Youth Brigade Week 5

1. Youth Brigade Week 5 • From Unionized Times to Troubled Times • Explaining Union Decline: Some Detective Work • Final Choices: The Future of Organized Labor • Field Trip: • Solidarity in America: Expanding Freedom From White Guys to You Folks • Constitution Center & Liberty Bell • "We must all hang together, or assuredly we shall all hang separately" – Ben Franklin

2. In 1955 the AFL and the CIO join to form the AFL-CIO

3. America Moves From Violent Class Conflict to Negotiating over a Bargaining Table…

4. Sharing the Profits

5. The “Great Compression” Bring More Equality

6. Unions Make a Difference MEDIAN WEEKLY EARNINGS OF FULL-TIMEWAGE AND SALARY WORKERS, 2000

7. Unions Make a Difference (Pct. Of Workers, March 2003) http://stats.bls.gov/news.release/ebs2.t01.htm

8. But Here’s the Rub…The Percent of Workers Who Belong to Unions Has Decreased…a lot! 2006 2006 1935 1945 1955 1965 1975 1985 1995 1930 1940 1950 1960 1970 1980 1990 2000 Source: Department of Labor, Bureau of Labor Statistics, Handbook of Labor Statistics, 1980. Also, Department of Labor, Bureau of Labor Statistics, January various years.

9. Lower union density…Lower wages

10. Less Unions…More Inequality • Top 10% take ½ the pay • Room with 10 people, one guy takes ½ the pay

11. Less Unions…More Inequalilty • By 2005, CEO pay had grown to 411 times the average worker’s pay • In 1980, CEO pay equaled 42 times the average blue collar worker’s pay. Sources: Business Week; New York Times; U.S. Bureau of Labor Statistics

12. Top 1% of our society controls 35% of wealth Gates, Trump, Hilton Top 5% controls 62% Top 10% controls 73% The rest of us split what’s left… Less Unions…More Inequality

13. Understanding Union Decline • America develops a “Post Industrial Economy” • The new economy develops with low levels of unionization

14. Explaining the puzzle? • Why do you think the percentage of workers in unions has declined? • What theories can you develop? • Who or what might be responsible?

15. The Four Main Suspects • Changes in the Economy…maybe all the union jobs disappeared? • Changes in workers…maybe they don’t want unions anymore? • Changes in unions…maybe they stopped trying to grow? • Changes in management…maybe they’re less tolerant of unions?

16. Changes in the Economy: Automation and the Post Industrial Economy • Replace union labor with machines • Technological innovation • US Steel, 1980 120,000 workers • US Steel, 1990 20,000 workers • That’s 100,000 fewer union members • Yet same output • Similar trends in auto and other manufacturing sectors

17. Changes in the Economy: Globalization and the Post Industrial Economy • Globalization • “In China, auto part workers earn about $3 an hour. In the US, they earn $29 an hour in wages and benefits.” (Competition From China, PI 3/26/06) • This puts tremendous pressure on companies to relocate…or to roll back wages and benefits in US

18. Globalization and Economic Restructuring… • Percentage of Manufacturing Jobs Lost Between 1967 and 1987 alone • Philadelphia 64% 160,000 • Chicago 60% 500,000 • New York 58% >500,000 • Detroit 51% 108,000 • By 2005, NYC had lost 1 million manufacturing jobs…many of them very good union jobs • This has a devastatingeffect on the working class…African Americans in northern cities hit particularly hard…

19. Explaining the Decline of Unions… • At first glance…the fact that unionized manufacturing jobs disappearedseems like enough information to explain union decline…but its not.. • Estimates are that it explain about 20% of the decline • Very same changes have occurred in all advanced industrial capitalist nations, but union density has not fallen in the same way. • Note the next slide…

20. Union Density Compared • Union Density, 2002 • Canada 32% • US was 13.3%

21. The Four Main Suspects • Changes in the Economy…maybe all the union jobs disappeared? • Changes in workers…maybe they don’t want unions anymore? • Changes in unions…maybe they stopped trying to grow? • Changes in management…maybe they’re less tolerant of unions?

22. Workers Approve of Unions

23. Many, if not Most Workers, Want a Union: The Representation Gap

24. The Four Main Suspects • Changes in the Economy…maybe all the union jobs disappeared? • Changes in workers…maybe they don’t want unions anymore? • Changes in unions…maybe they stopped trying to grow? • Changes in management…maybe they’re less tolerant of unions?

25. The Context: “Hourglass” Economy • Some Service Jobs are High Skill/High wage jobs • Computer tech, manager, accountant, nurse • Many Service Jobs are Low skill/Low wage jobs • Janitor, Sales clerk, daycare, nurses aide, security

26. Once Again…Choices… • It’s 1985, and you are a union leader committed to addressing issues of inequality and fairness in society. You believe that all workers should be able to live with dignity, make a decent living, have fair hours and hve safe working conditions. The manufacturing industries that were once the backbone of the labor movement are disappearing, and service sectors jobs ranging from janitors, waiters and sales clerks to lawyers, computer technicians and software designers are expanding. Some of these jobs are good, a lot of these jobs are awful. • As a union leader, what do you do to reverse the decline of unions so you can protect working families?

27. Organize, Organize Organize!!! Or maybe not…First puzzle piece… • George Meany, President of the AFL-CIO dismissed concerns about organizing new workers • “I don’t know, I don’t care…Why should we worry about organizing groups of people who do not appear to want to be organized...I used to worry about…the size of the membership…I stopped worrying because it doesn’t make any difference…The organized fellow is the fellow that counts” (Freeman 2007: 77)

28. Faced with crisis…Unions actually organize less… • Few resources devoted to organizing new workers • Anyone been to the 23rd floor • Fewer elections for union representation held

29. 600000 500000 400000 300000 200000 100000 0 1965 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 Years Fewer Elections, Covering Fewer Workers, with Fewer Victories Number voted Number of Union Representation Elections Number Won 3-26

30. Fewer elections with fewer wins bring in fewer new union members

31. The Decline of Organized Labor… • Ok…so part of the reason for union decline is that unions dropped the ball… • But how come they used to win 75% of the elections and now they only win 50%?

32. The Four Main Suspects • Changes in the Economy…maybe all the union jobs disappeared? • Changes in workers…maybe they don’t want unions anymore? • Changes in unions…maybe they stopped trying to grow? • Changes in management…maybe they’re less tolerant of unions?

33. Organizing Unions • Law requires that at least 30 percent of the election unit must have signed an authorization card to schedule an election • Most unions will not file for an election without 50% or more… • Organizers usually want 65% of workers to sign union cards • So…100 workers, 65 signed a union card…you would think the union would win the election…

34. General Motors, 1969 CEO salary in today’s dollars, $4.3 million 107 times as much as the typical worker Workers salary, $40,000+ health care and pension A Middle Class Wage Walmart, 2005 5 of 10 wealthiest people on the planet are Waltons $20 to $40 billion fortunes CEO Salary in 2005, $23 million 5 times GM CEO 1,277 typical worker Workers salary, approx. $18,000 Most lack health care and pensions A Poverty Wage Let’s Consider a Concrete Case: Walmart

35. Choices… • You manage a Walmart. You make $150,000 a year and have good health care and benefits. The CEO of Walmart has made it clear that Walmart must remain a union free company. If your store goes union, you’ll most likely lose your job. You know that when a Walmart in Quebec Canada was unionized, headquarters closed the store. • About a two months ago you noticed that Jane and Joe started wearing SEIU buttons to work. Slowly more “associates” started wearing SEIU buttons. Now you have learned that SEIU has gathered union cards from 50% of your associates and submitted them to the National Labor Relations Board. An election has been set for one month. • What do you do now? Are there things you wished you would have done two month ago?

36. Let’s go to the videotape… • Take note of what you see…

37. Managerial Opposition • Management is rarely a passive observer during a union election • Research finds that 75 percentof employers engage in “active anti-union tactics” • Some of this opposition is legal…some of it is illegal…

38. Managerial Opposition… Termination • Fire union supporters (illegal…but not uncommon) • Research finds: • Occurs in 1 out of 3 organizing drives • 1 out of 36 pro-union voters discharged • Cost to Employer if they get caught breaking the law?

39. Cost to Employer if they get caught breaking the law? • Back wages minus what worker has earned while fired • 2 years to settle case costs you $36,000 • Work at Target making $35,900 • Walmart owes you $100 • Financial penalty is almost non-existent…it is cost effective to break the law…

40. Managerial Opposition…Stall • Delay Election often by challenging Structure of Bargaining Unit (legal and common) • Cashiers should be in a different union than stock boys…NLRB must investigate • Research finds: Longer the delay, the less inclined workers are to vote for the union

41. Managerial Opposition…Intimidate • Recent study of 1,000 union elections over 5 year period • “In 63 percent of campaigns, supervisors met with workers one on one and interrogated them about their union activity or whether they or others were supporting the union.”(legal) (Brofenbrenner 2009) • “In 54 percent of the elections, supervisors used these one-on-ones to threaten individual workers.” (illegal) (Brofenbrenner 2009)

42. Managerial Opposition… Forced Info • Captive Audience meetings-mandatory meetings during work (legal and common) • 91% require anti-union meetings • Can be held up to 24 hrs before vote • How does this compare to union access to workers?

43. Organizing the Unorganized Access to workers is a problem for unions Non-employees not permitted into worksite Outreach in a parking lot: not permitted • Evenbannedfrom retail public parking lot That leaves: lunch hour; after work, house visits…

44. Managerial Opposition • Research finds anti-union campaigns are effective…unions that start with 65% support often lose elections • But it gets worse…in the 50% of elections that unions win, no first contract is ever won • So…Unions lose 50% of the elections, and in 50% of the elections they win, they can not get a contract

45. It is not like this everywhere… • “Managers in other countries do not fight unions with anything like the resources and zeal of American managers” (Freeman 2007: 81) • In Denmark, Harvard Professor Richard Freeman asks to meet with anti-union firms…told that would not be possible, there are none. • Small Business Association prefers collective bargaining…it levels the playing field for firms to compete on non-wage dimensions? Translation?

46. Employers that don’t hate unions…? • If labor market is organized “wall to wall,” no one is at a competitive disadvantage • High unionization & extension laws create level playing field • NJ Grocery as an American example…96% of Supermarkets in NJ are unionized (PI 2/01/05) • Pathmark, Shoprite, Acme all compete…but not on the backs of their workers • These companies can live with their unions…but what do you think happens when Walmart starts opening up grocery stores…when unions are no longer wall to wall?

47. Employers that don’t hate unions…? • Walmart’s low wages and benefits are a threat to unionized firms and their workers • Union Stores (Acme, Shoprite, Pathmark, etc.) are demanding concessions from unions to remain competitive with Walmart • Also encouraging UFCW to organize Walmart • UFCW (United Food and Commercial Workers) has got a real problem…We’ll see if they solve it…

48. Union Decline…More Choices • Changes in the Economy • Changes in Union Behavior • Changes in Managements Behavior

49. Choices • You have just been elected to the SEIU Executive Board. Your job is to develop a strategy that will help rebuild the labor movement, and thereby improve the lives of working families? • What sorts of things do you think unions should do to rebuild the labor movement?

50. So what’s a labor movement to do? • At present, there are two dominant trains of thought: • Focus should be on External Changes: Unions need to focus on political action, in particular changing labor law to try and lift win rate • Focus should be on Internal Changes: Unions need to look in the mirror, change, spend more money & resources on organizing the unorganized and try new tactics