Are labor unions an aging dinosaur or a sleeping giant?
Provided is an overview and concise history of the Labor Movement and Unionism.
The history of the United States is marked by workers’ struggle for their rights and better living standards, working conditions, and job security. This movement originated in 1790 with skilled craftsmen and has persisted for the past two centuries (Dessler, 1997, p. 544). Workers understood the strength of collective action and established labor unions to raise wages and have an impact on job conditions (Boone, 1996, p. 287). These unions are organized associations of workers committed to accomplishing these objectives (Parkin, 1998, p. 344).
According to World (1998), there are two types of labor unions: craft unions, which are limited to workers with specific skills, and industrial unions, which consist of workers with various skills within the same industry (Parkin, 1998, p. 344). Craft unions, like the United Food and Commercial Workers International Union, have members who are well-educated and trained and share common interests (Robinson, 1985, p. 69; World, 1998). Industrial unions such as the United Steelworkers, United Auto Workers, and the United Transportation Union represent workers with different skills and job types (Boone, 1996).
The history from the 1870’s to 1900’s saw the establishment of the first national union, the Knights of Labor, in Philadelphia in 1869. This union aimed to include all workers and experienced slow growth for a decade while operating clandestinely. However, the failure of railroad strikes led to a surge in membership, reaching over 700,000 in 1886. The efforts of the Knights of Labor resulted in the enactment of legislation that included the abolition of goods made by convicts, the creation of labor statistics bureaus, and the prohibition of imported European labor under contract.
Robinson (1985, p.57) states that the Knights of Labor saw a decrease in membership from 1890 onwards, leaving only 100,000 members. Several factors contributed to this decline, such as insufficient national leadership and opposition from established craft unions. Additionally, major strikes in the meat packing and railroad industries in 1886 and 1887 also resulted in failure.
The American Federation of Labor (AFL) was established in Columbus, Ohio in December 1886. Previously known as the Federated Organization of Trades and Labor Union since 1881, it consisted of affiliated, individual craft unions (Boone, 1996, p. 288). Samuel Gompers served as the first president of the AFL and had a different focus compared to the Knights of Labor. Gompers aimed to raise daily wages and improve working conditions (Dessler, 1997). The AFL’s formation was followed by significant developments. In the early 1890s, the United Mine Workers emerged as the first major industrialized union in the United States (Robinson, 1985). During this period, organized labor also suffered a major setback with the Homestead strike in Pennsylvania which resulted in the elimination of “Amalgamated Association of Iron Steel and Tin Workers” from steel industry (Robinson, 1985, p. 58).
Between 1905 and 1920, there were significant developments in history. During this time, the Industrial Workers of the World (IWW) emerged as a competitor to the AFL. While the AFL only accepted skilled workers, the IWW welcomed both unskilled and semiskilled workers. From 1910 to 1915, the IWW achieved success, which caused a temporary decrease in AFL membership. To counter this decline, unskilled workers were incorporated into craft unions. However, by the middle of World War I, the IWW no longer existed.
During World War I, union membership increased, particularly in industries involved in war production. This growth can be attributed to Woodrow Wilson’s presidency. As president, Wilson ensured that government contractors supported unions and collective bargaining. He also supervised the operation of railroads by the federal branch of the executive, according to Robinson (1985). Additionally, President Wilson initiated the labor-management conference in 1918, which led to the establishment of the National War Labor Board (Robinson, 1985). This development resulted in a decline in strike activity as a response to the rising inflation of 1917 (Robinson, 1985). The progress continued during the 1920s and post-war period.
During the significant period from 1929 to 1940, a series of events occurred that shaped history. The Great Depression began in 1929, leading to a widespread unemployment crisis affecting millions (World, 1998). Before this time, business executives held leadership roles while union members were seen as “dangerous radicals” (World, 1998, p.12). However, as it became clear that businesses couldn’t overcome the depression, public opinion shifted in support of unions (World, 1998). As a result, the Norris-LaGuardia Act was passed in 1932 to protect labor unions. This law restricted management’s ability to obtain court injunctions stopping union activities (Boone, 1996). Previously, employers easily obtained injunctions to halt strikes, picketing and membership drives (Boone, 1996). Additionally,the Norris-LaGuardia Act affirmed every employee’s right to engage in collective bargaining without interference or coercion (Dessler ,1997,p.549).
In the 1930s, Franklin Roosevelt’s presidency saw the passing of the National Labor Relations Act (Wagner Act) in 1935. This act, named after Senator Robert F. Wagner of New York, was aimed at supporting and protecting labor rights. It expanded on the National LaGuardia Act by banning specific unfair labor practices, enabling secret-ballot elections and majority rule to determine unionization, and establishing the National Labor Relations Board to enforce these rules (Dessler, 1997, p. 549) (World, 1998).
Additionally, in 1935, the formation of the Committee for Industrialized Organization (CIO) took place. Comprised of individual industrial unions, this organization aimed at the industries as a whole (Boone, 1996). The CIO achieved success and posed a challenge to the AFL.
From 1941 to 1950, the United States underwent significant developments. In 1941, the country entered World War II, resulting in a surge in union membership. Although the government prohibited wage hikes during this time, it did provide certain benefits such as paid vacations and holidays, company-sponsored hospital insurance, and retirement pensions (World, 1998). After World War II ended in 1945, the United States witnessed unparalleled economic growth (World, 1998). Moreover, there was an increase in African American employment and their participation in unions within the CIO. This rise in CIO membership caused tension between them and the AFL due to the CIO’s inclusive policy (Robinson, 1985).
Following the war, regulations were lifted and unions began advocating for unpaid wages during the war (Encyclopedia, 1996). They initiated nationwide strikes in an attempt to recuperate these lost wages. This collective effort by employees resulted in the Taft-Hartley Act (Labor –Management Relations Act) in 1947 (Encyclopedia, 1996). Dessler (1997) states that this act outlawed unfair labor practices by unions and outlined the rights of both employees as union members and employers.
During the years 1951 to 1960, Dwight D. Eisenhower became president and the Republican party gained control of congress (Encyclopedia, 1996). Although the AFL and CIO were once viewed as adversaries, they started to align more closely. Their initial collaboration was in support of the Marshall Plan, which aimed to rebuild Europe (Robinson, 1985, p.64). Additionally, they joined forces to establish the United Labor Policy during the Korean War (Robinson, 1985). Finally, in February 1955, the American Federation of Labor and the Committee of Industrialized Organizations merged to form the AFL-CIO (Encyclopedia, 1996).
In 1957, our labor leaders were suspected of being involved in questionable activities (source: World, 1985). A dedicated committee led by Senator John L. McClellan of Arkansas conducted an investigation and discovered that the Teamster Union officials misappropriated union funds and had connections with organized crime (source: World, 1985). As a result of this incident, the Landrum-Griffin Act (Labor-Management Reporting and Disclosure Act) of 1959 was enacted (source: World, 1985).
The Landrum-Griffin Act, which was an amendment to the National Labor Relations (Wagner) Act, had the purpose of safeguarding union members from potential wrongdoing by their unions (Dessler, 1997, p.552). This act made it mandatory for all unions to conduct regular elections for their officers using a secret ballot and establish a bill of rights for their members (Boone, 1996). The bill of rights was introduced in response to Senator John F. Kennedy from Massachusetts and aimed at ensuring freedom of speech, control over union dues, and other rights (World, 1998, p.13). Additionally, unions were obligated to provide financial information to the United States Secretary of Labor (Boone, 1996).
In the 1960s to the 1980s, history witnessed notable advancements. This period brought about diverse transformations in the United States that differed from previous eras. These changes had an impact on government employees at federal, state, and local levels, as well as healthcare workers and individuals involved in higher education (Robinson, 1985).
The rise in public employees can be attributed to various factors, such as an increase in union participation, a shift of unions towards collective bargaining, and a general growth in the number of public employees (Robinson, 1985). This trend of public employees joining unions contributes to the overall surge in union membership.
The history of collective bargaining in healthcare dates back to the 1920s, but it became more important in the 1970s. Initially, healthcare employees were covered by the National Labor Relations Act of 1935, but later they were excluded by the National Labor Relations Board (Robinson, 1985). Then, in 1947, the Labor-Management Relations Act of 1935 excluded healthcare workers from coverage and introduced special procedures (Robinson, 1985) for resolving labor disputes.
In the 1960’s, union organization in higher education extended to four-year colleges and universities (Robinson, 1985). By the late 1970’s, around thirty percent of all four-year public institutions had established collected bargaining agreements (Robinson, 1985).
Previously, we discussed the history of labor unions, including their origins and relevant legislation. This led to an increase in American labor membership until the 1950s, followed by a gradual decrease (attachment 1). Now, let us turn our attention to the period from the 1980s onwards. In this section, we will analyze the present state of labor unions, the reasons behind the decline in membership since the mid-1950s, strategies implemented to counteract this decline, and predictions for the future of labor unions.
The decline of Unionism and its status from 1980 to the present will be discussed, along with the factors contributing to this decline.
When Lane Kirkland became AFL-CIO president in 1979, there was hope that the decline in union membership would stop. However, the rate of member loss continued to increase. One possible cause for this was President Reagan’s dismissal of federal air traffic control workers who had gone on strike in 1981. This decision weakened the bargaining power of union leaders as their striking tool lost effectiveness. Moreover, it seemed that the labor movement became divided: some union leaders sought collaboration with employers to address outsourcing, while others were more forceful in defending union members (Bernstein, 1995).
In the 1980s, unions experienced a significant transformation as they began to represent more white-collar workers instead of primarily blue-collar workers. This shift was driven by the decrease in the number of blue-collar workers, which posed a threat to the unions’ ability to negotiate. To address this decline, union leaders acknowledged the importance of expanding their membership to include white-collar workers, who were becoming an increasingly vital segment of the workforce (Robinson, 1985).
In this period, government unions experienced a notable rise. Several laws enabled teachers in elementary, secondary, and college education, along with federal employees, to become union members. Multiple major public unions were formed such as the American Federation of State, County, and Municipal Employees (AFSCME), the American Federation of Teachers (AFT), and the National Education Association (NEA) (Robinson, 1985).
In the early 1990s, organized labor saw a bleak future for the labor movement. Despite being advised against it, AFL-CIO president Kirkland announced his intention to seek re-election in 1995 but later resigned in August. In October of that year, John J. Sweeney, president of the Service Employees International Union, won the election and took over as AFL-CIO’s new president (Gray, 1996).
The history of union membership has shown fluctuations over the years. Until the mid-1950s, there was a general rise in union enrollment, but since then there has been a steady decline. In the past two decades, this decline has accelerated, resulting in the lowest membership levels since the 1930s (Gamboa, 1999). According to the U.S. Department of Labor, only 13.9% of American workers were unionized in 1998 compared to the peak of 35% in the 1950s (Gamboa, 1999). Recent data from Whitford (1998) indicates that union density reached a plateau in the late 1990s.
The Labor Research Association (LRA) reported in January 1999 that the role of unions in the labor force and American perceptions of them have been evolving. According to the report, 56.1% of voters believe that unions continue to bring advantages to the United States, whereas less than one third perceive them as having a detrimental effect. This indicates a rise in support for unions compared to a previous poll conducted in 1995 which showed a preference for unions at 49%. Consequently, union popularity has increased by seven percent over the past four years.
Another survey indicated a less optimistic split in opinions. Based on data from a 1998 study, nearly half (48%) of the respondents held the belief that unions are no longer necessary in contemporary American society. Furthermore, one-fifth of those surveyed were union members, and among them, 25% concurred with the notion that unions have lost their relevance (American Labor, 1998). These contradictory results underscore the uncertain trajectory of the labor movement.
The impact of unions and the beneficiaries are explored in literature. It is consistently demonstrated that strong unions offer their members higher wages and improved benefits compared to non-union workers in similar roles (Dessler, 1997). Although unions aim to protect all members, certain socioeconomic groups experience greater advantages than others.
According to Gamboa (1999), workers in lower-paying jobs, minorities, and women in Ohio who are enrolled in unions experience a more significant reduction in pay gaps compared to their nonunion counterparts. This includes gaps between the non-educated and educated, women and men, and African Americans and Caucasians. In 1997, non-union Ohioans without a high school diploma had median earnings of $6.50 per hour, while those with a diploma earned $8.75 per hour. Conversely, union members without a diploma received $11.20 per hour (Gamboa, 1999).
The data shows that both non-union and unionized women have similar earnings compared to men. When comparing unionized men to their non-union counterparts in the same jobs, the former earn $2.50 more per hour (median). Similarly, unionized women earn $3.50 more per hour than non-unionized females (Gamboa, 1999). This trend is also observed between African Americans and Caucasians. Joining a union not only increases wages for these groups but also improves job security and ensures fair treatment compared to those not affiliated with unions (American Labor, 1998). In summary, unions play a larger role in supporting women and minorities than they do for white males.
What caused the decline of American labor unions? The workplace has changed in response to societal changes, impacting the role of unions. There are many debated factors contributing to the decline, including shifts in economy and demographics, changes in management practices, political climate, and leadership within AFL-CIO. It is likely that multiple external and internal factors played a role.
There have been changes in the economy that have affected union membership. Historically, union membership has been highest in government, transportation, construction, and manufacturing sectors. In contrast, industries such as wholesale, retail, finance, and services have had lower levels of union membership. However, over time there has been a greater growth in these latter industries compared to the former ones (American Labor, 1998). This means that individuals who would have previously chosen unionized government jobs are now opting for industries where unions have less influence. It is important to note that the decrease in government employment has also contributed to the decline in union membership (Walters, 1999).
Whitford (1998) states that there is a widespread belief that the global economy and globalization pose problems. The decision by U.S. companies to outsource in order to reduce expenses has detrimental effects on the long-term health of the country’s economy. Furthermore, these tactics directly challenge union attempts to improve job stability. For example, when workers are laid off in sectors such as automobiles, labor unions also suffer a decrease in their membership numbers. The concern over the Mexican auto industry by the United Auto Workers (UAW) serves as a notable example of this issue.
The UAW is facing a challenge from Mexican companies that supply automobiles and parts to American companies like GM. American companies, including GM, started outsourcing because they found it cheaper to obtain parts and vehicles from others instead of producing their own, which increased their profits. As a result, plants are being closed down and people are losing their jobs, as money-driven corporations require fewer American resources.
The situation in Mexico is getting worse as Mexican companies become more experienced, knowledgeable, and profitable. Consequently, they are providing auto parts that are increasingly specialized and high-tech. Based on an article from Business Week, Mexico’s auto exports have increased from $7.2 billion to $19.2 billion in the last five years. Moreover, Mexico already sends out almost one million vehicles, with most of them going to the U.S. This could potentially have a greater negative effect on union membership than it currently does due to the outsourcing occurring in various industries (Smith, 1998, p. 37).
From 1980 onwards, labor in the United States has been shaped by three presidents. During Reagan’s presidency, trade unions experienced negative consequences following the aftermath of the air traffic controller’s strike in 1981. Reagan opted to terminate those who went on strike, thereby diminishing unions’ ability to strike and influencing public opinion about them. Furthermore, concerns arose regarding the National Relations Board (NLRB) during Reagan’s administration due to its perceived favoritism towards managers as noted by Pollock (1985).
Despite serving only one term, Bush achieved a significant amount in the eyes of the labor community. One notable accomplishment was the signing of three executive orders that had a detrimental impact on unions:
In 1988, President Bush enforced the ruling of the Supreme Court in “Communications Workers of America Vs. Beck,” which granted union members the right to reclaim any dues that were used for political purposes.
After Hurricane Andrew, Bush eliminated the requirement for contractors to pay union-wages due to the pro-union Davis Bacon Act.
According to Frum (1993), the exclusion of non-union contractors from major federal public jobs, known as “project agreements,” was made illegal.
Organized labor had high expectations when a democratic president was inaugurated. Unlike republicans, democrats are typically recognized for their support of organized labor (Wojcik, 1992, p. 25). Unfortunately, Clinton was unable to fulfill these promises, possibly because of the largely republican Congress. Additionally, during Clinton’s presidency, the 1994 North American Free Trade Agreement was enacted, gradually eliminating tariffs on imported automobiles and auto parts (Smith, 1998). This exacerbates the challenges faced by unions in their fight against outsourcing, as previously mentioned.
According to American Labor (1998), the decline in the American workforce can be attributed to three causes. One of these causes is the changing demographics of society. The workforce now consists of a greater number of professionals compared to previous decades due to the shift towards a service-based economy. Census Bureau data shows that college graduates now make up about 26% of the workforce, which is significantly higher than the less than 10% in 1960 (American Labor, 1998). Moreover, there has been an increase in income levels over time. The percentage of workers in the $75,000 income bracket (adjusted for inflation) has doubled since 1970 (American Labor, 1998). Generally, professionals with higher incomes are less likely to join unions; however, this trend may be changing and will be further discussed.
Changes in Management Philosophy. The history of management development can provide insight into a possible cause. The renowned Hawthorne studies prompted a change in management approach that has continuously evolved. These studies revealed that productivity was influenced not only by the scientific optimization of production, but also by factors inherent in the workers themselves. Consequently, the “human relatedness” approach to management emerged.
The emergence of management theories such as McGregor’s Theory Y management style (Rakich, 1996) and continuous quality improvement philosophies taught by Deming, Juran and others (Rakich, 1996) has led to a focus on fostering better relationships between employees and employers. This has resulted in the perception that collective bargaining is no longer necessary, as the traditional “factory-line” management approach is being replaced by a more positive and empowering environment for employees (American Labor, 1998).
The attitudes towards organized labor can be linked to the idea discussed here. Given the changing work environment, employees may hesitate to associate with unions in fear of damaging their relationship with employers. Additionally, according to surveys conducted in 1985, union leaders were ranked lowest compared to other types of leaders like business, religious, and government leaders, in terms of positive impact on the U.S. In this resource, the author points out that a significant portion of the general public views union leaders and their goals with suspicion or even hostility.
Internal Factors— Lane Kirkland. The decline of organized labor in the United States has been attributed to external forces. However, it is crucial to examine the internal factors that have had a negative impact on organized labor within the past two decades. More specifically, what strategies did Lane Kirkland, AFL-CIO’s predecessor to John Sweeney, implement that might have contributed to this decline? In 1979, Lane Kirkland assumed leadership of AFL-CIO and held the position for over 15 years until his resignation in 1995. Throughout his tenure, there was a continued decrease in union membership. Although Kirkland cannot be solely held responsible for this decline, many believed that his weak leadership and ineffective strategies failed to address the underlying issue (Bernstein, 1995).
Critics contended that Kirkland, being seen as unfocused and lacking a revival strategy for unions, did not succeed as a leader. As he appeared distant from domestic union issues, he further perpetuated the misconception that union leaders in general were disconnected from their members. This depiction discouraged individuals who were considering joining unions. Bernstein reported that Kirkland avoided television interviews and communicated in long and convoluted sentences (1995, p. 44).
Additionally, Kirkland’s allocation of resources raised concerns as he seemed to prioritize foreign matters over domestic labor issues. The Newsweek article notes that he dedicated $100 million from the yearly budget to support labor unions in other nations, and he devoted significant time to dealing with Eastern Europe while neglecting pressing issues in the United States (Bernstein, 1995, p. 44).
The union leader faced criticism for passively waiting for a democratic president to take office. Even after a democratic president assumed power, the AFL-CIO leader continued to wait passively for Clinton’s unfulfilled promises. It is believed that Lane Kirkland’s ineffective leadership may have played a role in the decline of membership during the 1980s and early 1990s. What steps are currently being taken by Sweeney and others to reverse this trend?
Milkman (1998) states that the labor movement in the United States is decentralized, and the success of unions depends on individual unions at national and local levels. Consequently, it might appear impossible for any individual or group to stop the apparent uncontrollable decline of unions. Throughout the 1990s, unions encountered various challenges, including insufficient leadership.
Lane Kirkland played a significant role in the downfall, as mentioned earlier. Many believe that Kirkland’s failure to confront NAFTA and GATT and his involvement in secretive dealings with the White House led to his eventual undoing (Cooper, 1995). Union members noticed a decline in labor’s influence and witnessed repeated failures to pass laws favoring workers. As a result, they demanded Kirkland’s resignation in 1995. It appeared that Kirkland was content with maintaining the current situation and showed no effort to improve the situation.
John Sweeney became president of the Service Employees International Union (SEIU) in 1980 and served four terms. Despite a decline in unions, the SEIU managed to increase its membership to 1.1 million under Sweeney’s leadership. His effective organizing tactics and skills were particularly successful among low paid service employees, including women and minorities (John Sweeney to receive…, April, 1999). This broke away from the traditional perception that union members were mainly older white males, which was well received. Mr. Sweeney’s impressive background and achievements supported his campaign promises, resulting in his election in 1995.
Sweeney’s main goal as the leader of the AFL-CIO was to prioritize union organizing. Since taking over, he has significantly increased the budget allocation for organizing efforts, from 5% to 30% ($20 million). This is a substantial increase compared to the average 3% that unions typically spend on organizing. In recent years, employers have been spending more money on thwarting organizing plans than they did in the past. In response, Sweeney has urged all unions to match this rising opposition by investing more in organizing efforts (AFL-CIO sets aside…, 1999).
Sweeney urged members to reduce their contributions to political parties and instead donate more to the organizing effort. His goal was to register 4 million new union family voters in order to strengthen labor’s political influence (Germond & Witcover, 1997). In addition to reallocating funds, Sweeney also made efforts to attract minorities and women. He expanded the AFL-CIO Executive Council from 35 members to 54 members, appointing several women and minorities. This increased their representation on the Executive Council from 17% to 27%.
In addition to targeting women and minorities, the administration is also targeting young people. They have recruited over a thousand young adults for the “Union Summer” internship programs, where they gain skills and knowledge about labor issues (Milkman, 1998). Furthermore, they have allocated $40 million towards creating new commercials that aim to improve public perception of unions (Zapenski, 1997). These efforts suggest that Mr. Sweeney is making significant strides towards achieving his goals.
