Marx’s Perspective on Labor Unions in Capitalist Societies
Maria Halai
Barnard College
BC3041: Theoretical Foundations of Political Economy
Professor Archibong
December 7th, 2023
Introduction
Karl Marx (1818-1883) was a German philosopher and economist widely known for his
critiques of capitalist societies. Marx’s ideas focus on class struggles and advocate for a
transformative shift in societal structures. His work explored the intricate relationships between
labor, capital, and the structures that govern them in his book, “Capital.” This essay examines
Karl Marx’s perspective on labor unions in a contemporary capitalist society. I will argue that
though Marx would continue to support the necessity of labor unions, he would be dissatisfied
with the true reality of how labor unions operate today.
While the significance of labor unions in the United States has diminished in the 21st
century, unions still serve to be beneficial for the working class. According to the data from the
2022 annual survey of the Bureau of Labor Statistics, the unionization rate hit a historic low of
10.1 percent, the lowest on record. Comparatively, in 1983, the union membership rate was 20.1
percent, encompassing 17.7 million union workers. Notably, union membership among
public-sector workers stands at 33.1 percent, more than five times higher than the rate among
private-sector workers at 6.0 percent. Despite the decline in numbers, the effectiveness of unions
is evident, considering that union workers, on average, enjoy higher earnings than their
non-union counterparts. Union employees, earning an average of $1,216 per week, surpass
non-union workers who average $1,029 per week. In recent years, there has been a resurgence in
union activities in the past year such as the Starbucks union drive, leading to numerous cafes
voting in unions throughout 2022.
This resurgence of unions is a crucial layer in today’s economy since it protects the
middle and lower class which is what Marx’s ideologies align with. He aimed to protect and
dissolve the class struggles between two extremes Bourgeoisie and Proletariat (Archibong,
Lecture 14). Such class struggles can be seen in the US today where the top 1 percent holds
nearly as much wealth as the bottom 90 percent jumping to a total of 27 percent of the total
wealth in the US proving that the middle class’ financial security has eroded in past decades
(Dorning, Bloomberg, 2021).
Marx on Labor Unions
Marx theorized the future trajectory of labor unions, asserting that they represented only
the initial phase of a broader social revolution. According to Marx, the ultimate objective of
labor unions was to liberate the working class and overthrow the capitalist system. He envisioned
that these unions, bound by their shared class identity, would eventually evolve into agents of
revolution. Marx theorized that the pivotal moment of transformation would occur when “the
proletarians have nothing to lose but their chains. They have a world to win. Workers of the
world, unite!” (Marx, Manifesto of the Communist Party, Ch4, 1848) Marx anticipated that trade
unions would transform into organization centers for this revolution. This ideology can be
explained through the labor theory of value where the value of a commodity can be objectively
measured by the average number of labor hours required to produce that commodity (Marx,
Capital, Ch8, 1867). Without ownership of these means, laborers were compelled to sell their
labor to capitalists, creating a structure where capitalists could extract profit and exploit the
surplus value produced by labor (Archibong, Lecture 15). Marx conceptualized surplus value by
dividing the laborer’s day into two segments: the initial dedicated to producing goods or services
equivalent to earned wages, while the latter generated surplus value for the capitalist without a
corresponding wage increase. This appropriated surplus value was the basis for capitalist profit,
reinforcing their dominance over laborers. In line with Marx’s theory of exploitation, the
accumulation of this value by capitalists results in significant inequality among the proletariat
supporting the need for unions so workers could obtain the complete exchange value of their
product, while still allowing surplus use value to be retained by the buyer (Fulmer, Marx and
Exploitation, EconLib, 2023).
Technological Advancements, Rising Wages, & Higher Standards of Living
Though the conditions of the present day are not identical to the experiences of Marx’s
time, his ideology offers a significant lens through which we can contextualize and understand
the modern economy. Though capitalism is widely viewed as the strongest and most prosperous
economic model for a country, the benefits have primarily accrued to a limited population
segment. This is reflected in the lower classes’ reliance on government assistance. For example,
cash and in-kind benefits make up about 70 percent of income before taxes for households in the
lowest income quintile, according to the US Congressional Budget Office report (2020).
Therefore, given the working class’s disadvantageous position in the broader landscape of the
political economy, in the context of Marx’s philosophy, labor unions are a vital mechanism for
the working class to negotiate with the elite class and hold them accountable. Labor unions
empower workers to resist exploitation, advocate for their rights, and assist in the broader
struggle for the emancipation of the working class within the capitalist system, however, their
importance can be understated.
In the face of rapid modern technological advancement, Marx would contemplate how
this impacts the working class and the effectiveness of labor unions, and whether or not these
improvements have genuinely reduced the overall labor time needed for goods and services.
Contemporary technological progress is shaping the future of work through three pivotal
mechanisms: amplifying and accelerating human capabilities, replacing human labor with
machines, and facilitating novel approaches to both accessing and providing labor. (Farrell, JP
Morgan Research Institute, 2019). From this standpoint, embracing and supporting labor unions
remains crucial to ensure workers’ equitable treatment in the evolving work landscape. Marx
would argue that while technology might increase productivity, the capitalist system’s drive for
profit (which is not necessary but a result of greed) does not necessarily lead to a proportional
reduction in the working hours for laborers. Marx stated, “Machinery does not just act as a
superior competitor to the worker; it robs him of his life’s role, of labor” (Marx, Capital Vol 1,
Ch15, 1867) which gives reason to believe that he would conclude that technological
advancements primarily serve the interests of the capitalist class, leading to increased
exploitation of labor.
Marx on Exclusion of Minorities
Despite their overarching goal of protecting workers, some unions may have operated in
ways that perpetuated discrimination, creating an environment that hinders the inclusivity of all
workers, irrespective of their background or immigration status. This perspective highlights a
challenge for unions to represent and protect the interests of all workers. Historically, since its
founding in 1768, the American labor movement has been marred by instances of racism and
exclusionary practices. One aspect of racism in the movement is the historical exclusion of
minority groups, particularly African Americans, from certain unions. Many unions in the early
to mid-20th century were criticized for maintaining discriminatory practices, which limited the
participation and opportunities for minority workers. The phenomenon of “job reservation,”
where certain jobs were reserved for specific racial or ethnic groups, further entrenched
discriminatory practices.
Additionally, some unions were accused of aligning with racist and xenophobic policies,
such as supporting segregated workplaces or failing to support undocumented workers,
contributing to their vulnerability in the workplace. Over time, there have been efforts within the
labor movement to address and rectify these issues. The Civil Rights Movement of the 1960s
played a crucial role in challenging discriminatory practices within labor unions. We have seen
progress through data from the U.S. Bureau of Labor Statistics reporting that 11.6 percent of
Black workers in the United States belonged to a union in 2022, up from 11.5 percent in 2021
and 8.3 of Asian workers in the US belonged to a union in 2022, a .6 percent increase over 2021
resulting in an overall increase of 231,000 more workers of color joined unions (Orechwa, 2023).
Moreover, according to the Economic Policy Institute, two-thirds of today’s union members are
women and workers of color (Kamper, 2022).
Marx’s analysis of the macro-structure, encompassing institutions like labor unions,
offers insight into understanding the shortcomings of these institutions within a broader social
context. Marx’s idea is that social institutions, including unions, are shaped by the economic
structure of capitalism. Marx, in his seminal work, “A Contribution to the Critique of Political
Economy,” asserted, “The mode of production of material life conditions the general process of
social, political and intellectual life.” This implies that the dominant economic system influences
the nature and functions of institutions, including labor unions. Taking into account the critique
of labor unions, Marx would argue that the exclusionary tendencies and potential for fostering
racism and xenophobia are not inherent to the unions but rather reflections of broader economic
structures and reflective of class struggles. The divisions and exclusion observed among workers
are rooted in Marx’s theory of alienation, particularly the indifference towards fellow workers.
He mentions “The alienation of the worker in his product means not only that his labor becomes
an object, an external existence, but that it exists outside him, independently, as something alien
to him” (Marx, Capital, Ch8, 1844). This process fosters competition rather than collaborative
efforts. In essence, the shortcomings of unions are symptomatic of larger societal issues, in
which comprehensive change would require a reconstruction of the system’s overall design,
through unity and moving towards a communist society.
Conclusion
To conclude, Karl Marx’s analysis of labor unions remains pertinent in today’s capitalist
societies, especially in the United States. Technological advancements, from a Marxian
perspective, raise concerns about potential exploitation if not accompanied by equitable labor
practices. The historical and contemporary issue of exclusion within unions aligns with Marx’s
idea that such problems stem from broader economic structures. Marx envisioned unions as
agents of social revolution but the present state of labor unions would disappoint him. Modern
unions have instead become an extension of the capitalist system. He would argue that unions
endorsing discriminatory ideologies betray their true purpose, safeguarding only a fraction of the
proletariat rather than the collective whole. While unions remain significant, they have become
an extension of the capitalist system resulting in disunity among the proletariat.
References
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