On May 26, 2021 the Illinois Senate announced that Senate Joint Resolution Constitutional Amendment 11 (“SJRCA 11”) had been adopted by both houses of the Illinois General Assembly. SJRCA 11 would permanently enshrine in the Illinois Constitution unprecedented power of government unions. Already the Illinois labor market performance has been lagging behind the rest of the country for the last 20 years, less job creation and fewer prospects for workers have led to longer unemployment. If SJRCA 11 were to be signed into law, it would only weaken an already weak market.
Illinois already has some of the most lopsided laws in the region when it comes to negotiating with government unions which, as is, drives up the cost of government services. With SJRCA 11 the General Assembly in Springfield will be creating a protected class of public sector unions at the expense of everyone else, not least of which, job seekers.
According to the Illinois Chamber of Commerce “This proposed legislation will deal yet another blow to Illinois’ crumbling reputation as a place to do business…This legislation will force many Illinois employers and national firms to question whether Illinois’ business climate is redeemable at all. The amendment specifically bars laws or ordinances that interfere with agreements that require union membership ‘as a condition of employment.’ As is so often the case, this proposal flies in the face of national trends that have resulted in 27 Right to Work states. Illinois is nearly surrounded by Right to Work states”.
While only 8% of private sector workers in Illinois are union members, 55% of public sector workers belong to one. In the public sector, the ability to collectively bargain means the cost of government services goes up. Public sector union demands tend to lead to higher taxes, despite fewer or lower quality services. The bulk of evidence also suggests that public sector hiring reduces job opportunities in the private sector. If public sector hiring did not crowd out private sector hiring, then an increase in public hiring would be associated with a decrease in the unemployment rate. However, the data shows the opposite.
If SJRCA 11 is added to the constitution, everyone will be adversely affected by it. The evidence is overwhelming that the unemployment rate is an increasing function of unionized public sector employment and that policy makers should not elevate the state’s minimum wage too aggressively, limit the extent of government employment, and favor laws limiting the extent of government union collective bargaining agreements.
For any questions on how SJRCA 11 might affect your business please reach out to the attorneys at Rock Fusco & Connelly, LLC.