The argument for suspending public sector union dues

California unions have 45.6% of their yearly budget sitting in reserve, and are in better economic shape today than most small businesses in the state. Perhaps Governor Newsom should look at suspending mandatory union dues during this crisis. Bob Wickers explores in California Globe.

“Just as federal lawmakers found a way to put cash directly into the pockets of most Americans, Gov. Gavin Newsom has an opportunity to do the same for Californians.

“Gov. Newsom can immediately help get California’s economy moving again – at no additional cost to taxpayers – by suspending public sector union dues collections from government employee paychecks for three months.

“According to UnionStats.com, there are more than 1.25 million public employees in California. My organization, the Freedom Foundation, has assembled publicly available payroll data showing these employees pay an average of $800 annually in union dues; therefore, suspending dues-deductions for three months will give these workers and their families an additional $200 in take-home pay and pump over $250 million dollars into the state’s economy.

“And doubling this dues-suspension to six months would inject a half billion dollars back into the Golden State.

“With respected economists, academics, and major banks predicting California’s economy will be the hardest hit of all 50 states by the looming recession, Gov. Newsom can soften the blow by doing similarly what his federal counterpart has done: put money directly into the hands of workers

“Opponents of this proposal, primarily government unions and the politicians they control, will argue it’s unfair to ask unions to temporarily forego dues collections – that it will harm them financially, and curtail their ability to organize and advocate.

“But U.S. Department of Labor data reveals the top five unions representing California’s public employees (AFSCME, SEIU, CTA, CSEA, Teamsters), all of whom are private corporations, currently have cash reserves totaling over $270 million and annual revenue of over $605 million.

“With 45.6% of their yearly budget sitting in reserve, these unions are flush with cash and in better economic shape today than most small businesses in California; and therefore, able to make this sacrifice.”

Read the whole thing here.

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