Transcript Household Income, 2000 (1999 Income) Percent of Total

Youth Brigade Week 5

From Unionized Times to Troubled Times

Explaining Union Decline: Some Detective Work

Final Choices: The Future of Organized Labor

Field Trip:



Solidarity in America: Expanding Freedom From White Guys to You Folks
Constitution Center & Liberty Bell
"We must all hang together, or assuredly we shall all hang
separately" – Ben Franklin
In 1955 the AFL and the CIO join to form
the AFL-CIO
AFL-CIO
SEIU
Teamsters
Dozens of others…
America Moves From Violent Class Conflict to
Negotiating over a Bargaining Table…
Sharing the Profits
The “Great Compression” Bring More Equality
Unions Make a Difference
MEDIAN WEEKLY EARNINGS OF FULL-TIME
WAGE AND SALARY WORKERS, 2000
Unions Make a Difference
(Pct. Of Workers, March
2003) http://stats.bls.gov/news.release/ebs2.t01.htm
All
Ret:
Plans: Defined
Retire Benefit
ment
Benefi
t
Retire:
Medical Dental Vision
Defined
Care
Care
Care
Contribution
All
Workers
49%
20%
40%
45%
32%
19%
Union
Workers
83%
72%
39%
60%
51%
37%
NonUnion
Workers
18%
15%
40%
44%
30%
17%
But Here’s the Rub…The Percent of Workers Who
Belong to Unions Has Decreased…a lot!
35%
30%
25%
20%
2006
15%
10%
5%
0%
2006
1935
1945
1955
1965
1975
1985
1995
2000
1930
1940
1950
1960
1970
1980
1990
Source: Department of Labor, Bureau of Labor Statistics, Handbook of Labor Statistics, 1980.
Also, Department of Labor, Bureau of Labor Statistics, January various years.
Lower union density…Lower wages
Less Unions…More Inequality


Top 10%
take ½
the pay
Room with
10
people,
one guy
takes ½
the pay
Less Unions…More Inequalilty
• In 1980, CEO pay
equaled 42 times the
average blue collar
worker’s pay.
• By 2005, CEO pay had
grown to 411 times the
average worker’s pay
11
Sources: Business Week; New York Times; U.S. Bureau of Labor Statistics
Less Unions…More Inequality

Top 1% of our
society controls
35% of wealth




Gates, Trump,
Hilton
Top 5% controls
62%
Top 10% controls
73%
The rest of
us split
what’s
left…
Understanding Union Decline

America develops a
“Post Industrial
Economy”
80
70
60
50
Manufacturing
Service
40
30
20
10
0
1900

The new economy
develops with low
levels of unionization
1920
1960
1980
1998
Explaining the puzzle?



Why do you think the
percentage of workers in
unions has declined?
What theories can you
develop?
Who or what might be
responsible?
The Four Main Suspects




Changes in the Economy…maybe all the union jobs
disappeared?
Changes in workers…maybe they don’t want unions
anymore?
Changes in unions…maybe they stopped trying to grow?
Changes in management…maybe they’re less tolerant of
unions?
Changes in the Economy: Automation and
the Post Industrial Economy

Replace union labor with machines

Technological innovation
US Steel, 1980 120,000 workers
 US Steel, 1990
20,000 workers


That’s 100,000 fewer union members

Yet same output

Similar trends in auto and other manufacturing sectors
Changes in the Economy: Globalization and
the Post Industrial Economy

Globalization
 “In
China, auto part
workers earn about $3
an hour. In the US, they
earn $29 an hour in
wages and benefits.”
(Competition From China, PI 3/26/06)

This puts tremendous
pressure on companies
to relocate…or to roll
back wages and
benefits in US
Globalization and Economic Restructuring…

Percentage of Manufacturing Jobs Lost
Philadelphia
 Chicago
 New York
 Detroit

Between 1967
64%
60%
58%
51%
and 1987 alone
160,000
500,000
>500,000
108,000

By 2005, NYC had lost 1
million manufacturing jobs…many
of them very good union jobs

This has a devastating effect on the working class…African
Americans in northern cities hit particularly hard…
Explaining the Decline of Unions…

At first glance…the fact that unionized manufacturing
jobs disappeared seems like enough information to
explain union decline…but its not..
 Estimates


are that it explain about 20% of the decline
Very same changes have occurred in all advanced
industrial capitalist nations, but union density has not
fallen in the same way.
Note the next slide…
Union Density
Compared

Union Density, 2002

Canada 32%

US was 13.3%
The Four Main Suspects




Changes in the Economy…maybe all the union jobs
disappeared?
Changes in workers…maybe they don’t want unions
anymore?
Changes in unions…maybe they stopped trying to grow?
Changes in management…maybe they’re less tolerant of
unions?
Workers Approve of Unions
Many, if not Most Workers, Want a
Union: The Representation Gap
The Four Main Suspects




Changes in the Economy…maybe all the union jobs
disappeared?
Changes in workers…maybe they don’t want unions
anymore?
Changes in unions…maybe they stopped trying to grow?
Changes in management…maybe they’re less tolerant of
unions?
The Context: “Hourglass” Economy

Some Service Jobs are
High Skill/High wage jobs
80
70
60
50
Manufacturing
Service
40

Computer tech, manager,
accountant, nurse
30
20
10
0
1900

Many Service Jobs are Low
skill/Low wage jobs

Janitor, Sales clerk, daycare,
nurses aide, security
1920
1960
1980
1998
Once Again…Choices…


It’s 1985, and you are a union leader committed to
addressing issues of inequality and fairness in society.
You believe that all workers should be able to live with
dignity, make a decent living, have fair hours and hve
safe working conditions. The manufacturing industries
that were once the backbone of the labor movement are
disappearing, and service sectors jobs ranging from
janitors, waiters and sales clerks to lawyers, computer
technicians and software designers are expanding. Some
of these jobs are good, a lot of these jobs are awful.
As a union leader, what do you do to reverse the
decline of unions so you can protect working
families?
Organize, Organize Organize!!! Or maybe
not…First puzzle piece…

George Meany, President of
the AFL-CIO dismissed
concerns about organizing
new workers

“I don’t know, I don’t
care…Why should we worry
about organizing groups of
people who do not appear to
want to be organized...I used
to worry about…the size of
the membership…I stopped
worrying because it doesn’t
make any difference…The
organized fellow is the fellow
that counts”
(Freeman 2007: 77)
Faced with crisis…Unions actually
organize less…

Few resources
devoted to
organizing new
workers
 Anyone
been to the
23rd floor

Fewer elections for
union representation
held
Year
1950
# of Elections
for union
representation
5619
1960
5428
1970
7543
1980
7021
1990
3423
1995
2716
Fewer Elections, Covering Fewer
Workers, with Fewer Victories
600000
Number of Union Representation Elections
500000
400000
Number
voted
300000
200000
Number Won
100000
0
1965 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997
Years
3-26
Fewer elections with fewer wins bring in
fewer new union members
Year
# of
Elections
% Won
Union
New
Members
1950
5619
74.5
-
1960
5428
62.8
-
1970
7543
55.1
-
1980
7021
49
-
1990
3423
47.6
77,689
1995
2716
48.2
66,753
The Decline of Organized Labor…


Ok…so part of the reason for union decline is that
unions dropped the ball…
But how come they used to win 75% of the elections
and now they only win 50%?
The Four Main Suspects




Changes in the Economy…maybe all the union jobs
disappeared?
Changes in workers…maybe they don’t want unions
anymore?
Changes in unions…maybe they stopped trying to grow?
Changes in management…maybe they’re less tolerant of
unions?
Organizing Unions

Law requires that at least 30 percent of the election
unit must have signed an authorization card to
schedule an election
 Most
unions will not file for an election without 50% or
more…
 Organizers
cards

usually want 65% of workers to sign union
So…100 workers, 65 signed a union card…you
would think the union would win the election…
Let’s Consider a Concrete Case:
Walmart


General Motors, 1969

CEO salary in today’s
dollars, $4.3 million


Workers salary, $40,000+
health care and pension

5 of 10 wealthiest people on the
planet are Waltons

107 times as much as the typical
worker


Walmart, 2005
$20 to $40 billion fortunes
CEO Salary in 2005, $23 million


5 times GM CEO
1,277 typical worker
A Middle Class Wage

Workers salary, approx.
$18,000


Most lack health care and pensions
A Poverty Wage
Choices…

You manage a Walmart. You make $150,000 a year and have good
health care and benefits. The CEO of Walmart has made it clear that
Walmart must remain a union free company. If your store goes union,
you’ll most likely lose your job. You know that when a Walmart in
Quebec Canada was unionized, headquarters closed the store.

About a two months ago you noticed that Jane and Joe started
wearing SEIU buttons to work. Slowly more “associates” started
wearing SEIU buttons. Now you have learned that SEIU has gathered
union cards from 50% of your associates and submitted them to the
National Labor Relations Board. An election has been set for one
month.

What do you do now? Are there things you wished you would
have done two month ago?
Let’s go to the videotape…

Take note of what you see…
Managerial Opposition

Management is rarely a passive observer
during a union election

Research finds that 75 percent of employers
engage in “active anti-union tactics”

Some of this opposition is legal…some of it is
illegal…
Managerial Opposition… Termination

Fire union supporters (illegal…but not
uncommon)

Research finds:



Occurs in 1 out of 3 organizing drives
1 out of 36 pro-union voters discharged
Cost to Employer if they get caught
breaking the law?
Cost to Employer if they get caught
breaking the law?

Back wages minus what worker has
earned while fired




2 years to settle case costs you
Work at Target making
Walmart owes you
$36,000
$35,900
$100
Financial penalty is almost nonexistent…it is cost effective to break
the law…
Managerial Opposition…Stall
Delay
Election often by challenging
Structure of Bargaining Unit (legal and
common)
 Cashiers
should be in a different union than stock
boys…NLRB must investigate
Research
finds: Longer the delay, the less
inclined workers are to vote for the union
Managerial Opposition…Intimidate



Recent study of 1,000 union elections over 5 year
period
“In 63 percent of campaigns, supervisors met with
workers one on one and interrogated them about
their union activity or whether they or others were
supporting the union.”(legal) (Brofenbrenner 2009)
“In 54 percent of the elections, supervisors used
these one-on-ones to threaten individual workers.”
(illegal) (Brofenbrenner 2009)
Managerial Opposition… Forced Info
 Captive
Audience meetings-mandatory meetings
during work (legal and common)
91% require anti-union meetings

How
Can be held up to 24 hrs before vote
does this compare to union access to
workers?
Organizing the Unorganized
Access to workers is a problem for unions
Non-employees not permitted into worksite
Outreach in a parking lot: not permitted
 Even
banned from retail public parking lot
That leaves: lunch hour; after work, house visits…
Managerial Opposition



Research finds anti-union campaigns are
effective…unions that start with 65% support
often lose elections
But it gets worse…in the 50% of elections that
unions win, no first contract is ever won
So…Unions lose 50% of the elections, and in
50% of the elections they win, they can not get a
contract
It is not like this everywhere…

“Managers in other countries do not
fight unions with anything like the
resources and zeal of American
managers”
(Freeman 2007: 81)


In Denmark, Harvard Professor
Richard Freeman asks to meet with
anti-union firms…told that would not
be possible, there are none.
Small Business Association prefers
collective bargaining…it levels the
playing field for firms to compete on
non-wage dimensions? Translation?
Employers that don’t hate unions…?

If labor market is organized “wall to wall,” no one is at a
competitive disadvantage


High unionization & extension laws create level playing field
NJ Grocery as an American example…96% of
Supermarkets in NJ are unionized
(PI 2/01/05)


Pathmark, Shoprite, Acme all compete…but not on the backs of
their workers
These companies can live with their unions…but what do
you think happens when Walmart starts opening up
grocery stores…when unions are no longer wall to wall?
Employers that don’t hate unions…?


Walmart’s low wages and benefits are a threat to
unionized firms and their workers
Union Stores (Acme, Shoprite, Pathmark, etc.) are
demanding concessions from unions to remain
competitive with Walmart
 Also

encouraging UFCW to organize Walmart
UFCW (United Food and Commercial Workers) has got
a real problem…We’ll see if they solve it…
Union Decline…More Choices



Changes in the
Economy
Changes in Union
Behavior
Changes in
Managements
Behavior
Choices


You have just been elected
to the SEIU Executive
Board. Your job is to
develop a strategy that
will help rebuild the labor
movement, and thereby
improve the lives of
working families?
What sorts of things do
you think unions should do
to rebuild the labor
movement?
So what’s a labor movement to do?



At present, there are two dominant trains of thought:
Focus should be on External Changes: Unions need to
focus on political action, in particular changing labor
law to try and lift win rate
Focus should be on Internal Changes: Unions need to look
in the mirror, change, spend more money & resources on
organizing the unorganized and try new tactics
Employee Free Choice Act: President Obama supports it,
House has Passed it…but it is Stuck in the Senate…
Employee Free Choice Act…
Beyond Politics…

“Labor’s structure is the problem” (Lerner 2003:11)

Consolidate into LARGE, Sectoral/Industry Unions
AFL-CIO should go from 66 to 10 to 15 unions
 32 BJ from CT to Miami
 More strategic focus for each union



Focus on specific industries & sectors, especially those that do not
face international competition
Unions Need to Unite in Federation with more power
Develop strategies, organize, build power
 Hold each other accountable

Since 2005…A Divided House of Labor
AFL-CIO
AFL-CIO
Change to Win
56 National Unions
10.5 million workers
7 Unions
6 million workers
Choices

You have just completed a
six week internship with
SEIU. During this time, you’ve
learned about the labor
movement and developed a
variety of organizing and
leadership skills. You will
now return to your
neighborhood, job, school,
etc. Do you think you’ll do
anything to help rebuild the
labor movement? Will you
do other things to improve
the lives of working
families?
Betting on the future

You have finished this brigade and decide to head to
Atlantic City. While there, a unionized Casino employer
offers you a chance to bet on the future of the American
labor movement.

Do you bet that organized labor will significantly grow in the
next 20 years? Why?

Do you bet that organized labor will remain about the same size
over the next 20 years? Why?

Do you bet that organized labor will continue to decline over the
next 20 years? Why?
The Future of Unions…

“I see no reason to believe that American trade unionism will
so revolutionize itself within a short period as to become in
the next decade a more potent social influence than it has
been in the past decade.” president-elect of the American Economic
Association, George Barnett, in 1932.
That’s all folks…Hope you learned a little
something…Hope this is just the start.


The role that unions and other social movements played
in shaping our nation is often invisible in our schools,
media and society at large…
Much of what is taught in the schools or reported in the
media does not critically examine the way our
economy or political system has developed or how it
works now
Lunch


Lunch at the Reading
Terminal Market
Solidarity in America:
Expanding Freedom
 Constitution
Liberty Bell
Center and