After reading the AFL-CIO briefing memo, I decided to do some research. Following are some of the facts and opinions of organizations and people who are non-partisian when viewing the roles of unions:
In 2002, 13.2 percent of wage and salary workers were union members, down
from 13.4 percent (as revised) in 2001, the U.S. Department of Labor's Bureau
of Labor Statistics reported today. The number of persons belonging to a
union fell by 280,000 over the year to 16.1 million in 2002. The union mem-
bership rate has steadily declined from a high of 20.1 percent in 1983, the
first year for which comparable union data are available.
The following thoughts were written by Robert Hunter. He is the former director of labor policy for the Mackinac Center for Public Policy, a Midland-based nonprofit, nonpartisan research and educational institute dedicated to advancing free market solutions to Michigan public policy problems:
In recent years, the federal government has deregulated heavily unionized industries including the trucking, railroad, and airline industries. Deregulation has brought greater competition in this industries not only domestically but also from abroad. No longer is the U. S. free from global competitive pressures, as many argue it was in the years following World War II. Economic globalization has resulted in large-scale layoffs and growing economic insecurity for workers, particularly in these historically unionized industries. This in turn has limited union efforts to raise their members' wages and benefits. For example, trucking deregulation hit the Teamsters union hard because competition meant that trucking firms could no longer keep their prices high enough to support the Teamsters' wage premiums. The new competitive labor market freed nonunion truckers from the roadblocks they faced in getting jobs. In the seven years since trucking deregulation began in earnest, the share of truckers who belonged to unions fell by more than half, to 28 percent.
Officials in the organized labor movement consistently state that the two greatest causes for the continuing decline in union membership are the anti-union attitudes of employers and weaknesses in the National Labor Relations Act that make employee organizing difficult and provide ineffective remedies for employer labor law violations. Close scrutiny reveals, however, that the principal cause of labor union decline is not so much employer attitudes or the country's labor laws, but rather a lack of worker support for unions.
Moreover, unions consistently lose more than half of all decertification elections—the elections in which employees vote to determine whether they wish their existing union to continue representing them.
Morgan Reynolds, the former chief economist at the US Department of Labor wrote,
"For more than a century now, labor unions have been celebrated in folk songs and popular myth as fearless champions of the downtrodden working man, while "the bosses" are depicted as coldhearted exploiters of employees. But from the standpoint of economists—including many who are avowedly pro-union—unions are simply cartels that raise wages above competitive levels by capturing monopolies over who companies can hire and what they must pay.
Many unions have won higher wages and better working conditions for their members. In doing so, however, they have reduced the number of jobs available. That second effect is because of the basic law of demand: if unions successfully raise the price of labor, employers will purchase less of it. Thus, unions are the major anticompetitive force in labor markets. Their gains come at the expense of consumers, nonunion workers, the jobless, and owners of corporations."
Lindy asks, "What does all this mean?" Yes, unions do raise wages and protect benfits. However, there is a price to pay. When these wages/benefits become too expensive, companies do one of three things: a) look for cheaper labor(China/Mexico), B) reduce the work force, c) shut down (steel mills in Pa. and textile mills in the Carolinas).
In our industry, deregulation has been the instigator of significant change. Most recently, two non-union airlines have become the darlings of Wall Street: Air Tran and Jet Blue. I know, Southwest is unionized and successful. However, chinks in the armor of Southwest are beginning to develop.
So, as we celebrate Labor Day, the one thing I want most from my union is for them to realize the changes taking place in the market place. Develop and employ
new stratagies that enhance the competive nature of the Company. The old style negotiating tactics of Samuel Gompers and Jimmy Hoffa(stomping out of a negotiating session) are not relavent in today's environment.
Happy Holiday to all..Lindy