Outline

1. 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

2. 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

3. 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?

4. 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…

5. 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…

6. 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

7. 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

8. 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?

9. 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?

10. 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

11. 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

12. Good or Bad…Security Claues Help Union Density Grows…1 out of 3

13. 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

14. 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

15. 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.

16. 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?

17. 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

18. 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?

19. 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

20. 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?

21. 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

22. 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

23. 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?

24. 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…

25. 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?

26. 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

27. 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

28. 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”

29. 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?

30. 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)

31. 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

32. 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?

33. Right to Work and Union Density: Pattern? Right to Work States Are Grey

34. Right to Work State in Grey

35. Union Density by State - 2006 0% to 9% 10% to 20% 21% & over Source: Union Members In 2006, Bureau of Labor Statistics

36. 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

37. 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

38. Treaty of Detroit: Connecting Wages to Productivity

39. Next… • The “Golden Age” of American Capitalism • The Rise of Public Sector Unions

40. 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

41. 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

42. 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

43. 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?

44. 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 economyfor 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)

45. 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.

46. 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?

47. 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

48. 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)?

49. 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?

50. 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