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The development of labor unions
Factors leading to the decline of trade unions
The development of labor unions
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Organized labor is decreasing around the United States, but many economists wonder what is causing this decrease. In 2013, the amount of unionized workers fell to a 97year low, at 11.3%. Since the United States wanted to see exactly how much the unions were decreasing, they casted a vote. The vote states that if 44 workers out of around 1,300 had voted differently, than today we would be talking about a union breakthrough instead of the decline. Because of the dramatic change in the unions, there is many things that the unions no longer do. This paper will seek to find the driving force behind this decrease, and why workers are choosing to leave their labor unions. Labor unions are formally defined as an organized association of workers, often …show more content…
in a trade or profession, formed to protect and further their rights and interests. In a 2012 study, 64% of US citizens believed in the necessity of labor unions in order to maintain the safety and fair treatment of our country’s labor force.
As an observer can clearly see, many of our nation’s people believe in the benefits of unionization, so it is difficult to understand why there has been such a decrease in recent years.A few possible reasons in which the reason for the decline in labor unionism are; Decreased power of labor unions, expansion of companies in nonunionized states, growth of 4 industries where unions have a smaller presence, increased Globalization, and last but not least, company Hostility to unions. As for there are many reason in why labor unionism is declining, the first I would like to address is the decreased power of labor unions. In recent years, several laws have been passed that restrict labor unions from having the amount of influence they may have had in the past. Because they do not have the power they once held, many workers are choosing to leave their labor unions, if they believe that they cannot be benefited from them. Secondly, the expansion of companies in nonunionized states has played a major role in the decline because how is the labor unionism suppose to increase if companies are expanding to nonunionized states? Across the country, there are many “right to work,” or …show more content…
nonunionized states. Many large companies, such as Boeing and Volkswagen, are choosing to expand in these areas. This draws manufacturing workers away from labor unions, and into states where there are none. Since I have already mentioned the fact of companies expanding into nonunionized states, that falls into my next two topics of “Growth of industries where unions have a smaller presence” and “Increased Globalization.” In some industries, such as retail and restaurants, labor unions are not as common as in manufacturing and government positions.
With the growth of these sectors, the percentage of workers in industries where unionization is common is becoming less and less. Many manufacturing companies are choosing to outsource to cheaper countries overseas. Since labor unions hold their strongest influence in manufacturing, the decrease in factory workers leads to a smaller percentage of unionized labor force. Lastly, the final topics that I found to cause the decline in labor unionism is “Company Hostility to unions” and “The many things that Unions no longer do.” Several companies around the US have organized specific campaigns that target the influence of labor unions. By undermining the power these unions hold, many workers see no reason in the continuance of unionization. Many economists believe that this is the primary reason for the decrease in organized labor. But what most don’t know is all of the things that unions no longer do that are hurting them, for example, Unions no longer equalize incomes, no longer counteract racial inequality, no longer play a big role in assimilating immigrants, and no longer give lower
income Americans a political voice. An observer can clearly see that there are many possible reasons for the recent decline in organized labor. It is still heavily debated among economists which of these reasons is the most probable. The only way to truly find out the cause is by giving it time, and continually observing the state of unionization within the US. With careful observation, it will become much clearer of the causes behind this severe economic change, but how long will it take? That’s a question that we may never be able to answer, as Harold Meyerson once said, “The only way unions can regain their strength and provide a counterweight to corporate power is if liberals join the fight” (The American).
As companies look to expand operations and hire new employees, many economic and environmental factors are taken into consideration. The cost of labor is one of the primary concerns as labor generally constitutes a large part of company budgets. The organization of labor by unions further increases this concern. The wages of unionized workers are significantly higher than the wages of nonunion workers in almost every industry (Fossum, 2012). Higher wages generally result in reduced company profits, lower share prices, and reduced shareholder returns (Fossum, 2012). Unionization also reduces the employer’s flexibility with regards to hiring, transferring, or promoting employees (Fossum, 2012). Productivity may be negatively impacted by unionization because merit is often eliminated as a criterion for wage increases or promotions (Fossum, 2012). As a result of these negative impacts, employers are motivated to oppose unionization.
The organized labor movement from 1875 to 1900 is to blame for the problems unions face today as early labor unions crucified themselves politically, alienated themselves socially and failed to increase the socio-economic position of the worker, and in many cases only succeeded in worsening such positions. The political crucifixion of the early blue-collar industrial worker was directly caused by organized labor. Before such ‘organization, existed, workers flew under the political radar in the best of ways. They were allowed to live peaceful lives and given the unalienable right to life, liberty and the pursuit of happiness. In fact, the commodore Andrew Carnegie had achieved the American dream in his rags to riches advancement and he offered the same opportunity to each of his workers.
The Industrial Revolution that took place after the Civil War made for a more economically sound country. American workers, however, were becoming more and more dependent upon their wages; a fear of unemployment also stemmed from this. Workers didn’t share in the benefits that their employers reaped. In a chart representing the hours and wages of industrial workers, from 1875 to 1891, it shows that even though their wages were subtly increasing, their 10-hour work day remained the same (Doc. A). Factories were headed by large corporations; this, in turn, meant that new machines lessened the amount of workers in certain fields. As a result of these unsuitable conditions, labor unions were formed. The challenges that these unions faced weren’t easy. If the workers involved in organized labor got too far out of line, these corporations could get federal authorities involved. Moreover, these companies could enforce “ironclad oaths” upon their employees. In a Western Union Telegraph Company employee contract, in 1883, it states that the employee will not be affiliated with any societies or organizations (Doc. E). Despite such setbacks, by 1872 there were over 32 national unions.
against their employers, employees were able to go on strike and prove a point. Some
Wallerstein, M. & Western, B. 2000. Unions in Decline? What Has Changed and Why? Annual Review of Political Science. 3: 355-377.
Throughout the history of the United States of America the continuation of misfortunes for the workforce has aggravated people to their apex, eventually leading to the development of labor unions.
Unions have an extensive history of standing up for workers. They have advocated rights of steelworkers, coal miners, clothing factory employees, teachers, health care workers, and many others. The labor movement is based on the idea that organized workers as a group have more power than individuals would have on their own. The key purpose of any union is to negotiate contracts, making sure workers are respected and fairly compensated for their work. “In theory” unions are democratic organizations, resulting in varying inner authority. Workers look for security within a job a...
A common trend was always that wages were not keeping up with the cost of living. Many could not make ends meet and were struggling to simply survive. They started to question the effectiveness of the National Recovery Administration (N.R.A.). It was unfair to them that businesses were still making enormous profits while its employees were forced into poverty. Pushing for a unionization was disowned by factories where they threatened to close their doors if a worker’s union formed. Some thought businesses were crooked and angled themselves to take advantage of the economy to increase their
Beginning in the late 1700’s and growing rapidly even today, labor unions form the backbone for the American workforce and continue to fight for the common interests of workers around the country. As we look at the history of these unions, we see powerful individuals such as Terrence Powderly, Samuel Gompers, and Eugene Debs rise up as leaders in a newfound movement that protected the rights of the common worker and ensured better wages, more reasonable hours, and safer working conditions for those people (History). The rise of these labor unions also warranted new legislation that would protect against child labor in factories and give health benefits to workers who were either retired or injured, but everyone was not on board with the idea of foundations working to protect the interests of the common worker. Conflict with their industries lead to many strikes across the country in the coal, steel, and railroad industries, and several of these would ultimately end up leading to bloodshed. However, the existence of labor unions in the United States and their influence on their respective industries still resonates today, and many of our modern ideals that we have today carry over from what these labor unions fought for during through the Industrial Revolution.
The paper will discuss minicases on ‘The White-Collar Union Organizer’ and ‘The Frustrated Labor Historians’ by Arthur A. Sloane and Fred Witney (2010), to understand the issues unions undergo in the marketplace. There is no predetermined statistical number reported of union memberships in this country. However, “the United Bureau of Labor Statistics (BLS) excludes almost 2 million U.S wages and salary employees, over half of whom are employed in the public sector, who are represented at their workplaces by a union but are not union members. Not being required to join a union as a condition of continued employment, these employees have for a variety of reasons chosen not to do so. Nor do the BLS estimates include union members who are currently unemployed” (Sloane & Witney, 2010, p.5). Given this important information, the examination of these minicases will provide answers to the problems unions face in organizational settings.
With WWII on the horizon in the early 1940’s, Americans knew they must produce goods for the cause. Production was greatly needed and worker’s shoes needed to be filled. Labor Unions stepped up and proved to be extremely productive and fruitful. Although productivity was high, Union strikes began to brake out. Labor Union employees felt suppressed under the growing power of the unions and work stoppages were at an all time high in 1944. Acts such as the Taft-Hartley Act of 1947 and Landrum-Griffin Act of 1959 were passed to protect Union workers, however the corrupt unions had left employees feeling used and disrespected. The abusive reputation of unions still stands today as the public and employees find it hard to trust such massive corporations with dishonest pasts.
Throughout American history, labor unions have served to facilitate mediation between workers and employers. Workers seek to negotiate with employers for more control over their labor and its fruits. “A labor union can best be defined as an organization that exists for the purpose of representing its members to their employers regarding wages and terms and conditions of employment” (Hunter). Labor unions’ principal objectives are to increase wages, shorten work days, achieve greater benefits, and improve working conditions. Despite these goals, the early years of union formation were characterized by difficulties (Hunter).
Flanagan, R. J. (2005). Has Management Strangled U.S. Unions? Journal of Labor Research, 26(1), 33-63.
The laws and regulations surrounding Industrial Relations since the 1900’s have, at each reform, placed tighter constraints on the amount of power unions are able to exert. The reforms have also radically increased managerial prerogative, through an increased use of individual bargaining, contracts and restrictions imposed on unions (Bray and Waring, 2006). Bray and W...
...t is weakening. The Global Financial Crisis may have impacted the decline in union power in MNC's (Gunnigle, 2013) .