House Committee
On Education and Labor
Private Business and Unionized Labor
Director: Jessica Falk
© 2009 Institute for Domestic & International Affairs, Inc.
This document is solely for use in preparation for Rutgers Model Congress 2009.
Use for any other purpose is not permitted without the expressed written consent of IDIA.
For more information, please write us at [email protected].
Policy Dilemma ______________________________________________________________ 1
Possible Causes ______________________________________________________________ 3
Financial Strain on Businesses_______________________________________________________ 3
Intimidation from Businesses________________________________________________________ 4
Dwindling Union Power ____________________________________________________________ 5
Comparison of Causes _____________________________________________________________ 6
Chronology __________________________________________________________________ 6
5 July 1935: Wagner Act ___________________________________________________________ 6
23 June 1947: Taft-Hartley Bill ______________________________________________________ 7
14 September 1959: The Labor-Management Reporting and Disclosure Act_________________ 8
July 1998: Corruption in the Hotel Employees and Restaurant Employees Union ____________ 8
8 October 2002: President Bush Invokes the Taft-Hartley Bill ____________________________ 9
10 December 2003: Rally for Labor Unions ____________________________________________ 9
29 July 2005: Labor Unions Leave AFL-CIO and Form Change to Win ___________________ 10
18 January 2006: Labor Unions Form in Small Business ________________________________ 11
1 March 2007: Employee Free Choice Act ____________________________________________ 11
Projections and Implications___________________________________________________ 12
Actors and Interests __________________________________________________________ 12
Labor Unions ____________________________________________________________________ 12
Private Businesses ________________________________________________________________ 14
Federal Lawmakers ______________________________________________________________ 15
Conclusion _________________________________________________________________ 17
Discussion Questions _________________________________________________________ 18
Bibliography ________________________________________________________________ 19
For Further Reading______________________________________________________________ 19
Works Cited_____________________________________________________________________ 20
Works Consulted_________________________________________________________________ 23
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Policy Dilemma
Labor unions were formed in the United States to improve the treatment of the
American workforce. Throughout history, unions have faced adversity in their fight for
wages, benefits, and treatment by their employers.1 Private businesses have fought
against the establishment of unions and sought to decrease the union’s power and
influence. At one time unions were powerful and influential in the workforce, but now
only twelve per cent of all workers are union members.2 The recent disaffiliation of three
unions with four million members from the American Federation of Labor- Congress of
Industrial Organization (AFL-CIO) has further exasperated the concerns of union
leaders.3 Congress is now considering the extent to which labor unions should receive
legal protection, and whether union membership should be encouraged at all.
Labor unions began to form in America during the late 1800s as a response to the
poor working conditions the majority of workers were facing everyday in America’s
newly formed industrialized industries. The first labor unions were comprised of bluecollar workers from coal mines and railroads, but modern unions have grown to include
many different industries including medical professionals and retail workers.4
Part of the reason for the dwindling number of union workers is that private
businesses have been actively fighting against organized labor.
Anti-union tactics
include shutting down workplaces, moving jobs to other states and appealing decisions
by the National Labor Relations Board (NLRB).5 A study by Human Rights Watch
showed that Wal-Mart’s aggressive efforts to “keep out labor unions often violated
federal law and infringed on its workers rights.”6 The report goes on to state that the
1
“Union Facts,” American Federation of Labor- Congress of Industrial Organization,
<http://aflcio.org/aboutus/faq/>
2
Michael Fletcher, “Labor, Business Battle Over Bill to Strengthen Unions,” Washington Post, October 19, 2008,
Lexis Nexis. <http://www.lexisnexis>
3
Jill Lawrence, “Besieged Labor Unions Rethink Future,” USA Today, September 1, 2005,
http://www.usatoday.com/news/nation/2005-09-01-labor-unions-future_x.htm
4
“Labor Unions,” University of San Diego, <http://history.sandiego.edu/gen/soc/labor.html>
5
Ibid.
6
Steven Greenhouse, “Report Assails Wal – Mart Over Unions,” The New York Times, May 1, 2007, Lexis Nexis.
http://www.lexisnexis.com
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company has often broken the law by “eavesdropping on workers, training surveillance
cameras on them and firing those who favored unions.”7 Stewart Acuff, chief organizer
for the AFL-CIO states that workers who want unions often vote against them as a result
of “employer intimidation and retaliation, opposition and hostility.”8 The NLRB receives
approximately 30,000 complaints each year from workers who claim that they were
illegally fired for organizing.
Thea Lee, policy director of the AFL-CIO, explained the problems that come
along with the decrease in union membership stating, “The destruction of unions and the
attack on unions have been a major contributor to the growing income inequality in the
country and erosion of the middle class.”9 Union members make up to thirty per cent
more than nonunion workers, and, if union membership continues to decrease, then it can
be harmful to America’s working class.10
While unions may benefit the American workforce, business leaders often view
them skeptically. Labor unions can hurt the profitability of both large corporations and
small businesses.11 Labor unions are a major expense to business because the benefits
and salaries of organized workers is higher than that non-unionized workers. Also, a
majority of workers do not feel the need to join labor unions. In a 2006 Zogby poll,
seventy-four per cent of nonunion workers said they would not want to become members
of a labor union.12 Also, the history of corruption in labor unions makes workers
resistant to join.
In recent years, members of Congress have proposed a number of reforms
intended to enhance the position of labor unions, citing the importance of occupational
safety and job stability to the well-being of the country. The decreasing number of labor
unions and members is an issue that concerns many congressmen because their
7
Ibid.
Jill Lawrence.
9
Michael Fletcher.
10
“Union Facts,” American Federation of Labor- Congress of Industrial Organization,
<http://aflcio.org/aboutus/faq/>
11
Ed Feulner, “Unions: What Works, What Doesn’t,” The Washington Times, September 1, 2008, Lexis Nexis,
http://www.lexisnexis.com.
12
Ibid.
8
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constituents are working Americans.
Support for unions remains high even though
membership is diminishing. The Employee Free Choice Act is the most significant piece
of legislation pertaining to labor unions currently being debated. This act requires all
employers to recognize unions once a majority of workers sign cards in support for the
formation of a union.13 This is meant to reduce the potential for intimidation present in
the system of voting currently in place. Unions have also asked the NLRB to have
employers bargain with unions even if the union represents a minority of workers.
Possible Causes
Financial Strain on Businesses
The current economic crisis facing the United States has placed constraints on
America’s large corporations. General Motors, the country’s largest automaker, reported
a loss of $4.2 billion in November 2008.14 The company also reported that it spent $6.9
billion in October and November of 2008 and stated that they will soon “approach the
minimum amount necessary to operate their business.” 15 While America’s leading
automaker is facing possible bankruptcy, the United Automobile Workers continue to
fight for benefits that will place added financial strain on the company. General Motors
provides its retirees with health benefits, a population that is now larger than General
Motor’s active work force.16 In 2007, GM spent $4.6 billion on health care for its one
million employees, retirees, and their dependents.17 Ford, Chrysler, and GM recently
announced that they would cut health benefits to salaried retirees, a category which
excludes retired union factory workers all of whose health benefits are protected by
contractual obligations.
GM estimates that this move will save them $1.5 billion
annually. To try and help their retired workers GM is raising their monthly pension by
13
Michael Fletcher.
Chris Isidore, “GM: Almost out of Cash,” CNNMoney.com, November 7, 2008,
http://money.cnn.com/2008/11/07/news/companies/gm/?postversion=2008110716.
15
Ibid.
16
Nick Bunkley, “Some White Collar G.M. Retirees Scramble as Health Care is Cut Off,” The New York Times,
November 10, 2008, Lexis Nexis, http://www.lexisnexis.com.
17
Ibid.
14
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$300, though this sum is far less than the value of the lost health coverage.18 The current
state of the economy is causing businesses to suffer, and the cost of labor unions adds to
the financial strain that they are already experiencing.
General Motors and other companies are being forced to choose between
preserving solvency, and providing unions with the benefits they have long received,
causing tension between the two parties because, in some circumstances, the business
needs to put its stability ahead of the benefits of workers. The financial strain that labor
unions create encourages businesses to resist unionization of their employees. Without
the added expense of the benefits that accompany unionized workers, it would be easier
for struggling businesses to stay afloat.
Intimidation from Businesses
In an effort to stop their employees from forming unions, some businesses use
intimidation tactics. The company most well known for this strategy is Wal-Mart. More
than 1.3 million Americans are employed in over four thousand stores across the U.S.,
and none of its workers are members of unions.19 David Thovar, a Wal-Mart spokesman
said that Wal-Mart “provided an environment for open communications and gave its
employees every opportunity to express their ideas, comments and concerns.”20 He cites
this as the reason why Wal-Mart has repeatedly rejected unionization. Detractors point
out that Wal-Mart’s anti-union tactics also include the use of surveillance cameras and
eavesdropping on workers to punish those who try to form unions.
The Change to Win Coalition is made up of the labor unions that left the AFL-CIO
and is currently the strongest labor union in the U.S. They have cited Cintas, the most
profitable uniform and laundry company in North America with sales of $3 billion, as a
company that takes extrodinary measures to prevent unionization.21 That National Labor
Relations Board (NLRB) recently ruled that the company’s policy of prohibiting workers
18
Ibid.
Steven Greenhouse, “Report Assails Wal-Mart Over Unions,” The New York Times, May 1, 2007, Lexis Nexis,
http://www.lexisnexis.com.
20
Ibid.
21
“Cintas,” Change to Win, http://www.changetowin.org/why-organize/corporate-hall-of-shame/cintas.html
19
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from discussing their wages and working conditions is illegal. The NLRB also charged
Cintas with illegally disciplining union supporters, threatening workers with plant
closures, and unlawful interrogations. The company has also had to pay $25,000 in back
pay for firing employees for union activity.24
The current secret ballot election system also results in intimidation by employers.
The secret ballot election methods go on for months and are delayed by litigation.
During this time employees say it is common for businesses to break the law by firing,
intimidating, and spying on union supporters.25 The intimidations that are used to stop
workers from unionizing are a cause of the decreasing number of labor union members in
the United States.
Dwindling Union Power
The number of Americans choosing to become members of labor unions has
decreased since the 1980s. Only twelve per cent of American workers are union members,
with only 7.5 per cent of members working in the private sector. Also, most nonunion
workers have no desire to join unions. A Zogby poll found that seventy-four per cent of
nonunion workers say they would not “personally like to be a member of a labor union.”
Only twenty per cent of workers say they would like to join a union, which is down
significantly from 1984 when one third of nonunion workers wanted to unionize.
Workers today seem to want “a voice in how their company operates, without the
confrontational attitude so many unions bring to the table.”29
Many labor laws have been passed to protect workers, causing employees to be
less concerned about wages and job security: if employees feel more stable in their job,
24
Ibid.
Steven Greenhouse, “Labor Seeks Boost from Pro-Union Measure,” The New York Times, February 23, 2007,
Lexis Nexis, http://www.lexisnexis.com
29
Ibid.
25
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they do not feel the need to join a union.30 The safety and health of workers, minimum
wage rates, and the right of workers to form unions have all been addressed in past
legislation.31 These are issues that were not considered when unions were strongest in
the late 1950s. As the number of union members has decreased, so has the power and
prestige of labor unions. Even though some workers might feel that it is not necessary to
join labor unions, the benefits of being a member are clear. Not only do workers who are
members of labor unions make more money, they are also more likely to have benefits.
Approximately sixty-eight per cent of union workers have pension plans compared to
fourteen per cent of nonunion workers. Also, more than ninety-seven per cent of union
members have health insurance compared to eighty-five per cent of nonunion workers.32
Comparison of Causes
The causes of the problems between labor unions and private businesses are all
interconnected. The financial strain that unions cause businesses results in businesses
becoming reluctant to allow their workers to unionize.
Some businesses even use
intimidation methods to prevent their workers from unionizing because they cannot
handle the financial burden. If it were profitable for businesses to give workers the
benefits and wages they fight for, there would be no reason for businesses to fight against
unionization.
The decreasing size of labor unions is caused by both threats from
businesses as well as the perception of some Americans that labor unions are no longer
needed.
Chronology
5 July 1935: Wagner Act
The National Labor Relations Act, more commonly known as the Wagner Act,
protects the rights of workers in the private sector to organize labor unions, engage in
30
Joseph Carroll, “Americans in Labor Unions: Who wears the union label?” Gallup Poll, August 20, 2005,
http://www.gallup.com/poll/18217/Americans-Labor-Unions.aspx
31
“Protecting Workers Safety and Health,” House Committee on Education and Labor,
http://edlabor.house.gov/micro/workersafety.shtml
32
“Why You Need a Union,” AFL-CIO, http://www.aflcio.org/joinaunion/why/
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collective bargaining, and strike. Congress passed this act in response to the conditions
experienced by many workers, yet it was largely ignored by employers and in the years
following it. Employers refused to recognize the right of their workers to form labor
unions and punished workers who did not cooperate.33 The Wagner Act was the first
piece of legislation to address poor working conditions. It is viewed as an historic piece
of legislation, but the provisions of the act are still not fully implemented. It is still
common for fired workers to have to wait years for reinstatement, and businesses suffer
minor penalties for offenses.34
23 June 1947: Taft-Hartley Bill
Passed in 1947, the Taft-Hartley Act gave the president of the United States
unprecedented power over labor unions and their actions. The Taft-Hartley Act allows
federal intervention and injunctions if a “strike or lockout threatens national health or
safety.”35 The courts can also grant eighty days during which the two sides can negotiate
under the direction of a federal mediator. If no agreement is reached after eighty days,
the workers can go on strike and management can lock the workers out. Problems with
this act include that the procedures of the bill tend to aggravate labor-management
relationships rather than promote dialogue and compromise between the two parties. 36
Even though this act can force people back to work, it does not help the worker-employee
relationship that is important to a successful business. Since it was passed in 1947,
presidents have won injunctions twenty-nine out of the thirty-one times they have
invoked Taft-Hartley authority.37
33
Robert Kuttner, “Comeback Attempt for the Labor Movement,” The Boston Globe, March 31, 2007, Lexis Nexis,
http://www.lexisnexis.com.
34
Ibid.
35
William Gould, “Better Laws to Settle the Port Labor Dispute,” The New York Times, October 10, 2002, Lexis
Nexis, http://www. lexisnexis.com.
36
Ibid.
37
Tom Ramstack, “Bush Step In To Halt West Coast Shutdown; Ports Could Resume Operating Today,” The
Washington Times, October 8, 2002, Lexis Nexis, http://www.lexisnexis.com.
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14 September 1959: The Labor-Management Reporting and
Disclosure Act
The Labor-Management Reporting and Disclosure Act of 1959 was designed to
deal with the growing problem of corruption in labor unions.38 It outlined procedures
that labor unions must take when reporting “financial transactions and administrative
practices.”39 Labor unions are required to give copies of their constitution, bylaws, and
annual financial reports to the Office of Labor Management Standards. Officers in the
unions must also file forms if “they have any loans or benefits from, or certain financial
interests in, employers whose employees their union represents and businesses that deal
with their union.”40 It also included guidelines for the elections of officers in labor
unions and the protections of union funds and guaranteed a list of rights to union
members. The Act gives members of labor unions the right to file private suit in federal
courts if their employers are abridging the rights set out in the act. Section 104 of the Act
establishes that “the rights to receive or examine collective bargaining agreements,
applies not only to union members but also to all nonunion employees whose rights are
directly affected by a collective bargaining agreement.”42 The provisions in the Labor
Management Reporting and Disclosure Act were influential on the future practices of
labor unions.
July 1998: Corruption in the Hotel Employees and Restaurant
Employees Union
A scandal surrounding the president of the Hotel Employees and Restaurant
Employees Union, Edward Hanley, illustrated the fact that corruption in labor unions still
exists.43 In July 1998, a federal monitor forced Hanley from his position as president of
the union for his extravagant spending including Cadillac sports cars, vacations and a
38
“The Labor-Management and Disclosure Act of 1959,” U.S. Department of Labor,
http://www.dol.gov/compliance/laws/comp-lmrda.htm
39
Ibid.
40
Ibid.
42
Ibid.
43
Steven Greenhouse, “Edward Hanley, 67, Longtime Union Leader,” The New York Times, January 16, 2000,
http://query.nytimes.com/gst/fullpage.html?res=9D01E0DB113AF935A25752C0A9669C8B63
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$2.5 million jet, which he bought with the union’s money.44 According to the President’s
Commission on Organized Crime, Hanley’s union was one of the four most corrupt in
America, partly due to his alleged ties to organized crime. According to Ken Boehm,
chairman of the National Legal and Policy Center, a research group that publishes a
newsletter regarding the subject, “Union corruption hasn’t changed that much since the
[19]50s. The cast of character may have changed. Some of the corruption is more
sophisticated, but continues to be a very serious problem.”45 The corruption that is
present in some labor unions is detrimental to all labor unions. If union officials are not
holding up their responsibility to do what is best for their members, then membership
levels in unions can decrease, and businesses may have more reservations about
unionization.
8 October 2002: President Bush Invokes the Taft-Hartley Bill
In 2002, a two-week lockout of the International Longshore and Warehouse Union
resulted in billions of dollars in losses.46 In response to the situation, President George W.
Bush stated, “The work stoppage is hurting our entire economy. It is hurting truckers and
rail operators who carry goods to other part of America. It’s hurting farmers and ranchers
and manufacturers, retailers and consumers.”47 President Bush invoked the Taft-Hartley
Act because he felt that the whole country was suffering repercussions as a result of the
strike. President Bush sought a court order from a San Francisco federal judge, which
granted him the power to order the 10,500 longshoremen back to work.48
10 December 2003: Rally for Labor Unions
Over 4,500 union members gathered and marched from Boston Commons to the
Thomas P. O’Neil Building in Boston to call for “stiffer labor laws and to protest ...
44
Ibid.
Steven Greenhouse, “Corruption Tests Labor While it Recruits,” The New York Times, January 2, 1999, Lexis
Nexis, http://www.lexisnexis.com
46
Sue Kirchhoff, “Coast Ports Reopened as Bush Intervenes Judge Agrees to Issue a Restraining Order,” The Boston
Globe, October 9, 2002, Lexis Nexis, http://www.lexisnexis.com.
47
Ibid.
48
David Sanger, “President Invokes Taft Hartley Act to Open 29 Ports,” The New York Times, October 9, 2002,
Lexis Nexis, http://www.lexisnexis.com.
45
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corporate America’s anti labor stance.”49 Their destination was the regional office of the
National Labor Relations Board, which protesters refer to as “the last recourse for
workers who have been fired, demoted, or threatened while attempting to form a
union.”50 The rally in Boston was one of ninety held in thirty-eight cities across America
on the same day. It was estimated that around 50,000 workers participated in the rallies
across the US. The protestors cited “aggressive anti-union activities as well as weak
labor laws that carry ineffective penalties and low fines” as the reason union membership
continues to decrease annually.51
29 July 2005: Labor Unions Leave AFL-CIO and Form Change
to Win
In July 2005, three major labor unions left the AFL-CIO in the span of one week.
The unions include the United Food and Commercial Workers Union, the Teamsters, and
the Service Employees International Union.52 Together, the three unions represented four
million members of the AFL-CIO’s thirteen million members.53 The reason that the
unions give for leaving the organization is that they believe that the AFL-CIO “has not
moved aggressively to stop the decline of organized labor.”54 These unions along with
four others created the Change to Win Coalition. This coalition intends to revive the
labor movement by “mounting large, expensive, multi-union organizing drives against
large corporations.”55 This creation of Change to Win demonstrated a shift that the labor
unions of America were trying to make from being involved in politics to increasing
union membership and reviving the status an prestige of labor unions.
49
Diane Lewis, “4,500 Rally for Labor Rights Demonstrate Part of Effort to Promote Freedom to Join Unions,” The
Boston Globe, December 11, 2003, Lexis Nexis, http://www.lexisnexis.com.
50
Ibid.
51
Ibid.
52
Steven Greenhouse, “Third Union is Leaving AFL-CIO,” The New York Times, July 30, 2005, Lexis Nexis,
http://www.lexisnexis.com.
53
Ibid.
54
Ibid.
55
Ibid.
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18 January 2006: Labor Unions Form in Small Business
Labor unions are usually only present in large corporations, but workers at a small
sneaker chain in New York City successfully formed a union in 2006 after a yearlong
struggle.56 The ninety-five workers at Footco’s ten sneaker stores formed a union in
response to complaints regarding minimum wage violations. They used pressure tactics
such as working with community groups that threatened to boycott Footco’s stores and
they filed a complaint with then-Attorney General Eliot Spitzer.57 After months of
negotiations, the union and Footco agreed to a three-year contract that included increased
wages, vacation days, and health benefits for the workers. While this was a victory for
Footco employees, it also illustrates the profound impact unions can have on small
businesses. The increase in labor costs will total $2 million over the three years of the
contract, which represents a significant portion of Footco’s income.58 The strain that
labor unions can have on small businesses shows that, while labor unions are meant to
better the work environment, it is possible for unions to threaten small businesses.
1 March 2007: Employee Free Choice Act
The Employee Free Choice Act was passed by the House of Representatives by a
vote of 241-185, to change the manner in which union elections are held, a process which
is often marked by intimidation, harassment, and threats from employers towards workers
that support the formation of unions.59 Under the Act, if the majority of workers sign
cards authorizing a union, then a union is formed. The majority sign up process was
permitted before the act, but only if the employer allowed it.
Employers forced
employees to undergo an election process administered by the National Labor Relations
Board, in which “the deck [was] stacked heavily against pro-union workers.” Also
included in the Act are more severe penalties against employers that illegally fire or
56
Steven Greenhouse, “In Modern Rarity, Workers Form Union at Small Chain,” The New York Times, February 5,
2006, Lexis Nexis, http://lexisnexis.com.
57
Ibid.
58
Ibid.
59
“House Approves Employee Free Choice Act,” House Committee on Education and Labor, March 1, 2007,
http://www.house.gov/apps/list/speech/edlabor_dem/efcarel030107.html .
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discriminate against workers for their union activity, requiring employers to pay workers
who they have illegally fired, and allows employers and newly formed unions “to refer
bargaining to mediation and if necessary binding arbitration if they are not able to agree
on a first contract after 90 days of bargaining.”60
Projections and Implications
The future of labor unions will weigh heavily upon the outcome of the Employee
Free Choice Act. If passed, it has the potential to revitalize labor unions by making it
easier for workers to unionize. However, there is a possibility that the Employee Free
Choice Act will fail due to the weak economy. Thomas Donohue, president of the U.S.
Chamber of Commerce, has warned that it would be unwise for President Obama to
embrace the Employee Free Choice Act and other pro-union bills because, “it would raise
business cost … hurting companies when many are struggling.”61 Union leaders are
deeply committed to enacting this bill, and, just as surely, business leaders are committed
to defeating it.
Some of reasons for the decreasing number of labor unions will not change in the
foreseeable future. Some experts argue that competitive pressures from globalization and
technological change have resulted in the loss of jobs held mostly my members of labor
unions.62 Because there is little, if anything, Congress can do to address these issues
there is a very good possibility the number of union members will continue to decrease
simply because their jobs no longer exist.
Actors and Interests
Labor Unions
The interest of labor unions is identical to that of many American workers. Labor
unions have always been at the forefront of ensuring that America’s workforce received
60
Ibid.
Steven Greenhouse, “After Push for Obama, Unions Seek New Rules,” The New York Times, November 9, 2008,
Lexis Nexis. http://www.lexisnexis.com.
62
“A Hopeful Year for Unions,” The New York Times, February 7, 2008, Lexis Nexis, http://www.lexisnexis.com
61
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proper treatment while at work. Their actions have been beneficial because workers who
are members of unions typically earn 23.1 per cent more per week than nonunion
workers.63 Their efforts are needed because an average of 4.2 million American workers
are injured on the job each year and more than 5,700 are killed.64
In February 2008, 3,650 members of the United Automobile Workers went on
strike at two factories owned by the American Axle Corporation in Michigan and at three
in New York.65 American Axle wanted to cut wages in half, which they felt was
necessary in order to remain competitive and buy out some employees. The U.A.W. was
angered by this plan because they thought that the workers were worth more than the
company was willing to pay. American Axle was also going to reduce the benefits of the
workers. Being a member of a labor union makes striking more effective because, by
striking as one unit, an entire business or industry can be shut down.
Although strikes are meant to help workers, strikes often have unintended
consequences for people other than management. The American Axle strike caused six
General Motors plants to shut down because the strike caused them to run out of parts.66
As a result of this strike, 16,000 workers at General Motors and their suppliers were
temporarily laid off. The Lear Corporation, which makes seats for automobiles, was
forced to temporarily lay off 1,000 workers. Other corporations were forced to lay off
workers because they relied on GM to produce the parts necessary for their operations. A
union is meant to protect its members, but other workers who are not members of unions,
or those further down the supply chain, can feel the effects of a union strike.
63
Eduardo Porter, “Unions Pay Dearly for Success,” The New York Times, January 29, 2006, Lexis Nexis,
http://www.lexisnexis.com.
64
“House Democrats Introduce Legislation to Boost Workplace Safety,” House Committee on Education and Labor,
April 26, 2007, Lexis Nexis, http://www.lexisnexis.com.
65
Nick Bunkley, “American Axle and Union to Hold Strike Negotiation,” The New York Times, March 6, 2008,
Lexis Nexis, http://www.lexisnexis.com
66
Ibid.
69
Steven Greenhouse, “Seven Unions As Labor Board to Order Employers to Bargain,” The New York Times,
August 15, 2007, Lexis Nexis, http://www.lexisnexis.com
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Labor unions also act as a mediator when workers and businesses come to a
disagreement. When a contract requires bargaining between employees and employers,
members of the labor union act as a representative for all employees.69 This bargaining
can either prevent a strike or be the means to end a strike.
Private Businesses
While most businesses pay and treat their employees fairly, the primary goal of a
corporation is to increase shareholder wealth. This goal sometimes prevents management
from guaranteeing workers everything they want. Many businesses cooperate with labor
unions because they need employees to continue to operate, and employees need
businesses so they can earn a living. With America’s current unstable economy, it is
difficult for businesses to guarantee higher wages and better benefits .70 For this reason,
it is sometimes necessary for businesses to consider what is most important for them, and
then deal with the repercussion from their employees.
Since the primary interest of a business is to make money, it is not always to their
benefit to have their employees as members of labor unions. Delta Air Lines had a fourth
quarter loss of $2 billion and was forced to end its pilots’ pension plan. Had they not
eliminated the pension expenses Delta would have lost an additional $179 million.71
Although it hurt their workers, it was necessary to avoid bankruptcy. In 2007, Delphi,
one of the leading businesses in auto parts, cut hourly wages from $27 to $14 for its
17,000 workers.72 Although this hurt its workers, the union agreed to the salary cut and
reduction in benefits because they wanted to keep their jobs. The financial status of the
company was so desperate that they were forced to close ten of their twenty-one facilities.
During desperate times, unions will often willingly accept cuts proposed by businesses, at
least in the shot run.
70
Ibid.
“Pension Cost Widen Loss At Delta Air,” The New York Times, February 15, 2007.
72
Sholnn Freeman, “Delphi Union Accepts Pay Cuts; Deal May Help Auto Parts Company Exit Bankruptcy,” The
Washington Post, June 30, 2007, Lexis Nexis, http://www.lexisnexis.com.
71
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Federal Lawmakers
Democrats and Republicans have different views of labor unions and have let their
differences be known through the legislation that they support. Republicans have a long
history of being pro-business while Democrats are known for supporting labor unions.
With a Democratically controlled Congress in 2007, the Protecting America’s Workers
Act passed, increasing the penalties “against employers for repeated and willful
violations of the law, including making felony charges available when an employer’s
repeated and willful violation of the law leads to a workers heath or serious injury.”73
The act also includes clauses to protect employees at work by providing them with safety
equipment such as goggles, gloves and respirators.74
The Employee Free Choice Act is a piece of legislation that has split Congress
along party lines. When the House of Representatives voted on the legislation in March
2007, it passed with thirteen Republicans voting in favor of the act and only two
Democrats voting against.75 The Republicans refer to it as “the employee intimidation
act” because it does away with secret ballot elections.76 The bill failed in the Senate as a
result of a filibuster by the Republican Party. President Bush also stated that he would
veto the bill if it passed in the Senate. However, President Barack Obama, who received
campaign contributions from many labor unions, was a strong supporter of the bill
throughout his campaign.77 Democrats believe that the new process of sign-up cards is
going to rebuild unions and strengthen the middle class. Democratic Speaker of the
House Nancy Pelosi (D-CA) referred to the bill as “the most important labor law reform
legislation of this generation” and claims that the bill is not just about labor laws but also
about basic workers rights.78
73
“House Democrats Introduce Legislation to Boost Workplace Safety,” House Committee on Education and Labor,
April 26, 2007, Lexis Nexis, http://www.lexisnexis.com.
74
Ibid.
75
Steven Greenhouse, “House Passes Top Priority of Union,” The New York Times, March 2, 2007, Lexis Nexis,
http://www.lexisnesxis.com.
76
Ibid.
77
Michael Fletcher, “Battle Intensifies Over Bill to Expedite Union Organizing,” The Washington Post, October 24,
2008, Lexis Nexis, http://www.lexisnexis.com.
78
Ibid.
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The current financial situation of the U.S. will present problems for Congress in
passing the legislation.
By passing the Employee Free Choice Act, Congress risks
alienating America’s businesses, which could endanger cooperation and coalition
building that is desperately needed to repair the economy.79 This situation illustrates the
conflicting interests of lawmakers. If a majority of their constituents are members of
unions, or work in blue collar jobs it is in their best interest to support all legislation that
is pro-union, even though the long-term economic impact of unions may hurt these same
constituents.80
79
80
Dan Morain, “Union Want New Rules of Organizing,” The Los Angeles Times, November 16, 2008.
Ibid.
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Conclusion
The interaction between labor unions and private businesses is multifaceted.
Although legislation has been passed to regulate the relationship tensions still exist. Each
needs the other to succeed, but they have different goals and interests which sometimes
results in a conflict. Businesses want to make a profit and be successful, which is
sometimes complicated by the preservation of the rights and benefits of their employees.
The benefits requested by labor union are often reasonable, but can financially burden the
business. There are also certain businesses that exploit, in which case unions can act as a
strong check on power. Change needs to be made to the communication between the two
parties for businesses and the workforce to succeed.
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Discussion Questions
• Are labor unions still needed in the current workforce?
• How prevalent should labor unions be in the working environment?
• Has previous legislation been successful in protecting the rights of workers and labor
unions?
• What consequences should businesses receive for treating its employees badly?
• How can you ensure that these consequences are implemented?
• Should labor unions have to cut back on demands if the business is suffering?
• What labor laws does your state have? How are they related to federal labor laws?
• Does your states have any laws regarding the rights of labor unions and workers?
• How can the government make sure workers are being treated properly at work?
• What should be done to businesses that prohibit unionization?
• Should regulations be placed on the action of labor unions?
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Bibliography
For Further Reading
Bennett, James and Bruce Kaufman . “The Future of Private Sector Unionism in the
United States.” New York: M.E. Sharpe, 2002.
James Bennett and Bruce Kaufman’s book looks at the rise and fall of labor
unions. It goes in to detail about what actions labor unions need to take to
survive and acknowledges that labor unions are not as necessary as they
used to be with the development of human resources and other outlets for
employees.
Ness, Immanuel and Stuart Eimer. “Central Labor Councils and the Revival of American
Unionism.” New York: M.E. Sharpe, 2001.
This book talks about the AFL-CIO and other powerful labor unions effort
to create local labor unions to increase the power of the union and union
membership. It also provided a history of the labor movement.
Rutgers Model Congress
20
Works Cited
Bunkley, Nick. “American Axle and Union to Hold Strike Negotiation.” The New York
Times, March 6, 2008, Lexis Nexis, http://www.lexisnexis.com
Bunkley, Nick. “Some White Collar G.M. Retirees Scramble as Health Care is Cut Off.”
The New York Times, November 10, 2008, Lexis Nexis,
http://www.lexisnexis.com.
Carroll, Joseph. “Americans in Labor Unions: Who wears the union label?” Gallup Poll,
August 20, 2005, http://www.gallup.com/poll/18217/Americans-LaborUnions.aspx
“Cintas,” Change to Win, http://www.changetowin.org/why-organize/corporate-hall-ofshame/cintas.html
Feulner, Ed. “Unions: What Works, What Doesn’t.” The Washington Times, September 1,
2008, Lexis Nexis, http://www.lexisnexis.com
Fletcher, Michael. “Labor, Business Battle Over Bill to Strengthen Unions.” Washington
Post, October 19, 2008, Lexis Nexis. http://www.lexisnexis
Freeman, Sholnn. “Delphi Union Accepts Pay Cuts; Deal May Help Auto Parts Company
Exit Bankruptcy.” The Washington Post, June 30, 2007, Lexis Nexis,
http://www.lexisnexis.com.
Gould, William. “Better Laws to Settle the Port Labor Dispute.” The New York Times,
October 10, 2002, Lexis Nexis, http://www. lexisnexis.com.
Greenhouse, Steven. “After Push for Obama, Unions Seek New Rules.” The New York
Times, November 9, 2008, Lexis Nexis. http://www.lexisnexis.com.
Greenhouse, Steven. “Corruption Tests Labor While it Recruits.” The New York Times,
January 2, 1999, Lexis Nexis, http://www.lexisnexis.com
Greenhouse, Steven. “Edward Hanley, 67, Longtime Union Leader.” The New York
Times, January 16, 2000,
http://query.nytimes.com/gst/fullpage.html?res=9D01E0DB113AF935A25752C0
A9669C8B63
Rutgers Model Congress
21
Greenhouse Steven. “House Passes Top Priority of Union.” The New York Times, March
2, 2007, Lexis Nexis, http://www.lexisnesxis.com.
Greenhouse, Steven. “In Modern Rarity, Workers Form Union at Small Chain.” The New
York Times, February 5, 2006, Lexis Nexis, http://lexisnexis.com.
Greenhouse, Steven. “Labor Seeks Boost from Pro-Union Measure.” The New York
Times, February 23, 2007. Lexis Nexis, http://www.lexisnexis.com.
Greenhouse, Steven. “Report Assails Wal-Mart Over Unions.” The New York Times, May
1, 2007, Lexis Nexis, http://www.lexisnexis.com.
Greenhouse, Steven. “Seven Unions As Labor Board to Order Employers to Bargain.”
The New York Times, August 15, 2007, Lexis Nexis, http://www.lexisnexis.com.
Greenhouse, Steven. “Sharp Decline in Union Members in ’06,” The New York Times,
January 26, 2007, Lexis Nexis, http://www.lexisnexis.com.
Greenhouse, Steven. “Teamsters Offer Plan to Reshape Labor Future.” The New York
Times, December 9, 2004, Lexis Nexis. <http://www.lexisnexis.com>
Greenhouse, Steven. “Third Union is Leaving AFL-CIO.” The New York Times, July 30,
2005, Lexis Nexis, http://www.lexisnexis.com.
“House Approves Employee Free Choice Act,” House Committee on Education and
Labor, March 1, 2007,
http://www.house.gov/apps/list/speech/edlabor_dem/efcarel030107.html .
“House Democrats Introduce Legislation to Boost Workplace Safety.” House Committee
on Education and Labor, April 26, 2007, Lexis Nexis, http://www.lexisnexis.com.
Isidore, Chris. “GM: Almost out of Cash.” CNNMoney.com, November 7, 2008,
http://money.cnn.com/2008/11/07/news/companies/gm/?postversion=2008110716.
Kirchhoff, Sue. “Coast Ports Reopened as Bush Intervenes Judge Agrees to Issue a
Restraining Order.” The Boston Globe, October 9, 2002, Lexis Nexis,
http://www.lexisnexis.com.
Kuttner, Robert. “Comeback Attempt for the Labor Movement,” The Boston Globe,
March 31, 2007, Lexis Nexis, http://www.lexisnexis.com.
Rutgers Model Congress
22
“Labor Unions,” University of San Diego,
<http://history.sandiego.edu/gen/soc/labor.html>
Lawrence, Jill. “Besieged Labor Unions Rethink Future.” USA Today, September 1, 2005,
http://www.usatoday.com/news/nation/2005-09-01-labor-unions-future_x.htm
Lewis, Diane. “4,500 Rally for Labor Rights Demonstrate Part of Effort to Promote
Freedom to Join Unions.” The Boston Globe, December 11, 2003, Lexis Nexis,
http://www.lexisnexis.com.
Morain, Dan. “Union Want New Rules of Organizing,” The Los Angeles Times,
November 16, 2008.
McLaughlin, Seth. “Weakened House GOP Regains Purpose,” The Washington Times,
February 1, 2008, Lexis Nexis, http://www.lexisnexis.com.
“Pension Cost Widen Loss At Delta Air,” The New York Times, February 15, 2007
Porter, Eduardo. “Unions Pay Dearly for Success.” The New York Times, January 29,
2006, Lexis Nexis, http://www.lexisnexis.com.
“Protecting Workers Safety and Health,” House Committee on Education and Labor,
http://edlabor.house.gov/micro/workersafety.shtml
Ramstack, Tom. “Bush Step In To Halt West Coast Shutdown; Ports Could Resume
Operating Today.” The Washington Times, October 8, 2002, Lexis Nexis,
http://www.lexisnexis.com.
Sanger, David. “President Invokes Taft Hartley Act to Open 29 Ports.” The New York
Times, October 9, 2002, Lexis Nexis, http://www.lexisnexis.com.
“The Labor-Management and Disclosure Act of 1959,” U.S. Department of Labor,
http://www.dol.gov/compliance/laws/comp-lmrda.htm.
“Union Facts,” American Federation of Labor- Congress of Industrial Organization,
<http://aflcio.org/aboutus/faq/>
Rutgers Model Congress
23
Works Consulted
Bunkley, Nick. “American Axle and Union to Hold Strike Negotiation.” The New York
Times, March 6, 2008, Lexis Nexis, http://www.lexisnexis.com
Bunkley, Nick Bunkley. “Some White Collar G.M. Retirees Scramble as Health Care is
Cut Off.” The New York Times, November 10, 2008, Lexis Nexis,
http://www.lexisnexis.com.
Carroll, Joseph. “Americans in Labor Unions: Who wears the union label?” Gallup Poll,
August 20, 2005, http://www.gallup.com/poll/18217/Americans-LaborUnions.aspx
“Cintas,” Change to Win, http://www.changetowin.org/why-organize/corporate-hall-ofshame/cintas.html
Dickson, David. “Unions Gain Optimism on Political Front; Movement Reverses Long
Decline.” The Washington Times, September 1, 2008, Lexis Nexis,
http://www.lexisnexis.com
Feulner, Ed. “Unions: What Works, What Doesn’t.” The Washington Times, September 1,
2008, Lexis Nexis, http://www.lexisnexis.com
Fletcher, Michael. “Labor, Business Battle Over Bill to Strengthen Unions.” Washington
Post, October 19, 2008, Lexis Nexis. http://www.lexisnexis
Freeman, Sholnn. “Delphi Union Accepts Pay Cuts; Deal May Help Auto Parts Company
Exit Bankruptcy.” The Washington Post, June 30, 2007, Lexis Nexis,
http://www.lexisnexis.com.
Gould, William. “Better Laws to Settle the Port Labor Dispute.” The New York Times,
October 10, 2002, Lexis Nexis, http://www. lexisnexis.com.
Greenhouse, Steven. “After Push for Obama, Unions Seek New Rules.” The New York
Times, November 9, 2008, Lexis Nexis. http://www.lexisnexis.com.
Rutgers Model Congress
24
Greenhouse, Steven. “Corruption Tests Labor While it Recruits.” The New York Times,
January 2, 1999, Lexis Nexis, http://www.lexisnexis.com
Greenhouse, Steven. “Edward Hanley, 67, Longtime Union Leader.” The New York
Times,January16,2000,http://query.nytimes.com/gst/fullpage.html?res
=9D01E0DB113AF935A25752C0A9669C8B63
Greenhouse Steven. “House Passes Top Priority of Union.” The New York Times, March
2, 2007, Lexis Nexis, http://www.lexisnesxis.com.
Greenhouse, Steven. “In Modern Rarity, Workers Form Union at Small Chain.” The New
York Times, February 5, 2006, Lexis Nexis, http://lexisnexis.com.
Greenhouse, Steven. “Labor Seeks Boost from Pro-Union Measure.” The New York
Times, February 23, 2007. Lexis Nexis, http://www.lexisnexis.com.
Greenhouse, Steven. “Report Assails Wal-Mart Over Unions.” The New York Times, May
1, 2007, Lexis Nexis, http://www.lexisnexis.com.
Greenhouse, Steven. “Seven Unions As Labor Board to Order Employers to Bargain.”
The New York Times, August 15, 2007, Lexis Nexis, http://www.lexisnexis.com.
Greenhouse, Steven. “Sharp Decline in Union Members in ’06,” The New York Times,
January 26, 2007, Lexis Nexis, http://www.lexisnexis.com.
Greenhouse, Steven. “Teamsters Offer Plan to Reshape Labor Future.” The New York
Times, December 9, 2004, Lexis Nexis. <http://www.lexisnexis.com>
Greenhouse, Steven. “Third Union is Leaving AFL-CIO.” The New York Times, July 30,
2005, Lexis Nexis, http://www.lexisnexis.com.
“House Approves Employee Free Choice Act,” House Committee on Education and
Labor, March 1, 2007,
http://www.house.gov/apps/list/speech/edlabor_dem/efcarel030107.html .
“House Democrats Introduce Legislation to Boost Workplace Safety.” House Committee
on Education and Labor, April 26, 2007, Lexis Nexis, http://www.lexisnexis.com.
Isidore, Chris. “GM: Almost out of Cash.” CNNMoney.com, November 7, 2008,
http://money.cnn.com/2008/11/07/news/companies/gm/?postversion=2008110716.
Rutgers Model Congress
25
Kirchhoff, Sue. “Coast Ports Reopened as Bush Intervenes Judge Agrees to Issue a
Restraining Order.” The Boston Globe, October 9, 2002, Lexis Nexis,
http://www.lexisnexis.com.
Kuttner, Robert. “Comeback Attempt for the Labor Movement,” The Boston Globe,
March 31, 2007, Lexis Nexis, http://www.lexisnexis.com.
“Labor Unions,” University of San Diego,
<http://history.sandiego.edu/gen/soc/labor.html>
Lambro, Donald. “Courting Union Votes.” The Washington Times, August 11, 2008,
Lexis Nexis, http://www.lexisnexis.com
Lawrence, Jill. “Besieged Labor Unions Rethink Future.” USA Today, September 1, 2005,
http://www.usatoday.com/news/nation/2005-09-01-labor-unions-future_x.htm
Lengell, Sean. “House Bill Eases Union Sign-Ups.” The Washington Times, February 6,
2007, Lexis Nexis, http://www.lexisnexis.com
Lewis, Diane. “4,500 Rally for Labor Rights Demonstrate Part of Effort to Promote
Freedom to Join Unions.” The Boston Globe, December 11, 2003, Lexis Nexis,
http://www.lexisnexis.com.
Morain, Dan. “Union Want New Rules of Organizing,” The Los Angeles Times,
November 16, 2008.
McLaughlin, Seth. “Weakened House GOP Regains Purpose,” The Washington Times,
February 1, 2008, Lexis Nexis, http://www.lexisnexis.com.
“Pension Cost Widen Loss At Delta Air,” The New York Times, February 15, 2007
Porter, Eduardo. “Unions Pay Dearly for Success.” The New York Times, January 29,
2006, Lexis Nexis, http://www.lexisnexis.com.
“Protecting Workers Safety and Health,” House Committee on Education and Labor,
http://edlabor.house.gov/micro/workersafety.shtml
Ramstack, Tom. “Bush Step In To Halt West Coast Shutdown; Ports Could Resume
Operating Today.” The Washington Times, October 8, 2002, Lexis Nexis,
http://www.lexisnexis.com.
Rutgers Model Congress
Sanger, David. “President Invokes Taft Hartley Act to Open 29 Ports.” The New York
Times, October 9, 2002, Lexis Nexis, http://www.lexisnexis.com.
Silke, Sharon. “Autoworkers Maintain They’re Willing to Strike; Industry Watchers
Debate Likelihood of Labor Action.” USA Today, September 21, 2007, Lexis
Nexis. http://www.lexisnexis.com
Silke, Sharon. “New Chrysler CEO Could Raise Tension With UAW.” USA Today,
August 7, 2007, Lexis Nexis, http://www.lexisnexis.com
“The Labor-Management and Disclosure Act of 1959,” U.S. Department of Labor,
http://www.dol.gov/compliance/laws/comp-lmrda.htm.
“Union Facts,” American Federation of Labor- Congress of Industrial Organization,
<http://aflcio.org/aboutus/faq/>
26