Strategies
for
American
Labor
Unions


Creative
Management
Thinking

April
5,
2011





Section
N3
Group
F

This
is
a
product
of
our
group
work.
All
members

contributed
fairly
and
equitably:

Raphael
Ani


Diego
Castañeda

Stephanie
Palomba

Sourav
Ray

Jared
Rubenstein

Shaheen
Samavati




 Strategies
for
American
Labor
Unions

Organized
 labor
 once
 played
 an
 important
 role
 in
 society
 and
 politics
 in
 the

United
 States.
 Unions
 had
 the
 power
 to
 halt
 commerce,
 they
 raised
 living

standards
nationwide,
and
could
shape
politicians.
Today,
while
still
influential,

their
 power
 has
 waned,
 and
 now
 U.S.
 policy
 makers
 are
 enacting
 laws
 that

attempt
 to
 make
 their
 roles
 less
 relevant,
 especially
 in
 the
 public
 sector.

Wisconsin
has
been
the
epicenter
of
a
battle
between
Republican
lawmakers
and

labor
 unions.
 A
 controversial
 law
 was
 passed
 in
 Wisconsin
 in
 March
 that

severely
restricts
one
of
public‐sector
unions’
most
important
powers:
the
ability

to
bargain
with
the
state
over
terms
of
employment
contracts.


The
move
struck
outrage
among
union
members
and
their
supporters
across
the

country.
However,
at
the
same
time,
the
passage
of
the
legislation
has
led
other

states
to
consider
their
own
measures
to
limit
the
powers
of
unions
(Exhibit
1).

Republicans
argue
that
the
demands
of
unions
cost
state
governments
too
much

money
 during
 tough
 economic
 times.
 However,
 union‐supporters
 argue
 that

unions
have
already
made
concessions
to
stretch
limited
state
budgets,
and
that

Republicans’
motives
are
political.

The
 fight
 between
 conservative
 lawmakers
 and
 organized
 labor
 could
 mark
 a

turning
point
for
unions.

It
could
mean
an
even
sharper
decline
in
union’s
power

in
American
society.

Or,
if
unions
play
their
cards
right,
it
could
lead
to
renewed

relevance
 of
 unions,
 at
 a
 time
 when
 workers
 rights
 are
 perceived
 to
 be
 under

attack.

How
labor
unions
came
to
power


Labor
 unions
 were
 created
 to
 allow
 workers
 to
 overcome
 an
 inherent

disadvantage
against
powerful
business
owners
in
a
capitalist
society.
The
union

binds
workers
together
with
common
goals
and
actions.
It
gives
them
the
strike

as
 their
 weapon
 and
 collective
 bargaining
 as
 their
 trump
 card.
 Trade
 unionism

first
 arose
 in
 England,
 as
 a
 by‐product
 of
 the
 industrial
 revolution.
 The

concentration
 of
 workers
 in
 environments
 such
 as
 mills,
 factories
 and
 mines

made
 it
 easier
 for
 them
 to
 band
 together.
 Unionism
 later
 spread
 to
 other

countries,
including
the
U.S.,
along
with
capitalist
industry.
(Pannekoek
,
1936)


During
 the
 18th
 and
 early
 19th
 centuries,
 there
 were
 strict
 laws
 against
 labor

organizing
in
the
U.S.

But,
with
popular
support,
they
were
accepted
by
the
turn

of
 the
 20th
 century.
 With
 the
 growth
 of
 capitalism
 and
 big
 industry,
 unions

became
 large
 organizations
 with
 thousands
 of
 members,
 extending
 over
 the

whole
 country.
 
 Unions
 played
 an
 important
 political
 role
 in
 creating
 safe

working
 conditions
 in
 what
 were
 once
 dangerous
 factories.
 They
 also
 helped

achieve
 laws
 that
 put
 limits
 on
 working
 hours,
 and
 outlawed
 child
 labor.


(Pannekoek,
1936)


By
the
1940s
and
50s,
unions
reached
the
height
of
their
political
power
in
the

U.S.
 and
 were
 the
 main
 funding
 source
 for
 the
 Democratic
 Party.
 “In
 return

Democrats
supported
economic
policies
like
minimum‐wage
laws
and
expanded

health
care
that
helped
not
just
union
members
per
se
–
since
they’d
already
won

good
 wages
 and
 benefits
 at
 the
 bargaining
 table
 –
 but
 the
 interests
 of
 the

working
and
middle
classes
writ
large.”
(Drum,
2011)



Labor
unions’
decline

By
 the
 1960’s,
 the
 emerging
 “New
 Left”
 had
 different
 priorities.
 The
 young

people
who
formed
the
movement
grew
up
in
a
fairly
comfortable
environment.

They
 were
 less
 passionate
 about
 workplace
 safety
 and
 cost
 of
 living,
 and
 more

motivated
 by
 civil
 rights,
 an
 antiwar
 sentiment,
 and
 eventually
 feminism,
 the

sexual
revolution
and
environmentalism.
By
the
1970s,
corporations
had
banded

together
 to
 push
 aggressively
 for
 pro‐business
 legislation.
 The
 U.S.
 Chamber
 of

Commerce
became
a
strong
force
in
politics,
conservative
think
tanks
flourished

and
 the
 Business
 Roundtable
 was
 founded.
 Unions’
 political
 muscle
 paled
 in

comparison
to
this
new,
strong
opposition,
which
made
it
much
more
difficult
to

gain
 support
 for
 pro‐working
 class
 legislation.
 
 At
 the
 same
 time,
 stagflation,

globalization
and
the
decline
in
U.S.
manufacturing
was
also
a
blow
to
organized

labor.
(Drum,
2011)

In
 order
 to
 compete
 in
 elections,
 Democrats
 had
 to
 seek
 funding
 beyond
 their

traditional
 labor
 base
 –
 the
 corporate
 world.
 “Politicians
 don’t
 respond
 to
 the

concerns
 of
 voters,
 they
 respond
 to
 the
 organized
 muscle
 of
 institutions
 that

represent
them.
With
labor
in
decline,
both
parties
now
respond
strongly
to
the

interests
of
the
rich
–
whose
institutional
representation
is
deep
and
energetic
–

and
 barely
 at
 all
 to
 the
 interests
 of
 the
 working
 and
 middle
 classes.”
 (Drum,

2011)

By
 the
 end
 of
 2010,
 union
 members
 accounted
 for
 only
 12
 percent
 of
 the
 U.S.

workforce,
compared
to
20
percent
in
1983.

(Noah,
2010)
The
decline
in
unions

coincided
with
increasing
income
disparity
in
the
U.S.

As
per
Exhibit
2,
income

growth
 for
 the
 richest
 1
 percent
 of
 the
 U.S.
 population
 is
 roughly
 equal
 to
 the

decline
in
income
among
the
lower
80
percent
between
1979
and
2005.


Paul
 Pierson,
 an
 author
 on
 the
 topic
 and
 a
 professor
 of
 political
 science
 at

University
of
California
at
Berkeley
has
been
quoted
as
saying
the
following:



“Economists
 generally
 err
 in
 thinking
 that
 unions
 influence
 the
 income

distribution
mostly
through
direct
negotiations
with
employers.
Instead,
we

argue
the
most
important
role
these
forces
play
is
to
create
some
organized

countervailing
 pressure
 in
 Washington.
 Cross­national
 research
 suggests

that
 strong
 labor
 unions
 are
 associated
 with
 greater
 government

redistribution
through
taxes
and
transfers.
The
United
States
is
one
of
only

a
 handful
 of
 countries
 where
 government
 taxes
 and
 benefits
 have
 become

less
redistributive
as
inequality
has
grown.
(Leonhardt,
2011)

Time
for
a
correction?



The
 current
 political
 situation
 in
 Wisconsin
 and
 other
 states
 could
 represent
 a

tipping
point.
As
discussed
in
class,
when
inequality
reaches
an
extreme,
it
will

create
 resistance
 among
 the
 general
 populous.
 Former
 Wisconsin
 congressman

David
Obey
has
said
the
fight
over
bargaining
rights
in
the
state
“has
energized

progressive
forces
like
nothing
I
have
seen
in
a
long
time.”
(King,
2011).

The
 fight
 between
 Republican
 governors
 and
 labor
 unions
 has
 mobilized
 those

on
 the
 political
 left.
 
 Several
 states
 have
 seen
 massive
 protests,
 which
 have

received
 high
 levels
 of
 media
 coverage.
 At
 the
 very
 least,
 the
 vulnerability
 of

unions
 has
 become
 an
 issue
 that
 is
 in
 the
 public
 consciousness.
 However,
 the

impact
on
general
public
opinion
of
unions
is
unclear.


Gallup
 has
 been
 polling
 for
 public
 attitudes
 about
 unions
 every
 August
 since

1936,
always
asking
the
same
question:
“Do
you
approve
or
disapprove
of
labor

unions?”
 The
 ratings
 were
 as
 high
 as
 75
 percent
 in
 the
 1940s
 and
 1950s,
 in

unions’
 heyday.
 In
 1978,
 the
 approval
 rate
 dipped
 to
 59
 percent,
 where
 it
 has

hovered
until
2009,
when
it
dropped
to
48
percent.
In
2010,
public
approval
rose

to
52
percent.
The
next
poll
result,
which
will
be
published
in
August,
will
give

the
best
idea
of
whether
this
year’s
political
events
have
had
a
significant
impact

on
public
opinion.

(Politifact,
2011)

However,
 several
 other
 polls
 have
 also
 been
 conducted
 recently,
 asking
 for

people’s
 position
 towards
 eliminating
 bargaining
 rights.
 According
 to

Politifact.com,
 the
 response
 depended
 on
 how
 the
 question
 was
 worded.
 When

framed
 as
 "limiting
 bargaining
 rights
 to
 help
 local
 governments,"
 47
 percent

were
 in
 favor,
 50
 percent
 opposed.
 When
 framed
 as
 "eliminating
 bargaining

rights
 to
 ultimately
 dismantle
 public
 employee
 unions,"
 58
 percent
 were

opposed
and
32
percent
in
favor.
These
results
seem
promising
for
unions.
They

show
 that
 the
 general
 public
 could
 be
 starting
 to
 empathize
 with
 union

employees,
especially
since
even
non‐workers
have
faced
also
seen
their
benefits

cut,
and
job
uncertainty
increase.


Recommendations


Trade
 unions
 should
 take
 advantage
 of
 the
 current
 mobilization
 of
 their

membership,
 the
 strong
 showing
 of
 support
 by
 left‐wing
 activists,
 and
 the

possible
shift
in
public
opinion,
in
order
to
best
serve
their
members
as
well
as

the
working
class.
The
current
low
morale
among
workers
in
general,
because
of

a
lagging
economy,
could
also
work
to
unions’
benefit.
Specifically,
we
make
the

following
recommendations:

Attract
 a
 more
 diverse
 member
 base:
 
 U.S.
 economic
 development
 has

partially
 driven
 the
 decline
 in
 union
 membership.
 Today,
 there
 are
 more
 high

skilled
workers
but
fewer
working
in
the
manufacturing
industries
where
unions

were
most
present.
Unions
have
tried,
mostly
unsuccessfully,
to
expand
into
new

industries
over
the
past
few
decades.

However,
now
could
be
an
opportune
time

to
renew
those
efforts.
Trade
unions
should
adopt
a
long‐term
plan
of
inclusion

and
representation
that
will
recognize
the
importance
of
organizing
sectors
such

as
transportation,
retail,
and
other
service
industries.
This
expansion
is
crucial
to

better
represent
the
interests
of
a
wider
section
of
the
working
class
community.


Adapt
to
educational
needs
of
modern
workers:
Unions
need
to
think
beyond

their
traditional
role,
and
offer
services
that
will
make
them
more
indispensible

to
U.S.
workers,
as
well
as
entice
new
members
to
join.
Unions
already
provide

services,
such
as
representing
workers
in
conflicts
with
employers,
helping
them

get
 confidential
 treatment
 for
 addiction
 problems,
 and
 information
 about

pensions
 and
 health
 care.
 Considering
 that
 workers
 are
 changing
 careers
 more

than
 ever
 before,
 perhaps
 unions
 should
 expand
 their
 services
 to
 include

education
and
job
training.
“Survey
data
indicate
that
roughly
42
million
workers

want
 an
 organization
 focused
 on
 information,
 career
 assistance
 or
 consultation

with
 management
 ‐‐
 but
 still
 independent
 of
 management.
 That
 represents
 an

enormous
 untapped
 market
 for
 unions;
 currently,
 there
 are
 only
 13.5
 million

unionized
workers
in
America.”
(Leiken,
2002)



Focus
on
industry­wide
organizing
and
employee
ownership,
creating

cooperatives.

Low‐wage
service
jobs
in
big
corporations
are
hard
to
organize

because
of
high
turnover.

Unions
have
little
of
the
power
that
they
did
50
years

ago
because
there
is
little
to
stop
corporations
from
moving
overseas,
which
has

driven
labor
costs
down
immensely,
and
corporations
have
to
maintain
these

low
costs
to
stay
competitive
with
other
companies
that
hire
cheap
labor.

To

that
end,
if
unions
are
going
to
have
organizing
campaigns,
they
should
also

focus
on
industry‐wide
campaigns.

So
instead
of
organizing
one
fast
food
chain

and
potentially
driving
up
costs,
they
should
set
out
to
organize
all
fast
food

chains,
or
the
entire
restaurant
industry.

(Wolff,
2009).



Fund
left
wing
media:
Unions
need
a
counterbalance
to
conservative
news

shows,
such
as
The
Glenn
Beck
Program,
on
Fox
News,
CNN
and
other
cable

networks.
A
competing
–
equally
accessible
–
media
outlet
(i.e.
social
media)

could
work
to
frame
a
counter‐narrative
about
inequality
and
the
role
of

corporate
power
in
the
decline
of
middle
and
lower
class
living
standards.

While

some
Americans
have
started
to
empathize
with
the
plight
of
unions,
many
have

instead
followed
the
right
wing
narrative,
which
puts
blame
on
the
government,

the
national
deficit,
and
overreaching
tax
policy.

Supporting
a
new,
powerful

media
source
could
help
pull
public
opinion
in
favor
of
unions.
This,
in
turn,

could
help
grow
membership,
funds,
and,
eventually,
political
relevance.



Reestablish
political
relevance:

Labor
unions
should
reconsider
their
current

political
strategy.

As
discussed
above,
since
the
1970s
the
Democratic
Party
has

moved
toward
supporting
corporate
interests.
As
the
Democratic
and

Republican
parties
become
more
similar
in
their
policies,
perhaps
it
is
time
for

the
creation
of
a
new
party,
supported
by
organized
labor.
While
the
U.S.
has

always
had
a
two
party
system,
this
proposal
is
not
as
radical
as
it
sounds,
since

those
two
parties
have
evolved
over
time
and
have
even
changed
completely

after
the
Great
Depression
in
1929.
The
Republican
Party,
founded
based
on

human
rights
and
the
abolition
of
slavery,
became
the
pro‐business
party
that

advocated
small
government.

Democrats,
who
once
represented
the
social

conservatism
of
the
American
south,
became
the
party
that
advocated
for
the

rights
of
the
lower
classes
–
much
thanks
to
the
support
of
labor
unions.
Today,

unions
need
to
find
allies
that
will
allow
them
to
provide
an
adequate
balance
to

corporate
power.
For
example,
a
burgeoning
environmental
movement
has

successfully
received
some
notoriety
for
a
new
Green
party
over
the
past
decade.

With
the
support
of
funding
from
labor
unions,
the
Green
party
could
be
a
more

significant
force
in
politics.
Alternatively,
unions
and
their
allies
could
work

within
the
Democratic
Party
to
try
to
reestablish
their
importance
or
create
an

party
extension
similar
to
the
Tea
Party.
Regardless,
the
primary
challenge
is

that
it
would
be
an
uphill
battle
to
compete
against
corporate
funding.


Exhibit
1:

From
WSJ.com

(King,
2011)




Exhibit
2:
From
MotherJones.com
(Drum,
2011)





Works
Cited:


Drum,
Kevin.
“Plutocracy
Now:
What
Wisconsin
Is
Really
About.”
Mother
Jones.



March/April
2011.

Retrieved
on
March
24,
2011:

http://motherjones.com/politics/2011/02/income‐inequality‐labor‐
union‐decline



King
Jr.,
Neil;
Burton,
Thomas;
Maher
Kris.
“Political
Fight
Over
Unions


Escalates.”
The
Wall
Street
Journal.
February
22,
1011.
Retrieved
on


March
24,
2011:


http://online.wsj.com/article/SB1000142405274870380020457615885
1079665840.html



Leiken,
Samuel.

“New
Jobs
for
Labor
Unions.”
New
York
Times,
August
31,
2002.


Retrieved
on
March
25,
2011:

http://www.nytimes.com/2002/08/31/opinion/new‐joNbs‐for‐labor‐
unions.html



Leonhardt,
David.
“Inequality
and
political
power.”
New
York
Times,
Economix



 blog.
Retrieved
on
April
2,
2011
from:


http://economix.blogs.nytimes.com/2011/03/03/inequality‐and‐
political‐power/



Noah,
Timothy.
“The
United
States
of
Inequality.”
Slate.com.
September
12,
2010.


Retrieved
on
April
2,
2011
from:


http://www.slate.com/id/2266025/entry/2266031/



Pannekoek,
Anton.
“Trade
Unionism.”
1936.
Kurasje
Council
Communist


Archives.
Retreived
from:
http://www.marxists.org



Politifact.
“AFL‐CIO
President
Nee
says
public
support
growing
for
unions,


collective
bargaining.”
Politifact.com.
March
31,
2011.
Retrieved
on


April
3,
2011
from:
http://www.politifact.com/rhode‐
island/statements/2011/mar/31/george‐nee/afl‐cio‐president‐nee‐says‐
public‐support‐growing‐/



Wolff,
Richard.
“Profits
driving
stocks
a
sign
of
danger.”
TheRealNews.com.


July
28,
2009.
Interview.
Retrieved
on
April
4,
2011
from:

http://therealnews.com/t2/index.php?option=com_content&task=view&
id=31&Itemid=74&jumival=4054