Fred Wszolek

Union workers already make considerably more than the current minimum wage. However, many union bosses set up their contracts so that an increase in the minimum wage leads to an increase in the union wage as well. Baseline union wages are often set at a certain percentage above the minimum wage, so the former would be set to increase.

Higher union wages mean higher union dues. And labor bosses like Trumka know how important these dues are. As union membership declines across the country, they’re grasping for every cent they can get their hands on. Of course, whenever union coffers fill, that’s good news for the sympathetic politicians they tend to support during election years – like President and certain Members of Congress pushing for the minimum wage hike.

That’s the real cycle of minimum wage economics. A higher minimum wage means a higher union wage, which means higher union dues. Businesses have to slow down hiring or lay off workers, jobs disappear, but more money pours into the pockets of Big Labor bosses. So much for the President’s desire that the economy work for “all of us.” It seems like his minimum wage increase will end up benefitting a “fortunate few” after all – politicians in Washington and their Big Labor allies.

Fred Wszolek

Fred Wszolek is a spokesman for the Workforce Fairness Institute (WFI).