The local members lose as well.  They lose the advantages belonging to a national organization such as money and news exposure.  And the externalities of solidarity, fraternity, & all that Left Wing socialist-hippy stuff.  (He wrote with self-deprecating self-mockery.)

And the Right Wing can put out a anti-campaign based around "Even their Union thinks they are wackos."

She believed in nothing; only her skepticism kept her from being an atheist. -- Jean-Paul Sartre