,font size=1>10-12-05, 9:18 am

Union workers receive employer-paid benefits that far exceed the benefits employers provide for nonunion workers, and the union advantage is growing wider. For years, employers have been canceling benefit coverage and shifting more of the remaining costs to workers. Unions have been able to fight off this employer attack on benefits, but nonunion workers have been left with inadequate health care protections and no retirement security.

The total union advantage stood at $10.27 per hour in June 2005, with union workers earning an average of $33.42 per hour in total compensation and nonunion workers averaging $23.15, according to the Bureau of Labor Statistics (BLS) June 2005 survey of employer costs.

The value of the benefits that union workers receive is double the value for nonunion workers. On average, union workers receive $12.50 an hour in benefits, compared with $6.38 for nonunion workers, according to the BLS.

The largest differences in union and nonunion benefits occur in the critical areas of health care and retirement benefits. Employers contribute $3.46 per hour for health care benefits for union workers, compared with just $1.42 for nonunion workers.

Union workers receive $2.37 an hour for retirement benefits, compared with just $.71 for nonunion workers.

The latest data on the union/nonunion differential in benefits coverage come from the new Bureau of Labor Statistics 2005 employee benefits survey. The BLS survey collects information from 4,560 private-industry companies with 103 million workers. It is by far the most comprehensive and reliable benefits survey available. The new 2005 survey reveals the following advantages in union benefits: In the all-important area of health care protection, 92 percent of union workers are covered by medical care benefits, compared with 68 percent of nonunion workers. For union workers, employers pay 90 percent of the medical insurance premiums for single coverage, but cover only 81 percent of the cost for nonunion workers. For family coverage, employers pay 84 percent of the premiums for union workers, but only 68 percent of the cost for nonunion workers. 43 percent of union workers with single coverage have medical plans that are fully paid by the employer; only 21 percent of nonunion workers receive fully paid insurance. For family medical care coverage, 35 percent of union workers receive fully paid insurance, compared with just 8 percent of nonunion workers. When employers require workers to contribute to their medical insurance premiums, union workers pay an average of $669 a year for single coverage, compared with $850 for nonunion workers. For family coverage, union workers pay an average of $2,378 a year, compared with $3,395 for nonunion workers. 87 percent of union workers have prescription drug coverage, which protects them from the soaring cost of medications, compared with 61 percent of nonunion workers. 73 percent of union workers are covered by dental care benefits and 57 percent are covered by vision care benefits, compared with 43 percent of nonunion workers with dental benefits and 26 percent with vision benefits. 88 percent of union workers are covered by a retirement plan, compared with 56 percent of nonunion workers. Retirement is secure for the 73 percent of union workers who are covered by a defined benefit pension plan, which provides guaranteed benefits for life, compared with only 16 percent of nonunion workers who have a pension plan. Most of the small percentage of nonunion workers covered by these plans are higher-paid employees and executives, not lower-paid workers with no means for securing their retirement. 65 percent of union workers receive employer-paid life insurance coverage, compared with 50 percent of nonunion workers. For important protection in the event of serious disabilities, 67 percent of union workers are covered by short-term disability benefits, while only 37 percent of nonunion workers are protected. 87 percent of union workers receive paid holidays, compared with 75 percent of nonunion workers. The average number of paid holidays for union workers is 10, compared with 8 for nonunion workers. Union workers are also far more likely to receive paid sick leave, vacations, personal leave, funeral leave and military leave. Union workers are also far more likely to receive other important benefits, such as employer assistance for child care, adoption assistance, wellness programs, education assistance and long-term care insurance. They are also more likely to have access to dependent care and health care reimbursement accounts, which allow workers to set aside pretax dollars to cover out-of-pocket costs.

From Labor Research Association