UnionStrat/LIR8581 Fundamentals of Unionism and Comparison to Corporations Unions –Democratic –Governing Body Written Constitution and Bylaws –Nonspecific Mission: Representation of Members –Administrators Elected Officials –Limited Strategic Choices Corporations –Heirarchical –Governing Body Board of Director –Specific Mission: Maximize shareholder return –Administrators Hired executives –Wider Strategic Choices

UnionStrat/LIR8582 Union Options for Resource Allocation Organizing Representation Political Action

3 Internal Structure of Labor Movement in U.S. Central Labor Bodies –AFL-CIO (52 Union) Federation of unions Does not bargain with employers supports efforts of affiliates –Change to Win (established in 2005) UFCW, Laborers, Farm Workers, SEIU, UNITE HERE, Teamsters Carpenter (Inter)national Union –Main component of U.S. Labor Movement –Constitution defines officers, how elected, authority, terms of office, full- time/part-time status, etc. –Examples: UAW, Teamsters, etc. –regular activities financed by dues revenue

UnionStrat/LIR8584 Structure (cont.) Local Union –chartered by international union –charter and int. constitution determine jurisdiction and autonomy –wide variation in size, complexity, etc. one-plant locals (typical UAW structure) locals that cover employees all over a geographic area

UnionStrat/LIR8585 Structure (cont.) Intermediate Bodies –services to locals from international UAW Regions –coordinate activities among locals with common interests e.g., Corporate Councils in UAW –internal governance UAW Regions

UnionStrat/LIR8586 Union Mergers Grew in ’80’s and 90’s and continue today –Many private unions you see today are the result of mergers Example 1 –United Steelworkers of America USWA PACE (Paper, Allied Industrial, and Chemical Workers IU –PACE Paper Workers, Oil, Chemical and Atomic Workers, Allied Industrial Workers Paper Workers from Pulp, Sulfite and Paper Mill workers and Paper Makers and Workers

UnionStrat/LIR8587 Example 2 –United Food and Commercial Workers (1979-present) Old UFCW Barbers and Beauticians Retail, Wholesale and Department Store Union Garment Workers Textile Workers Distillery Workers Chemical Workers –UFCW (1979) Retail Clerks International Union Amalgamated Meat Cutters and Butcher Workmen Union Mergers (cont.)

UnionStrat/LIR8588 Structure (cont.) Tensions in unions –IU has some interest in uniformity –LU has some interest in autonomy –Vehicles for resolving/managing tension local ratification/international approval of contracts and strike intermediate bodies

UnionStrat/LIR8589 CONFLICTING INTERNAL INTERESTS International Union –Responsible to entire membership –Balancing multiple interests –May be more willing to compromise Local Level and Local Leadership –Closest to membership affected by the decision – Represents that constituency and only that constituency –Less Concerned About the “big picture” –Often more militant because they are on “front lines”

UnionStrat/LIR85810 Union Representation Choices Adversarial –Advantages clear loyalty to membership familiarity of role –Disadvantages May be perceived by er as costly –facility perceived as less competitive –less er commitment to plant

UnionStrat/LIR85811 Union Rep. Choices (cont.) Cooperative –Advantages er perception of elimination of costs associated with adversarialism (rules, grievances, etc). encourage employer to invest in facility may have some input into employer decisions reduce day-to-day conflict –Disadvantages no guarantee that employer will be helped perception of disloyalty by membership (role conflict; “which side are you on?”) more difficult for union to “blame” employer

UnionStrat/LIR85812 Typical Union Strategy: Cooperation with Involvement Examples –Joint Committees –Labor-Management Teams on production/ quality issues How high should this go? –Corporate Level: National Steel and United Steelworkers –Local Level: Ford and UAW NUMMI and UAW