ECONOMIC-POLITICAL CONTEXT
TASK ONE – IMPACT OF ECONOMIC CONTEXT ON BARGAINING
Page
4
5
6
7
8
9
10
11
12
13
14
15
Title
Decline in % workers in Private Sector Unions
Corps Deny Collective Bargaining Rights
Number of Strikes
Un/Under Employment
Private Sector not Providing Jobs
Workers produce more but are paid less
% workers with Defined Benefit
% Workers who pay no Premiums
% Firms offering Retiree Health
Labor Union Favorability
Business Invests a lot more in politics
Supreme Court Supports business interests
Times Selected
9
4
3
5
1
3
6
1
The Percent of Private Sector Workers in Unions
Union Members as Percentage of Private Sector Workforce
(1920-2009)
40%
35.7%
35%
28.5%
30%
25%
20%
17.1%
15%
10%
6.9%
5%
0%
1920
1945
1960
1975
1990
2005
2008
2010
Source: 1933-1982 from Troy and Shiflin, US Union Sourcebook, 1985; all other data from Bureau of
Labor Statistics, Union Members, various years.
2
The Number of Major Work Stoppages Fell to Just 5 in 2009
Number of Work Stoppages Idling 1,000 Workers or More
(1947-2009)
500
470
450
424
400
350
300
250
200
181
150
100
50
5
0
1947
1951
1955
1959
1963
1967
1971
1975
1979
1983
1987
1991
1995
1999
Source: Bureau of Labor Statistics, Major Work Stoppages 2009, Table 1, released February 2010.
3
2003
2007 0
9
Workers Produce More but Are Paid Less
Real Weekly Wages: Actual Compared to Estimated Increases
If Tied to Productivity Increases
(1947-2008)
$1,171
Projected Real Wage if tied to Productivity Gains
$778
$746
$443
$612
$443
1947
Actual Real Wage
1952
1957
1962
1967
1972
1977
1982
1987
1992
1997
2002
2008
Source: Bureau of Labor Statistics—Productivity, Average Wage of Non-Supervisory Production Workers,
Consumer Price Index; Les Leopold, The Looting of America, 2009
4
The Richest 1% Cornered the Highest Share of National
Income Since 1928
Share of Income Held by the Top 1% of U.S. Households
(1913-2007)
30%
25%
1928: 23.9%
2007: 23.5%
20%
15%
10%
1975: 8.9%
5%
0%
1913
1923
1933
1943
1953
1963
1973
1983
1993
2003
Source: Emmanuel Saez: Striking it Richer: The Evolution of Top Incomes in the United States (Update with 2007
estimates), August 5, 2009.
5
TASK TWO – CORPORATE AGENDA
The Corporate Agenda
What Corporations Did
What They Said Would Happen
Cut Labor
Reduce/Eliminate Unions
Cut Labor Costs
Increase Productivity
Globalize
Increased Profits
Increased Investment
Increased Jobs
Increase Wages
Cut Government
Cut Taxes, Social Spending
Deregulate
Environment
Trade
Labor
Politics
Privatize and Cut Govt Jobs
6
THE CORPORATE AGENDA IN ACTION – your responses
Reduce Labor Costs
 Cut Wages
o Reduce Paid hours
o Reduce paid time off
o Two-Tiering (also applies to benefits)
o Shift work to lower paid titles
o Increase the number of part-time workers (also applies to benefits)
o Force workers to purchase own equipment, boots, etc.
 Reduce Benefits
o Reduce benefits; e.g. health and pension
o Limit or eliminate retiree health
o Cost Shifting e.g., health premiums, copays, deductibles, out of pocket; pension
 Reduce Union Workforce
o Layoffs
o Attrition
o Early Retirement
o Freeze unfilled positions – no backfilling
o Outsourcing + Contract Out
o Privatization (in public sector – similar to contracting out, etc).
o Consolidation of job titles/positions (consolidate agencies in public sector)
o Shift work to management
o Double Breasting
o Mis-classification
Increase Labor Productivity
 Reduce Labor Force But Same or More Output
o Fewer workers to do same or more work
o Split shifts – less people working when demand is lower
 Increase work day/week/year
o Reduce vacations, holidays, increase hours of work
o Absence control plans
 Productivity Plans/Measurement Programs with increased discipline
o Carrot
 Use fear to intimidate workers
 Tie pay to productivity increases (merit pay in public sector)
 Productivity Incentives
o Stick
 Set unreasonable benchmarks
 Constantly increasing the objectives
 Surveillance Programs
 Micro manage workers
 Technology/Automation
o Software: voice response; automated testing of equipment; customer ordering, trouble
reporting, tracking maintenance, self-installation;
o Hardware: new switches, fiber optics, machines, etc.
7
Reduce Power of Unions
 Reduce size/percentage of union represented workers
o Reduce size of union workforce; increase size of non-represented
o Contract work to non-union
o Transfer work to locations with no union or weak union
 Divide the union workforce and conquer
o Two-tiering creates divide among workers, weakens solidarity
 Weaken the union
o Reduce number and/or percentage of represented workers
o Constant attack on union, constant assault on contract, constant concessions
o Don’t negotiate with the union
o Blame union for unpopular policies
o Promote union leaders into management
o Convince workers that all gains were given by the company, not won by the union
o Don’t allow union orientation for new workers
o Dis-empower local union leadership
 Previously, local union leaders and local mgt would solve issues Now it all
goes to labor relations
 Previously, local union and company bargaining teams had authority; Now, it
all goes to the top, weakening our elected barg teams
o Intentionally violate the contract
 Keeps stewards busy with individual grievances
 No time to organize, mobilize, lobby – which weakens unions further
o Scare tactics through disciplinary actions
o Anti-union organizing tactics and campaigns
 Aggressive tactics
 Fire employees who lead organizing efforts
 Not agreeing to first contracts
 Politics and Enforcement
o Disrupt/halt effective enforcement of labor law and worker rights
o Spend a lot on politics and opposing pro-worker politicians
o Destroy pro-worker legislation – e.g. collective bargaining rights
o Pass anti-worker legislation: right to work, paycheck deception, carrier of last resort
o Gut pro-worker regulatory protections
o Weakening unions will lead to ability to attack civil rights, environment, etc.
8
QUESTIONS TO ADDRESS
1. Given the attack on workers by the company you will bargain with –
what does the local union need to do to increase your leverage
(union power) at the bargaining table?
2. What skills are needed for you and your committee to be more
effective bargainers?
9