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Outline. The CIO UAW: Sit Down and Fight: Video Clip Social Unionism CIO PAC WWII: New Rules Maintenance of Membership Social Unionism: Just How Far? Post War Labor Relations Taft-Hartley Act, 1947 Expanding the Scope of Bargaining Fringe Benefits Post War Labor Accord - PowerPoint PPT Presentation
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Outline The CIO
UAW: Sit Down and Fight: Video Clip Social Unionism
CIO PAC WWII: New Rules
Maintenance of Membership Social Unionism: Just How Far?
Post War Labor Relations Taft-Hartley Act, 1947 Expanding the Scope of Bargaining
Fringe Benefits Post War Labor Accord Public Sector Unions
No class Tuesday, Thursday and Tuesday regular class, Exam on Thursday 2/24
Right now it looks like this: 40 mc/tf & 4 Essays
Will put slides up tomorrow
Newspaper article extra credit Follow the directions
Review Question…big part of grade
Some are doing an excellent job
Some haven’t done any…what are you waiting for?
Some are not doing thoroughly…do them thoroughly
1941 Brings War…
War again brings need for reliable industrial output
So what does government do to make sure strikes do not disrupt war effort?
Another War Labor Board Created Comprised of labor, management
and government 1942-1945 settles 20,000 conflicts Again…Promotes acceptance of CB
Growing the labor movement… Massive influx of workers into wartime
industries created challenges for unions
Unions are expected to sign up each new worker as a member of the union Very hard to sign up all the new workers, keep track
of everyone coming and going…
Free rider problems abound…Remember Freeman discussion of “Free Rider Problem”
Free Rider Problem and Union membership?
Free Rider Problem People who would benefit from acting
collectively together often fail to do so.
Cost of participating in labor struggle are potentially high (loss of pay, fired, beatings, death), and contribution made by a given individual is small
Lack of participation by one worker unlikely to make a difference either way
Individual worker will get benefits of unionization, regardless of whether s/he contributes to struggle
Participation is irrational…if all reason this way, unions fail…
Overcoming the Free Rider Problem?
Social Norms that promote a Culture of Solidarity Solidarity- willingness of individual members of a group
to support the collective struggles of that group
Institutional Rules: Selective Incentives Only those who join the organization receive a given
benefit
Examples Selective Incentives Used by AFL Craft Unions Burial money, unemployment insurance, housing, etc. Closed Shop
worker must be a member of a union in order to be eligible for hire by the employer (now illegal)
Institutional Rules: Union Security Clauses…lets explore development of these clauses…
Solving the Free Rider Problem
CIO Unions work hard to solve free rider problem, but it takes tremendous amount of time and staff
Remember…we’ve got factories with as many as 100,000 people working in them
Union dues collected at job or gate by union staff Note Button
Almost impossible to track new hires…too many come and go
Steelworkers Union estimates 250,000 man days per year spent by staffers collecting dues
And still… 30% of United Steel Workers (USW) do not pay
A “Union Shop”
Unions argue they can not guarantee “labor peace” if they can’t consolidate membership Dissident member withhold dues as leverage Management pit union against non-union
Solution in Labor’s view: Union shop Anyone may be hired off the street BUT
management and union agree that all workers must join union and pay dues
Logic: As in politics, once majority of people vote a certain way, we’re all bound by decision
War Labor Board
Business Opposes Union Shop…prefers an open shop
Open Shop A business establishment in which there is no union or where
union membership is not a condition of employment (Herman 1998: 53)
NWLB decision: “Maintenance of Membership”
4. What is meant by the term “maintenance of membership”? How does a maintenance of membership policy help unions solve the “free rider problem” that we talked about earlier this semester?
War Labor Board
NWLB decision: “Maintenance of Membership”
After 15 days on the job, workers automatically become union members, and must remain union members for the life of the contract
Dues automatically deducted from pay of a worker
In what ways do you think that such a clause might help build the union movement?
In what ways do you think such a clause might weaken the labor movement?
A Double Edged Sword…
Benefits of this method for union?
Dues collection easy
Saves union time and resources
Union ranks grow rapidly
“If it was not for the union security given to our unions by the National War Labor Board we wouldn’t have 5 million dues paying members in the CIO.” Van Bittner, CIO Rep on the WLB
A Double Edged Sword…
Negative impact of this method on union?
People become union members without any contact from union “Labor Conscripts” lacking “do or die” spirit of
union
Distances union staff/leadership from rank and file Dues collected automatically…less personal
contact
Unions Concentrated in Key Industries
By 1946, Core of Economy almost completely union
80-100% unionized Aircraft, Aluminum, Auto,
Breweries, Clothing, Electrical Machinery, Meat packing, Rubber, Shipbuilding Steel, Coal, Construction, Long shoring, Trucking John Lewis and UMW control
nation’s supply of coal
Will have spill over effect to non-union sector Fear of unionization will
prompt better wages, hours, and working conditions
Outline Social Unionism: What is the role of a
union?
Post War Labor Relations Taft-Hartley Act, 1947
Expanding the Scope of Bargaining Fringe Benefits
The “Post War Labor Accord” Workplace Rule of Law Public Sector Unions
Today and Tuesday regular class, Exam on Thursday 2/24
Right now it looks like this: 40 mc/tf & 4 Essays
Slides are up
Unions in the News
AP Footage From Last Night: http://www.youtube.
com/watch?v=_AbeAcTiFFc
Chicago Tribune (2/17/11) Wisconsin lawmakers are prepared to pass a momentous
bill that would strip government workers of nearly all collective bargaining rights over the loud objections of thousands of teachers, students and prison guards who packed the Capitol for two days of protests.
The nation's most aggressive anti-union proposal has been speeding through the Legislature since Republican Gov. Scott Walker introduced it a week ago. After clearing a major legislative hurdle Wednesday night, it was headed to votes in the Senate and Assembly.
Up to 20,000 people filled the Statehouse on Wednesday, cheering, singing and chanting in demonstrations unlike any seen in Madison for decades. Their numbers included many families and teachers from the Madison school district, which was forced to close after more than 40 percent of its 2,600-union covered employees called in sick.
The Legislature's budget committee passed the bill on a partisan vote just before midnight. Several opponents in the crowd broke into tears as Democrats on the committee encouraged them not to give up the fight.
From Business Unionism to Social Unionism a form of unionism that focuses on using
collective bargaining to improve the wages, hours and working conditions of members who belong to a particular union WHILE also engaging in campaigns that will improve the conditions of the working class a whole
GOAL IS TO ADVANCE A BROADER SET OF ECONOMC INTERESTS…ABOVE AND BEYOND THOSE DEALT WITH BY COLLECTIVE BARGAINING
3. Who was A. Philip Randolph? How did he challenge discrimination against Black workers in America?
Marching on Washington…1941
A. Philip Randolph, President of the Brotherhood of Sleeping Car Porters, President of the Negro American Labor Council, and Vice President of the AFL-CIO
In 1941 he threatened to march 100,000 on Washington unless President Roosevelt prohibited discrimination in defense industries and the military
FDR caved on industry…not on military
March on Washington…1963
A huge march on Washington is organized to challenge discrimination
Many remember Dr. King’s “I have a dream speech”…few know that Randolph initiated the march
Even fewer know the demands of the march? What did the marchers want?
Of the 10 Demands of the March on Washington…4 were economic
1. Comprehensive and effective civil rights legislation from the present Congress — without compromise or fillibuster — to guarantee all Americans: Access to all public accommodations Decent housing Adequate and integrated education The right to vote
7. A massive federal program to train and place all unemployed workers — Negro and white — on meaningful and dignified jobs at decent wages.
8. A national minimum wage act that will give all Americans a decent standard of living. (Government surveys show that anything less than $2.00 an hour fails to do this.) [The minimum wage at the time of the march is $1.15/hour.]
9. A broadened Fair Labor Standards Act to include all areas of employment which are presently excluded.
10. A federal Fair Employment Practices Act barring discrimination by federal, state, and municipal governments, and by employers, contractors, employment agencies, and trade unions. http://www.crmvet.org/tim/tim63b.htm#1963mow
Choices You’re a proud member of Local 1 of the
International Union of Sociology Students. The IUSS has bargained a contract that provides you with good wages, fair hours and safe working conditions. You come to work each day knowing that you will be treated with respect and dignity by your boss. At your last union meeting, an issue was raised that you’re not sure about.
Jane motioned that your union give money and organizational support to the civil rights movement’s march on Washington. Joe stood up and said that while he supported the civil rights movement, not all IUSS members did, and the union had no business using dues money to get involved in such matters since they had nothing to do with the IUSS contract. There was spirited debate, and the issue was tabled until next month. How will you vote? Why? What are the pros and cons of each position?
AFL-CIO and Civil Rights
AFL-CIO would not endorse the 1963 March on Washington Supported civil rights but viewed
issue as peripheral to collective bargaining
No $ or bodies provided Didn’t open HQ to tired thirsty
protestors
Some AFL-CIO unions endorsed the march Sent $ and bodies Note Reuther of the UAW
Video: Sit Down and Fight
Social Unionism…more than just bread and butter…
Walther Reuther & rise of The United Autoworkers UAW pushes the envelope Social Unionism
Unions Pushing the Envelope…
Unite Autoworkers (UAW) Post War Demand
30% wage increase to make up for income lost during WWII
GM should “open its books” and not raise car prices This was the controversial demand…not the wage
demand.
Why did the UAW make such a demand?
Unions Pushing the Envelope…
Why make such a demand? Social Unionism
To preserve purchasing power of all workers & prevent inflation in over all economy
Show unions were concerned with all consumers
Reuther: “We are not going to operate as a narrow
economic interest group.”
“The GM strike, while officially endorsed by the UAW executive board….divided both autoworkers and the CIO” (Zieger 1995: 220)
You are on the UAW executive board. Should this demand be made? Move to the side you agree with…
Unions Pushing the Envelope…
Unite Autoworkers (UAW) Post War Demand 30% wage increase to make up for income lost during
WWII GM should “open its books” and not raise car prices
Why make such a demand? Social Unionism
Preserve purchasing power of all workers & prevent inflation in over all economy Show unions were concerned with all consumers
Reuther: “We are not going to operate as a narrow
economic interest group.”
Law says employers must “bargain in good faith”…should they be required to bargain over such things, is or this a violation of managerial authority?
GM’s response to the UAW?
No way!
“We don’t even let our stockholders look at the books.”
“America is at the crossroads! It must preserve the freedom of each unit of American business to determine its own destiny.”
10% counteroffer
UAW vs. GM
UAW calls company wide strike 320,000 walk off job and begin113 day national
strike A big deal…
In the end, a 18.5% wage increase was won, but there was no deal on price increases
At the same time, there were strikes all over the economy, general strikes & demands to look at books… Note Clip on Strike Wave
Resolving Post War Labor Conflict…
From management’s position, something has to give
Three Things Happen:
1) After 13 years of Democratic control of House the Republicans win a majority in the House….and take control of the Senate for the first time since 1928
2) Business community mounts offensive to change labor law Taft Hartley Act
2) Many key firms grudgingly accepts unions “Post War Labor Accord”
Changing the Law…
Wagner Act (NLRA) Supplemented by Taft-Hartley Act, 1947
Republican Congress Passes to constrain power of unions President Truman vetoes; veto overridden
What did it do?
Changing the Law…Taft Hartley Act
Outlaws mass picketing, secondary strikes & secondary boycotts Functions to limit union solidarity and weaken movement
by outlawing most effective tactics My Dad’s union and light fixtures Staley workers and Coca-Cola
Outlaws strikes during term of contract Remember the “quickie” strikes?…now they’re illegal
Channels conflict into grievance procedure…more on this later
Closed Shop outlawed A contractual clause providing that individuals must be a member of
the union in order to be eligible for hire into the bargaining unit (Kochan 453)
Taft-Hartley Act, 1947
Excludes supervisors in the private sector from coverage under the NLRA
This is why I am not protected by labor law
Taft-Hartley Act, 1947
Permitted states to pass “right-to-work” laws that limited union security clauses in collective bargaining agreements
Union shop Anyone may be hired off the street BUT management
and union agree that all workers must join union and pay dues
“Right to work” laws prohibit union shops Workers can not be required to join union as a condition of
employment 21 states adopt such laws…primarily in the South
New Hampshire passed law this week…will probably be vetoed
Free rider problems become big problem…Why?
Union Density by State - 2006
0% to 9% 10% to 20% 21% & over
Source: Union Members In 2006, Bureau of Labor Statistics
Grudging Acceptance of Unions: “Post War Labor Accord”
Many Key Firms Agree to Share the economic pie “Live and let live”
“Labor unions are woven into our economic pattern of American life, and collective bargaining is a part of the democratic process. I say recognize this fact not only with our lips but with our hearts.” Eric Johnston, president of the U.S. Chamber of
Commerce, 1946
Grudging Acceptance of Unions: “Post War Labor Accord”
“Treaty of Detroit” sets tone for economy as a whole Term coined by Fortune Magazine
To avoid labor trouble GM offers income protecting devices in late 1940s
Automatic improvement factor (AIF) ties wages to company’s productivity
Cost of Living Adjustments (COLA) raises wages in line with inflation
This Becomes “Pattern” for major industries in the US
Outline
Public Sector Unions The Impact of Unions
Exam on Thursday 2/24
Right now it looks like this: 40 mc/tf & 3 Essays This might change…but not
radically…
Slides are up…everything up through today…will put up later
Will try to end early and leave
Week after Spring Break Multiple bonus
Point Opportunities…see next slide
Bonus Points: 5 events one assignment point
or ¼ test point for each…
no limit: 5 pts for assignments or 1.25 lift to final grade
You can pick and choose…indicate on paragraph you hand in
Attend event…write a paragraph connecting what you learn to this class
NFL does not seem to have union shop language…
Right to work laws trump union shop agreements
So if GM has contract language for a union shop and a factory in KY…Workers in KY do not have to abide by it
Fringe Benefits…
Your text states: “So called fringe benefits also provided a frontier for postwar collective bargaining.”
a. What are some examples of fringe benefits?
b. What role did unions play in securing fringe benefits for American workers?
c. Provide one concrete example of a fringe benefit won by a union?
Fringe Benefits
Beyond wages and hours United Mine Workers win medical in 1947 Ford workers and Steelworkers get Pensions in 1949 Disability, Dental, Vision, Vacation, Family Leave and other
benefits will ultimately be added…
These benefits set standard throughout economy for union and union-union companies
“The unions role in developing this system…was central. By the early 1970s, pensions, health insurance, and the like had become so commonplace that millions of Americans took these hard-won benefits for granted. Few remembered the generations of militancy that paved the way…” (Zieger p.153)
Prior to this class, how aware were you of the role of unions in brining Americans things like the 8 hour day/weekend, unemployment insurance, health insurance, paid vacation, etc
BONUS POINT OPPORTUNITY (WORTH 2 POINTS): Ask a roommate, friend, parent, little sister, stranger you meet at a party or anyone on the planet what they now about the origins of these things. See if they are aware of the “generations of militancy that paved the way…” Describe their answer.
Something to Consider
How does the provision of these benefits by the employer effect working class solidarity…the feeling that all workers have a common interest? How might it make non union workers resent unionized workers?
Something to Consider
How does the provision of these benefits by the employer effect working class solidarity…the feeling that all workers have a common interest? How might it make non union workers resent unionized workers?
Creates segmentation of working class: “Insiders and Outsiders”
Non-union workers may see union members as a “pampered” special interest group
Something to Consider
Who provides these benefits (pensions, medical care, vacations, family leave) in most other advanced industrial capitalist nations (I.e. France, German, Sweden, UK, Austria)?
Something to Consider
Who provides these benefits (pensions, medical care, vacations, family leave) in most other advanced industrial capitalist nations (I.e. France, German, Sweden, UK, Austria)?
Government grants as a right of citizenship A “social wage” that supplement a persons market wage
How does the provision of benefits by the government facilitate the development of more solidarity and larger, more powerful labor movements?
Something to Consider
Workers across the board have a shared interest …solidarity is more common…unions seen as advancing the “general interest” not a “special interest” Bank teller, Bank manager, milk truck driver and janitor all
have shared interest in making sure benefits are provided and generous
In addition, “insider” union members in US are more vulnerable to hardship than workers in Europe
If employer faces tough times, benefits will be attacked
US automakers and steel makers plagued by cost of benefits Foreign competition does not have same costs
This is exactly what is happening right now, as major US firms seek to reduce benefit packages… note next slide
Choices Made in the 1940s Create Problems 50 Years Later Detroit's carmakers
have been under siege from foreign competition, which have lower costs in their factories…U.S. Health-care costs have sapped $1,400 from the profit of any vehicle(Business Week, 9/07)
Toyota's health care costs are so negligible that they aren't even a line item in the company's financial statements. Toyota benefits both from the Japanese national health plan's coverage of retirees' medical needs and from the way that plan is structured (autoweek.com)ttp://www.autoweek.com/article/20050401/FREE/504010702#ixzz0v6sGTzPg
Beyond wages and benefits…The Workplace
Your authors note that academics have noted that even as collective bargaining channeled much of the conflict between employers and employees, the shop floor or actual worksite remained “contested terrain.” Please explain what they mean by this and discuss how grievance procedures and arbitration provide a mechanism to turn a “contested terrain” into a workplace governed by the rule of law. Read carefully, and this answer will not be hard.
Your authors suggest that the gains of the CIO allowed workers to create a “workplace rule of law.” What do they mean by this? Note that much of the answer to this question appears prior to the use of the term in the text.
Workplace Rule of Law & The Union Law Enforcer
Contracts will address more than $ & benefits…
They will address discipline, work assignments, promotions, dismissal seniority, etc.
“The emerging contractual relationship…eliminated, in the words of one radical organizer, ‘the worst evil – the total submissiveness of workers to boss’”(Zieger 2002: 111)
Shop Steward On the job union
rep who carries out responsibility of union
Contested Terrain: From Quickies to Grievances
But no contract can anticipate all foreseeable situations …thus the “contested terrain” (Zieger 2002: 200)
Workplace remains… “contested terrain” where there will be ongoing conflicts between labor and management
Contract says workers get paid day off on July 4th…July 4th falls on Sunday Should workers get a paid Monday?
Borgata declares it will fire waitresses that gain weight. Does contract allow this?
Grievance Any perceived
violation of the contract
Grievance procedure Formal process for
settling conflict spelled out in contract
“Post War Labor Accord” Delivers…
1955, AFL and CIO merge into AFL-CIO
1950-1973, American economic success rewards both labor and management “Golden Age of American
Capitalism”
Steady increase in productivity, wages and standard of living for most Americans
1%
18%26%
36%
64%
92%
We Used to Grow Together, Now We’re Growing Apart
Richest 20%
Poorest 20%
Richest 20%
Poorest 20%
Real Family Income Growth Adjusted for Inflation
1947-1973
Source: U.S. Census Bureau. Based on mean family income.
1973-2000
Top5%
Top 5%
117%
98% 103% 104%88%
75%
Public Sector Workers
4. What was the basic trend in public sector unionization rates between 1955 and the 1970s. Please provide one example of a previously unorganized occupation that became unionized.
A Changing Labor Movement…
Private Sector- GM autoworkers, Walmart workers, Taco Bell Workers, Citibank, etc,
Public Sector- City Cops, Teachers, Nurses, Secretaries at Public Universities, Forest Rangers, Firefighters, etc.
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
1950 1970 1990
Percent Unionized
Private
Public
A Changing Labor Movement…
Unions decline in private sector, but grow in public Sector A smaller percentage of
private sector workers are in unions: autoworkers, steelworkers, machinists cashiers, etc.
A much larger percentage of public sector workers are in unions: Teachers, Cops, Firemen, Nurses, University Staff, DMV workers, prison guards, etc.
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
1950 1970 1990
Percent Unionized
Private
Public
Public Sector Workers
Tremendous growth from 400,000 in 1955 to 7.6 million in 2010
Density goes from 12.8% in 1960 to 36.2% in 2010 Federal : 27% union density (Border patrol,
Environmental protection workers, postal workers, food inspectors, et)
State: 31% union density (University professors, turnpike workers, fish and wildlife, DMV, etc)
Local 42% union density (teachers, firefighters, police, sanitation, et
Public Sector Unionism
What caused the rapid growth?
Expansion of government budgets & growth in employment
The example of civil disobedience set by civil rights and other groups in the 1960s Remember what MLK was doing in Memphis when he
was shot and killed?
Passage of laws favorable to public sector collective bargaining…lets explore
Katz &Kochan, 2002
Public Sector Unions Collective bargaining rights were granted to federal
employees by JFK through Executive Order 10988 in 1962
1978 Congress Replaces Executive Order with Law Protecting Right to Organize & Collectively Bargain
No right to strike In 1981 Reagan fired the PATCO workers
Mediation intervention in labor management disputes with objective to help parties
reach a settlement
Fact finding neutral party analyses and conveys facts of a labor management dispute
Arbitration procedure to settle labor management disputes in which a their party
makes a binding decision (Katz and Kochan)
Public Sector Unions
41 states have passed collective bargaining legislation for at least some state and local employees
24 comprehensive laws covering most workers
Some southern states have no laws
Right to strikes vary from state to state and occupation to occupation
Police typically have binding arbitration
WI in the news…note next slide
WI in the News
COLLECTIVE BARGAINING. Make various changes to limit collective bargaining for most public employees to wages. Total wage increases could not exceed a cap based on the CPI unless approved by referendum. Contracts would be limited to one year and wages would be frozen until a new contract is settled. Collective bargaining units are required to take annual votes to maintain certification as a union. Employers would be prohibited from collecting union dues and members of collective bargaining units would not be required to pay dues. Changes effective upon expiration of existing contracts. Law enforcement, fire employees and state troopers and inspectors would be exempt from the changes.
QUALITY HEALTH CARE AUTHORITY. Repeals the authority of home health care workers under the Medicaid program to collectively bargain.
CHILD CARE LABOR RELATIONS. Repeals the authority of family child care workers to collectively bargain with the state.
UW HOSPITALS AND CLINICS BOARD AND AUTHORITY. Repeals collective bargaining for UWHC employees. State positions currently employed by the UWHC are eliminated and incumbents are transferred to the UWHC Authority.
UW FACULTY AND ACADEMIC STAFF. Repeals authority of UW faculty and academic staff to collectively bargain.
The Face of Labor Changes: 10 Largest Unions in America (2008)
NEA - National Education Association 2,530,000
IBT - International Brotherhood of Teamsters 1,402,000
UFCW - United Food & Commercial Workers International Union 1,308,722
SEIU - Service Employees International Union 1,374,000
AFSCME - American Federation of State, County & Municipal Employees 1,300,000
LIUNA - Laborers' International Union of North America 818,412
IAM - International Association of Machinists & Aerospace Workers 730,673
IBEW - International Brotherhood of Electrical Workers 727,836
AFT - American Federation of Teachers 706,973
UAW - United Automobile, Aerospace & Agricultural Implements Workers of America 671,853
RED MEANS PUBLIC SECTOR OR LARGE PUBLIC SECTOR COMPONENT
Something to Consider
As union density drops in the private sector, and workers see stagnating wages and reduced benefits, how would you expect many to react to public sector workers who are largely unionized with decent wages and good benefit packages?
Something to Consider As union density drops in the private sector, and workers
see stagnating wages and reduced benefits, how would you expect many to react to public sector workers who are largely unionized with decent wages and good benefit packages?
Again segmentation of working class creates different populations of “Insiders and Outsiders”
“Pension and Benefit Envy” Segments of the general public see public sector union members
(cops, teachers, firefighters, DMV workers) as a “pampered” state workers with overly generous benefits paid for by the taxpayer…
Pension Envy in NJ…Coming to a State Near You About 90 percent of state and local workers in the
United States have been promised pensions, compared with about 20 percent of private-sector workers, according to Keith Brainard, research director at the National Association of State Retirement Administrators
More and more New Jerseyans find themselves without pensions and become resentful of the double whammy that they face: fewer benefits for themselves and higher taxes so that the public-sector workers can receive generous benefits," explains David Rebovich, managing director of the Institute for New Jersey Politics at Rider University in Lawrenceville.
Las Vegas Review Journal (10/3/06)
Something to Consider Workers across the board
have a shared interest …solidarity is more common…unions seen as advancing the “general interest” not a “special interest”
Bank teller, milk truck driver, teacher and cop all have shared interest in making sure benefits are provided and generous
In addition, “insider” union members in US are more vulnerable to hardship than workers in Europe
If state faces tough times, benefits will be attacked
France and Italy General strike of all
workers in response to pension changes
In US…government workers are on their own
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