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Membership has been falling for years, and three unions recently split from the largest U.S. union coalition. Is this an indication that the labor movement is no longer relevant or could it spur a resurgence?
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In their heyday around mid-century, labor unions represented about a third of all U.S. workers. But since the 1960s, trends such as the growth of the service sector (which is less unionized) and the loss of manufacturing jobs have diminished union membership to its current overall level of about 12.5% of the workforce, with only 8.5% of private-sector workers unionized.
And last month, three unions–the Teamsters, the Service Employees International, and the United Food and Commercial Workers–split from the biggest U.S. union coalition, the AFL-CIO, taking with them about 4.5 million members. The three breakaway unions have formed the Change to Win Coalition. This schism leaves the AFL-CIO with only about 8.5 million members among 53 unions. It also marks the biggest rift in organized labor in 70 years.
These developments have prompted many industry analysts and observers to ponder the future of labor unions. Here’s why some say unions will thrive while others says their membership will continue to take a dive:
The Resurgence Argument
• Competing for new members could reenergize the labor movement. “I think some competition will do good,” comments Harvard University economics professor Richard Freeman in this Reuters story. “When you suddenly have competition, you have people selling new products. It’ll lead to more unionization. And hopefully it will lead to better unionization.”
• The splintering of the largest union coalition will capture nationwide attention and refocus debate on how to revitalize the movement. Some say that it could be just what the doctor ordered–raising unions’ national profile and delivering a shot in the arm to a long-flagging movement.
• Unions are needed now more than ever. Today’s workers need unions to protect them from wage and benefit cuts, says Lowell Peterson, a labor attorney with Meyer, Suozzi, English & Klein, who represents workers in labor talks, as reported by the Reuters story.
• There are many potential union targets in the U.S. And the recent bust-up will likely spur unions to reach out to them more aggressively, experts believe. One target is the rapidly-growing U.S. service sector, which accounts for more than half of the U.S. gross domestic product. Other potential recruits include workers at retailing giant Wal-Mart and transport company FedEx Corp.
The “It’s All Downhill from Here” Argument
• Unions’ past triumphs have actually made them more irrelevant today. The Reuters story points out that “the argument could be made that unions have been so successful in the last 40 years at winning legislative victories that unionization is less necessary.” “You now have dozens of laws that protect employees that didn’t exist before,” Howard Bernstein, a labor attorney with Neal, Gerber & Eisenberg, tells Reuters. “In fact, you have more and more employees filing lawsuits against employers for things that go on in the work place.” He cites federal laws that protect workers from discrimination and workplace safety hazards.
• People can now get the benefits of being in a union without paying dues, says analyst Kent Hughes at The Woodrow Wilson International Center for Scholars in Washington. “The union movement has been very much involved in improving national standards for workers. So whether I’m unionized or not, I get the benefits, so I don’t have to pay the [union] dues or be involved [in a union],” he points out in this story. “Also to some extent, the unions set a standard of wages and benefits that other companies copied when they wanted to maintain the added flexibility of not having a union.”
• The division in organized labor will diminish the labor movement’s political clout. Some say it could even negatively impact the power of the Democratic Party, which gets much support from labor groups. Also, some believe the split could lead to further fracturing.
• The labor movement mentality is outdated. This Times-Republican piece points to the labor movement’s “failure…to get beyond an us-vs.-them approach to labor-management relations and its essentially negative view of working-class Americans’ political and economic status.” While it notes that “there are pockets of industry where unions and management have worked hand in hand in efforts to stay competitive…the overall message seems slanted to ‘exploitive management’ versus workers, and a cramped and factually incorrect view that a working-class person never can climb the economic ladder.”
• The individualism that characterizes white-collar workers doesn’t gel with the union mentality. While such workers represent a rich target for unions, it would take a change in thinking to convince them to unionize. Ken Goldstein, with New York-based business and economic analysis group The Conference Board, says in this item: “Part of the barrier about being able to get into the office is to get individualistic people to think that they need their brothers and sisters to get to where they need to go.”
• Globalization has taken the air out of the movement. “Traditionally, unions made demands and management reacted,” says Gary Chaison, professor of industrial management at Clark University in Worcester, Mass. in this Detroit News article. “Today, companies can just pick up and move (to a cheaper labor market).”
What most people seem to agree on is this: the labor movement is at a crossroads. The recent shake-up could be the event that triggers its resurgence or leads to its demise.
What do you think?









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I believe that if unions are to survive they need to overhaul their practices and image. The traditional union was about making demands to increase worker “comfort” and pay. There have been many companies brought down by unions. A union can cripple a company by demanding wages that make their product overpriced compared to the competition. The only reason for continuing unions that I see, is to try keeping the “big wigs” from raising thier own salery to new heights while lowering the pay for those who are producing the product.
Two small groups of individuals exploded onto the economy. These individuals earned from $50K to over $100K per year. They had full medical, dental, pensions, and vacations. Because of their actions, thousands of lower income workers couldn’t get to their jobs. Small businesses went under because they could not get product and/or their workers couldn’t get to the workplace. The American economy was delt a severe blow.
Would you call this a terrorist act?
What about the MTA Mechanics & Longshoreman strikes in L.A.? Oh no, not them. They were only protecting their “rights”.
Do unions need an overhaul? What do you think?