The decline of unionism in the American private sector

¶ … Unionism in the United States

Union Overview

Unions of yesteryear are not what they are in modern society. In fact there are those that have stated that the unions of today are "committing suicide" (Hassett, 1998). The organized labor moment in its prime commanded considerable attention and weight. Unions of old worked diligently to protect members from appalling and unsafe working conditions, many of which included 12-hour work days in hot and hazardous conditions.

In modern times the presence of unionization at least within the private sector has declined drastically. Economists suggest that this is because the strict working rules under which unions operate and the higher wages demanded often put an unmanageable burden on privatized firms, where labor costs are generally a high percentage of overall costs (Hasset, 1998). Unionization in a traditional American firm might increase labor costs "by as much as 15%" thus reducing profit margins substantially (Hasset, 1998).

In an environment where a firm establishes a monopoly, the rising costs of paying increased wages to workers are not an issue because the expense can be passed along to the consumer; however very rarely in society today does a company have a monopoly, thus there is no where for the firm to re-compensate for increasing labor costs.

Employers in the private industry have also noted that unions generally make it difficult for firms to "adapt to changing technologies" and global market conditions, reducing competitive advantage in today's marketplace (Hasset, 1998).

In the early days the union was considered a moral establishment, ensuring that workers worked in safe and equitable environments. In today's society however, where capitalist endeavors dominate, wages and working conditions are already reasonable for the most part, thus unions are flailing. If one examines critically the purpose of unions, many may find their modus of operation outdated, and their strategies unreasonable for the modern marketplace. More and more American workers and employers are recognizing that the benefits of a union do not outweigh the hassle associated with membership.

The primary impact of unions historically has been to "raise member's wages at the expense of unorganized labor" and "of the efficient functioning of the economy" (Freeman & Medoff, 1984). In recent years the view of unions has become negative. Many corporations and workers alike doubt the "social relevance and value of America's organized labor movement" in modern society (Freeman & Medoff, 1984). In fact many have even expressed the notion that unions are more adept at advances their own interests at the public's expense rather than accomplishing any worthwhile task.

Unions in Modern Society

The influence of and need for unions in modern society is rapidly declining. There are those that would argue that unions are an archaic practice with no place in modern society. In fact, within the United States today unions represent less than 13% of the workforce, with only 9% representation among the private industry (Labor, 2003). Labor unions often find themselves in a position of defense, as globalization has resulted in changes in the labor market including the introduction of new technologies and business restructuring. These facts alone have reduced the presence of unions in many organizations.

Private business owners are working hard to wage legal and public relations battles that campaign against union organization sending the message that joining a union is harmful rather than beneficial for employees (Labor, 2003).

More and more organizations are embracing diversity and providing employment opportunities for people who in times of old may have been denied opportunities based on their socio-economic status. Because of changes in the American spirit one might argue that unions are in fact unnecessary. American workers are also no longer forced to work in unsafe working conditions. Numerous laws and regulations have been passed since the early years of the workforce to assure worker safety. OSHA is one such organization that oversees and regulates employee working conditions to ensure the safety of workers in the modern workforce.

The unions of today have become in some sense an extension of capitalism. They are not made of the same quality matter that their early predecessors were. Many workers feel that unions have been established more to suit their own needs than bargain collectively for the right of workers.

Many Americans in the workforce today also find themselves without choice when it comes to unions. Either they join a union that exists within an organization or they suffer. Many organizations require workers to pay union dues whether or not they decide to join the union, because the union claims that it protects workers and bargains collectively for them regardless of whether they are a member or not. In a society that is increasingly independent and where workers have no qualm about fighting for and defending their rights the union seems outdated.

In some respects the union has become a dying entity and even a hindrance to the workforce. A person who wants a job in a union organization has to prepare himself to pay dues whether they agree with the foundational principles of the union or not. Union dues are also utilized in the political arena to support candidates, whether or not a member shares the same ideals or endorses the candidate.

The union of today is a distant cry from its grass roots beginnings. Many suggest that unionism in modern society is facing a crisis period. The future of labor movements is uncertain, and many question whether unions have any future at all or place in modern society. In the past unions were built out of a desire to collectively identify pre-existing problems among wage earners. The unions were built based on principles of collective entity which pre-dated the capitalist employment movement (Hyman, 2002).

Collective experience at work was "complemented by domestic life in a nearby community with shared recreational, cultural and sometimes religious pursuits" (Hyman, 2002). The union was in essence a necessary part of the social landscape and in some respects considered an extension of the community.

Unions of old fought for oppressed wage earners and disadvantaged members of the working class, who were often the more likely to join forces with unions to gain equal representation and better working conditions. Not so in today' workforce where most wage earners do not work in oppressed environments and under disadvantaged conditions.

The business world of today is vastly different from the corporate environment of yesterday. Today globalization dominates the workforce, and cross-national competition as well as internationalization of production chains and creation of multinational companies has drastically impacted the efficacy of unions (Hyman, 2002). Multi-national corporations aren't bound by the rules and regulations of national labor relations systems, and generally work to redefine a union's agenda.

Policies of deregulation also work against union principles. They do however increase the flexibility of labor markets, and the trend is growing. The status of unions in the face of so many changes is unclear. Unions have traditionally operated in a manner that was highly regulated and well defined. The workforce of the future is more abstract than anything, and less defined than ever. Thus unions have had a difficult time making an impact and influencing the decisions of corporations engaged in global enterprises and deregulated activities.

The face of the working force has also changed. In modern society an ethically diverse and gender differentiated workforce is common. The old core constituencies that most unions represent no longer exist, thus membership has declined and many unions are losing a stronghold among the workforce (Hayman, 2002). Most organizations in modern society have implemented internal programs that enforce the rights of wage earners and encourage employees to voice their opinions about change, wages and other aspects of organizational life. Diversity and open communication are in fact critical aspects of most global organizations today.

Many perceive unions to be archaic in nature, attempting to focus on issues that are irrelevant to the contemporary workforce (Hyman, 2002). Unions have also been merging, causing negative reactions against members. Many workers are also increasingly disgruntled at the idea of paying fees for a service they feel may or may not benefit them in the long run. Other employees see unions as the oppressor, charging membership dues that they are obligated to pay whether or not they agree with the foundational principles of the organization.

The unions of old worked to actively challenge inequality and tremendous oppression in the workforce. Today many corporations are working under a cooperative atmosphere that enforces and encourages collaboration among employees and organizational enterprises. As unions have continued to pursue their own best interests, membership is declining and the wage earner is realizing their own power to defend their rights in the workplace. The union of old no longer represents the needs of modern wage earners, and thus is bound to become a dinosaur in the corporate industry.

References:

Freeman, R.B. & Medoff, L. (1984). "What do unions do?" New York: Basic Books.

Hassett, K. (1998). "Vanishing Unions." The American Enterprise, 9(5):73.

Hyman, R. (2002). "The future of Unions." Just Labour, 1:7-15. 12, November

2004: Available:

http://www.yorku.ca/julabour/volume1/jl_hyman.pdf

"Labor Balance, The Wheel of Democracy." (2003). 9, November, 2004: Available:

http://www.socialdemocrats.com

Peterson, F. (1945). "American labor unions: What they are and how they work." New

York: Harper and Row.

'The Labor Union Movement in America." 11, November, 2004: Available:

http://www.socialstudieshelp.com/Eco_Unionization.htm