THE EVOLUTION OF LABOR UNIONS

1. THE EVOLUTION OF LABOR UNIONS

2. Chapter Objectives • Describe the partnering of labor and management that is evolving in some sectors. • Describe the labor movement prior to 1930. • Identify the major labor legislation that was passed after 1930. • Explain unionization in the public sector.

3. Chapter Objectives (Continued) • Describe the broad objectives characterizing the labor movement as a whole. • Describe union growth strategies. • Explain the reasons why employees join unions. • Describe the basic structure of the union.

4. Chapter Objectives (Continued) • Identify the steps involved in establishing the collective bargaining relationship. • Explain union strategies in obtaining bargaining unit recognition. • Explain union decertification. • Describe the state of unions today.

5. The Labor Movement Before 1930 • Has been neither simple nor straightforward • Evolution of American society from agrarian to industrial economy • Trends favored management • English common law basis • Conspiracy – two or more people banded together to prejudice rights of others or society • How union activity was viewed at that time

6. The Labor Movement Before 1930 (Continued) • Injunction – legal procedures used by employers to prevent union activities, such as strikes and unionization activities • Yellow-dog contract – written agreement between employee and company prohibiting worker from joining a union or union activities

7. The Labor Movement Before 1930 (Continued) • Noble Order of the Knights of Labor– founded as a secret society in 1869; nucleus became American Federation of Labor (AFL) • Samuel Gompers • Sherman Anti-Trust Act (1890)– entrance of federal government into statutory regulation of labor organizations; the first and foremost labor legislation in modern US history • “Trust-busting”, aimed at preventing business monopolies

8. The Labor Movement After 1930 • Swing from management toward labor • Anti-Injunction Act (Norris-Laguardia Act) of 1932 – rendered “yellow dog” contracts unenforceable • National Labor Relations Act (Wagner Act or NLRA) of 1935 – ratified in Congress in 1937, still highly influential today • Labor Management Act (Taft-Hartley Act or LMRA) of 1947 - amended the Wagner Act and sought to rebalance power between labor and the employer; for the first time, created union unfair labor practices • Labor-Management Reporting and Disclosure Act (Landrum-Griffin Act) – 1959 – Precipitated by Congressional hearings on corruption in labor unions, and compelled strong self-policing and oversight of union activities • Homeland Security Act of 2002

9. Anti-Injunction Act (Norris-Laguardia Act) of 1932 • Sanctions collective bargaining • Approves formation and operation of labor unions • Severely restricted federal courts’ authority regarding labor disputes • Made yellow-dog contracts unenforceable

10. National Labor Relations Act (Wagner Act) of 1935 • National Labor Relations Board (NLRB) created • Establish procedures for and monitoring of elections • Gives employees the right to join and form unions • Delineated employer unfair labor practices • Gives properly certified labor organizations exclusive representation of all employees in the bargaining unit • Investigate complaints and prevent unlawful acts involving unfair labor practices by management

11. Labor Management Relations Act (Taft-Hartley Act) of 1947 • Extended concept of unfair labor practices to unions – created six specific union ULP’s • Outlawed the “closed shop” which required membership in the representing union to be hired • Permitted states to enact right-to-work laws • Government intervention in national emergency strikes • Air traffic controllers during the Reagan administration

12. Labor-Management Reporting and Disclosure Act (Landrum-Griffin Act) -- 1959 • Bill of rights for union members, including secret ballots, guaranteed due process in internal union discipline matters, and allowed members to sue unions • Requires unions to adopt constitutions, bylaws, and to file annual financial reports • Requires periodic union election of officers using secret ballots • Requires extensive reporting on internal union activities • Severe penalties for violations

13. Homeland Security Act of 2002 • New cabinet-level agency responsible for border security, emergency preparedness, biological warfare, intelligence analysis, and protection of the President • President can waive Civil Service collective bargaining rights if direct negotiations with the union fail and the federal mediation service is unable to resolve • Cabinet-level leadership

14. The Public Sector • Executive Order 10988 in 1962 • Established collective bargaining in federal government

15. Employee Associations Many employee associations pursuing collective bargaining relationships

16. Union Objectives • Growth – to maximize effectiveness, union needs continual growth • Power – influenced by size of membership and possibility of future growth

17. Union Growth Strategies • Pulling the union through • Political involvement • Union salting • Flooding communities with organizers • Political awareness campaigns • Building organizing funds • Cyberunion • Befriending laid-off workers

18. Why Employees Join Unions • Dissatisfaction with management • Social outlet • Opportunity for leadership • Forced unionization • Peer pressure

19. Dissatisfaction with Management • Compensation • Job Security • Management Attitude

20. Union Structure • Local union • National (or international) union • American Federation of Labor and Congress of Industrial Organizations (AFL-CIO)

21. Local Union • Basic unit in American labor movement • Deals with employer on day-to-day basis • Craft union • Industrial union

22. National (or International) Union • Most powerful level in union structure • Composed of local unions • Holds membership in national union • Governed by national constitution • Meets every two to five years • Active in organizing workers • Engaged in collective bargaining at national level • Assists locals in their negotiations

23. American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) • Federation of 68 national and international labor unions • Represents 13 million members • Represents labor interests at highest level • Does not engage in collective bargaining • Financed by member national unions • Governed by national convention

24. The Structure of the AFL-CIO Convention Meets biennially Executive Council President, Secretary-Treasurer, and 33 Vice Presidents Meets at least three times a year General Board Executive Council members and principal officer of each international union affiliate Meets on call of Federation President or Executive Council Executive Officers President and Secretary-Treasurer Department or Organization and Field Services National Headquarters Standing Committees Staff Departments Regional Directors Trade and Industrial Departments Building, Food, Metal, and Maritime Trades, Industrial Union, Public and Railway Employees, Union Label Affiliated National and International Unions Affiliated State Bodies Local Unions of National and International Unions Local Bodies Local unions affiliated directly with AFL-CIO Local Dept. Councils

25. Establishing the Collective Bargaining Relationship: Union Certification Bargaining unit consists of employees (not necessarily union members) recognized by employer or certified by administrative agency as appropriate for representation by labor organization for purposes of collective bargaining

26. The Steps That Lead to Forming a Bargaining UnitExternal EnvironmentInternal Environment Signing of Authorization Cards Petition for Election Election Campaign Election and Certification

27. Signing Authorization Cards • A document indicating employee wants to be represented by labor organization in collective bargaining • Is there sufficient interest on the part of employees to justify the unit? • Evidence of interest when at least 30% of employees in workgroup sign authorization cards • Usually need 50% to proceed

28. Petition for Election • After authorization cards have been signed, petition for election made to regional NLRB office • NLRB will ordinarily direct that an election be held within 30 days

29. Election Campaign • Both union and management usually promote their causes actively • Threaten loss of jobs or benefits • Misstate important facts • Incite racial or religious prejudice

30. Election and Certification • NLRB monitors secret-ballot election on date set • Board will issue certification of results to participants • If majority of employees vote for union, NLRB will certify • Process does not require either party to make concessions; it only compels them to bargain in good faith

31. Union Strategies in Obtaining Bargaining Unit Recognition • Try to make first move • Search for groups of employees to organize • Attempts to locate general patterns of dissatisfaction • Must, ultimately, abandon secret activities • Utilize peer pressure to encourage and expand unionization

32. Union Decertification • Essentially the reverse of the process that employees must follow to be recognized as an official bargaining unit • Employees have used decertification petitions with increasing frequency and success

33. Decertification Procedure • Rules established by NLRB • At least 30% must petition for election • Petition submitted 60-90 days prior to expiration of current contract • Schedule decertification election • If majority of votes against union, employees will be union free

34. Management and Decertification • If management wants union decertified, must be active rather than passive • Effective first-line supervisors • Effective communication • Trust and openness • Effective compensation programs • Effective employee and labor relations

35. Unions Today • Fall of Big Laborsince 1970s has been dramatic • Unionized share of private sector workforce is 9 percent

36. Percentage of the Private Workforce That is Unionized Percentage of Workforce 40 40 30 30 20 20 10 10 9 0 0 1950 1955 1960 1965 1970 1975 1980 1985 1994 1996 2002 Year