Labor Unions: History, Decline, and Right-to-Work Laws

Introduction

Many modern observers believe that labor unions have outlasted their usefulness in a free-market economy, where people can seek the highest compensation for their labor and know that they will be protected by a wide range of local, state, and federal laws that largely prohibit the exploitation and abuse of workers in the United States today. Some of these same observers, though, might be shocked to learn how and why labor unions were formed in the first place. Today, union advocates suggest that without them watching out for the best interests of workers, it would not take long for conditions in the workplace to return to the way they used to be. This paper provides an overview of labor unions, a number of reasons for a decline in their membership, and a discussion of right-to-work laws and their effect on the unionization process. An analysis of the similarities between conflict theorists and functional theorists in the discussion of labor unions is followed by a summary of the research in the conclusion.

Definition and Origins of Labor Unions

A labor union, according to Black's Law Dictionary (1990), is "a combination or association of workers organized for purposes of securing favorable wages, improved labor conditions, better hours of labor, etc., and righting grievances against employers" (875). Labor unions generally represent trades, crafts, and other skilled workers such as plumbers and truck drivers (Black's 1990). Unions were originally formed in response to the increasingly severe hardships that were imposed on working people through the process of industrialization (Galenson 1994). The shifts from an agrarian to an industrial society resulted in many people being uprooted from their traditional homes and work. The increasingly harsh working conditions of the early part of the twentieth century further accelerated the process of unionization as workers felt they had no other recourse.

"Where the machine replaced the artisan at a relatively slow pace, where people had more time to adjust, the unions that were formed tended to be moderate in character. Where there was a rapid rise of manufacturing, more radical ideologies tended to prevail" (Galenson 133). Whether moderate or radical in nature, all labor unions in industrialized countries — with few exceptions — have experienced significant declines in their membership over the past few decades. The reasons for such declines are discussed further below.

Reasons for the Decline of Labor Unions

The United Kingdom and the United States were in the vanguard of establishing trade unions 150 years ago. At that time, unions spread to other countries along with the growth of industry. The general membership trend during these early years was upward, although not always in a linear fashion. "The union movement throughout the noncommunist world appeared to be in good shape after World War II. Decline set in as early as the 1950s, but it was not until the 1980s that the retreat became widespread" (Galenson 8). According to Galenson, there have been very few exceptions to the decline of unions in industrialized nations, with the following cited among the primary reasons:

a. Employer attitudes toward the organization of workers. It has been suggested that union decline had begun well before the 1980s, based on a wide range of factors, many of which related to the type of industry involved (Galenson 1994). There are several difficulties in categorizing employers in different industries, however. For instance, employers in export industries tend to be much tougher in dealing with unions than those producing for the domestic market, because the former are generally more concerned with the effects of rising wages and prices for competitive reasons (Galenson 1994).

b. Unemployment and its drain on union membership. During periods of high unemployment, union membership declines. When the economy recovers, recruiting former members or attracting new ones becomes increasingly difficult (Abraham & Voost 2000). Furthermore, as employment opportunities rise, "employees are less fearful of losing their jobs if they join unions. With incomes rising, workers are more able to pay adequate dues regularly" (Galenson 13).

c. Prevailing anti-union opinion climate. States can enact laws that make it prohibitively expensive or difficult to unionize new employees (Abraham & Voost 2000).

d. Job restructuring. Restructuring has been an increasingly popular explanation for the decline of trade unions. "Restructuring refers to the migration of production and jobs from such basic industries as steel, automobiles, and appliances, which have been the core of unionization, to the newer high-tech industries and to the service sector" (Galenson 14). There is substantial evidence in support of this view. For example, in the United States, the explosion in unionization that started in 1935 — raising total union membership from 3.6 million in that year to 14.3 million a decade later — occurred to a considerable degree in mass-production industries, shifting the balance of union strength from construction, transportation, and coal mining to the manufacturing sector. Consequently, it is reasonable to attribute the subsequent decline in union density to downward employment trends in manufacturing (Galenson 2000).

e. High inflation rates. Price inflation can reasonably be expected to have an adverse effect on attitudes toward unionism. According to Galenson, during periods of high inflation everyone is affected, and reductions in purchasing power are felt quickly. "The reaction of employees is to demand, either individually or collectively, an increase in compensation at least sufficient to maintain their living standards" (22). This in turn serves to further fuel price increases, resulting in a public backlash against unions. In addition, unions themselves may experience adverse financial effects during periods of high inflation. "They live on membership dues, and everywhere there is a great reluctance to support increases. Organizing is expensive, and the erosion of real union income may inhibit their search for new members. In a few countries, union dues are indexed to price changes; these are the lucky ones" (Galenson 24).

f. High unemployment rates. Union membership has also decreased during periods of high unemployment: "Double-digit unemployment was an important factor in curbing union activity" (Galenson 25).

Conclusion

The research showed that labor unions arose in response to the increasingly harsh working conditions that followed the rapid industrialization of the United Kingdom and the United States. After several decades of growth, labor unions began to experience a decline in membership during the 1980s that has continued to the present. The reasons for this decline have been variously attributed to shifts in the social contract, high unemployment and inflation rates, and increasingly negative public perceptions of unions, among other factors. In the final analysis, the days of the labor union may well be numbered in some industries, but for developing countries that lack the fundamental legal employee protections found in most industrialized nations, the need for labor unions will likely continue for years to come.

Key Points

Labor unions were created by workers as a means of protecting themselves from exploitation and securing better wages, working conditions, and hours. The primary reasons for the decline of labor unions include:

a. Employer attitudes toward the organization of workers.
b. Unemployment, which tends to bring about a serious drain on union membership and finances.
c. The prevailing anti-union opinion climate of a particular state.
d. Job restructuring.
e. High inflation rates.
f. High unemployment rates.

Right-to-work laws tend to constrain union bargaining power and growth. All right-to-work laws outlaw union shop agreements — clauses in collective bargaining agreements that require employees to join the union that represents them. About half of the states also outlaw agency shop agreements — clauses that require nonmembers to pay a fee to the union to cover the cost of representation. Advocates of right-to-work legislation maintain that payment of dues to a labor organization should not be obligatory for workers who do not support that organization. Critics of right-to-work laws hold that because union contracts and grievance arbitration systems cover all employees, members and nonmembers alike, these laws encourage "free-riding."

Works Cited

Abraham, Steven E. and Paula B. Voost. "Right-to-Work Laws: New Evidence from the Stock Market." Southern Economic Journal 67.2 (2000): 345.

Black's Law Dictionary. St. Paul, MN: West Publishing Co., 1990.

Bottomore, Tom and Robert Nisbet, eds. A History of Sociological Analysis. New York: Basic Books, 1978.

Galenson, Walter. Trade Union Growth and Decline: An International Study. Westport, CT: Praeger Publishers, 1994.

Gall, Gilbert J. Politics of Right to Work: The Labor Federations as Special Interests, 1943–1979. New York: Greenwood Press, 1988.

Middle Atlantic Right to Work States. National Right to Work Legal Defense Foundation; Bureau of National Affairs, 2002.

Milner, Murray, Jr. "Theories of Inequality: An Overview and a Strategy for Synthesis." Social Forces 65.4 (1987): 1054.

Moore, William J. "Membership and Wage Impact of Right-to-Work Laws." Journal of Labor Research 1.2 (1980): 349.

Zax, Jeffrey S. and Casey Ichniowski. "Excludability and the Effects of Free Riders: Right-to-Work Laws and Local Public Sector Unionization." Public Finance Quarterly 19 (1991): 293–315.