Labor Unions
Ideals Underlying Unions
Getting greater return for those who actually
produce goods and services
 Reduce the inequality of the distribution of
economic opportunities in society

Membership in Unions

Falling since 1979 because
 Declining
employment in industries that are unionized
 Technology has reduced need for labor
 Foreign competition - lower wages abroad
 Deregulation increases competition; new companies
may hire new employees at rates below union scale
 Philosophy of American people
 Increasing diversity of workforce
 Geographic shift from “steel belt” to “sun belt”
What Do Unions Do?
Organize majority of employees in a work
unit
 Negotiate with employer on terms and
conditions of contract
 Joint administration of the contract with
management

Why Do Employees Join Unions?
Dissatisfied with supervision, co-workers,
career future, amount of work required,
working conditions, type of work,
management-employee relationships
 Believe that they cannot make changes
themselves
 Believe that the union will be able to make
the needed changes

Labor Law

Railway Labor Act (1926)
 Rights
of railway and air transportation employees to
choose whether want to be represented by a union

Norris-LaGuardia Act (1932)
 All
private sector employees and unions
Forbids "yellow-dog" contracts
 (Employee agrees to not join union and will not be fired)

 Judges
cannot enjoin lawful union activities unless
danger to life or property
Wagner Act (1936)
Employee's right to engage in union
activities, organize and bargain
 “Unfair labor practices” first defined
 Required employer to collectively bargain
with established union regarding terms of
employment
 Established the NLRB (National Labor
Relations Board)

Taft-Hartley Act (1947)


Balanced powers of labor and management
Unfair labor practices expanded
 Employers
cannot refuse to bargain with union over
terms of employment
 Can't discriminate based on union membership, but can
negotiate contracts requiring union membership as
condition of continued employment
 Unions can't require employer to discriminate unless
specified in contract
 Both must bargain in good faith
Taft-Hartley Act (1947)
Union represents all employees in group
 Established Federal Mediation and
Conciliation Service (FMCS)
 Allows states to vote "right-to-work" laws

 Forbids
employers and unions from agreeing to
union shop clauses
Landrum-Griffin Act


In reaction to labor racketeering in late 50's
“Bill of rights” for union members
 Requires
employees to have equal rights in voting
 Freedom of speech in union matters
 Right to vote on dues increases
 Right to sue their unions
 Unions and management must not have financial
dealings with each other
Civil Service Reform Act (1961)
Collective bargaining in federal government
 Forbidden to strike or make demands with
consent of agency
 Established Federal Labor Relations
Authority (FLRA) to monitor

PATCO
Professional Air Traffic Controllers
Organization
 Reagan ordered return to work within 48
hours or rights would be forfeited
 “Permanent replacements” were hired

Organizing Campaigns
Started either by employees or unions
 Employees can solicit others to join union
during nonworking time on company
premises, but outsiders usually cannot
 Authorization cards:30% of employee
signatures requires the NLRB to call for a
representation election
 Determination of appropriate bargaining
unit

Campaigning

Union is much less likely to win when the
employer campaign against union
 Odds
reduced from 15% to 1%
Management can use company time
 “TIPS:” Management cannot

 Threaten
 Interrogate
 Promise
 Spy
Effects on Organizations



Wages and benefits are
higher and turnover is
lower in organized
companies
Pay more often based
on seniority
Wages in nonunion
companies often
affected by union
wage rates

Union employees
 Tend
to be older and
more experienced
 Have higher
productivity


Unionized companies
less profitable
Productivity offset by
higher wages
Effects on Individuals
Unions increase pay of younger and less
well-educated workers
 Unemployment is higher in areas where
there is lots of unionization
 Satisfaction not higher or lower for
unionized
