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labor union

 

n.
An organization of wage earners formed for the purpose of serving the members' interests with respect to wages and working conditions.


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Association of workers for the purpose, in whole or in part, of bargaining, on behalf of workers, with employers about the terms and conditions of employment.

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A labor union is an organization of wage earners or salary workers established for the purpose of protecting their collective interests when dealing with employers. Though unions are prevalent in most industrialized countries, union representation of workers has generally declined in most countries over the past 30 to 40 years. In the United States, unions represented about one-third of all workers in the 1950s. Today, unions represent less than 15 percent of the labor force—and less than 10 percent of the labor force in the private sector (unions represented between 35-40 percent of public-sector workers in the late 1990s). But although labor unions are not as strong a force in the United States economy as they have been in earlier decades, they continue to be an important factor in American business.

Types of Unions

Unions can be categorized according to ideology and organizational forms. A distinction is often made between political unionism and business unionism. Although the goals and objectives of politically oriented unions may overlap those of business unions, political unions are primarily related to some larger working-class movement. Most political unions have some formal association with a working-class political party; these types of unions are more prevalent in Europe than they are in the United States. Contemporary American labor unions are best viewed as business unions. Business unions generally support the capitalist economic system and focus their attention on protecting and enhancing the economic welfare of the workers they represent, usually through some form of collective bargaining. According to U.S. law, unions can bargain with employers over wages, hours, and working conditions.

But while most American unions are classified as business rather than political unions, U.S. business unions often do have some involvement in nation's politics. Most large national unions are involved in lobbying and electoral activities at various levels of government, including the national level. However, such political efforts serve to supplement their principal economic goals. For example, many unions campaigned against passage of the North American Free Trade Agreement (NAFTA). The labor movement feared that NAFTA would undercut jobs of union workers and weaken the ability of unions to negotiate favorable contracts with employers.

The earliest unions in the United States were known as craft unions. Craft unions represent employees in a single occupation or group of closely related occupations. The members of craft unions are generally highly skilled workers. Examples of craft unions include the various skilled trades in the construction industry, such as carpentry, plumbing, and electrical work. Craft unions are most common in occupations in which employees frequently switch employers. A construction worker is usually hired to complete work at a specific job site and then moves on to work elsewhere (often for another employer). In addition to collective bargaining, craft unions often serve as a placement service for members. Employers contact the union's hiring hall and union members currently out of work are referred to the job.

Closely related to craft unions, though distinct in many respects, are professional unions. A professional is generally understood to be an employee with advanced and highly specialized skills, often requiring some credentials, such as a college degree and/or a license. Professional unions are much more recent than craft unions and are most common in the public sector. Teacher's unions are one of the most visible examples of this kind of union.

Most unionized workers in the United States belong to industrial unions. An industrial union represents workers across a wide range of occupations within one or more industries. A good example of a typical industrial union is the United Automobile Workers (UAW). It represents skilled craft workers, assembly-line workers, and unskilled workers in all of the major American automobile companies. The UAW negotiates separate contracts for workers in each of these companies. Although most industrial unions began by organizing workers in a single industry or group of related industries, most have diversified over the past 30 to 40 years. For example, the UAW also represents workers in the tractor and earthmoving equipment industry (e.g., Caterpillar and John Deere) and in the aerospace industry (e.g., Boeing), and in the late 1990s it added such disparate groups as the Graphics Artists Guild (3,000 members), the National Writers Union (5,000 members), and various service, technical, and graduate student employees at more than 20 colleges and universities across the country. In addition, the UAW and other national unions have increasingly sought to expand their influence into emerging high-tech sectors of the economy.

Another organizational form is the general union. General unions organize workers across all occupations and industries. Although some highly diversified unions, such as the Teamsters, may appear to be general unions at first glance, this form of organization does not really exist in the United States. Because they are typically politically oriented, general unions are more common in Europe and developing countries.

OPEN SHOP AND CLOSED SHOP. The term "open shop" refers to a company policy that does not restrict the business's employee work force to union members. "Closed shop," on the other hand, refers to a company that hires only union members. Under this latter arrangement, employees are required to join the existing union within a specified time after they have been hired.

Union Growth and Decline

Union membership in the United States has varied considerably throughout the country's history. Although unions have been in existence in some form in the United States for nearly 200 years, they did not attain any meaningful level of power and influence until the 1930s, when several factors combined to spur a dramatic rise in union growth (the unionization rate went from about 12 percent of the labor force in 1935 to between 32 percent and 35 percent in the mid-1950s):

  1. The American economy shifted from an agricultural to an industrial base; industrial workers, who were concentrated in urban areas and increasingly shared the same language (English), were thus able to create a common culture that was absent among earlier generations of workers.
  2. The Depression created a backlash against big business entities, who were viewed as the chief culprits for the country's economic difficulties.
  3. Changing political dynamics also played an important role. Active support for organized labor was an integral part of Roosevelt's New Deal, and the passage of the National Labor Relations Act (NLRA) in 1935 was a potent new weapon for union organizers. The NLRA provided a means for official recognition of labor unions. Once recognized, an employer was legally bound to bargain with the union, enforceable by government action.
  4. Economic growth during World War II and in the post-war era was an important facilitator of union growth.

By the mid-1950s, the most union-prone sectors of the American economy had largely been organized, and millions of workers saw improvements in their living standards as a direct result of union activity. Many economists observed that this rise in union fortunes helped non-union workers as well. "Collective bargaining has significantly improved the wages and working conditions of unionized and nonunionized workers," contended Levitan, Carlson, and Shapiro in Protecting America's Workers. "Other benefits of union representation include increased leisure, better medical coverage, and more secure pensions…. Finally, unions have helped nonunion workers by lobbying for legislation that grants all workers such protections as equal employment, safe and healthy workplaces, and secure pensions."

Unions maintained their strength at around one-third of the labor force until about 1960. Union membership declined gradually, decreasing to about 25 percent of the labor force in the mid-1970s. The rate of decline was much sharper in the 1980s, and by the year 2000 private sector union membership had declined to less than 10 percent of the total.

Factors often cited for the decline in union membership include the following:

  • Changing nature of the global economy. International competition has increased significantly over the past few generations, especially in sectors of the economy that were heavily unionized (e.g., automobiles, steel, and textiles). As these industries became more competitive globally, employer resistance to unions often increased. In addition, it became feasible for employers to relocate production facilities to areas of the country which have traditionally been less supportive of unionism (such as the southern and Mountain states) or overseas to less developed countries that have low wages and few unions. Finally, employment in traditionally nonunion industries expanded, while employment in heavily unionized sectors declined.
  • Shifting demographics of the labor force. In the 1930s, "blue collar" workers represented a large proportion of the labor force. Now "white collar" workers (i.e., managers, professionals, and clericals) are a very large component of the labor force. Historically, white collar workers have been more difficult to organize (except in the public sector).
  • Changing attitudes of government. As early as 1947, amendments were added to the NLRA that significantly expanded employer rights and limited the rights of unions. The best-known of these laws was the Taft-Hartley Act. Moreover, appointees to the National Labor Relations Board, which enforces the NLRA, became more promanagement in outlook during the 1970s and early 1980s. This trend, however, was slowed—and in some areas reversed—during the generally union-friendly Clinton administration (1993-2001).
  • Growing public and management perceptions that some union demands and attitudes were unreasonable.
  • Ineffective union organization efforts, despite continued belief in the legitimacy of labor unions among the American workforce.. "Labor leaders are partly to blame for the disconnect between pro-union sentiment and dwindling membership," charged Business Week. "For decades, they have focused on preserving jobs rather than organizing the fastest-growing parts of the economy, such as services and high tech."

By the mid-1990s, however, there were indications that America's leading unions had adopted more proactive measures in order to shore up existing membership and expand the presence of unions into high-tech "New Economy" sectors and other areas. This "revival" of organized labor, as some observers have dubbed it, is being studied closely by all sectors of American business and academia.

Industries Featuring Strong Union Presence

Unions have traditionally been strong in four sectors of the American economy: manufacturing, mining, construction, and transportation. They have lost substantial ground in all four of these sectors in the last few decades, however. In the transportation sector, an important factor has been deregulation, particularly in the trucking and airline industries. Substantial increases in competition in those industries have made it difficult for unions to negotiate favorable contracts or organize new units. In construction, the growth of nonunion contractors, able to hire qualified workers outside of the union hiring hall system, undercut union contractors. At one time, more than 80 percent of all commercial construction in the United States had been unionized; today, however, the percentage of workers engaged in construction that belong to unions is a fraction of that. Foreign competition, technological change, and played-out mines, meanwhile, have all weakened mining unions. In manufacturing, the whole range of factors previously discussed has been responsible for union decline. The only sector of the economy where unions have gained strength in recent years has been public employment. In the late 1990s, almost 40 percent of public employees at all levels of government—local, state, and federal—were unionized.

Internal Structure and Administration

Labor unions are complex and vary considerably with respect to internal structure and administrative processes. It is easiest to differentiate among three distinct levels within the labor movement: local unions, national unions, and federations.

LOCAL UNIONS. Local unions are the building blocks of the labor movement. Although there are some free-standing local unions, the vast majority of locals are in some way affiliated with a national or international union. Most craft unions began as local unions, which then joined together to form national organizations. Some major industrial unions also began as amalgamations of local unions, though it was generally more common for national organizations to be formed first, with locals to be established later.

The duties of a local union almost always include the administration of a union contract, which means assuring that the employer is honoring all of the provisions of the contract at the local level. In some instances, local unions might also negotiate contracts, although unions vary considerably in terms of the degree to which the parent union is involved in the negotiation process.

Another important function of the local union is servicing the needs of those represented by the union. If a worker represented by the union believes his or her rights under the union contract have been violated, then the union may intervene on that person's behalf. Examples of such situations include the discharge of an employee, failure to promote an employee according to a contract seniority clause, or failure to pay an employee for overtime. Virtually any provision of a contract can become a source of contention. The local union may try to settle the issue informally. If that effort is not successful, the union may file what is known as a grievance. This is a formal statement of the dispute with the employer; most contracts set forth a grievance procedure. In general, grievance procedures involve several different steps, with higher levels of management entering at each step. If the grievance cannot be settled through this mechanism, then the union may, if the contract allows, request a hearing before a neutral arbitrator, whose decision is final and binding.

Most craft unions have apprenticeship programs to train new workers in the craft. The local union, usually in cooperation with an employers' association, will be responsible for managing the apprenticeship program. In addition, local unions with hiring halls are responsible for making job referrals.

The jurisdiction of a local union depends to a large extent on the organizational form of the parent organization. Locals of industrial unions most often represent workers within a single plant or facility of a company (and thus are termed plant locals). For example, in the case of the UAW, each factory or production facility of each automobile manufacturer has a separate local union. In some instances, a factory may be so big that it requires more than a single local, but this is not usually the case.

In contrast to plant locals, local craft unions (as well as some industrial unions) are best described as area locals. An area local represents all of a union's members in a particular geographical region and may deal with many different employers. Area locals are typically formed for one of two reasons. First, members may in the course of a year work for a number of different employers, as in the case of craft unions. Consequently, it would be difficult, if not impossible, to establish and maintain a separate local in each work location. Second, members may work continuously for a single employer, but each employer or location may be too small to justify a separate local union. The latter case is more typical of some industrial unions. The size of the region served by a local union depends on the number of members available. In large metropolitan areas, an area local might serve only members in a particular city. In less densely populated regions, an area local may have a jurisdiction that covers an entire state.

Internal structures and administrative procedures differ between plant and area locals. In almost all local unions, the membership meeting represents the apex of power, as the officers of the union are accountable to the members much as the officers of a corporation are accountable to stockholders. However, in practice, membership participation in union affairs may be quite limited. In such instances, local union officers often enjoy considerable power.

Plant locals have a number of elected officials—usually a president, vice president, secretary, and treasurer. In almost all cases, the officers are full-time employees of the company the union represents, and the contract generally allows some release time for union affairs. In addition to the principal officers of the local, there are also a number of stewards. Stewards may be elected or appointed, depending upon the union. The steward serves as the everyday contact between the union and its rank-and-file members. If members have concerns about the affairs of the union, these may be voiced to the steward. The steward's most important responsibility is handling grievances. Should a worker represented by the union have a dispute with the employer over his or her rights under the contract, the steward has the initial responsibility of representing the worker. Usually the steward will discuss the matter with the employee's supervisor to see if the dispute can be resolved. If not, then a formal grievance may be filed, and it then proceeds through the grievance system. At higher levels in the grievance system the employee may be represented by a chief steward or union officers.

Area locals typically have more complex internal structures than plant locals. This is usually because of the large geographical region under the local's jurisdiction, along with the greater dispersion of members within the region. As in the case of plant locals, area locals hold periodic meetings in which the officials of the union are accountable to members. There are also elected officers in area locals, as well as stewards for the various work sites in the local's jurisdiction. The principal difference between a plant local and an area local is that the latter typically employs one or more full-time staff members to handle the affairs of the union on a daily basis. These staff members are usually called business agents. Given the dispersion of members over a large geographical area and the possibility that the local may be responsible for administering many different contracts, it is the business agent's responsibility to visit work sites regularly and deal with problems that may arise. The business agent may also be responsible for managing any apprenticeship programs and the union's hiring hall. Contracts are often negotiated directly by local unions and the business agents are usually responsible for these negotiations. In some unions, elected officers may serve as business agents, but normally business agents are separate staff members. Depending on the size of the local union, there may be a number of assistant business agents.

NATIONAL UNIONS. National unions are composed of the various local unions that they have chartered. Some unions have locals in Canada and therefore call themselves international unions. However, the terms international union and national union are generally used interchangeably.

As with local unions, the administrative structures of national unions vary considerably in complexity. One important factor is the size of the union: larger unions are structurally more complex. Structural complexity also differs between craft and industrial unions. Craft unions tend be smaller organizations that feature a decentralized decision-making structure. With craft unions, contracts usually have a limited geographical scope and are negotiated by local unions. The parent union can be of significant assistance, however. The national union pools the resources of local unions, thus helping out with things such as strike funds, and it may also provide research services and serve as the local union's voice in political matters at the national and state levels. In general, there are few intermediate units between the national office and the local craft unions. National officers, elected periodically, generally work on a full-time basis for the union. Such unions also hold national conventions, most often every couple of years. The officers of the national union are accountable to the convention, much as the officers of a local are accountable to membership meetings.

National industrial unions are typically more complex. They tend to be larger and have a more heterogeneous membership than craft unions (both in terms of skills and demographic traits). Although there are exceptions, contracts in industrial unions tend to be negotiated primarily by staff members from the national office. In many cases, the bargaining unit will include all locals from a particular company (across the entire country). Even if contracts are negotiated by locals, representatives from the national union will often participate in talks to assure that the contract conforms to patterns established by the national organization.

As with craft unions, national unions have periodic conventions and national officers. Depending on the union, the national officers may be elected directly by rank-and-file members or by some other body (such as convention delegates). National unions generally have a substantial paid staff who provide a variety of different services (e.g., research, legal representation, organizing new members, negotiating contracts, and servicing locals). National unions may also have one or more layers of hierarchy between the local unions and the national offices. For example, in the case of the UAW, there are different divisions responsible for the major industries in which that union represents workers. Within the automobile industry, there are divisions that correspond to each of the major manufacturers. There are other divisions that deal with the needs of special groups within the union (such as minority workers and skilled craft workers). Consequently, the structures of large industrial unions are often as complex as the companies with which they deal.

FEDERATIONS. A federation is an association of unions. It is not a union in the usual sense of the term. Rather, it provides a range of services to affiliated unions, much as an organization such as the National Association of Manufacturers provides services to its member firms.

Further Reading:

"All's Not Fair in Labor Wars." Business Week. July 19, 1999.

Dole, Carol. "The Effect of Unions on Hours and Employment." Atlantic Economic Journal. June 1998.

Lawler, J.J. Unionization and Deunionization: Strategy, Tactics, and Outcomes. Columbia, SC: University of South Carolina Press, 1990.

Levitan, Sar A., Peter E. Carlson, and Isaac Shapiro. Protecting American Workers: An Assessment of Government Programs. Washington, DC: Bureau of National Affairs, 1986.

Mills, Daniel Quinn. Labor-Management Relations. 5th ed., New York: McGraw-Hill, 1994.

Trombly, Maria, and Kathleen Ohlson. "Unions Take Aim at High-Tech Workers." Computerworld. August 14, 2000.

Troy, Leo. "Beyond Unions and Collective Bargaining." Working USA. January/February 2000.

Troy, Leo. "Why Labor Unions are Declining." Journal of Commerce and Commercial. September 1, 1994.

"Unions and Strikers: A Huge Nonproblem." Fortune. May 31,1993.

Worsham, James. "Labor's New Assault." Nation's Business. June 1997.

Labor unions are the major organizations pursuing the collective interests of workers in the areas of health and safety, especially in the mining, manufacturing, construction, health care, and transportation sectors. Beyond assisting members with their day-to-day needs through contract negotiation and administration, unions actively work for legislative and regulatory remedies for health and safety problems. Union influence extends far beyond the workplaces of the 14 percent of workers in the United States who are unionized. Unions bargain for specific improvements in working conditions; representation and systems for improving conditions, such as health and safety committees; and procedures for members to submit specific complaints to abate hazards. They also provide technical assistance, information, and training to members facing chemical or safety dangers. Additionally, traditional bargaining for hours of work, medical benefits, disability insurance, and job security positively impact the health status of workers.

Unions work politically for the passage and implementation of laws, standards, and regulations designed to improve working conditions and worker health. Early twentieth-century legislation included wage and hour laws, limitations on child labor and industrial home work, workers' compensation, and state labor departments to inspect workplaces for hazards. The labor movement united with public health and public interest groups to pass the Federal Coal Mine Health and Safety Act of 1969 and the Occupational Safety and Health Act of 1970, greatly expanding the federal presence in these areas. Unions have been the critical force behind most major Occupational Safety and Health Administration (OSHA) standards, providing evidence in the rulemaking record and initiating litigation to force rulemaking and to defend rules against industry opposition. Exposure standards spearheaded by the union movement include those for lead, formaldehyde, benzene, asbestos, blood-borne pathogens, and coke-oven emissions.

In the second half of the twentieth century, union and worker activity in occupational health greatly expanded. The environmental movement of the 1960s led workers to be concerned about the levels of chemical exposure in the workplace. The black lung movement in the coal mines and the white lung movement based in cotton mills spurred the enforcement of exposure limits to chemicals and dusts. The emerging epidemic of asbestos-caused cancer and lung disease defined an approach exposure control and compensation of victims, including those in the general community. Limited rights of workers under the 1970 OSHA law were expanded through collective bargaining, in part due to public recognition of work- ers' rights to be fully informed of hazards and to fully participate in their abatement. Unions campaigned for and then implemented information rules, such as chemical hazard communication and community right-to-know, to facilitate the control of chemicals.

Unions also defended research institutions such as the National Institute of Occupational Safety and Health (NIOSH), bargained for joint research programs with employers, and participated in studies that identified many previously unknown chemical hazards. Most recently, unions helped expose underreporting of musculoskeletal disorders, which spurred ergonomics programs and greatly extended the reach of the health and safety paradigm to light industry and the white– collar and service sectors. The expanding health care sector was itself recognized as a high-risk employer, particularly in the areas of infectious disease, chemical exposure, and ergonomic problems. The early twenty-first-century climate of corporate downsizing and off-shore production will challenge union-based and public occupational health and safety institutions.

(SEE ALSO: Asbestos; Carpal Tunnel Syndrome, Cumulative Trauma; Mining; National Institute for Occupational Safety and Health; Occupational Disease; Occupational Lung Disease; Occupational Safety and Health; Occupational Safety and Health Administration)

— FRANKLIN E. MIRER



Columbia Encyclopedia:

labor union

Top
union, labor, association of workers for the purpose of improving their economic status and working conditions through collective bargaining with employers. Historically there have been two chief types of unions: the horizontal, or craft, union, in which all the members are skilled in a certain craft (e.g., the International Brotherhood of Carpenters and Joiners of America); and the vertical, or industrial, union, composed of workers in the same industry or industries regardless of their particular skills (e.g., the United Automobile, Aerospace, and Agricultural Implement Workers of America). A company union is an union for the employees of one company; it has no affiliation with other labor organizations and may be controlled by the employer.

In Great Britain

Although there were associations of journeymen under the medieval system of guilds, labor unions were essentially the product of the Industrial Revolution. In Great Britain after the French Revolution, fear of uprisings by the working classes led to passage of the Combination Acts, declaring unions illegal. Although those acts were repealed (1824), little progress was made in union growth until the organization of miners and textile workers in the 1860s, after which the struggle for legal recognition was waged with vigor. After the Trade Union Act of 1871, British labor unions were guaranteed legal recognition, although it required the laws of 1913 and 1915 to assure their status. In the latter part of the 19th cent. the socialist movement made headway among trade unionists, and James Keir Hardie induced (1893) the trade unions to join forces with the socialists in the Independent Labour party (see Labour party). The central organization of the British trade unions, the Trades Union Congress was formed in 1868 to coordinate and formulate policy on behalf of the whole labor movement.

On the Continent

Labor unions developed differently on the Continent than they did in Great Britain and in the United States, mainly because the European unions organized along industrial rather than along craft lines and because they engaged in more partisan political activity. In Germany the printers' and cigarmakers' unions were started after the uprisings of 1848; German unions until World War I were responsible for much social legislation. In France labor unions were organized in the early part of the 19th cent. but received no legal recognition until 1884. In most European countries labor organizations either are political parties or are affiliated with political parties, usually left-wing ones. In some European countries, notably Italy, Belgium, and the Netherlands, there are rival Christian and Socialist trade-union movements. In Russia, trade unions first appeared on a considerable scale in the revolution of 1905 but were later stamped out. They reappeared in the 1917 revolution and became highly organized in a national movement under Communist control. Between the revolution and fall of the Communist party in 1991, the trade-union movement in the Soviet Union was mainly an instrument of the state in its drive for higher industrial production.

In the United States

Early Years to the AFL-CIO

In the United States unionism in some form is almost as old as the nation itself. Crafts that formed local unions in the late 18th and early 19th cent. included printers, carpenters, tailors, and weavers. Their chief purpose was to keep up craft standards and to prevent employers from hiring untrained workers and importing foreign labor. From 1806 there were numerous prosecutions by employers of unions as combinations in restraint of trade. The early 1830s, a period of industrial prosperity and inflation, was a time of union development; however, the financial Panic of 1837 halted this growth. After the Civil War, in 1866, the National Labor Union was formed; it had such objectives as the abolition of convict labor, the establishment of the eight-hour workday, and the restriction of immigration, but it collapsed with its entry into politics in 1872.

Among the most important of the early national organizations was the Knights of Labor (1869-1917), organizing among both skilled and unskilled workers. That policy brought them into conflict with the established craft unions, who joined together to form the American Federation of Labor (AFL; see American Federation of Labor and Congress of Industrial Organizations) in the 1890s under Samuel Gompers. The Knights, thereafter, declined in numbers and effectiveness. The leaders of the AFL opposed the entry of the federation into politics. In 1905 a huge, unwieldy but militant industrial body arose-the Industrial Workers of the World (IWW). It concentrated on unskilled workers-lumbermen, migrant workers, and miners. With the conviction of most of its leaders under the Espionage Act during and after World War I, IWW membership shrank, and the organization became ineffective in the 1920s.

During the depression of the 1930s, unions experienced a rapid growth in membership. At this time the Congress of Industrial Organizations (CIO) was formed; it was made up at first of dissident unions of the AFL and was led by John L. Lewis. During the administration of President Franklin Delano Roosevelt, steps were taken to restore seriously deteriorated standards of employment and to facilitate the development of trade-union organization. The accomplishment of those goals were sought through the passage of such acts as the National Labor Relations (Wagner) Act of 1935, an enactment that enlarged the rights of unions and created the National Labor Relations Board, and by protective labor legislation such as the Fair Labor Standards Act (1938) and the Social Security Act (1935). There were often severe conflicts between the AFL and the CIO during the 1930s and 40s. It was therefore considered a momentous step when in 1955 the two labor groups merged to form the AFL-CIO. The AFL, the larger of the two organizations, was given a proportionate share of the offices of the new federation, and its president, George Meany, was unanimously elected president of the combined body. Industrial unions of the CIO were given a department of their own within the merged organization.

The Late 1950s to the Present

The AFL-CIO issued a series of ethical-practice codes to govern the behavior of union officers and expelled the Teamsters for corruption in 1957. Nevertheless the entire labor movement found itself on the defensive in the late 1950s, following the disclosures made by the Senate Committee on Improper Activities in the Labor or Management Field (popularly known as the McClellan Committee); the committee exposed such abuses as collusion between dishonest employers and union officials, extortions and the use of violence by certain segments of labor leadership, and the misuse of funds by high-ranking union officials. As a result of the findings of the McClellan Committee, the Landrum-Griffin Act of 1959 was enacted to correct abuses in labor-management relations.

Since World War II, U.S. unions have undergone a period of decline. In 1960 one third of all American workers belonged to a union, but by 2003 the proportion had dropped to less than 13%. Faced with foreign competition and financial troubles in its traditional power base-manufacturing and mining-organized labor was hurt in the 1980s by layoffs and was, in many cases, forced to accept reduced wages and benefits. In response, many unions adopted a more conciliatory attitude, reducing the number of strikes to record lows in the 1980s and early 90s, and attempting to negotiate contracts providing job security for members. Unions have also placed greater emphasis on organizing drives for new members. Although unions have been very successful in organizing government employees, they have been less successful with recruiting office workers in the rapidly expanding services sector. Another problem is demographic: The fastest growing parts of the labor force (women, service industries, and college-educated employees) have traditionally been the most reluctant to organize.

By 1996 the number of strikes in the United States had reached its lowest level in 50 years; at the end of the decade, however, a tighter labor market and more aggressive union leadership led to a resurgence of strikes against such major companies as Northwest Airlines, General Motors, and United Parcel Service. In 2005 disagreements over policy led a number of large unions in the AFL-CIO to leave and form the Change to Win Federation, but by 2010 two of the unions had rejoined the AFL-CIO.

In the early 21st cent., public-sector employees and women made up a larger share (approaching 50% in both cases) of union members than they had historically, and manufacturing employees had diminished (to roughly one in ten union members) while college graduates had increased (to four in ten). In the early 2010s, public-sector unions, especially at the state level, found themselves under particular pressure after the economic downturn of 2008-9 led to a significant drop in tax revenues. Unlike European union movements, American organized labor has in general avoided the formation of a political party and has remained within the framework of the two-party system.

In the Third World

Organized labor in the Third World, although generally small numerically, has played a disproportionately large role in political developments in those countries. Many union movements in the underdeveloped countries, particularly in Asia and Africa, rising on the wave of nationalism, have led anticolonial movements toward political independence; the leaders of many newly independent nations have owed their rise largely to the support of workers they have organized. In Latin America, too, labor unions are a powerful force, constituting as they do the most important mass political organizations in the nations of that region.

International Organizations

Internationally, world trade unionism was split after 1949 between two rival organizations: the, largely Communist, World Federation of Trade Unions (WTFU), originally set up in 1945, and the International Confederation of Free Trade Unions (ICFTU), founded in 1949 by member unions that had withdrawn from the WTFU in protest against its Communist domination. The international federations are recognized by the United Nations Educational, Scientific, and Cultural Organizations (UNESCO), and there is close cooperation between the ICFTU and UNESCO in the field of education. The International Labor Organization is a specialized agency of the United Nations; some of its aims include raising living standards, improving working conditions, gaining recognition of the right to collective bargaining, and the protection of workers' health.

Bibliography

For British and European unions, see C. Wrigley, British Trade Unions, 1945-1995 (1997); Q. Outram and R. A. Church, Strikes and Solidarity: Coalfield Conflict in Britain, 1889-1966 (1998); W. H. Fraser, A History of British Trade Unionism, 1700-1998 (1999); A. Martin and G. Ross, ed., The Brave New World of European Labor (1999); for American unions, see J. R. Commons, History of Labor in the United States (4 vol., 1918-35; repr. 1966); D. Montgomery, The Fall of the House of Labor (1989); F. R. Dulles and M. Dubofsky, Labor in America: A History (5th ed. 1993); R. H. Zieger, American Workers, American Unions (1994); M. Dubofksy, Industrialization and the American Worker, 1865-1920 (1996); H. Kimeldorf, Battling for American Labor: Wobblies, Craft Workers, and the Making of the Union Movement (1999); R. M. Tillman and M. S. Cummings, The Transformation of U.S. Unions (1999). See also W. Galenson, Trade Union Democracy in Western Europe (1961, repr. 1976); M. Schneider, A Brief History of the German Trade Unions (1991); H. A. Cook, The Most Difficult Revolution: Women and Trade Unions (1992); W. Lecher, ed., Trade Unions in the European Union (1994); L. J. Cook, Labor and Liberalization: Trade Unions in the New Russia (1997); H. Chapman et al., ed., A Century of Organized Labor in France (1998).


This entry contains information applicable to United States law only.

An association, combination, or organization of employees who band together to secure favorable wages, improved working conditions, and better work hours, and to resolve grievances against employers.

The history of labor unions in the United States has much to do with changes in technology and the development of capitalism. Though labor unions can be compared to European merchant and craft guilds of the Middle Ages, they arose with the factory system and industrial revolution of the nineteenth century.

The first efforts to organize employees were met with fierce resistance by employers. The U.S. legal system played a part in this resistance. In Commonwealth v. Pullis (Phila. Mayor's Ct. 1806), generally known as the Philadelphia Cordwainers' case, boot makers and shoemakers of Philadelphia were indicted as a combination conspiring to raise their wages. The prosecution argued that the common-law doctrine of criminal conspiracy applied. The jury agreed that the union was illegal, and the defendants were fined. From this case came the labor conspiracy doctrine, which held that collective as opposed to individual bargaining would interfere with the natural operation of the marketplace, raise wages to artificially high levels, and destroy competition. This early resistance to unions led to an adversarial relationship between unions and employers.

Between 1806 and 1842, the labor conspiracy doctrine was applied in a handful of cases. Then, during the 1840s, U.S. courts began to question the doctrine. The most important case in this regard was Commonwealth v. Hunt, 45 Mass. (4 Met.) 11, 38 Am. Dec. 346 (Mass. 1842), in which Chief Justice Lemuel Shaw set aside an indictment of members of the boot makers union for conspiracy. Shaw agreed with employers that competition was vital to the economy, but concluded that unions were one way of stimulating competition. As long as the methods used by unions were legal, unions were free to seek concessions from employers. By the end of the nineteenth century, courts generally held thatstrikes for higher wages or shorter workdays were legal.

Despite the decline of the labor conspiracy theory, unions faced other legal challenges to their existence. The labor injunction and prosecution underantitrust laws became powerful weapons for employers involved in labor disputes. In an 1896 case, Vegelahn v. Guntner, 167 Mass. 92, 44 N.E. 1077, the highest court in Massachusetts upheld an injunction forbidding peaceful picketing outside the employer's premises.

The first national labor federation to remain active for more than a few years was the Noble Order of the Knights of Labor. It was established in 1869 and had set as goals the eight-hour workday, equal pay for equal work, and the abolition of child labor. The Knights of Labor grew to 700,000 members by 1886, but went into decline that year with a series of failed strikes. By 1900 it had disappeared.

Labor unions nevertheless gained strength in 1886 with the formation of the American Federation of Labor (AFL). Composed of twenty-five national trade unions and numbering over 316,000 members, the AFL was a loose confederation of autonomous unions, each with exclusive rights to deal with the workers and employers in its own field. The AFL concentrated on pursuing achievable goals such as higher wages and shorter hours, renouncing identification with any political party or movement. Members were encouraged to support politicians who were friendly to labor, whatever their party affiliation.

Following the passage of the Sherman Anti-Trust Act in 1890 (15 U.S.C.A. § 1 et seq.), prohibiting combinations in restraint of interstate trade, courts used its provisions to punish and enjoin labor practices considered wrongful. In the Danbury Hatters case (Loewe v. Lawlor, 208 U.S. 274, 28 S. Ct. 301, 52 L. Ed. 488 [1908]), the U.S. Supreme Court upheld the application of the act to an appeal in a labor publication for a general boycott of named nonunion employers. In 1911, in Gompers v. Buck's Stove & Range Co., 221 U.S. 418, 31 S. Ct. 492, 55 L. Ed. 797, the Supreme Court upheld an injunction against a union that had placed the name of the employer on the AFL "We Don't Patronize" list, which was a call for a boycott of the employer.

Opposition to labor unions was particularly intense during the late nineteenth century. Several unsuccessful strikes in the 1890s demonstrated the power of companies to crush unions. In 1892 steelworkers struck against the Carnegie Steel Company's Homestead, Pennsylvania, plant. The company hired private guards to protect the plant, but violence broke out. The strike failed, and most of the workers quit the union and returned to work. In 1894 members of the American Railway Union struck the Pullman Palace Car Company, which made railroad cars. The federal government sent in troops to end the strike.

Despite these setbacks unions gradually increased their political power at the federal level. In 1914 Congress enacted the Clayton Anti-Trust Act, sections 6 (15 U.S.C.A. § 7) and 20 (29 U.S.C.A. § 52), declaring that human labor was not to be considered an article of commerce and that the existence of unions was not to be considered a violation of antitrust laws. In addition, the act prohibited federal courts from issuing injunctions in labor disputes except to prevent irreparable injury to property. This prohibition was absolute when peaceful picketing and boycotts were involved.

Employers had better success fighting unions using the so-called yellow-dog contract. This agreement required a prospective employee to state that she or he was not a member of a union and would not become one. Though some states enacted laws prohibiting employers from requiring employees to sign this type of contract, the U.S. Supreme Court declared such statutes unconstitutional as an infringement of freedom of contract (Coppage v. Kansas, 236 U.S. 1, 35 S. Ct. 240, 59 L. Ed. 441 [1915]).

By 1920 trade unions had over 5 million members. During the 1920s, however, the trade union movement suffered a decline, precipitated in part by a severe economic depression in 1921-22. Unemployment rose, and competition for jobs became intense. By 1929 union membership had dropped to 3.5 million.

The Great Depression of the 1930s caused more unemployment and a further decline in union membership. Unions responded with numerous strikes, but few were successful. Despite these reverses the legal position of unions was enhanced during the 1930s. In 1932 Congress passed the Norris-LaGuardia Act (29 U.S.C.A. § 101 et seq.), which declared yellow-dog contracts contrary to public policy and stringently limited the power of federal courts to issue injunctions in labor disputes. In cases in which an injunction might still be issued, the act imposed strict procedural limitations and safeguards, to prevent past abuses by the courts. The Norris-LaGuardia Act effectively ended "government by injunction" and has remained a basic law in labor disputes.

During the 1930s the AFL itself was in turmoil over the goals and aspirations of the labor movement. The trade unions that dominated the AFL were composed of skilled workers who opposed organizing the unskilled or semiskilled workers on the manufacturing production line. Several unions rebelled at this refusal to organize and formed the Committee for Industrial Organization (CIO). The CIO aggressively organized millions of workers who labored in automobile, steel, and rubber plants. In 1938, unhappy with this effort, the AFL expelled the unions that formed the CIO. The CIO then formed its own organization, changed its name to Congress of Industrial Organizations, and elected John L. Lewis, of the United Mine Workers, as its first president.

U.S. labor relations were dramatically altered in 1935 with the passage by Congress of the National Labor Relations Act, also known as the Wagner Act (29 U.S.C.A. § 151 et seq.). For the first time, labor unions were given legal rights and powers under federal law. The act guaranteed the right ofcollective bargaining, free from employer domination or influence. It made it an unfair labor practice for an employer to interfere with employees in the exercise of their right to collectively bargain, to interfere with or influence unions, to discriminate in hiring or firing because of an employee's union membership, to discriminate against an employee who avails herself or himself of legal rights, or to refuse to bargain collectively.

The Wagner Act also established the National Labor Relations Board, with power to investigate employees' complaints and to issue cease and desist orders. If an employer defied such an order, the board could ask a federal court of appeals for an enforcement order, or the employer could ask the court to review the cease and desist order. The board could conduct elections to determine which union should represent the employees in a bargaining unit and certify the union as their agent, and it could designate the bargaining unit.

The heart of the Wagner Act was section 7 (29 U.S.C.A. § 157), which stated the public policy that workers have the right to engage in self-organization, in collective bargaining, and in concerted activities in support of self-organization and collective bargaining. Armed with these rights, unions grew in membership and strength during the late 1930s and through World War II.

A number of states reacted negatively to these legal changes by enacting laws that sought to restrict and lessen the power of unions. An antiunion backlash developed after World War II, when strikes against the automobile industry and other large corporations reached record numbers. This reaction culminated in the passage of the Labor-Management Relations Act of 1947, also known as the Taft-Hartley Act (29 U.S.C.A. § 141 et seq.). The Taft-Hartley Act amended section 7 of the Wagner Act, affirming the rights formulated in 1935 but providing that workers shall have the right to refrain from any of the listed activities. Whereas the Wagner Act listed only employer unfair labor practices, Taft-Hartley added union unfair labor practices. The act created the Federal Mediation and Conciliation Service, which provides a method for dealing with strikes that create a national emergency. It also banned the closed shop, which requires an employer to hire only union members and to discharge any employee who drops union membership. Taft-Hartley effectively replaced the Wagner Act as the basic federal statute regulating labor relations.

In 1955 the AFL and CIO merged into a single organization, the AFL-CIO. The staunchly anti-Communist AFL agreed to the merger only after the CIO had purged its organization of Communists and supporters of Communist ideals. George Meany was appointed the first president of the new organization.

In 1959 Congress enacted the Labor Management Reporting and Disclosure Act, also known as the Landrum-Griffin Act (29 U.S.C.A. § 401 et seq.). Title VII of the act contains many amendments to the Taft-Hartley Act, of which two are especially important. First, Landrum-Griffin made peaceful picketing of organizational or recognitional objectives illegal under certain circumstances. Second, it closed loopholes in the provisions of Taft-Hartley that forbadesecondary boycotts.

Other sections of Landrum-Griffin provided for a bill of rights for union members, financial disclosure requirements for unions and their officers, and safeguards in union elections. All of these matters dealt with internal union practices, strongly suggesting that union corruption had become a problem. In fact, a 1957 congressional investigation of the Teamsters Union had uncovered widespread corruption and had much to do with these statutory provisions.

Labor unions continued to thrive in the 1960s, as a robust economy relied on a large manufacturing industry to maintain growth. Although no comprehensive union legislation was enacted during the decade, the Civil Rights Act of 1964, as amended by the Equal Employment Opportunity Act of 1972 (42 U.S.C.A. § 2000a et seq.), made an important contribution to national labor policy. The act declared it an unfair labor practice for an employer or union to discriminate against a person by reason of race, religion, color, sex, or national origin. Administration of this provision is vested in the Equal Employment Opportunity Commission (EEOC). Under the Civil Rights Act, if the EEOC is unable to achieve voluntary compliance, the person alleging discrimination is authorized to bring a civil action in federal district court. The 1972 amendment gave the EEOC the right to bring such an action. The effect of the law has been to desegregate many trade unions that maintained an all-white membership policy.

The union movement considerably improved working conditions for migrant workers in the late 1960s and the 1970s. The United Farm Workers, under the leadership of Cesar Chavez, led successful boycotts and strikes against California growers, most notably against the wine-grape growers.

Many unions suffered, however, with an economic downturn in the 1970s and 1980s, and with the decline of good-paying manufacturing jobs. Automation of industrial processes reduced the number of workers required on assembly lines. In addition, many U.S. companies moved either to states that did not have a strong union background or to developing countries where labor costs were significantly lower. Union members became more concerned about job security than about higher wages, particularly in the manufacturing industry, agreeing to salary and benefit givebacks. In return, unions sought greater labor-management cooperation and a larger voice in the allocation of jobs and in the work environment.

Union membership has also declined in response to a shift from blue-collar manufacturing jobs to white-collar service and technology jobs. By 1995 just 14.9 percent of the U.S. workforce claimed union membership, compared with a high of 34.7 percent in 1954.

See: Child Labor Laws; Clayton Act; Craft Union; Employment Law; Labor Law; Right-to-Work Laws.

An organization of workers formed to promote collective bargaining with employers over wages, hours, fringe benefits, job security, and working conditions.

An organization intended to represent the collective interests of workers in negotiations with employers over wages, hours and working conditions. Labor unions are often industry-specific and tend to be more common in manufacturing, mining, construction, transportation and the public sector.

Investopedia Says:

Labor union representation in the United States has declined significantly in the private sector.  It is commonly believed that union security clauses compel workers to join unions and pay full dues as a condition of employment, but it is actually illegal for a union to force an employee into full union membership.

Well-known American labor unions include the American Postal Worker's Union, the Screen Actor's Guild, the International Brotherhood of Teamsters, the National Education Association, the United Auto Workers and the United Steel Workers.

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Find out how former Iron Curtain countries used private enterprise to join the world financial markets. State-Run Economies: From Public To Private


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