Why Unions Matter – Now More Than Ever ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Elaine Bernard, PhD Labor and Worklife Program & The Trade Union Program, Harvard Law School© Washington State Council of Fire Fighters Wenatchee Convention Center, WA Tuesday, April 22, 2014

Elaine Bernard Executive Director, Labor & Worklife Program & Harvard Trade Union Program, Harvard Law School Work with a variety of unions – in the U.S., Canada, Australia and U.K. - on developing skills & educational programs for union leadership Teach in fields of international comparative labor movements, leadership & organizational change and strategic planning

International (OECD) Trend Line Widespread decline in union density in most countries (though not necessarily in Collective Bargaining coverage) Most sever decline in union representation primarily in the private sector Growing gap between union density in public sector vs private sector

Union Density CB Coverage Austria 35 Belgium 55 Czech Republic 22 (ETUL 2009) Union Density CB Coverage Austria 35 Belgium 55 Czech Republic 22 Denmark 80 France 8 Germany Italy 34 Japan Korea 11 Spain 16 Sweden 78 United Kingdom 28

Union Density CB Coverage Austria 35 98 Belgium 55 96 Czech Republic (ETUL 2009) Union Density CB Coverage Austria 35 98 Belgium 55 96 Czech Republic 22 44 Denmark 80 France 8 93 Germany 64 Italy 34 Japan 18 Korea 11 13 Spain 16 82 Sweden 78 90 United Kingdom 28

Union Density CB Coverage Austria 35 98 Belgium 55 96 Czech Republic (ETUL 2009) Union Density CB Coverage Austria 35 98 Belgium 55 96 Czech Republic 22 44 Denmark 80 France 8 93 Germany 64 Italy 34 Japan 18 Korea 11 13 Spain 16 82 Sweden 78 90 United Kingdom 28

U.S. Union Density 1945-2013 - 11.3% % 40 35 30 25 20 15 10 5 1954=35% 1954=35% % What this means is that union density – percentage of total US workforce represented by unions – has been declining steadily Labor movement may be sleepwalking toward irrelevance Current data 2001 – 13.5% / 9% in private sector 2002 – organized 500,000 new members – 13.3% / 8.6% in private sector As density has declined and labor has become weaker, we have been less able to resist corporate attack, to protect and preserve what was won over many years, let alone making meaningful advances Density matters! 1945 1949 1953 1957 1961 1965 1969 1973 1977 1981 1985 1989 1993 1997 2011

Changes in Public/Private Sector Union Density in U.S. 1973 2013 Private s e c t o r union members 7.3 million 15 million 3 million P u b l i c s e c t o r union members While private sector union members were once the strength of the labor movement, their numbers dropped from 15 million in 1973 to 8 million 30 years later. Meanwhile, public sector union membership rose from 3 million to 7 million, so that if trends continue, it may not be long before a majority of the labor movement is public sector. 7.2 million Private Sector Density 24% Public Sector Density 23% Private Sector Density 6.7% Public Sector Density 35% USDL 12-0094

U.S. Union Members (by industry) 2013 47% elementary/secondary education 42% local government 25% utilities 20% transportation 13% construction 10% information industries 10% manufacturing 9% healthcare 2% accommodation BLS USDL 13-0105

Reasons for Decline… Globalization – intensification of international economic & political integration (free trade race to the bottom) Changes in organization of production and employment (privatization, technological change, contracting out, offshoring, lean production, JiT inventory systems…) Decline of job-based/workplace focus of employment Decline in large, concentrated workplaces Transformation of employment relationship (decline in full time, regular, permanent employment – growth in part time, contingent, limited term, precarious employment) Employer (including government) hostility/opposition to unions

Washington State Union Density (37 Washington State Union Density (37.5% decrease in density over 30 years) Year Members Coverage 1983 27 32 1993 24 26 2003 20 21 2013 19

Declining rates of unionization… even among Fire Fighters Nationally (19% decline over 30 years) Membership coverage 1983 78.3 81.7 1993 74.6 76.3 2003 67.8 69.6 2013 63.4 66.5

War on Public Employees “from heroes to zeroes”

War on Public Employees “from heroes to zeroes”

War on Public Employees “from heroes to zeroes”

SCAPGOATING PUBLIC EMPLOYEES “Every person in every town in America will know the reason their library is closing early is that public employees have defined benefit pensions.” -Grover Norquist

Assault on the very idea of Government

Well planned offensive… Get unions to spend down revenues (2012 and beyond) Permanently weaken unions (Attack on dues collection, organizing, collective bargaining) Get public revenue streams for private corporations (privatization) Target - Education, Health (public safety later) ALEC American Legislative Exchange Council

Attack on Pensions Eliminate Defined Benefit Pensions Stir “pension envy” (of public sector workers’ pensions) Pensions a massive source of capital to be tapped Companies & Government seek to shift long term risk (onto individual workers) Financial industry interested in new savings programs (with hefty transaction & management costs)

Why Unions Matter to Members

Union Won Benefits… Job security Salary protection Paid holidays Paid vacation Sick leave Health insurance and health benefits Pensions and retirement benefits Promote consistent/fair treatment Voice in work scheduling Recognition & premium for overtime A say in hiring/promotion A united voice in dealing with the employer Impartial process for resolving complaints Protection against unfair treatment Role in setting and enforcing occupational health & safety standards Collective power in standard setting Promotion of the profession

What Do Unions Do? Beyond Wages & Benefits Organization for winning rights Vehicle for exercising rights Schools for democracy – where workers learn they have a right to participate in decisions that affect them Builders of a community of interest among members and with the wider community Provide “voice” vs “exit” - providing management with valuable, knowledgeable “feed back” essential for systems improvement Premier institution of civil society, promoting democracy in the workplace, economic and social justice and equality

Why Unions Matter to Management

How Unions Benefit Management & the Company/Firm/Service/Agency… Aggregate employee interests Greater commitment of employees Promote (pride) & professionalism Bring additional training resources Negotiate mutually agreed upon standards (procedural justice) Promote voice (vs “exit” & reduced turnover) Force competition on factors other than wages (skill, innovation) Provide an institutional memory Form a flexible, private, system of workplace regulation (firm based grievance & dispute resolution)

Why Unions Matter to Society "In democratic countries, knowledge of how to combine is the mother of all other forms of knowledge; on its progress depends that of all the others." Alexis De Tocqueville 1831

Collective Bargaining – a right not a privilege Freedom of association in the workplace means… The right to organize (form a union/association) The right to engage in collective bargaining (over wages & working conditions) It’s not a privilege granted by government but a right exercised by workers

Louis Brandeis US Supreme Court Justice 1916-1939 “Strong, responsible unions are essential to industrial fair play. Without them, the labor bargain is wholly one sided.”

Unions Awaken Citizens – A vital contribution to democracy Political role of unions (organizing and promote participation in politics) Social goods (acquiring & assuring universality & quality) Economic fairness (for workers in general, social security, medicare/medicaid, minimum wage) Democracy (rights & responsibilities to participate in society) Learning Democracy (democratic, self-governing organizations) Develop Leadership Skills

Unions – folks who created the middle class

Unions and Shared Prosperity

Louis Brandeis US Supreme Court Justice 1916-1939 “We may have democracy, or we may have wealth concentration in the hands of a few, but we cannot have both.”

Concentrated Wealth & Corporate Power is Undermining Our Democracy

Unions: An “experience good” ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

An experience good is a product or service where product characteristics, such as quality or price are difficult to observe in advance, but these characteristics can be ascertained upon consumption. ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

As “an experience good” unions need to be experienced to appreciate their true value

The Challenge for Today’s Unions … New workforce (different needs/expectations) New members with little knowledge of labor/union history Grew up in anti-union environment View union as “service” or “insurance” (at best) Did not seek out their jobs as method to become a union activist Have not “experienced” the union as collective action (less than 5% of members ever use grievance system)

Unions – the myth Members went through a hard fought organizing campaign Members know that their most important protection is a negotiated collective agreement Members recognize that the rights, benefits, and protections that they enjoy are because of the union Members recognize that the union power comes from an engaged and active membership.

Unions – the reality Vast majority of members did not participate in an “organizing” campaign. They simply “discover” they are union members – as a result of the job and employer they chose.

21st Century Unionism…. Unions an “experience good” Create value (for members, fire service, community) Economic justice & equality (fight to reverse growing inequality) Defend the “commons” (public goods and wider public sector) Share the “knowledge of how to combine” vital for democratic communities.

The Best Way to Predict the Future is to Create it