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-TIMEWAGE AND SALARY WORKERS, 2000

Unions Make a Difference (Pct. Of Workers, March 2003) http://stats.bls.gov/news.release/ebs2.t01.htm

All Plans:

Retirement

Benefit

Ret: Defined Benefit

Retire:

Defined

Contribution

Medical

Care

Dental

Care

Vision

Care

All Workers

49% 20% 40% 45% 32% 19%

Union Workers

83% 72% 39% 60% 51% 37%

Non-

Union Workers

18% 15% 40% 44% 30% 17%

Source: Department of Labor, Bureau of Labor Statistics, Handbook of Labor Statistics, 1980.Also, Department of Labor, Bureau of Labor Statistics, January various years.

0%

5%

10%

15%

20%

25%

30%

35%

But Here’s the Rub…The Percent of Workers Who Belong to Unions Has Decreased…a lot!

19301935

19401945

19501955

19601965

19701975

19801985

19901995

2000

2006

2006

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

11

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 411 411 times the average worker’s pay

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”

The new economy develops with low levels of unionization

0

10

20

30

40

50

60

70

80

1900 1920 1960 1980 1998

ManufacturingService

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

Between 1967 and 1987 alone

Philadelphia 64% 160,000 Chicago 60% 500,000 New York 58% >500,000 Detroit 51% 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

Computer tech, manager, accountant, nurse

Many Service Jobs are Low skill/Low wage jobs

Janitor, Sales clerk, daycare, nurses aide, security

0

10

20

30

40

50

60

70

80

1900 1920 1960 1980 1998

ManufacturingService

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 # of Elections for union representation

1950 5619

1960 5428

1970 7543

1980 7021

1990 3423

1995 2716

Fewer Elections, Covering Fewer Workers, with Fewer Victories

0

100000

200000

300000

400000

500000

600000

1965 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997

Years

Num

ber

of U

nion

Rep

rese

ntat

ion

Ele

ctio

ns

Number voted

Number Won

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 usually want 65% of workers to sign union cards

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 107 times as much as

the typical worker

Workers salary, $40,000+ health care and pension A Middle Class Wage

Walmart, 2005

5 of 10 wealthiest people on the planet are Waltons $20 to $40 billion fortunes

CEO Salary in 2005, $23 million 5 times GM CEO 1,277 typical worker

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 $36,000

Work at Target making $35,900 Walmart owes you $100

Financial penalty is almost non-existent…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%91% require anti-union meetings Can be held up to 24 hrs before vote

How 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

Center and Liberty Bell