Labor Unions

Ideals Underlying Unions n Getting greater return for those who actually produce goods and services n Reduce the inequality of the distribution of economic opportunities in society

Membership in Unions n Falling since 1979 because u Declining employment in industries that are unionized u Technology has reduced need for labor u Foreign competition - lower wages abroad u Deregulation increases competition; new companies may hire new employees at rates below union scale u Philosophy of American people u Increasing diversity of workforce u Geographic shift from “steel belt” to “sun belt”

What Do Unions Do? n Organize majority of employees in a work unit n Negotiate with employer on terms and conditions of contract n Joint administration of the contract with management

Why Do Employees Join Unions? n Dissatisfied with supervision, co-workers, career future, amount of work required, working conditions, type of work, management-employee relationships n Believe that they cannot make changes themselves n Believe that the union will be able to make the needed changes

Labor Law n Railway Labor Act (1926) u Rights of railway and air transportation employees to choose whether want to be represented by a union n Norris-LaGuardia Act (1932) u All private sector employees and unions F Forbids "yellow-dog" contracts F (Employee agrees to not join union and will not be fired) u Judges cannot enjoin lawful union activities unless danger to life or property

Wagner Act (1936) n Employee's right to engage in union activities, organize and bargain n “Unfair labor practices” first defined n Required employer to collectively bargain with established union regarding terms of employment n Established the NLRB (National Labor Relations Board)

Taft-Hartley Act (1947) n Balanced powers of labor and management n Unfair labor practices expanded u Employers cannot refuse to bargain with union over terms of employment u Can't discriminate based on union membership, but can negotiate contracts requiring union membership as condition of continued employment u Unions can't require employer to discriminate unless specified in contract u Both must bargain in good faith

Taft-Hartley Act (1947) n Union represents all employees in group n Established Federal Mediation and Conciliation Service (FMCS) n Allows states to vote "right-to-work" laws u Forbids employers and unions from agreeing to union shop clauses

Landrum-Griffin Act n In reaction to labor racketeering in late 50's n “Bill of rights” for union members u Requires employees to have equal rights in voting u Freedom of speech in union matters u Right to vote on dues increases u Right to sue their unions u Unions and management must not have financial dealings with each other

Civil Service Reform Act (1961) n Collective bargaining in federal government n Forbidden to strike or make demands with consent of agency n Established Federal Labor Relations Authority (FLRA) to monitor

PATCO n Professional Air Traffic Controllers Organization n Reagan ordered return to work within 48 hours or rights would be forfeited n “Permanent replacements” were hired

Organizing Campaigns n Started either by employees or unions n Employees can solicit others to join union during nonworking time on company premises, but outsiders usually cannot n Authorization cards:30% of employee signatures requires the NLRB to call for a representation election n Determination of appropriate bargaining unit

Campaigning n Union is much less likely to win when the employer campaign against union u Odds reduced from 15% to 1% n Management can use company time n “TIPS:” Management cannot u Threaten u Interrogate u Promise u Spy

Effects on Organizations n Wages and benefits are higher and turnover is lower in organized companies n Pay more often based on seniority n Wages in nonunion companies often affected by union wage rates n Union employees u Tend to be older and more experienced u Have higher productivity n Unionized companies less profitable n Productivity offset by higher wages

Effects on Individuals n Unions increase pay of younger and less well-educated workers n Unemployment is higher in areas where there is lots of unionization n Satisfaction not higher or lower for unionized