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 Review Notes on  LU 7:  Union Avoidance:  Rationale, Strategies, & Practices
External
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  Syllabus 
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  Resources 
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Outline on LU   7:  Union Avoidance
  
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 Corporate Activity & the Labor Movement   
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          A Historical Overview of Corporate Union Avoidance   
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          The American Plan & the Mohawk Valley Plan   
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 Labor Economics   
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 Union Free Approaches   
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          Preventing Unionization   
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          Quality Circles   
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          Employee Involvement Programs:  Opportunities & Threats   
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          Election Campaign Tactics by Corporations   
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          Contracts, Job Structuring, & Union Avoidance   
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 Union Decline & Resurgence   

 
Internal
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 Outline on  Corporate Activity & the Labor Movement
External
Links
  -  Project:  Union Avoidance 
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  -  Project:  Video: Walmart:  Envl Factors affecting Union Avoidance 
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 -  Supplement:  Video: Walmart & the Labor Mvmt            19:36 
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  UNION BUSTING IS NOW A PROFESSIONALIZED BUSINESS CONSULTING SERVICE  
  There are now more “consultants” in the field of antiunion consulting than there are union leaders   
  Businesses have improved conditions which unions traditionally fought for:  wages, hours, benefits, working conditions   
  Unfair labor practices have increased making workers more reluctant to join unions & face up to mgt power   
  Charges of firing for union activity makes workers reluctant to join unions   
  Mgt opposition to unionism, including legal & illegal labor campaign tactics, a major determinant of NLRB election results, makes it more difficult for unions to win elections   
  Paid spies, sophisticated antiunion consultants are used by corps. to discover & eliminate pro union workers   
  75% of employers who experience union organizing hire antiunion consultants (Levitt, 1993)   
  In the 1980s, businesses spent over $100 mm annually for antiunion activity   
 
 THERE ARE FIVE MAJOR ENVIRONMENTAL FACTORS THAT AFFECT UNION AVOIDANCE
 
  a.  Locating the business in a nonunion region  
  b.  Locating the business in a non urban region   
  c.  Establishing the business in small plants   
  d.  A high % of women in the workforce   
  e.  A high % of professionals in the workforce   
  UNION AVOIDANCE CAN BE ENHANCED THROUGH A HUMAN RELATIONS PROGRAM THAT CREATES A CULTURE OF ANTI UNIONISM   
  Union avoidance can be enhanced through a human relations program that creates a culture of reluctance to engage in industrial conflict   
  Substantive policies of a human relations policy often include:   
  a.  employment security   
  b.  a policy of promotion from w/in   
  c.  influential & proactive personnel dept.   
  d.  satisfactory compensation & benefit programs   
  e.  effective feedback mechanisms including communications programs & complaint procedures   
  f.  careful selection, development, & evaluation of managers   
  In order to implement a strong human Relations programs, firms must be:   
  a.  profitable   
  b.  growing   
  c.  undiversified  
  d.  active founders   
  e.  & the best HR programs occur in light industrial manufacturing or service companies   
  Corps believe that a corporate strategy of union avoidance is successful by establishing trust, cooperation, confidence, & enhancing human values, working together, ultimately resulting in the efficient & effective long run functioning of the firm   
  A CORPORATE STRATEGY OF UNION AVOIDANCE HAS FOURTEEN EFFECTS OF:   
  1.  creating a more flexible organization   
  2.  no strikes   
  3.  lower turnover & absenteeism   
  4.  reducing 3rd party interference   
  5.  more responsive & committed employees   
  6  employees' believing the firm is committed to security & equity   
  7.  positive employee attitudes   
  8.  high morale   
  9.  open & direct communications   
  10.  the majority of the employees not wanting to join the union   
  11.  an absence of adverse relationships btwn employees & mgt.   
  12.  creating the perception that the firm is a desirable place to work, which results in the number of applicants exceeding the number of openings   
  13.  creating higher productivity   
  14.  creating strong mgt employee relationships   
  WORKERS' VOICE:  GIVING THE WORKERS A VOICE CREATES A LOWER EMPLOYEE TURNOVER RATE 
 
  Unions know that their efforts create voice for the workers, which has the effect of a lower employee turnover rate 
 
  Voice, which deals w/ immediate issues, is generally created by grievance procedures 
 
  Voice, which deals w/ long run issues, is generally created through negotiations 
 
  GRIEVANCE PROCEDURES, WHETHER DEVELOPED TROUGH A UNION, OR INDEPENDENT OF IT, INCREASE EMPLOYEE SATISFACTION 
 
  Many firms have developed a strong grievance system that mgrs take seriously 
 
  Most grievance systems have a no reprisal policy 
 
  IBM mgrs. have direct, anonymous access to hi level mgt. on complaints 
 
  Most grievance systems require that remedial action be communicated back to the grievant
 
  Many grievance systems have a worker review board that impartially resolves grievances 
 
  Many grievance systems have peer review panels to oversee grievances 
 
  Many grievance systems have attitude surveys to stay in touch w/ employees' issues 
 
  TO UNDERSTAND GRIEVANCE SYSTEMS, IT IS NECESSARY TO UNDERSTAND JUSTICE SYSTEMS
 
  There are THREE types of justice systems:  distributive, procedural, & interactional   
  A distributive justice system ensures that punishment is proportionate to the issue at hand   
  A procedural justice system ensures that methods are just by focusing on, for example, representation, appeal, etc.   
  An interactional justice system ensures that all parties have all the info they need to achieve justice, esp in relation to resolution   
  EMPLOYEE INVOLVEMENT IMPROVES PRODUCTIVITY & WKR SATISFACTION, & MAY BE USED TO RESIST UNION ORGANIZATION   
  Other innovations that enhance human relations include vertical staff meetings & employee  involvement committees   
  The non unionized workplace often exhibits particular qualities or structures which evolved in unionized wkplace such as:   
  a.  a high level of info for workers about productivity, etc.   
  b.  discussions of quality & productivity   
  c.  employee involvement methods   
  d.  autonomous work teams   
  e.  a formal complaint systems   
  f.  a reduced number of job classifications   

 
Internal
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 Outline on a  Historical Overview of Corporate Anti-Union Strategy
External
Links
  -  Project:  Comparing the Robber Baron & Corporatist Periods 
Link
  A.  An early period of corporate anti union strategy is called the Robber Baron Period of the late 1800s & early 1900s   
  During the Robber Baron Period, capitalists controlled the economy, employee relations, & many aspects of society 
 
  During the Robber Baron Period, capitalists saw themselves as representing only themselves or other investors   
  Capitalists, as discussed here, must be considered as a separate class from top mgt or mgrs in general, who often are controlled by the capitalists   
  Andrew Carnegie believed that the only responsibility of the capitalist was to earn as much as possible for the investors 
 
  Thus Carnegie & many capitalists of the Robber Baron Period had a narrow conception of corporate responsibility   
  During the Robber Baron Period, for the capitalists, the only responsibility of a corporation was to its investors 
 
  In the Corporatist Period (see below), the narrow conception of corporate responsibility in the Robber Baron Period, grew from a concern only w/ investors to include other Stakeholders 
 
  For Capitalists, there is a direct relationship btwn risk & profit 
 
  Capitalists believe that only they assume the risk of the enterprise, & that they might lose $$ 
 
  Capitalists believe that for assuming risk they are entitled to any & all profit   
  Capitalists seek to minimize risk & maximize profit   
  Wkrs are one of the resources that capitalists purchase & thereby incur a risk   
  Capitalists would like to minimize labor risk by   
  a.  being able to hire any time   
  b.  being able to fire any time   
  c.  not having to endure wage increases   
  d.  not having to endure strikes or other Labor tactics   
  Unionists on Profit   
  Unionists believe that capitalists & workers take risks & therefore the wkrs should be entitled to a share of profits & other returns   
  Labor believes they are entitled to a share of the profits & other returns because the success of firm is dependent on the workers & the workers invest in skills to work at the firm   
  In the state capitalist system predominate in most Western industrialized nations, job rights, property rights, & other rights all conflict w/ capital's rights   
  Wkrs accrue seniority, experience, skills, which they see as investments, which they believe entitles them to more rights than other workers   
  Plants accrue seniority as a result of worker & community investments, which they believe entitles them to more rights than other plants   
  The drive system of the Robber Baron Period represents capitalist resistance to Labor prior to WW2   
  From the first unions until WW 2, firms used private security & police to control organizers, unionists, etc.   
  Foremen (supervisors) had nearly unlimited shop floor power, in that they could hire or fire or abuse workers on a whim   
  These employee relationships were known as the drive system because capital drove the wkrs like cattle   
  Firms utilized other methods of resistance embodied in strategic plans, such as   
  a.  the American Plan   
  b.  the Mohawk Valley Formula   
 
 c.  Company Unions   
  Corp opposition to unions increased during the late 1800s through a general strategy of opposition as embodied in specific strategic plans   
  Employers exchanged blacklists, lists of workers suspected of union membership, to prevent such workers from getting jobs   
  Factory owners hired strikebreakers & armed guards to crush strikes   
  Sometimes, the state or fed govts sent troops to end a labor dispute   
  Many states passed laws to restrict union activity   
  The Sherman Antitrust Act of 1890, which was designed to prohibit trusts that hindered trade, was used mostly against labor   
  Union leaders were found guilty of violating that law by interfering with commerce   
  On this basis, judges issued court orders, called injunctions, forbidding strikes   
 
 B.  The corporatist period  of anti union activity spans the period from the  1940s to the 1970s 
 
  When the unions win recognition, this creates the corporatist period of labor relations   
  The legitimization of the Labor Movement creates the tripartite nature of employee relations among:   
  a.  firms   
  b.  workers as represented by unions   
  c.  the govt as mediator   
 
 Laws & regulations foster collective bargaining as the preferred method for solving labor conflict   
  After WW2 ended in 1945, the US entered the greatest period of econ growth in its hist   
  Prosperity spread to more Americans than ever before, & unions took steps to enable their members to share in the new wealth   
  A wave of strikes began, & the number of work stoppages reached an all time high in 1946   
  Unions scored impressive victories, including large wage hikes & the first escalator clauses   
  The challenge of automation becomes paramount   
  Beginning in the late 1950s, many factories introduced automated machinery to perform tasks formerly done by wkrs   
  Such automation caused many labor disputes when new machines & methods threatened to eliminate jobs   
  Unions called for a variety of measures to protect the jobs & incomes of wkrs affected by automation   
  The demands of unions in response to automatic included free retraining & shorter workweeks to spread the available work among more employees   
  In 1962, the United Steelworkers of Am & the Kaiser Steel Corp agreed to a landmark plan for dealing w/ automation   
  The Steelworkers plan for dealing w/ automation called for the money saved by automation to be shared w/ wkrs through higher wages   
  In the steel industry, laborers replaced by machines would draw full pay until they were retrained or assigned to a new job   
 
 In the 1970's the Western industrialized nations experienced several shocks to the system which influenced labor relations, including   
 
 a. oil shocks resulting in the tripling of oil prices   
  b. globalization creating globalized markets, corporations, govt. orgs, division of labor, etc.   
  c. deindustrialization transforming economies from agricultural to industrial, & industrial to service   
  d. stagflation exasperating the classic trade off for govt. monetary policy makers btwn unemployment, the cost of capital, & inflation   
  Firms responded systemic shocks, not by changing strategy to successfully compete internationally   
  Firms responded to the systemic shocks by squeezing labor   
  An example of the corporations' response to the systemic shock is the auto industry where they planned to build a cheaper car, not a better car by pursing the following tactics:   
  - stay w/ big cars rather than moving to produce small cars, thus eschewing research & product differentiation   
  - Focus on cheaper at the expense of quality   
  - Cut costs by cutting R & D and foregoing innovations which would  produce economic, hi tech, quality vehicles   
  Labor had no voice in these strategic decisions by the Am auto industry   
  Auto workers & Labor Mvmt leaders understood & opposed these types of strategic decisions   
  The effect of the strategic decisions by the auto industry was to lose market share to the Japanese & the Europeans, costing hundreds of thousands of jobs in the auto industry & those industries which supplied it   
  Similar strategic decisions were made in steel, apparel, shoes, etc.   
  In the Corporatist Period, the concept of corporate responsibility grows from a concern only w/ investors to include other stakeholders   
  Those who are indirectly affected, or have a stake in a relationship are called stakeholders   
  Corporate responsibility grew because of the effects of deindustrialization on stakeholders other than workers, & because of other issues in the Western industrialized nations such as the environment, the Vietnam War, Civil Rights, & Women's Rights   
  The concept of corporate responsibility has grown just as the concepts of property rights & ownership responsibility have grown:   
  In the past a person could do whatever they wanted on their land regardless of what the neighbors, govt, or anyone thought   
  A person could do whatever they wanted on their land even when it harmed people outside the land   
  Today to the law & landowners recognize the interests of others immediately affected and those distantly affected   
  Today in employee relationships, corporations recognize some responsibility to other parties & community actors who are affected   
  Typical stakeholders are: 
-  workers 
-  customers 
-  suppliers 		 -  competitors 
-  neighbors 
-  the community or communities 
 
  Stakeholders & Law:   
  Some of the responsibilities to stakeholders are in the law, but many are not   
  Corporate responsibility is sometimes found in independent corporate responsibility philosophy as created in the boardroom, taught in business schools, etc.   
  Corporate responsibility is sometimes negotiated in contracts   
  Corporate responsibility is sometimes found in local laws & regulations   
  Example:  MA (the Liberty state) has a 30 day plant closing law   
  But it is essentially toothless because firms can simply lay off less than 150 people per month & not have to announce the plant closing   
  In the 1980s & early 1990s, labor unions faced the twin challenges of a declining indl base & increasing automation   
  Lower labor costs helped foreign corps in the auto, electronics, & other industries gain larger shares of the Am mkt   
  Many large U.S. factories in these industries closed, & large numbers of union members lost their jobs   
  Later in the 1990s, however, the US econ experienced a long period of steady growth   
  The unemployment rate fell, permitting union membership & bargaining strength to increase somewhat   
 
 The Union Free Philosophy of the Post Corporatist Period 
 
 
 American business believed the path to success was to fight workers   
 
 New businesses were established w/o Labor   
 
 Old businesses attempted to reduce Labor's influence   
 
 Old businesses succeeded in reducing Labor's influence   

 
Internal
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 Outline on the American Plan
External
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  The American Plan was developed during WW 1 & the Mohawk Valley Formula was developed in the mid 1930s as a corporate anti labor strategy  
  After the WW 1, Labor Relations became more conflicted as seen in the development of the American Plan  
  While many factors eroded Labor's growth after WW 1, the American Plan was especially destructive
 
  The 1920s were a decade of relative prosperity, i.e. the "Roaring 20s"  
  A decline in immigration reduced competition for unskilled jobs  
  After the war, labor relations became more conflicted as seen in the development of the SEVEN points of the American Plan:
 
  a. Develop a program to associate union leaders w/ agitators, subversives & communists
 
  The Reuther Brothers (of the UAW, who helped start CIO) had visited Russia   
  The American John Reed is buried w/ Lenin near the Kremlin  
  The IWW & Big Bill Haywood had radical leanings   
  Gompers was opposed to any radicalism & helped develop business unionism  
  b. Push for open shop agreements
 
  c. Implement yellow dog contracts
 
  d.  Advocate company sponsored unions w/o  national linkage
 
  f.  Organize back to work drives during strikes (pay scabs, strike breakers, etc.)   
  g.  Precipitate picket line violence as pretext to call in police  
  h.  Organize local interests/govt against unions  
  Communities developed open shop committees to protect people from labor organizers  
  Employers improved wages & working conditions in unorganized plants  
  The development of the company union was quite successful  
  In the 1920 & 1930s, the push for company unions by business resulted in thousands of independent local unions under a single employer  
  W/ the prosecution of several leaders of the IWW for sedition, mgt. painted labor as politically extremist  
  While the IWW did not represent a large portion of the Labor Movement, it became a symbol of danger
 
  At the same time that the Bolsheviks gained power in Russia, Americans were warned that this could happen in the US if the unions gained too much power
 
  Attacks on union leaders such as Bill Haywood, Mother Jones, Joe Hill, et al were common  
  Union leaders were violently repressed, imprisoned, deported, & this resulted in the decimation of the Labor Mvmt through decapitation  
  Many of the attacks on unions & union leaders were also the result of war fears following WW 1  

 
Internal
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Outline on the Mohawk Valley Formula
External
Links
  The  Mohawk Valley Formula is very similar to the American Plan   
  The passage of the Wagner Act made employee organizations that were established & assisted by employers illegal, thus making a favorite employer anti union tactic, the company union, illegal
 
  The Mohawk Valley Formula, like the American Plan, linked unions w/ agitators, subversives & communists
 
  The Mohawk Valley Formula supplemented the American Plan w/ SIX additional anti labor strategies   
  a. Organized back to work drives during strikes
 
  b. Urged local police to break up strikes
 
  c. In general, align local interests against Labor
 
  d. Educated workers & the public about the right not to join a union
 
  e. Educated workers on the right to deal directly w/ their employers, rather than through outside agents
 
  f. Implement "warfare strategies"  
  Congressional investigations at the time of the Mohawk Valley Formula found that business spent $10 mm for spying, strikebreaking & munitions btwn 1933 & 1937
 
  Youngstown Sheet & Tube had 8 machine guns, 369 rifles, 190 shotguns, 450 revolvers, 109 gas guns, 3,000 rounds of gas, 10,000 rounds of shells & bullets  
  Republic Steel allegedly had the largest private arsenal in the US
 
  Ford had an internal police force of 3,500 to 5,000 or 1 officer for every 25 workers
 

 
Internal
Links

Top
 Outline on  Labor Economics
External
Links
  -  Project:  Elasticity & Bargaining 
Link
  -  Project:  Elasticity & Bargaining btwn Delta & the Pilots 
Link
  THE UNIONIZED WKPLACE HAS HIGHER PRODUCTIVITY
 
  Higher wages are an immediate, visible cost of unionization 
 
  Some pro worker regulations reduce productivity: 
-  shorter hours 
-  safety 
-  limits on mechanization 
-  etc. 
 
  Unionized workplaces, in general, have higher productivity 
 
  -  The unionized workplace is 24% more productive than the non unionized workplace 
 
  -  A unionized industry is 30% more productive than the non unionized industry 
 
  -  Production wkrs in the unionized workplace create an 11% increase in quality 
 
  -  Union wkrs in private sector create a  51% increase in productivity 
 
  -  Construction industries may have increased productivity benefits from a union 
 
  -  Non production wkrs in the unionized wkplace show an 8% decrease in quality 
 
  -  Service industries may show the least benefit from unionization 
 
  Labor productivity has grown more slowly in US than in other industrialized countries 
 
  But the US was the only country to have it's mfring sector increase in size 
 
  This is where productivity growth is the most difficult   
  Union wkrs are economically superior because   
  -  they have more experience   
  -  they have more training   
  -  they have more education   
  -  they have more commitment   
  -  they have a lower turn over rate   
  COMPANY LOYALTY IS MORE EFFICIENT THAN A REVOLVING DOOR
  A revolving door policy is not as efficient as company loyalty   
  Company Loyalty means the firm must use a strategy of investing in workers rather than pursuing other strategies   
  Firms must invest in labor by investing in training, education, re employment, etc.   
  Unions reduce wage dispersion w/in firm   
  Many believe a reduction in wage dispersion decreases competition among workers in a firm   
  But a reduction in wage dispersion increases cooperation & results in increased productivity because:   
  - wkrs can share information   
  - wkrs spend less time on negative competitive behavior   
  - more wkrs are willing to train / mentor other wkrs   
  - wkrs are willing to help & wk w/ other wkrs because they understand that the wk situation becomes "all for one, & one for all"   
  In spite of union based job security, or not, some wkrs will become lazy:   
  -  but this is a function of individual & social factors   
  -  because of the culture of the firm, i.e. does the org culture in the firm support skating, etc.?   
  Profitability   
  Overall, unionized firms are less profitable   
  Increased productivity of unionized workers does not carry over to non unionized workers in the same firm   
  Shareholder value is decreased by unionization   
  While union firms are more productive, they are less profitable because the wkrs take a larger share of the value created   
  LABOR IS DERIVED DEMAND  
  As the circular model of economics indicates, 
 
  -  labor is necessary to produce & sell goods & services 
 
  -  sales depend on aggregate demand 
 
  -  the demand for labor is derived from sales demand 
 
  THE ELASTICITY OF DEMAND FOR LABOR INDICATES HOW MUCH DEMAND CHANGES IN RESPONSE TO DETERMINATIVE FACTORS   
  Elasticity is the degree to which related factors change as each changes   
  The elasticity of the demand for labor indicates how much the demand for labor will change if wages change, or if prices for products change   
  A high level of elasticity for labor means that if wages change a little, or if prices for products change a little, this will have a large impact on the demand for labor   
  A low level of elasticity for labor means that if wages change, or if prices for products, this will have little or no impact on the demand for labor   
 
 The FOUR factors affecting the elasticity of the demand for labor include the: 
 
  a.  level of necessity of the labor in the produce; i.e. can the labor be replaced through technology or deskilling? 
 
  b.  elasticity of the consumer demand for the product 
 
  c.  fraction of the total cost of product or service incurred by labor costs 
 
  d.  elasticity of the supply of competing production factors such as technology   
  Employers are unlikely to resist wage increases in skilled trades, in relatively small bargaining units, where substitutes are not available, & where price has little influence on sales 
 
  An elastic labor supply occurs when the employer is small & / or there is unemployment 
 
  An elastic labor supply means that hiring more workers will have little effect on the wage rate 
 
  Employers are likely to resist wage increases in unskilled trades, in relatively large bargaining units, where substitutes are available, & where price influences on sales 
 
  An inelastic labor supply means that several employers are hiring the same type of labor at the same time, unemployment is low 
 
  An inelastic labor supply means that a wage increase will be necessary to obtain a larger supply of labor 
 
  This can only be done where employers are able to pass on the wage cost to the consumer, i.e. in a noncompetitive product market 
 
  Employers often view labor in the short run & as a variable cost:   
  -  when more workers are needed they can be hired   
  -  when fewer workers are needed, they can be fired   
  THE UTILIZATION OF THE SUPPLY OF LABOR IS DETERMINED BY MACRO ECON FACTORS SUCH AS THE UNEMPLOYMENT RATE & MICRO ECON FACTORS SUCH AS TECHNOLOGY SUBSTITUTION W/IN A FIRM   
  The amount of labor used is determined by   
  -  the price of the product   
  -  the elasticity of demand of the product   
  -  the firm's productivity   
  -  the firm's capital investment in technology, plants, etc.   
  Additional wkr will be added until the wage rate equals the value of the additional products produced   
  The marginal revenue product is the amount of the product times the price  ( MRP = Q x P )   
  Additional wkrs will be added until the wage rate equals the marginal revenue product   
  In the short run, the MRP declines because the employers uses a fixed amount of capital   
  Generally the employer will seek to fully utilize factory & machine resources   
  In concentrated industries, the product demand is never completely elastic as it is in competitive industries because each firm's production is a large share of the market, which is saturated   
  In concentrated industries, the labor demand is also less elastic   

 
Internal
Links

Top
 Outline on  Union Free Approaches
External
Links
  -  Project:  Union Free Approaches:  Practice & Ethics 
Link
  Union Free Approaches:
 
  Many orgs explicitly desire to operate w/o a union &
 
  - implement policies which lead wkrs to resist unionization
 
  -  develop personnel policies to meet or exceed union standards
 
  Other orgs do not respond to union demands per se, they simply adopt & enforce personnel policies which mgt believes are right & appropriate which match the desires of the wkrs
 
  Example:  Lincoln Electric
 
  A large % of firms in the financial services sector are non unionized
 
  Many electronic firms are union free, including IBM, HP, TI, Micro Soft
 
  The largest & most infamous non unionized wkplace is Walmart  
  Many wkplaces that were once highly unionized are now either partially unionized or not unionized at all  
  While any Am auto that opens a new plant is unionized, foreign owned mfrs in the US are usually not unionized  
  Even in the US, when foreign mfrs open new plants, even when their Am competitors are unionized, foreign mfrs are not unionized  
  Union free substantive policies include
 
  -  good wages
 
  -  job security
 
  -  promotion from w/in
 
  -  influential, proactive HRM
 
  -  good benefits
 
  -  a voice for workers  
  -  the careful development of mgrs
 
  Union free substantive policies must be viewed as a development that resulted from the pressure that the Labor Mvmt has put on firms in general  
  W/o the existence of the Labor Mvmt, union free firms would be less wkr centered than they are today  
  Firms often develop policies specifically to offer the same advantages to wkrs that a union might provide  
  The existence of the wkr centered firm, which develops as a result of Labor Mvmt pressure, would very likely decline or even cease to exist if it were not for the steady pressure of the Labor Mvmt  
  Many experts in industrial relations are concerned that the wkr centered firm might become less wkr friendly should the Labor Mvmt become any weaker  

 
Internal
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Top
 Outline on  Preventing Unionization
External
Links
  COMPANIES USE A VARIETY OF TACTICS TO PREVENT UNIONS INCLUDING MEETINGS TO EXPLORE & SOLVE WKPLACE PROBLEMS, EI PROGRAMS, COMPLAINT SYSTEMS TO DEAL W/ PROBLEMS, WKR SCREENING, & MORE   
  The "deep sensing" approach utilizes mass meetings btwn wkrs & mgt. to get a sense of problems 
 
  Vertical staff meetings are meetings in which a dozen or so wkrs meet regularly w/ a high level mgr to discuss issues 
 
  Employer / employee committees, often called quality circles, are formed so that wkrs can make recommendations to mgt. about hiring, personnel assignments, hours, terms & conditions of work, & other similar issues   
  To prevent unionization, firms provide more info to wkrs about their productivity 
 
  Firms hold more work group discussion on quality or productivity issues 
 
  Firms encourage participative mechanisms including quality circles, autonomous work teams, work sharing, limited stock options, etc. 
 
  The development of a formal complaint system may be used to prevent unionization 
 
  In an effort to increase flexibility & productivity, employers have reduced the number of job classifications 
 
  In an effort to increase flexibility & productivity, employers have developed production teams
 
  Intensive worker screening may be used to reduce the need for later surveillance & to create a workforce w/ company oriented competitive spirit
 
  Employers may locate in a lower wage area, not only because it reduces labor costs ( cheap labor is not always a bargain because cheap labor requires more training & more supervision ), but because it will discourage unionization
 
 Link
 Table:  Company Practices Among Nonunion Employees
 
  The Table Company Practices among Nonunion Employees demonstrates that their are now many company strategies that may be used to prevent unionization
 
Link
 Table:  Employee Influences, Contextual Control, & Monitoring Tactics   
  The Table on Employee Influences, Contextual Control, & Monitoring Tactics demonstrates that employers have many tactics for building influence w/ wkrs, for controlling wkrs' context, & for monitoring employees   

 
Top
  
Table: Company Practices Among Nonunion Employees
   
Company Initiatives
Mgrs. are 
Encouraged to
Develop
The Practice
Exists
Information Related    
     Employees are given info about competitive or economic conditions of their facility  
431
     Employees track their group's quality or productivity  
264
Participation Related    
     Employee participation programs such as Quality Circles, etc.
364
  
     Autonomous Work Teams
107
  
     Employees meet in small work groups to discuss production, quality, etc.  
340
Compensation Related    
     Profit sharing, gainsharing, or bonus programs for nonexempt employees
191
  
     Employees receive productivity or other gainsharing bonuses  
121
     "Payment for knowledge" compensation systems
107
  
     All salaried compensation systems
173
  
Miscellaneous    
     Formal complaint or grievance systems
376
  
     Work sharing instead of layoffs
176
  
     flextime or other flexible work schedules
162
  
The Table on Company Practices among Nonunion Employees demonstrates that there are now many company strategies that may be used to prevent unionization 
From:  A. Freedman, The New Look in Wage Policy & Employee Relations, NY, Conference Board, 1985, p. 17

 
Top
  
Table: Employee Influences, Contextual Control, & Monitoring Tactics 
 
Employer Influence Building Activities   
     Orientation programs  
     Quality circles ( especially blue collar )  
     Mgt. by Objectives ( MBO ), especially for white collar & professional employees  
     Information Sharing  
     Attitude surveys  
     Structuring of group interaction  
     Empathetic management style  
 Employer Contextual Control Activities 
 
     Plant location
 
     Small plant size  
     Outsourcing and use of flexible employment arrangements
 
     Employee screening
 
     Supervisor selection and training
 
     Influential HRM (Human Resource Management) department
 
     Desirable working conditions
 
     High wages, good fringes
 
     Job security  
     Career advancement opportunities  
     Grievance program  
     Restrictions on workplace solicitations by union supporters  
 Employer Monitoring Activities   
     Attitude surveys  
     Surveillance  
     Reports from operatives and management loyalists  
     Review of employee complaints  
     Review of personnel records  
The Table on Employee Influences, Contextual Control, & Monitoring Tactics demonstrates that employers have many tactics for building influence w/ wkrs, for controlling wkrs' context, & for monitoring employees 
 

 
Internal
Links

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 Outline on  Quality Circles
  External  
Links  
  -  Project:  Your Quality Circle 
Link
  QUALITY CIRCLES (QCs) CONSIST OF A GRP OF WKRS WHO MEET TO APPLY STATISTICAL PROCESSES CONTROL METHODS TO IMPROVE THE QUALITY OF PRODUCTION 
         
  A QC is a grp intervention that give wkrs the opportunity to have greater input into issue at work   
  QCs are teams of wkrs supported by mgt who meet regularly to examine product & service quality or other issues
 
  QCs take initiative for developing incremental changes in production techniques that help increase productivity through continuous improvement (Demming, 1982)
 
  Typically a QC is comprised of people who have similar jobs in mfr orgs, & discussion revolves around issues of product qual & production efficiency   
  In both union & nonunion setting, the leaders or facilitators are not usually the supervisors of the wk grp, particularly where the circle cuts across functional areas such as production & quality assurance
 
  QCs HAVE BENEFITS FOR BOTH WKRS & ORGS   
  QCs have benefits for both wkrs & orgs   
  QCs allow individual wkrs to enjoy greater participation, which many find stimulating & enjoyable   
  A QC meeting can be a welcome break from routine work to spend time discussing work problems w/ colleagues   
  For the org, this should mean better production procedures b/c the people who do the wk are often the most knowledgeable  about what the problems are & how they can be solved   
  Research has shown that wkrs in a QC were more productive & had fewer absences than wkrs who did not   
  YOUNGER WKRS ARE MORE OPEN TO QCs THAN TRADITIONAL WKRS   
  In relation to quality circles, younger wkrs often:
 
  -  find the QC experience more rewarding
 
  -  believe the union should be involved in QCs or other employee involvement programs
 
  -  were less likely to be involved in the union
 
  -  were more often involved in suggestion programs
 
  -  desired more participation in the workplace
 
  -  had more info on QCs
 
  CENTRAL FEATURES OF QCs  
  The central features of QCs include innovation, wk grps, trust, job security, lifetime employment, cooperation, enhanced productivity, concern w/ wkrs, error prevention instead of error detection, etc.  
 
 1.  Japan is a leader of innovation in a number of aspects of labor relations & production tech, esp in relation to the development of QCs & other employee involvement plans
 
 
 2.  Central to QCs & other EI programs is a reliance on wk grps 
 
 
 3.  Systems of teamwork depend on first estbing trust btwn the wkr & the firm
 
 
 Once loyalty & trust are estbed, wkrs are willing to cooperate w/ teammates & supervisors to promote productivity  
 
 In QCs & other teamwork systems in large corps, there are many positive consequences for both productivity & the quality of working life   
  4.  Job security means that wkrs do not fear tech innovation & instead wk to implement innovations as effectively as possible  
 
 In Japan, large enterprises are more concerned w/ workers' welfare than is typical in Western state regulated capitalist societies  
  5.  Trust is achieved through the assurance of lifetime employment for many wkrs, something that is virtually unheard of in the US  
 
 The Japanese system of job security & team org makes it possible for firms to integrate quality control operations into production areas  
 
 6.  Because wkrs are committed to the success of the firm, they are more eager to cooperate to improve quality than wkrs in other advanced cap sys
 
  7.  Enhanced productivity is gained through a critical mass of cooperation btwn labor & mgt on all substantive issues & esp through error checking.   
 
 In W cap firms, wkrs are rewarded only for the wk they directly perform  
 
 US & Brit firms do their quality control checks after production is complete  
 
 Firms which check quality at the end of the production line have to go through the costly process of fixing mistakes that the Japanese sys encourages wkrs to avoid making in the 1st place (McMilli, 1984, p 163)  
  8.  Firms w/ QC type innovations of labor mgt cooperation estb a process whereby production errors are discovered & corrected during the production process, rather than at the end of the production line   
  Error checking in process mean less wasted time on completing flawed products, & less waste overall because fewer errors become serious                    
  GERMANY HAS APPLIED THE PRACTICE OF QCs TO HEALTH EFFICIENCIES ON THE JOB FOR WKRS   
  In Germany the QC has been adapted to focus on wkr health rather than job performance   
  The German Health Circle is an intervention team where wkrs discuss ways to improve health & well being   

 
Internal
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 Outline on  Employee Involvement Programs:  Opportunities & Threats
External
Links
  EMPLOYEE INVOLVEMENT (EI) COMMITTEES ARE KNOWN AS QCs, QWLs, CIRCLES, ECs, OR COMMITTEES   
  Employer / employee committees, often called quality circles, are formed so that workers can make recommendations to mgt. about hiring, personnel assignments, hours, terms & conditions of work, & other similar issues 
 
  The issues that are dealt w/ in EI are frequently the same issues that are the subject of collective bargaining in unionized workplaces 
 
  The Taft Hartley Act forbids the dominance of a Labor or union orgs by an employer, thus outlawing "business unions" 
 
  The Electromation court judgment narrows an employer's ability to broadly ask employees to consider employment issues 
 
  The involvement of workers in non mandatory bargaining issues is unlikely to lead to charges of employer domination, even though this is one of the gray areas where some workers may feel pressure, but are unable to prove it 
 
 
 Unions should be aware that QCs & other EI programs can weaken union influence in the org, & therefore, control of the org   
 
 Wkrs will identify increasingly w/ the firm if the union doesn't support opportunities for interest employees to be involved   
  Communication activities in EI programs are often similar to collecting data w/ a survey & using this data as a representation of wkr attitudes 
 
  Some EI programs are vested w/ supervisory tasks 
 
  General Foods established work groups & the groups made their own work assignments, created & operated training programs, & made recommendations on staffing
 
  The employee involvement program groups in the Gen Foods org was found, in a court case, not to be an employer dominated labor org
 
  EI IS OFTEN AIMED AT IMPROVING PRODUCTIVITY, WORK LIFE, PAY, ETC.   
  Productivity studies find that giving workers more control of work increases productivity
 
  Today, there are greater competitive pressures because of
 
  - deindustrialization (conversion of old, heavy industry to new light industry & information age-- & to services) 
 
  - globalization, global competition, & the movement of multinational firms to foreign lands
 
  Because of the competitive pressures of deindustrialization & globalization, many firms are attempting to design more efficient work relationships & quality circles are one design for increasing efficiency
 
  EI IMPROVES WKPLACE CLIMATE, COMMITMENT, BRINGS CHANGE, & BENEFITS MGT & LABOR   
  EI programs include FOUR components, including:  
  1.  improving the wkplace climate  
  2.  generating commitment in both mgt & wkrs  
  3.  implementing change  
 
 4.  creating benefit for both mgt & wkrs through increased productivity, higher product quality, etc.  
  In planned programs, climate & commitment lead to change  
  In evolved programs, the climate leads to change which leads in turn to commitment  
  In induced programs, change leads to appropriate climate & commitment  
  Union willingness to become involved in QWL programs is related to the progressiveness of the firm & increase foreign competition  
  Increased involvement in traditional wkplace decisions is related to deregulation, changing demographics, & support by a parent national union  
  Cooperation in strat dec mking is often increases as a  result of foreign competition & decreases as a result of domestic competition because unions often represent wkrs in competitive domestic industries & therefore are less willing to pit one firm against another  
  In an EI program w/ GM & the UAW, grievances, discipline, absenteeism, number of local contract demands, & negotiating time were reduced  
  EI programs result in higher product quality & reduced grievance rates  
  Product quality & productivity decreased when labor mgt conflict increased  
  EI programs are associated w/ reduced absenteeism, accidents, grievances, & quits  
  EI programs lead to greater loyalty to the union, rather than undermining commitment  
  The effectiveness of the grievance procedures is a stronger predictor of attitudes to the union than EI participation  
  EI is associated w/ improved job satisfaction & enhanced commo skills  
  EI programs increase "orgl citizenship" both through participation & changing job characteristics that require more task sharing  
 
 Union antagonism toward EI does not influence employee attitudes, but it does reduce participation  
  THE LEGALITY OF COOPERATION PLANS IS SOMETIMES PROBLEMATIC BECAUSE THE LAW STATES WKRS MAY NOT TAKE ON MGT FUNCTIONS UNLESS THEY ARE CLASSIFIED & PAID AS MGRS   
  Among unionized firms, cooperation plans meet the requirements of the labor acts because they are jointly agreed to by unions & mgt  
  Firms & nonunion firms estb joint mgt employee committees to deal w/ production & employment issue  
  Joint mgt employee committees may violate labor law unless the process & the subject of their work is closely regulated  
  The Taft Hartley Act (THA) forbids firms from creating & operating employer dominated labor orgs  
  Discussion of employment issue or proposals by committees for taking action on areas related to wages, hours, terms, & conditions of wk which intrude into the mandatory bargaining issues specified in the act  
  The NLRB was faced w/ ruling on the legality of an employer sponsored committee in the Electromation case  
  In the Electromation case the NLRB asked when does a mgt wkr committee lose its protection as a communication device & become a labor org, i.e. a business union?   
  In the Electromation case the NLRB asked what employer conduct is interference or domination of mgt wkr committees?   
  In the Electromation case the firm had set up five volunteer committees to look at absenteeism, pay bonuses, etc.  
  In the Electromation case the firm initiated the committees, drafted their goals, & had mgt reps to facilitate   
  The NLRB rules that the Electromation wkr mgt committee was a employer dominated labor organization   
 
 While it is difficult to determine what is a legal wkr mgt committee in a nonunion setting, such committees are still going ahead in many firms 
 
  EI IS AT THE CENTER OF THE SUCCESS OF HIGH PERFORMANCE WORK ORGS (HPWOs)   
  High performance wk orgs are firms that have adopted many EI & other wk practice innovations that increase wkr participation in or control of the the wkplace  
  Research indicates that firms need to implement a coherent set of practices in order to enhance orgl performance  
  A study of mini mills found that plants that implemented a combination of problem solving teams, flexible job assignments, training for multiple jobs, guaranteed employment security, & flexible pay plans were more productive & profitable than firms that implemented smaller combinations of these  
  Operating up time & added value were proportionally greater as more EI programs were added  
  Wkrs are proportionally more satisfied w/ work as more EI programs are added  
  WORKPLACE RESTRUCTURING IS SOMETIMES THE IMPLEMENTATION OF EI & OFTEN A GUISE FOR LAYOFFS & PAY CUTS   
  Because of globalization in the form of increased foreign competition, a great deal of wkplace restructuring has taken place over the past 20 yrs  
  This has been the orgl env in which EI programs have been born in US Labor mgt relations  
  Restructuring increases the intensity of wk, reduces the number of wkrs in mfr jobs, reduces mid mgt, & has outsourced many jobs  
  Wkplace restructuring & firm performance improve when the local union has horz & vert commo network ties & internal political vitality  
  Firms that implemented substantial EI programs during the early 90s had higher layoffs & no net increase in pay  
  Restructuring, overall, has been negative for wkrs, & had mixed results for the firms themselves as seen in smaller sales gains & smaller export gains  
  EI programs have neither increased job security nor pay except where the org's revenues were growing  
  Unions have also not made gains where EI programs were implemented  
  THE DIFFUSION & INSTITUTIONALIZATION OF CHANGE IS SLOW IN THE US COMPARED TO EUROPE & JAPAN   
  An imp issue for labor & mgt is how successful changes get diffused both w/in an org, as well as among orgs & become commonplace, the norm, i.e. institutionalized  
  EI needs a stable env to grow, & yet it is apparent that EI in the US has grown in the era of globalization, deindustrialization, downsizing, sourcing, restructuring, etc.  
  In any EI program, the union needs to avoid or isolate collective bargaining shocks & mgt needs to avoid strategic shocks  
  Layoffs create problems for teams because wkrs use competitive seniority rights to bump in & out  
  Changes are aided by implementing them in new facilities w/ new wkrs & then diffusion of successful changes can them move to estbed setting  
  Unions can assist change best when they have a role in strat dec mking such as plant locations  
  They may provided needed concessions & wk rule changes to make existing facilities economically viable  
  Training in new tech, increased job security, ensuring the viability of the firm, & satisfying wk processes are imp issues to wkrs & unions which EI programs can address  
  Labor should recognize that gainsharing & innovative participation are a logical pieces of successful labor mgt relations in today's wkplace  
  The ability to institutionalize change depends on high levels of trust & commitment by union leaders, union members, wkrs, supervisors, plant mgrs, & corp execs  
  Each of these orgl actors has different interests, a different status quo to protect, a different perception of EI programs, & a different role to play in advancing EI & a stronger wkplace  
  Estbing trust is not easy in the era of globalization, but it can be done, & it will improve the wkplace for all actors  

 
Internal
Links

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 Outline on  Election Campaign Tactics by Corporations
External
Links
 
 CORPORATE ELECTION CAMPAIGN TACTICS UTILIZE CONSULTANTS & OTHER TACTICS TO INFLUENCE WKRS, DISCREDIT UNIONS, DEMONSTRATE THE STRENGTHS OF THE CORP, STALL ELECTIONS & CERTIFICATIONS, WIN ELECTIONS, & MOUNT ANY LEGAL OPPOSITION POSSIBLE   
  Campaign tactics by corps varies widely depending on the size, or power, & sophistication of the corp
 
  Smaller firms often rely on labor relations consultants or attorney to assist in organizing & implementing campaign tactics as well as other labor mgt relationships
 
  Large firms have their own in house union advisors
 
  Firms use a wide variety of preventive process such as implementing a variety of influences, contextual control, & monitoring activities to reduce the chances of the union gaining recognition
 
Link
 The Table:  Employer Election Campaign Tactics demonstrates that firms have many campaign tactics that vary in their objective along the dimensions of influencing the membership, controlling the context or env of labor mgt relations w/in the firm, & monitoring the impact of the firms anti union activities on the wkrs
 
Link
 The Table:  Relative Frequencies of Common Employer Campaign Themes demonstrates that while mgt has many common tactics, the most common instill the fear of strikes, high union dues, fines, domination of the union by outsiders, & others in the wkrs
 
  Mgt uses a variety of consultants in opposing unions, each which may be used at a different time in the anti union process
 
  Anti union consultants may include attorneys, campaign advisers, advocates of positive labor relations, security services, trade & industry associations, advocacy grps, educational institutions, & others
 
  Anti union security services often provide investigation resources, surveillance, threats, & control of the firm's physical & data environments
 
  Anti union trade & ind assoc provide expertise from previous campaigns, a network of anti union resources, assistance in mitigating union tactics, & a broad anti union propagandized union free ideology
 
  Anti union education instit are freqly found in business schools & pro biz grad schools often provide cutting edge union avoidance info, strategies, & practices
 
  Unfair union avoidance strats include improving wages, hours, terms & conditions of employment, or discriminating against union supporters
 
  Firms will often even use unfair union avoidance tactics to support their own position by informing employees that 'wages can't go up as long as you are considering the union,' ignoring the fact that wages may go up after the wkrs either accept or reject the union
 
  Firms do sometimes use unfair union avoidance practices & such practices are found to lead to a high level of mgt victories
 
 
 For the firms, the cost of having been found to have committed an unfair labor practice is low compared to the costs of unions winning representation  
 
 The greater the differential btwn union wages in an ind & the firm's wages, the greater mgt's resistance will be  
 
 Wage differentials are more imp that the desire of wkrs for a union in influencing mgt to engage in active union resistance  
 
 Active union avoidance for new facilities decreases the likelihood of organizing from about 15 % to 1 %  
 
 DECERTIFICATION, I.E. REMOVING A UNION, IS BOTH A TACTIC & A GOAL OF MANY CORPS IN THAT THEY CONSISTENTLY PURSUE DEFEAT OF THE UNION   
 
 Once certified, union face risks in continuing their representation role by way of a decertification election
 
  A decertification election may take place one year after the certification period ends & oust the union  
  Decertification elections are more successful in small units w/o local leadership, w/ low member involvement, w/ a changing composition of represented wkrs, & w/ affiliation to a large national union  
  Economic variables which increase decertification include inflation, low union density  in the ind, a hi freq of strikes, & small bargaining unit size  
  The ratio of decertification to certification elections has increased from 1 in 20 in the 1950s & 60s to 1 in 4 in the last several yrs  
  Institutional changes in the labor mgt env that have increased decerts include weak regulation of unfair labor practices, reductions in social spending, a Republican President, & a Republican Congress  

 
Top
  
Table: Employer Election Campaign Tactics
Objective
Employer Activities
 Influence Captive Audience speeches
 
 Small grp & individual meetings 
 
  Letters, posters, handbills, and other written communications
   Threats and/or inducements
 
  Films, slide shows
 Contextual control  External
         Use of regulatory agency procedures
 
        Election delays
 
        Linkages with community institutions (banks, police, newspapers, churches, etc.)
 
  Intra unit
 
        Supervisor training
         Discriminatory treatment of union supporters
 
        Short term improvement in wages, working conditions
 
        Establish or support employee solicitations by union supporters
 
        Escelsior list agreements
Monitoring Attitude surveys
  Surveillance
  Interrogation
  Reports from operatives and management loyalists
   The Table:  Employer Election Campaign Tactics demonstrates that firms have many campaign tactics that vary in their objective along the dimensions of influencing the membership, controlling the context or env of labor mgt relations w/in the firm, & monitoring the impact of the firms anti union activities on the wkrs

 
Top
  
Table: Relative Frequencies of Common Employer Campaign Themes
 
Campaign Theme
Frequency %
Bargaining Impact Themes
66 %
    Strikes may occur
 40
    High union dues
33 
    Potential for fines and assessments by the union
 24
    Unions cannot guarantee any changes
 14
    Possible plant closing
 14
    Bargaining may actually reduce wages, benefits, and the like
 5
Antiunion Themes
 35
     Union will interfere with good worker management relations
 7
     Union dominated by "outsiders"
 13
     Union has failed elsewhere
 6
     Union is corrupt
 9
     Union is radical or leftist
 6
     Union will subject workers to rules
 6
     Unionism is inconsistent with employee and community values
 1
Pro company Themes
20
      Management is a friend to workers
7
      Workers already enjoy high wages and/or good working conditions
9
      Give company another chance
8
The Table:  Relative Frequencies of Common Employer Campaign Themes demonstrates that while mgt has many common tactics, the most common instill the fear of strikes, high union dues, fines, domination of the union by outsiders, & others in the wkrs
 

 
Internal
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 Outline on  Contracts, Job Structuring, & Union Avoidance
External
Links
  THE FIRST CONTRACT  
  Even when a union wins a representation election, it still faces formidable barriers in estbling the first contract
 
  When the NLRB certifies the results of a representation election, bargaining may commence
 
  If an election is close, firms often contest the election based on any campaign irregularities such as the eligibility of some voter 
 
  If objections are raised to the representation election, some time elapses until the NLRB issues a ruling 
 
  While the delay due to the contestation of the representation election occurs, the firm may implement a number of wkr relations actions to indicate it ill take a tough stance toward the union
 
  The firm may discriminatorily take action against union activists, thereby committing unfair labor practices, but which also reduce longer run interests in remaining unionized
 
  If the union is faced w/ an intransigent mgt strat, it needs to expend time, energy, resources, & the efforts of its best members to combat the firm on an issue by issue basis
 
  The union often shifts its tactics from an organizing mode to a negotiation mode in order to successfully negotiate the first contract
 
  Firms & unions often find that the negotiation of the first contract is the most imp contract & therefore the most contentious contract  
 
 For firms & unions the first contract is the most imp because it sets the basis for the following contracts
 
 
 If the first contract is, from the union pt of view, weak, then mgt may find it easy to launch a decert election, & decert elections are typically much more successful for mgt in the first few yrs, esp if the first contract is weak
 
  Organizing is adversarial, while negotiating requires at least a min of cooperation which assumes that joint agreement on a settlement is a primary goal
 
  While the law requires firms & unions to negotiate in good faith, firms often try to sabotage or weaken the first contract in order to set the stage for a decert election
 
  If a nat union was involved in assisting in organizing, a different representative, one not involved in organizing, is brought in to assist the new local
 
  Local union members have no experience in negotiating so they need training & assistance from the national
 
  An unaffiliated local often has difficulty in learning how to negotiate, but this weakness may be offset by greater wkr involvement in its org & operation  
  A firm may undermine the union during the bargaining process  
  The firm might refuse to bargain on tech grounds such as the appropriateness of the bargaining unit (BU)  
  A refusal to negotiate in good faith is a difficult charge to prove, so the union, or mgt, must document its allegations carefully before presenting them to the NLRB  
  If the NLRB intervenes, it may issue a bargaining order to require both sides to bargain in good faith  
 
 The firm or the union might bargain in a defiant or evasive manner  
 
 Firm defiance may be marked by making it difficult for the union to get info about the firms situation & starting w/ an offer that includes conditions & wages lower than what is presently implemented
 
  If the firm forestall reaching a contract for at least 1 yr after initial certification, wkrs can, w/ sufficient interest, petition for a decert election  
  If the union fails to enroll a majority of wkrs as union members & concludes that interest in representation is waning, the firm might try for a decert election  
  Since the Reagan Revolution, i.e. the early 1980s, newly organized firms have taken a harder line in negotiating first contracts, esp since there are few real penalties the NLRB can impose for refusing to bargain  
  Where mgt is exp intransigent, community action &, or corp campaigns may be the only effective strat the union can use to buttress it attempts to win the first contract  
  JOB STRUCTURING  
  An imp part of the first contract is job structure which is the determination of whether jobs fall w/in the jurisdiction of the BU or not  
  Job structuring can be an on going issue for negotiation as the nature of the wkplace changes  
  When an election is held, the NLRB defines what jobs & what wkrs are w/in the BU  
  The law requires professionals to agree affirmatively to be part of a BU before they can be included  
  If a set of jobs is changed radically & skill requirements are increased, the firm may argue that they are no longer a part of the BU as it was defined at election time  
  If low skilled jobs are outsourced, the BU is gradually hollowed out by job design changes, & bargaining power is lost  

 
Internal
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 Outline on the Decline & Resurgence of the Labor Movement
External
Links
  -  Project:  The Decline & Resurgence of the Labor Movement 
Link
  -  Project:  Video: Walmart:  Factors Affecting Success & Decline of the Labor Movement 
Link
  -  Supplement:  Walmart:  The High Price of Low Cost 
Link
  -  Supplement:  Union Members in 2008
Link
  UNION MEMBERSHIP HAS DECLINED SINCE ITS PEAK IN THE 1940s, BUT IS RESURGING IN THE 00s   
  -  Summary:  Union membership peaked in the mid 1940s & 50s at approximately 1/3 of the workforce & has declined steadily since the mid 1950s to about half that level today.  Labor has been under attack & in decline since the 80s.  Deindustrialization & globalization have both affected labor negatively.  The political climate has shifted away from Labor in that there is less enforcement of  Labor laws & regulations & less public support for Labor.  Labor has succeeded so much that many workers are relatively satisfied w/ work conditions & outcomes   
Link
 The Table on US Union Membership shows that membership peaked in the mid 1940s & 50s at approximately 1/3 of the workforce & has declined steadily since the mid 1950s to about half that level today 
 
  Union membership in the US grew during the Great Depression, the 1950s, 1960s, the early 1970s, & now, the early 2000s  
  Union membership in the US declined during the 1980s, 1990s  
  But Labor is experiencing somewhat of a resurgence in the 2000s  
  In 2008, unions experience their second consecutive year of growth   
  For more on union demographics & growth rates see Union Membership  
  See Also: Union Membership  
  See Also:  Membership Trends  
  Strikes decline from 70s to 90s
 
  In 1971 at the peak of union membership, 2.5 mm workers struck
 
  In 1992, when Labor was weakened by political & economic factors, there were only 35 strikes of 364,000 workers
 
  Overall, only .1% of work time is lost to strikes
 
  Strikes are unpopular in today's climate of downsizing
 
  FACTORS AFFECTING DECLINE & RESURGENCE INCLUDE ECON, TECH, SOC, CULTURAL, DEMOGRAPHIC, POL, INTL COMP, CORPS, & UNION AFFAIRS   
  There are many factors affecting the success, the decline & resurgence of the Labor Movement, including economic, technological, social, cultural, demographic, political factors & international competition, company resistance, & internal union affairs
 
  1.  IN THE ECON, A BOOM IS AN ADVANTAGE & A BUST IS A DISADVANTAGE FOR UNIONS   
  Economic Factors affect the success of the Labor Movement
 
  Deindustrialization, the movement of smokestack industries to foreign, low wage countries, has resulted in the loss of traditional union jobs in industry
 
  Globalization, the movement of all industries (industrial, agricultural, service, high tech, etc.), to low wage, foreign countries, has resulted in the loss of traditional union jobs as well as jobs in new, growth areas
 
  Traditional union jobs, i.e. industrial jobs, have largely disappeared  
  The decline of major "smokestack" industries, which were heavily organized, resulted in less union members  
  Unions have failed at limiting downsizing
 
  Wage inequality has continued / worsened by unions, as a result of large economic cycles (  Dual economy as created by the Great Labor Compromise )
 
  2.  TECH DISPLACES WKRS & DESKILLS WKRS & SO IS A DISADVANTAGE FOR UNIONS, BUT IT ALSO MAY INCREASE SKILL LEVELS & SO IN AN ADVANTAGE FOR UNIONS   
  Technological Factors affect the success of the Labor Movement
 
  For all of history up to the beginning of the industrial age, there was a labor shortage  
  Empires rose & fell based on how much labor they could gather  
  Since the industrial revolution, there has been a labor surplus in the modernized sectors  
  Labor from the non modernized sectors used as competition for modernized workers   
  Technology serves to increase the surplus of labor in the modernized sector  
  Unions have adapted to the contrasting sectors w/ their surpluses & deficits of labor w/ the traditional tactics of featherbedding & holdout  
  3.  SOC, CULTURAL, & DEMOGRAPHIC FACTORS IMPACT UNIONS IN THAT THE WKING POP IS MORE DIVERSE & FRAGMENTED,  TRADL & CONSERVATIVE, MID & UP MID CLASS, PROFL, & HAS A 'VOICE' & SO IS LIKELY TO HAVE FALSE CONSCIOUSNESS: PURSUING 'COUNTER INTERESTS'   
  Social, cultural, & demographic factors affect the success of the Labor Movement  
  For the Labor Mvmt, saturation denotes that all "easy" unionization targets have been organized  
  The workforce has changed on many social, cultural, & demographic dimensions, including:
-  race 
-  skill
-  nationality
-  class		 -  gender
-  age
-  politics
-  status, etc.
 
  Unions have been slow to adapt to social, cultural, & demographic changes  
  Today the workforce is less homogenous, i.e. more diverse & is therefore harder to unionize, to create a community of interests  
  As workers moving into the middle class (MC) had made it easier for them to be easy to be free riders
 
 
 Unions entail costs such as dues, risk, cost of expansion, issue fragmentation, & others  
 
 MC wkrs see little benefit in incurring the costs of unionization since they get many of the benefits of unionization as firms provide them to prevent unionization
 
  Non unionized wkrs receive the spillover benefits from unionized wkrs in that the higher wages, benefits, safety programs, training & so on that organized Labor has won for its workforce have become the standard conditions for even the non unionized wkforce  
  Thus the key to organizing wkrs is to directly address practical membership concerns of traditional & non traditional wkrs  
 
 One reason the Labor Mvmt has declined is because of it's failure to address membership concerns of traditional union workers (white, working class, males in industry), as well as those non traditional wkrs
 
  Today there are more professional orgs which address Labor issues but fail to federate w/ unions  
  Labor has failed to organize the middle class (MC) & the upper middle class (UMC)  
  The demographic set of the middle class & the upper middle class has not been organized both because of demographic changes, but also because the Great Labor Compromise / Wage Unionism are inherently flawed ( See Below:  Internal, Union Factors affecting the success of the Labor Movement )  
  The MC & the UMC get paid more today & so are not as hungry as the WC  
  The MC & the UMC have false consciousness, i.e. they do not have a world view or ideology that supports the interests of their own class  
  False consciousness is similar to such concepts as inauthenticity in philosophy  
  The MC & the UMC believe (wrongly) that:
-  they may move up to the upper class
-  what happens to others, i.e. the LC, does not really affect them
-  (wrongly) in individualism is the most noble / best lifestyle
-  the position of the LC & below is their own fault; i.e. the MC & the UMC fail to understand the operation of the social forces of culture & social structure		  
  The MC & the UMC have a "voice" & so have less of a need for unionization, because they: 
-  understand the legal & social systems, thus understand their rights
-  have some political power
-  have some $$, & thus can afford a lawyer		  
  4.  POLITICAL FACTORS IMPACT UNIONS, WHICH HAVE A STRONGER, BUT IMPERFECT,  RELATIONSHIP W/ DEMS THAN REPS, & ARE GENERALLY OPPOSED BY REPS   
  Political Factors affect the success of the Labor Movement  
  As a result of the Great Labor Compromise, the American Labor Movement has never had a political party  
  Thus, the American Labor Movement has always had a rocky relationship w/ political parties  
  Labor lost of control of the NLRB through the election of sequential Republican Presidents: Reagan in 1980 & 1984; Bush Sr. in 1988
 
  Staffing of the NLRB has one Presidential appointment, one Labor, one mutually agreed to  
  Reagan Republican appealed to cross-over Democrats such as conservative, white males, including many unionized members  
  Reagan Democrats caused decreased member solidarity  
  The US population in general is believed to be more politically alienated  
  The political climate has shifted to the right, worldwide (conservatives gained power; liberals lost power)  
  Legislative acts (laws), regulatory agencies (govt agency rules), judicial ruling (judicial precedent), and public opinion have all moved to the right  
  This has made it more difficult for unions  
  Employers have been supported in their aggressive stance against unions  
  More specialized anti organizing mgt. consultants   
  During the Bush Jr. administration (2000- 2004 ) first week in office, he institutes new Executive Orders limiting union ability to use union dues for political purposes  
  5.  INTL COMP, GLOBALIZATION, DEINDUSTRIALIZATION, ETC. HAVE ALL MOVED UNIONIZED JOBS TO THE SO & SW & TO FOREIGN NATIONS 
 
  International Competition has resulted in the decline & resurgence of the Labor Movement  
 
 As a result of Deindustrialization & Globalization, competition among workers has increased as has competition among businesses
 
 
 Increased job pressure as seen in high unemployment, lay-offs, & downsizing have all made workers reluctant to join unions & to go on strike
 
  Job pressure resulted at least in part from international competition & the movement of factories & corporations overseas for cheap labor, low taxes, low environmental regs, & low safety & health regs  
  Because of job pressure many corporations have felt able to seeks contractual concessions from Labor or their total elimination  
  Wage concessions peaked in the early 1980s when unemployed was above 9% & have declined since then  
  Chronically high unemployment has created a new bargaining environment that creates an aggressive stance on the part of mgt.  
  Direct plant closings, layoffs, downsizing all replace demands for wage concessions & put fear into the workforce  
  6.  CORP RESISTANCE TO UNIONS HAS GROWN DRAMATICALLY & HAS UTILIZED CUTTING EDGE SOC SCIENCE   
  Increased Company Resistance has resulted in the decline of the Labor Movement  
  See Also:  Corporate Activity & the Labor Movement  
  Mgt is increasingly resistant to unions, & has activity used union busting strategies & tactics  
  7.  INTERNAL UNION DYNAMICS OF CORRUPTION, CRIME, STRONG ARMING, AUTHORITARIANISM, ETC., HAVE HURT UNIONS, WHILE DEMOCRACY, JUSTICE, & PROGRESSIVE SHORT & LONG TERM STRATS ARE AN ADVANTAGE   
 
 Internal Union Dynamics affect the success of the Labor Movement
 
  The Labor Mvmt is not a monolithic org, rather it continues to have deep internal schisms  
  Various unions had employed different strategies for articulating & realizing wkrs' goals (Form, 1985)  
  Labor embraces a variety of divergent view pts & needs, ranging from those of doctors & skilled craft wkrs to clerical wkrs & janitors  
  Labor often merely reacted to circumstances both because of the conservative nature of it's leadership, but also because of the power of corps, & the rapid changes in the socio historical landscape  
  Unions have been attacked physically, & w/ econ & social methods such as disinformation & propaganda  
  Unions have had to embrace innovative & risky strategies in the past to overcome adversity, & are doing so again  
  Risky strats imply that some will fail & some will succeed & at present, Labor is experiencing a modest, but important comeback  
 
 Unions reacted to technological displacement of workers w/ traditional strategies of "featherbedding," & hold-out
 
 
 Unions reacted to economic factors of downsizing, etc. w/ traditional strategies of "featherbedding," & hold-out
 
 
 Unions have not accepted economic change; unions should advocate retraining & organization of new industries
 
 
 Unions chose political allies based on interests other than those of the membership, i.e., rejection of politicians who fought corruption
 
 
 Unions have rejected, & not embraced political allies
 
 
 - Minorities & the Civil Rights Movement
 
 
 - The Environmental Movement
 
 
 - The Women's Movement
 
 
 The Labor Movement has been less aggressive at organizing
 
 
 Working together has the advantage that there is less "raiding", but it has the disadvantage that there is less competition for members
 
 
 Unions have been slow to change:  to organize service jobs,  women, minorities, etc.
 
 
 Union corruption has discouraged many workers from joining a union
 
 
 Lack of union democracy creates a lack of internal debate & domination by an old guard who is not always responsive to the desires of the membership
 
 
 The GLC & Wage Unionism are inherently flawed
 
 
 Union Strategy as controlled by the old guard needs revision / updating
 
 
 Great Labor Compromise / Wage Unionism are inherently flawed 
 
 
 Part of the "wage unionism deal"/ Great Labor Compromise was that Labor would unionize only craft & industrial workers, who at that time were Lower Class (LC)
 
 
 This strategy retards organization of non-traditional workers
 
 
 This strategy retards organization around non-traditional issues  
 
 See Next:  The Future of the Labor Movement  

 
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Table on US Union Membership 1930 - 2000
Year
Total Wkrs
in millions
Union
in millions
% in Unions
% Change
1930
29.4
3.4
12 %
  
1935
27.1
3.6
13 %
+ 1 %
1940
32.4
8.7
27 %
+ 14 %
1945
40.4
14.3
36 %
+ 9 %
1950
45.2
14.3
32 %
- 4 %
1955
50.7
16.8
33 %
+ 1 %
1960
54.2
17.0
31 %
- 2 %
1965
60.8
17.3
28 %
- 3 %
1970
70.9
19.4
27 %
+ 1 %
1975
76.9
19.6
25 %
- 2 %
1980
87.5
20.1
23 %
- 2 %
1985
94.5
17.0
18 %
- 5 %
1988
101.4
17.0
17 %
- 1 %
1990
102.4
16.8
17 %
NC
1998
116.7
16.2
14 %
- 3 %
 1999
 
 16.2
 
 
2000
 
 
15.4 %
 
2007
129.7
  
12.1 %
+ %
2008
129.3
16.1
12.4 %
+ %
The Table on Union Membership shows that participation in the Labor Movement grew until the 1950s, declined slowly until the 1980s then rapidly declined & has recently stabilized
Red denotes the high in union membership in absolute numbers & in percentage, respectively.  Note that unions peaked in power from 1945 to 1955 when union membership percentages were the highest.  Note:  The wkforce shrank in 2008 because of the Bush recession. 

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