Friday, December 12, 2008

WALL STREET JOURNAL EDITORIAL: Labor Union Chief: Let's Share the Wealth

(The Wall Street Journal) -- In the Dec. 6 edition of The Wall Street Journal, WSJ editorial board member Matthew Kaminski writes that "America's most powerful union boss says Europe offers a good economic model." Andy Stern, head of the fastest growing trade group in America, the Service Employees International Union, is one of labor's most powerful figures today. From his SEIU headquarters in Washington, DC, Stern says his group will demand universal health care and quick adoption of the Employee Free Choice Act, commonly known as "card check," which would end secret ballots in union elections.

All the political signs are favorable for a "universal," government-run health-care system. Mr. Stern hails the appointment of Tom Daschle to lead the push from the Department of Health and Human Services.

On the issue of the 'card check' proposal, Mr. Stern keeps the pressure on, saying card check ought to come up in the first hundred days. Under the legislation passed by the House last year, if a majority of employees sign authorization forms, or cards, a union would be formed and employers would have 120 days to reach a contract. Failing that, the government would appoint an arbitrator to decide on the terms. This "minimum binding arbitration" provision worries employers as much as card check itself. But Mr. Stern rules out a compromise that would keep it out of the bill.

The Democratic left frames the argument for increasing union membership in terms of closing the gap between the rich and poor. Universal health care, widespread unionization, stronger regulations on business, profit-sharing for employees, higher taxes -- all that sounds like Western Europe. Mr. Stern considers that a worthy model. "I think Western Europe, as much as we used to make fun of it, has made different trade-offs which may have ended up with a little more unemployment but a lot more equality." Andy Stern's ambition would seem to be nothing less than to remake American capitalism from the ground up. His union, and the labor movement, hasn't had this good a chance to do so in a very long time.