pay a 鈥榝air share鈥 for collective bargaining,鈥 Rosenlee said. 鈥淧ost-Janus, there will be teachers who get the benefit of collective bargaining without paying dues.鈥
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Public employee unions have big memberships and play a prominent role in Hawaii鈥檚 economy and politics.
The , which represents a number of government employees, has 42,000 members. The union has 14,300.
In addition to lobbying at the Legislature, the unions make significant contributions to public officials. In the last 12 years, HSTA has contributed more than $375,000 to state and county political candidates, according to state campaign spending commission data. HGEA has given more than $340,000 to campaigns and the聽United Public Workers聽gave at least $210,000 in the same time frame, the data shows.
The聽University of Hawaii Professional Assembly聽gave at least $168,000 in the same period.
The unions also represent workers in the courts. For example, last year the statewide union for police officers sued the city and county of Honolulu to prevent the Honolulu Police Department from releasing officer salary information to Civil Beat. (The news organization, which planned to use the information in a database of public employee salaries聽that it publishes every two years, is now an intervenor in ongoing litigation between the union and the city.)
The issue in Janus was whether supporting unions at all, even in matters that were not overtly political, was a form of speech.
Mark Janus was a child support specialist in Illinois.聽He was not a member of the聽, but he still had to pay the monthly membership dues to the union to cover the costs of collective bargaining, something that he benefited from.
In Wednesday’s ruling, the Supreme Court determined that paying union dues is a form of speech and forcing government employees to do so was essentially forcing them to speak in violation of the First Amendment.
So will workers who support unions keep speaking out for them by paying dues?
鈥淏asically what鈥檚 likely to happen is what would happen if the Supreme Court were to decide that you can pay your taxes, but nothing would happen if you don鈥檛 pay your taxes,鈥 said , a San Francisco-based attorney who filed a friend of the court brief supporting the union in the Janus case.
The notion that the ruling won’t cause a decline in union membership or spending is 鈥渂oth false and disingenuous,鈥 Jackson argued in the brief, which was submitted on behalf of 聽three dozen law and economics professors, including, , a former vice chairman of the Federal Reserve System; , who is known for helping former Soviet bloc countries adapt to capitalism; and three Nobel prize-winning economists, , , and .
The economists argue that even if employees believe in the union鈥檚 cause, many simply won鈥檛 keep paying dues if they don鈥檛 have to.
鈥淭his is not only well established in economic theory, it is also confirmed by empirical data,鈥 the economists said.
鈥淣obody鈥檚 saying the unions are going to close tomorrow,鈥 Jackson told Civil Beat. But he added, 鈥淭his is probably not going to end well. That鈥檚 my bottom line.鈥
Could Hawaii defy the economic theory?聽, a Hawaii labor lawyer, said Hawaii workers are less likely to quit paying dues because of the role unions have played in the state鈥檚 history and culture.
鈥淚 don鈥檛 think the sky is falling as much as some in the media are saying,鈥 Rand said.
The teachers union agrees.
“What we鈥檙e going to do is, we鈥檙e planning to have lots of conversation,” Rosenlee said. “We have hundreds of teachers who have been trained on how to talk to our members.”
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About the Authors
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Stewart Yerton is the senior business writer for 天美视频. You can reach him at syerton@civilbeat.org.
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Suevon Lee covered education for Civil Beat.