As we've watched labor become more engaged in protests–from Wisconsin earlier this year to OWS now–I think it's good to remember why this is so important.  Not just in terms of adding raw numbers to a growing popular movement, but also because of what unions do to help us all, whether we're members or not.

For starters, here's some Economic Policy Institute findings:

Unions reduce wage inequality because they raise wages more for low- and middle-wage workers than for higher-wage workers, more for blue-collar than for white-collar workers, and more for workers who do not have a college degree.

Strong unions set a pay standard that nonunion employers follow. For example, a high school graduate whose workplace is not unionized but whose industry is 25% unionized is paid 5% more than similar workers in less unionized industries.

The impact of unions on total nonunion wages is almost as large as the impact on total union wages.

That wage inequality item is of particular interest.  As Joseph Stiglitz notes:

Inequality in itself may give rise to instability…What happened in the United States before the crisis? The middle class was not doing very well. Because they were not doing very well, consumption—demand for goods—was limited. The central bank worried that because of the limited consumption the economy would be weak, lowered interest rates, and threw out regulations. The economy had a bubble. Housing prices soared. But as housing prices soared, the banks could lend them money to consume, so people were spending beyond their income. It was clearly not sustainable.

Unions help achieve stability and growth for the economy and society at large.  American Prospect:

Decent wages are necessary for social stability and for the purchasing power that the economy needs to trigger and sustain a strong recovery. The explosion of low-wage jobs is not the result of workers having inadequate education or skills. Over the past two decades, both education levels and skills have improved, while incomes have stagnated. This troubling trend is due, for the most part, to the declining bargaining power of America’s employees.

Enforcement of labor laws and setting standards for government contractors could change that equation, both directly and indirectly. More workers would earn good wages—and more would have the effective right to join unions.

…

Los Angeles provides a good illustration of how unions strengthen worker purchasing power and the economy. According to a December 2007 study by the Economic Roundtable, union workers in LA County earn 27 percent more than nonunion workers performing the same jobs. The higher wages for the LA union workers—who number about 800,000 or 15 percent of the workforce—add $7.2 billion a year in earnings. And there is a multiplier effect. As these workers purchased housing, food, clothing, child care, and other items, their consumption power created an additional 307,200 jobs, or 64,800 more than would have been produced without the higher union wages. The union wages also yield about $7 billion in taxes to various levels of government. If unionization rates were higher, these positive ripple effects would increase across the economy.

And let's not forget labor's critical role in getting worker protections passed, such as:

• Fair Minimum Wage Act of 2007, providing an increase in the federal minimum wage.
• The Occupational Safety and Health Act of 1970, a comprehensive federal law ensuring safety in the workplace.Workers' compensation laws, giving workers injured on the job medical coverage and compensation for lost time.
• Mine safety laws strengthening mine safety standards and protecting the rights of mine workers.
• The Fair Labor Standards Act of 1938, creating the 40-hour work week and the first minimum wage.
• The Social Security Act of 1935, providing benefits to unemployed and retired workers. 

So please remember, it's not a zero-sum game, pitting union against nonunion workers.  Labor works for everybody.

ntodd