Mgmt 583 Chapter 5: Unions - Member Attitudes … Political Activities Fall 2008

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Mgmt 583
Chapter 5: Unions - Member
Attitudes … Political Activities
Fall 2008
Member Participation
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Union membership entails participations in
specific union activities:
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Voting for union officials
Voting for strike authorizations
Voting for contract ratifications
The option to run for union offices
Attending meetings (most attend only mandatory
meetings)
The Reality of Member Participation

Less than half (48%)* of all union members are
active in union activities.
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Studies show that activity levels are predicted by prounion attitudes.
Most union members want their elected official to “run”
the local for them.
*Flood, P., Turner, T. and Willman, P. (2000). A segmented model of union participation.
Industrial Relations 39: 110.
Predictors of Union Participation
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Subjective norms
Perceived instrumentality
Marxist work beliefs
First-year socialization
Shop steward leadership
Source: Kelloway, E. K.,and Barling, J. (1993). Members participation in
local union activities: Measurement, prediction, and replication. Journal
of Applied Psychology 78: 274.
Local Union Effectiveness &
Member Behavior
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If unions are effective only so long as they
accomplish goals important to their members.
Factors associated with union effectiveness:
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Member participation
Preparations for future negotiations
Involvement in political & civic activities
Union mentality (compatibility with members’)
Union’s leadership
Commitment to the Union
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Similar to organizational commitment – again, prounion attitudes are a strong predictor of union
commitment.
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Commitment is correlated with pursuit of union goals.
Commitment is correlated with participation in union
activities.
Like organizational commitment, commitment to the
union is a function of cohesiveness.
Dual commitment employee is committed to both
the union and his/her employer. Usually found in
situations involving good labor relations.
Threats to Union Cohesiveness
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Multiple contracts in a single bargaining unit
(different contracts are negotiated for different
occupations within the BU).
Women – desire different bargaining
outcomes than male counterparts [causes
factional bargaining].
Ethnic minorities – concerned about
representation on executive council.
Underrepresentation in Union
Leadership

Women and ethnic minorities are underrepresented
in union leadership positions at both the local and
national level.
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Only 2 of 95 union presidents are female.
There is a reason Anna Burger is the chief officer of the
Chang to Win Federation.
There have been no minority union presidents except
those in minority dominated unions.
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United Brotherhood of Maintenance of Way Employees
(BMWE) [on September 7, 2007 the Brotherhood of
Maintenance of Way Employees merged with the IBT].
Impact of National Unions

National unions have a vested interest in creating a
legal environment that facilitates collective
bargaining and achieve workplace goals.
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Pro civil rights legislation (however, there are no minority
presidents except in minority dominated union –United
Farm Workers, e.g.)
Health and safety legislation
Unemployment compensation
Workers compensation
Effects of the Economy on National
Unions

Corporate restructuring in the global economy in
order to survive has reduced worker belief that the
union can enhance long-term job security.
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June 2005 GM announces it will cut 25,000 jobs, or about
23 percent of its work force and shut several North
American factories.
Cuts are in response to a $1.3 billion loss in the first
quarter 2005.
United Auto Workers President Ron Gettelfinger
promised members that the union won't open GM’s CBA
before its 2007 expiration to renegotiate spiraling health
care benefits, which will hit $5.6 billion this year.
They did.
Effects of Industry Health on
National Unions
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United Auto Workers made cost concessions to both
GM and Ford in 2005.
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UAW negotiated a health-care pact with GM that the auto
maker expects will trim its health-care liabilities for
hourly workers by $15 billion, while saving the company
$1 billion in cash starting next year.
Ford followed with a UAW deal in December 2005 that
allowed the auto maker to trim about $850 million of its
estimated $3.5 billion annual health-care bill.
Now Chrysler wants the same.
Effects of NAFTA on National
Unions

North American Free Trade Agreement
(NAFTA) reduced tariffs on imports from
Mexico and Canada removing incentives to
purchase American made goods.
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It has led to the wholesale movement of labor
intensive jobs to the cheaper labor markets of
Mexico.
NAFTA has focused attention of the remaining
American manufacturers on controlling labor
costs.
Affects of Globalization
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Textile manufacturing has virtually left the
US for the PRC, Africa and the West Indies.
Assembly operation have moved to Central
America.
Dumping cheaper subsidized foreign
manufactured goods in US markets.
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Plant closings
Layoffs
Affects of NAFTA
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Wage gap between US Canada and Mexico
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Mexican compensation costs are only 12.5% that
of US costs.
Canada is 7.5% higher.
There is more than sufficient economic incentive
for labor intensive processes to relocate.
Union Political Action
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Despite decline numbers, union continue to
exert great political influence.
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Political Action Committees (PACs).
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Endorsing candidates (Committee on Political Action
of AFL-CIO)
Lobbying
Public sector PACs have been very successful
Financial support for pro-union candidates.
Get-Out-the-Vote Drives
Union Political Action
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Problems maintaining solidarity.
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Rank and file members tend to be socially and
politically conservative.
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In 2004, 45% of union members voted for the
Republican candidate.
Union leaders tend to be socially and politically
liberal.
In 2005-2006, roughly 88% of labor PACs
contributions went to the Democrat party.
Union Political Action

The top ten PACs in America:
1
MOVEON PAC (Liberal PAC)
$30,043,750
2
EMILY'S LIST (pro-choice Democratic women)
$26,051,693
3
AMERICA COMING TOGETHER (Democratic interest groups dedicated to defeating President Bush)
$15,154,735
4
AMERICAN FEDERATION OF STATE COUNTY & MUNICIPAL EMPLOYEES
$14,056,945
5
UAW- V- CAP (UAW VOLUNTARY COMMUNITY ACTION PROGRAM)
$13,336,541
6
NRA POLITICAL VICTORY FUND
$12,772,488
7
SERVICE EMPLOYEES INTERNATIONAL UNION
$12,461,614
8
PAC FOR INT'L BROTHERHOOD OF TEAMSTERS
$10,468,934
9
REPUBLICAN ISSUES CAMPAIGN (Conservative Republican PAC)
$7,959,860
10
VOICE OF TEACHERS FOR EDUC/CMTE ON POL EDUC OF NY STATE UNTD TEACHERS
$7,634,014
Use of Union Dues for Political
Activity

In Communications Workers v. Beck (487 U.S.
735), the Supreme Court ruled that individual
union members may request that that their
union dues be limited only to the amount
necessary to provide representational
activities.
Breaking News
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NEW YORK (CNNMoney.com) -- The United Auto Workers union launched a
nationwide strike against General Motors on Monday as 73,000 UAW members
walked off the job and hit the picket lines at the nation's largest automaker. UAW
President Ron Gettelfinger blasted GM management, saying that the company had
not been willing to meet the union part way in negotiations.
Members of UAW Local 31 at GM's Fairfax assembly plant in Kansas City,
Kan., begin picketing shortly after 11 a.m. ET Monday [September 23, 2007].
"This is nothing we wanted," he said about the strike. "No one benefits in a strike.
But there comes a point where someone can push you off a cliff. That's what
happened here."
The union president said he was looking for assurances from the company about the
job security of UAW members. He said he wanted guarantees about how much GM
would invest in U.S. plants and about how many new vehicles would be built in the
United States.
The UAW has seen its membership at GM plummet by 70% since 1994, as the
automaker dumped its parts unit and closed plants to try to align its production more
in line with its shrinking U.S. market share.
The strike halted operations at 80 facilities, ranging from assembly lines to parts
distribution centers, in 30 states coast to coast. It also is likely to soon stop operations
at GM plants in Canada and Mexico that depend on production from U.S. facilities, as
well as the plants of many GM suppliers.
Breaking News
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"We are disappointed in the UAW's decision to call a national strike," said a statement
from GM. "The bargaining involved complex, difficult issues that affect the job
security of our U.S. work force, and the long-term viability of the company. We are
fully committed to working with the UAW to develop solutions together to address
the competitive challenges facing General Motors. We will continue focusing our
efforts on reaching an agreement as soon as possible."
Since the start of 2005, GM has taken a hit in its core North American auto unit,
which posted nearly $13 billion in net losses in 2005 and 2006 combined. Losses
continued in the first quarter of 2007 before the unit posted a narrow profit in the
second quarter, but it was likely to report continued losses this year even without the
costs associated with a strike.
For his part, union boss Gettelfinger did not dismiss the notion that GM was in
trouble. But he said there is only so much the union can do to stem losses at GM
facilities.
While the strike GM plants and facilities, it does not affect the two other automakers
whose workers are represented by the UAW, Ford or Chrysler, which between them
have more than 100,000 UAW still on the job. Members at those companies have
been working under their own contract extensions as the union concentrated on
reaching a deal with GM.
Breaking News
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A key to the contract talks is GM's goal of shifting an estimated $51 billion in
future health care costs for retirees and their family members to unioncontrolled trust funds (voluntary employee beneficiary association or VEBA).
GM has more than 340,000 retirees and surviving spouses receiving such
benefits today.
Shifting those costs is seen as a key to GM efforts to close its cost gap with
nonunion automakers such as Toyota Motor and Honda Motor. Ford and
Chrysler combined are facing nearly $50 billion of retiree health care costs as
well.
Shares of Dow component GM were narrowly lower in mid-afternoon trading,
although that's well off of the 2.6% gain they were showing before the strike
started.
Most analysts have said that a long strike at General Motors would be a
crippling blow for the automaker's efforts to return its North American
operations to profitability, the automaker is probably in a relatively good
position to weather a short strike.
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