Public Watchdog.org

Labor Day 2014: The Difference Between Private And Public

09.07.15

Back when the State of Illinois actually had a “middle class” worthy of the name, most of its unionized employees worked in the private sector and were heirs to the proud tradition of private-sector trade unionists like William Sylvis (iron molders), Samuel Gompers (cigarmakers), John L. Lewis (mine workers), Walter Reuther (auto workers) and George Meany (plumbers).

But while Illinois ranks 7th (behind New York, Rhode Island, New Jersey, Connecticut, Massachusetts and California) in public-sector unionization with 54.7% of its public-sector employees belonging to unions – up from 38.4% in 1983 – less than 10% of Illinois’ private-sector workers are unionized, down from approximately 22% in 1983. And that’s even as private sector employment has grown by 30% versus only 3% in the public sector.

Meanwhile, the public sector expansionists and apologists bemoan the shrinking “middle class” – which in Illinois is generally described as a household income between $37,500 and $112,500.

Which means that here in Park Ridge many/most households with two public-sector incomes exceed “middle-class” status and become “upper-class” after only a few years.

If those incomes were all merit-based and the product of fair arm’s-length negotiations, we’d have no problem with them.

Unfortunately, the proud tradition of private-sector unions got lost in translation as the public-sector unions turned collusion with politicians of both Democrat and Republican stripes into a quasi-pornographic art form – while also becoming adept at manipulating soft-headed “non-partisan” local politicians who lack the backbone to aggressively negotiate contracts on behalf of their taxpayer-constituents.

Yes, invertebrate board members at School Districts 64 and 207…we mean you!

Fortunately, rookie Illinois Governor Bruce Rauner’s small but significant victory last week over Illinois’ Dark Lord of the Sith, Michael (“Darth”) Madigan, is the first sign in decades that an Illinois governor not only isn’t in the pocket of this state’s public-sector unions but, also, that he might be able to go toe-to-toe with those unions and their Sith co-conspirators.

Rauner was able to beat back Madigan’s and his Dem sycophants’ efforts to override Rauner’s veto of a bill that would have stripped the governor of the authority to negotiate contracts with Illinois public employee unions, particularly AFSCME, and would have empowered some unaccountable arbitrator (very likely a Madigan stooge) to impose on taxpayers his/her idea of what’s a “fair” deal for the unions.

Our local Dem puppet, Rep. Marty Moylan, voted for override while RINO Rep. Mike McAuliffe voted a gutless “Present.”

And that victory over Madigan was essential, considering that the Illinois Senate led by Madigan lackey, Illinois Senate president John Cullerton – assisted by his Senate sub-puppets like Park Ridge’s own, Sen. Dan Kotowski and Sen. John Mulroe, both Dems – had already overridden Rauner’s veto.

Rauner was right to fight that battle, and Illinois taxpayers are lucky he won it. Because every time Illinois’ public-sector employees have their compensation and benefits, including their $100 billion-plus underfunded pensions, juiced up without a commensurate increase in productivity, Illinois becomes less attractive to the private industry and investment needed to pay the taxes that fund such arguably overpriced employees.

But Rauner is dead wrong when he tries to lump private-sector unions together with the public-sector ones and treat them similarly. The former are bound by inherent capitalistic checks and balances of the free marketplace, including real risks such as termination, employer relocation and bankruptcy – while the latter operate on unchecked socialistic principles and captive markets with few, if any, of those risks.

And the longer the public sector continues to dominate the private sector, the tougher it will be for our children and their children to pursue the American Dream.

So as we wrote in our Labor Day 2013 post: “consider spending a few minutes contemplating how we can restore to prominence the private sector labor and management that built this country – while reducing the growing dominance of the collusive public sector labor and politics that is undermining it.

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