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September 13, 2019
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IN CASE YOU MISSED IT

Union Brags About Winning Wage Increase Already Paid By Non-Union Employers

F. Vincent Vernuccio
May 18, 2019
Townhall

In a move that has the supermarket industry scratching its head, the United Food and Commercial Workers, or UFCW, is singing its own praises for negotiating a wage increase that is already common practice among some of the largest non-union businesses.

Last month, Kroger stores in Kentucky and southern Indiana agreed to increase wages for part-time workers and new hires to $10 an hour, keeping one of the nation’s largest supermarket chains in line with its competitors on employee pay.

It’s the same song, different day for union leaders who think they deserve reward and recognition for implementing changes that business executives and CEOs long before understood as necessary.

Before taking a victory lap, the UFCW should look to other stores that have paved the way for higher starting wages, especially Walmart, Target, and Publix, each of which the union has consistently tried (and failed) to organize.

In 2018, Target raised its starting minimum wage to $12 and announced a business plan to increase that to $15 by the end of 2020. Also in 2018, Walmart increased its minimum wage to $11 an hour and bolstered its benefits package, resulting in an estimated total value of $17.50 an hour. This latter number includes the value of regular and overtime pay, a 401(k) match, health care benefits, an associates’ discount, paid time off — and a quarterly bonus that more than 1 million full- and part-time associates earned in 2017 based on store performance.

President and CEO of Walmart Inc., Doug McMillan, explains the importance of looking at more than just starting wage in his report, “Preparing for the Future of Work,” published last year: “We’ve increased our starting wages by more than 50 percent in the last three years, and we’ve invested in adoption, parental leave and education benefits at the same time. Let’s not get stuck, however, thinking about starting wages only. There can be unintended consequences of that focus. For example, raising the start rate at some companies ends up capping compensation for those who stay for years.”

Publix, like Walmart, raised wages last year. As a private company, it does not disclose its starting wages, but it did give hourly workers and some managers a pay raise to compete with Walmart and Target. The company’s employees and board members also receive shares in its privately traded stock as part of their compensation. The worker-owned store increased its stock price several times in the last two years, with the latest increase on May 1 taking it from $42.85 per share to $44.75 per share.

It’s not just workers who are gravitating toward grocery stores that understand how to stay competitive in the market. Consumers are choosing nonunion grocery chains to do their shopping. As first noted in the newsletter LaborUnionReport, a June 2018 consumer survey conducted by Market Force Information shows that America’s favorite grocery stores are mostly union-free.

Not only were Publix (ranked at number two) and Target (ranked at number 18) both on the list, but eight of the top 10 grocery chains and 14 of the top 20 chains were entirely or mostly free of union affiliation. Unionization may not have been the deciding factor in where consumers decide to shop, but these business-savvy grocery stores are certainly doing something right to remain competitive and keep their customer base in a crowded market.

Pay trends are not just interesting data points; they are closely studied by companies that rely on human capital to do business. Publix, Target and Walmart monitor the market and make the necessary adjustments to retain talent and stay competitive in the industry. These private companies watch the economy and have voluntarily raised wages without government oversight — and without direction from unions.

Unions continually try to make the case that they are the only way workers can get ahead. Yet in a bit of irony, they also try to artificially raise the minimum wage through state-level legislation as well as federal legislation like the Raise the Wage Act.

But the examples of private companies show that businesses value their workers and will pay to attract and retain talent. The market and good business practices are the way for workers to get a raise, not government or union intervention.

F. Vincent Vernuccio is a senior fellow at the Mackinac Center for Public Policy, a research and educational institute located in Midland, Mich. Follow him on Twitter @vinnievernuccio.

To access the op-ed, click here.

The Workforce Fairness Institute is an organization committed to educating voters, employers, employees and citizens about issues affecting the workplace.  To learn more, please visit: http://www.workforcefairness.com.

 To schedule an interview with a Workforce Fairness Institute representative, please contact Ryan Williams at (202) 677-7060.

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Tell Congress: Stop the PRO Act

WFI is working to prevent passage of the so-called Protecting the Right to Organize Act (PRO Act)—a wholesale labor reform package that takes the current careful balance of labor rules and tips it greatly in the favor of labor bosses and forced collective bargaining.

The PRO Act robs workers of the right to a secret ballot to form a union, forces union contracts on workers without a vote of approval, and expose workers’ personal contact information to union bosses seeking to organize a workplace. And that’s just the start.

Help us speak out against this woefully misguided and blatantly anti-worker legislation. Review and send the message below to your members of Congress today.

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WFI Key Vote Letter: Opposition to PRO Act

— 02.10.2020 —
Dear Speaker Pelosi and Minority Leader McCarthy: On behalf of the Workforce Fairness Institute (WFI), I am writing to share our organization’s vehement opposition to H.R. 2474, the Protecting the Right to Organize Act (PRO Act). WFI has serious concerns with the broad, overreaching nature of this legislation and the many ways in which it would undermine worker freedom and privacy, while simultaneously threatening businesses and entire industries that keep America’s economy thriving. Please note that WFI will include votes on the PRO Act and its amendments on our Congressional Labor Scorecard, which scores and ranks legislators based on their activity associated with workplace issues. WFI was established to fight for American employees and employers as well as our entire economy. We believe in worker empowerment, the right of workers to be fully informed of the options available for worker-involvement in the workplace, and the right to freely choose whether to organize or not. No individual or group – government, a union or an employer – should be able to intimidate or restrict workers’ in exercising these rights. In an attempt to boost flailing union membership at the expense of workers’ rights, the PRO Act would upend decades of established U.S. labor law and institute myriad anti-employee and anti-employer policies that have already been soundly rejected—by Congress, various federal agencies, or the courts. Among its most blatant affronts to workers’ rights, the PRO Act would eliminate the right to a secret ballot when determining whether to unionize and enforce a “card check” system, exposing workers to the potential for harassment, intimidation, and coercion. The PRO Act would also enforce binding arbitration in union negotiations by a government- appointed bureaucrat; repeal and eliminate right-to-work laws in 27 states, force workers to fund union activities regardless of whether they support them; and threaten the ability of individuals to operate as independent contractors, eliminating traditional economic and employment opportunities and threatening the independence and flexibility of the emerging gig economy. On top of all that, the PRO Act would force all workers’ personal and home contact information to be provided to a union during organizing campaigns – in an electronic, searchable format no less, with no limit on what a union can do with that information. WFI believes in advancing sensible policies that protect and preserve the rights of both employees and employers, and we welcome the opportunity to work with legislators who also support these efforts. However, the PRO Act does not achieve these goals and would instead threaten the rights of both while jeopardizing our entire economy. WFI urges members of the House to strongly oppose the PRO Act. Sincerely, Heather Greenaway Executive Director Workforce Fairness Institute See the letter here.
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