BUS 372 - Summative Assessment

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9The 21st Century and the Changing Face of Unions

Carlow Osorio/Associated Press

Learning Objectives

After completing this chapter, you should be able to:

• Analyze the impact globalization and transnational corporations have on the power of unions.

• Describe the major changes in attitudes toward labor.

• Evaluate some of the alternatives open to labor organizations if they are to survive in the 21st century.

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Section 9.1 Globalization

Introduction When considering the future of unions, one of the most important questions to ask is whether they will survive in the 21st century. We have seen that union membership is not what it once was. Private unions have seen a drop from an all-time high in 1954 of 34.8% to today’s low, which is nearing 6.7% (DeSilver, 2014). Although public unions grew stron- ger in the late 20th century, their numbers are declining as well. Many factors are working against these organizations, and if they are to survive, it will require that they make signifi- cant changes. This chapter will explore some of the most salient reasons for this decline, as well as possible ways that labor organizations might be configured in the future.

9.1 Globalization Globalization refers to the way in which business is no longer confined within a particu- lar country, but rather takes place across boundaries, time zones, cultures, and borders. It describes the expansion of a business outside its home or domestic country to other coun- tries, be it in trade, finance, or investments, such that the business is dependent financially on operations in two or more countries (Greer & Singh, 2000). The global expansion of business has had many effects on labor. This section will explore some of those consequences, includ- ing how globalization makes organizing labor more difficult and the impact of treaties on labor, global unions, and collective bargaining.

Globalization and Transnational Corporations One of the primary reasons that unions must change is because the world itself is changing. Perhaps the biggest shift underway is the transition from local domestic business to business conducted by global enterprises. Companies that conduct business in just one country are referred to as domestic corporations. Companies that conduct business in multiple coun- tries are transnational corporations (TNCs).

Transnational corporations are usually characterized by the breadth of their reach into other markets, the size of their workforce, and the value of their assets. Consider the Ameri- can corporation Walmart, which is the largest employer in the world. Walmart has 2.2 mil- lion workers worldwide and 11,000 stores in 27 countries (Walmart, 2014), with assets of $59.69 billion (Wikinvest, 2014).

The “universe of transnationals is large, diverse, and expanding. By the early 1990s there were an estimated 37,000 TNCs in the world with 170,000 foreign affiliates. Today there are an estimated 77,000 TNCs worldwide with more than 770,000 foreign affiliates. These affili- ates generated an estimated $4.5 trillion in value added, employed about 62 million workers, and exported goods and services valued at more than $4 trillion” (United Nations, 2007).

Table 9.1 shows some of these companies. The left side of the table lists companies in terms of foreign sales, with General Electric leading all others; on the right appear the companies in terms of employment, with Wal-Mart employing the most workers.

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Section 9.1 Globalization

Table 9.1: Ranking the largest TNCs by foreign assets

The world’s top nonfinancial TNCs, ranked by foreign assets, 2012 (Millions of dollars and number of employees)

Ranking by: Assets Sales Employment

Foreign assets

TNI Corporation Home economy

Foreign Total Foreign Total Foreign Total

1 79 General Electric

United States

338,157 685,328 75,640 144,796 171,000 305,000

2 32 Royal Dutch Shell

United Kingdom

307,938 360,325 282,930 467,153 73,000 87,000

3 22 BP United Kingdom

270,247 300,193 300,216 375,580 69,853 85,700

4 77 Toyota Motor Corporation

Japan 233,193 376,841 170,486 265,770 126,536 333,498

5 28 Total SA France 214,507 227,107 180,440 234,287 62,123 97,126

6 45 Exxon Mobil Corporation

United States

214,349 333,795 301,840 420,714 46,361 76,900

7 8 Vodafone Group

United Kingdom

199,003 217,031 62,065 70,224 78,599 86,373

8 62 GDF Suez France 175,057 271,607 78,555 124,711 110,308 219,330

9 61 Chevron Corporation

United States

158,865 232,982 132,743 222,580 31,508 62,000

10 64 Volkswagen Group

Germany 158,046 409,257 199,129 247,624 296,000 533,469

27 95 Wal-Mart Stores Inc.

United States

84,045 193,406 126,751 446,950 800,000 2,200,000

Source: United Nations Conference on Trade and Development, 2012.

How does globalization affect the future of labor? Corporations that operate transnation- ally and employ workers on the scale of Wal-Mart impact labor’s ability to organize in any meaningful way. First, it is difficult to organize workers when they are spread across conti- nents. Not only are language barriers a challenge, but workers who reside in other countries have different social and political paradigms, along with vastly different workplace customs. Communicating with millions of workers in numerous locations with contrasting values is an enormous undertaking; finding common ground on an issue that will unite masses of people and on which all can agree is daunting, if not impossible.

Second, globalization greatly impacts the tools traditionally relied on by labor, such as strikes. For example, even if a labor union in a transnational corporation could reach out to employees across multiple countries, it would be highly unlikely to get everyone to agree to a strike and carry it out simultaneously. Additionally, strikes are pointless if management’s response is outsourcing, which involves sending jobs to another country with a cheaper workforce. Such a response makes the threat of a strike ineffective because the company is not concerned that production will halt and threaten profits. Much has been written about the advantages and

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Section 9.1 Globalization

disadvantages of outsourcing. On the one hand, it makes products cheaper if the labor costs less, which in turn makes a business better able to compete. On the other hand, by shipping work overseas, jobs and even entire industries in the United States suffer (Scott, 2012).

This is not to say that globalization is without its advantages. The spread of business across borders into countries with much less robust economies may mean better standards of liv- ing for workers in other parts of the world. Indeed, proponents of transnational corporations often point to the economic and social impact that the influx of capital has on a poor country’s standard of living. However, it remains to be seen if globalization will have an overall positive effect on labor and unions.

Transnational Collective Bargaining Another impact globalization has on labor is in the use of transnational collective bargain- ing. This refers to a process that occurs when different unions in more than one country negotiate jointly with the same company. Transnational collective bargaining may also mean that a corporation doing business in many countries enters into a collective bargaining agree- ment with a union that represents all of those employees.

An example of a transnational agreement that was the outcome of a business operating in two countries is the National Hockey League Players’ Association (NHLPA) agreement with the National Hockey League (which operates in both the United States and Canada). The NHLPA is the union that represents those who play in the National Hockey League. Due to labor strife in 2005 that shut down the entire season, including playoffs, both owners and players were highly motivated to work together to avoid such a significant incident from occurring again.

The hockey players elected to be governed by the National Labor Relations Act in their col- lective bargaining agreement, even though they are located in both the United States and Canada and the NLRA is an American law. Negotiations for terms such as salary are conducted at a local level and are between the team and the player. Issues that concern all the players, such as working conditions, are negotiated between the NHLPA and the owners’ association (Fournier & Roux, 2009). This is an example of a successful transnational labor agreement implemented by labor and management, but such arrangements are rare. Therefore, it is dif- ficult to tell if such agreements will become a regular tool used by labor.

Labor unions in the United States are well aware that the growth of transnational corpora- tions and globalization impacts their organizations. Although some unions have not reacted to this development, others have forged alliances with labor organizations in other parts of the world. The following list from the AFL-CIO website is testament to that union’s involve- ment in numerous issues in Europe, the Middle East, Africa, and South America.

• Justice for All: The Struggle for Worker Rights in Egypt, report by the AFL-CIO Soli- darity Center

• The Alliance Between Indigenous Peoples and Trade Unions in Latin America, ITUC report

• World of Work 2011, report by the International Labor Organization • Sexual Abuse at Wal-Mart’s, Hanes’ and Target’s Supplier Factory, video testimony

via the National Labor Committee • Letter to Deutsche Telekom CEO Obermann from global union leaders

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Section 9.1 Globalization

• People’s Movement in the Middle East And North Africa, AFL-CIO Executive Council, August 2011

• Honduran workers won groundbreaking agreement with Nike, the Worker Rights Consortium (AFL-CIO, 2014a).

Global Unions While unions in the United States attempt to grow to embrace worldwide issues, certain global unions already exist. They work to address issues that workers have in a global economy. One is the UNI Global Union, based in Switzerland, which encompasses more than 900 trade unions and represents 20 million workers. The organization divides the world into four regions— Africa, the Americas, Asia and Pacific, and Europe—and then into sectors based on occupation, such as cleaning/security, finance, gaming, hair and beauty, information/technology, media entertainment and arts, sports, tourism, and the health care industry.

Acknowledging that exercising the right to strike can be difficult when it concerns workers from numerous countries, UNI Global works to pressure companies in other ways, such as by boycotting or addressing concerns with shareholders. It also works to achieve a better stan- dard of living for its workers. More information about this organization and its activities can be found at its website, http://uniglobalunion.org.

Another organization concerned with labor rights on the global scale is the International Trade Union Confederation (ITUC) the world’s largest trade union confederation. Repre- senting 176 million workers, its primary mission is to promote and defend the rights of work- ers, which it accomplishes through campaigning, advocacy, and cooperation. The organization

In the News: Global Auto Union Leaders Meet With Workers in Mississippi

In 2014 a delegation of senior-level trade union leaders traveled to Mississippi to investigate allegations of reported international labor rights violations at a Nissan plant.

The delegation was led by IndustriALL Global Union, which represents 50 million workers in 140 countries. Workers from Nissan and Renault plants from around the world are members of the unions represented by the delegation. The representatives reported having deep con- cerns about workers at the plant and sought to meet with management to discuss allegations of mistreatment.

The United Automobile Workers union had formerly requested a multinational mediation pro- cess that would have included the United States and France (where Renault is based). If such a mediation materialized, it would fall under international labor standards.

Discussion Questions

1. What is implied by the fact that foreign unions are traveling to the United States from other countries to enforce labor laws?

2. In previous requests involving IndustriALL, management refused to meet with repre- sentatives. In what ways is this a wise decision by management? In what ways is this a poor decision?

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Section 9.1 Globalization

is currently working on the issues of child labor and domestic workers, to name a few. The organization’s website is http://www.ituc-csi.org.

Each year, the ITUC publishes a report titled ITUC Global Rights Index: The World’s Worst Countries for Workers. In 2014 the United States received a rating of 4, which means the ITUC has deemed it guilty of systematic violations, which the organization describes as “serious efforts to crush the collective voice of workers, putting fundamental rights under continu- ous threat” (ITUC, 2014). To view the ITUC’s world map to see each country’s ranking, visit http://www.ituc-csi.org/new-ituc-global-rights-index-the. To read the entire report and see what criteria the organization used to rank countries, visit http://www.ituc-csi.org/IMG /pdf/survey_ra_2014_eng_v2.pdf.

Treaties Also impacting globalization, and thus the global labor movement, are the numerous treaties to which the United States is a signatory. A treaty is an agreement, much like a contract, but it is between two or more nations and outlines an understanding of how trade will take place.

One such treaty, the North American Free Trade Agreement (NAFTA), was signed between the United States, Mexico, and Canada in 1994. Its goal was to open up trade between the three countries by lifting trade tariffs. Normally, when goods are imported from another country, the United States imposes a tax or tariff on them. This raises the price of those goods within the United States, making it more challenging for the international businesses that produce them to compete against the goods produced domestically. Once tariffs are lifted however, the goods may enter the United States at greatly reduced prices, giving U.S. products much less of an advantage over the foreign goods.

One reason the prices are so greatly reduced is that the wages paid to labor in the foreign country are typically far less than those paid to American labor. When U.S. goods cannot com- pete with foreign ones, sales and profits drop, resulting in the loss of jobs. This is especially true with the NAFTA treaty between the United States, Canada, and Mexico. Because Mexico pays much lower wages to its workers, NAFTA has been credited with the loss of 500,000 to 750,000 jobs in the United States, as companies have moved their production operations to Mexico. While this might seem like it would be a positive step for the Mexican economy, such has not been the case, because the open, tariff-free trade has meant that heavily subsi- dized U.S. corn and other agricultural products have increased consumer food prices there (Amadeo, 2013).

Other treaties currently being negotiated, such as the Trans-Pacific Partnership, could have a potentially deleterious impact on American labor by providing incentives to send jobs currently held by Americans to low-wage countries (Public Citizen, 2014). This partnership involves the United States and 11 other countries, including Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam (Office of the U.S. Trade Representative, 2014). Though the precise terms of the treaty are not yet public, those terms, when disclosed, may take down barriers that currently make it difficult for U.S. corporations to do business there. If that occurs, then the United States will be able to have much cheaper manufacturing in Vietnam than it does in the United States, where workers are paid a mini- mum wage, because Vietnam does not have labor unions and pays its workers one third to one quarter less than Chinese workers, who are among the lowest paid in the world (Expose the TPP, n.d.).

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Section 9.3 Labor Organizations in the 21st Century

9.2 Changing Social Attitudes Toward Labor Globalization is not the only factor impacting labor organizations. As the world changes, so too have fundamental beliefs about unionization. The overall approval rating for unions was at its lowest in 2009, with 48% of the public supporting or having a positive opinion of them (Gal- lup, 2011). One explanation for this may be that workers no longer think unions are necessary to ensure better employment conditions. If American workers are satisfied with their current wages and benefits, they are unlikely to see a pressing need for a union (Greenhouse, 2011).

Another significant social change has been employers’ resistance to unions. That resistance is evidenced by the number of charges brought against employers for engaging in unfair labor practices, the hallmark of resistance to labor organizing. Between 1957 and 1980, unfair labor practice charges against employers increased by 750% (Weiler, 1983). Employers resist unions because unionization often results in the need to pay higher wages and benefits, which reduces the company’s profit margin. Unionization also results in layers of administrative compliance and costs associated with paperwork, forms, and legal advice. Because the eco- nomic stakes are so high, employers may engage in illegal acts to thwart union formation. These tactics can be threatening to employees, who fear retaliation and the loss of their job. So what will labor do to adjust to these ever-changing aspects of doing business? The next section discusses some of the ways in which unions may adapt to the changing labor market.

9.3 Labor Organizations in the 21st Century Is there a future for unions? If so, they may adopt a different configuration than currently exists. In some places and situations, the relationship between management and labor is being redefined and reimagined. This section discusses some of the more prevalent models currently being explored that may result in labor surviving in a different form than seen in the past.

Collaborative Models One such form is known as the collaborative model. Collaborative models of labor organiza- tions are based on paradigms popular in Europe. There companies often feature work coun- cils that comprise management and workers, who together discuss ideas for how to improve the workplace. Collaborative models have been attempted by a variety of organizations, which are discussed in this section.

Volkswagen’s Works Council An example of a collaborative model from Chattanooga, Tennessee, may offer a window into the future of labor in the United States. In order to make new Passat automobiles, Volkswa- gen decided to expand its Chattanooga plant and add 600 jobs. At the same time, the United Automobile Workers (UAW) chose to unionize the same plant. The UAW wanted to establish a foothold in a southern automobile plant because many states in that region of the country are right-to-work states and antiunion. A win in such a state would be a huge victory for labor and send a powerful message about the strength of the movement.

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Section 9.3 Labor Organizations in the 21st Century

The German managers at the Chattanooga plant did not oppose the union, nor did they put up any resistance. Instead, they opened their operation to allow the UAW representatives to speak to workers. In response to questions about unionization, management stated repeat- edly that unionization was up to the workers, not management. In fact, the head of the plant himself favored unionization.

The campaign to unionize went on for months and attracted national attention. Many of Ten- nessee’s own politicians became involved by openly opposing the UAW. The UAW poured money and resources into the plant, and Volkswagen essentially stepped back and let the process unfold. On the day of voting, it seemed that the entire nation was watching the plant to see what would happen. After all the time and energy invested, the UAW lost by a vote of 712 against and 626 for (Woodall, 2014). Many commentators considered this a resounding defeat for labor organizations in general and the UAW in particular.

The story does not end there, however. Sometime later, representatives of Volkswagen approached the workers and suggested taking another approach to their relationship. In Ger- many Volkswagen follows what is sometimes called the European model of resolving disputes within a business, a works council. In general this arrangement allows for management to meet with workers to discuss events in the plant, air problems, and attempt to compromise on mutual solutions.

In Germany, for example, companies’ works councils consist of labor representatives whom management recognizes as workers’ advocates and a source of advice for management. Under German law, companies must maintain supervisory boards that consist of half the members from works councils (Barkholz, 2014).

At first the UAW was strongly opposed to such an idea; but after realizing, perhaps, that the works council was better than nothing, it started a local union that would send a representa- tive to sit on the council (UAW, 2014a). In a press release, the UAW stated:

A cornerstone of Volkswagen’s business model is employee representation and participation in the company’s Global Group Works Council. Until now, Chattanooga has been the only plant not represented on the Global Group Works Council. With the formation of UAW Local 42, Volkswagen’s employ- ees in Tennessee now can join their fellow team members from around the world in securing a voice in the workplace. The members of UAW Local 42 are excited about the future and stand ready to roll up their sleeves and make sure the new product line is a success. (UAW, 2014b)

One difference between a works council and union representation, however, is that works coun- cils do not have any authority to collectively bargain for wages or benefits. So what are the benefits? Works councils provide a structure for workers and management to regularly meet to exchange information about their relative perspectives. Such an exchange greatly helps the company ensure it is in compliance with federal regulations such as those from the Occupa- tional Safety and Health Administration (OSHA).

If, for example, employees can report that a company is out of compliance with a specific requirement, the employer has the opportunity to remedy the situation (Carley, Baradel, & Welz, 2005). One problem, however, is that a works council may be a “dominated labor orga- nization” (recall from Chapter 5 that domination is an unfair labor practice), and thus in viola- tion of NLRA Section 8(a)(2). The legality of such an arrangement is yet to be decided.

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Section 9.3 Labor Organizations in the 21st Century

Collaboration Between Labor and Management Collaborative arrangements between labor and management have some history of success. In one example a chemical manufacturing plant whose workers were represented by the Amal- gamated Clothing and Textile Workers Union (ACTWU) began to lose business. Management approached the union and asked for wage concessions, which the union refused. As a result, the company moved most of its production to Mexico. Work at the U.S. plant plummeted, and the workforce dropped from a high of 2,000 workers to just 250, resulting in animosity between management and the workers who remained at the plant.

In 1991 the plant manager approached the workers and asked if they would help write lan- guage to put into the collective bargaining agreement, in the hope that the union and man- agement could act more as partners rather than as adversaries (Gamble & Gregg, 1999). The union agreed to do so, and the 1991–1996 collec- tive bargaining agreement between the company and the ACTWU contained language in which both parties acknowledged that they could have a partnership and would encourage employees to participate in such an arrangement (Gamble & Gregg, 1999). At the very least, the newfound cooperation kept the plant operating in the United States with the remaining workers.

In another example a union steward was concerned that his chemical plant would be shut down or outsourced due to animosity between the workers and management. The union steward acknowledged that the animosity was so intense it was straining relationships to the point that the union was reacting by making substandard products. Realizing that jobs were at risk, the union asked management to attend its High Performance Work Organization Part- nership Program, an innovative program that helped management and unions work together in partnership.

Management and labor participated in trust-building exercises and made plans to work together to improve conditions, products, and profits. When communication improved, the union was able to request that the company make a better contribution to workers’ pension benefit. Management, on the other hand, needed workers to improve product quality. Both sides agreed to the requests of the other. In short, building trust and improving communica- tion helped each side achieve the improved terms they were seeking (Davidson, 2013).

The extent to which collaboration can effectively address disputes between workers and management remains to be seen. These success stories indicate that in some businesses, it is possible for both sides to work in concert with each other, rather than as adversaries.

Collaboration Between Unions In the public sector, too, unions are being urged to save time and money by collaborating with one another. At a conference sponsored by U.S. Secretary of Education Arne Duncan with public unions—including the National Education Association, the American Federation of Teachers, the American Association of School Administrators, and the National School Boards Association—Duncan urged administration and union leaders to “put an end to ceaseless conflict and noted that collaboration is not for cowards” (as cited in Posnick-Goodwin, 2011).

Watch This

For more information about the benefits of labor–management collaboration, watch http://www.youtube.com/watch?v=P_xa 253ljEc

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Section 9.3 Labor Organizations in the 21st Century

Teachers at the workshop reported a willingness to become more collaborative in their think- ing about contract negotiations.

Alternative Labor Organizations Some believe that the future of unions may lie in organizations called alternative labor, or alt-labor. Alternative labor organizations are not unions; they are nonprofit associations that organize workers to participate in wildcat strikes, boycotts, protests, and the like. These groups work outside the parameters of the NLRA and organize workers to try and accomplish what a more conservative approach failed to achieve.

Under the law, if alt-labor groups negotiate terms of employment (as a union would do), they risk losing their nonprofit status. Therefore, alt-labor groups must be exceedingly careful not to negotiate terms and conditions of employment (Michaels, 2013). As noted previously, how- ever, their strength and power derives from their ability to organize as a whole and engage in strikes, boycotts, and protests that draw attention to their demands.

OUR Walmart One example of an active alternative labor organization is OUR Walmart. This not-for-profit organization con- sists of associates who work for Walmart. Its mission is to

envision a future in which our company treats us, the Associ- ates of Walmart, with respect and dignity. We envision a world where we succeed in our careers, our company suc- ceeds in business, our cus- tomers receive great service and value, and Walmart and Associates share all of these goals. (OUR Walmart, 2010)

OUR Walmart has been active in organizing workers and successfully protesting at Walmart stores throughout the United States. In November 2013 Walmart workers held a protest to draw attention to their poor pay, erratic work assignments, and how workers who complain about their work conditions are retaliated against.

To bolster its statements about how many workers it represents, the organization claimed that more than 1,500 protests took place, with tens of thousands of participants. The man- agement of Walmart, on the other hand, denied these claims on its own website. Walmart’s website states that “fewer than 20 associates participated in the 2013 Black Friday pro- tests, and only 6 OUR Walmart demonstrations included an active associate. The majority of the participants were assorted union front groups that attempted to disrupt customer

Lynne Sladky/Associated Press

OUR Walmart is one example of an alternative labor organization.

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Section 9.3 Labor Organizations in the 21st Century

shopping experience” (OUR Walmart Factcheck.com, 2013). Although it is difficult to ascer- tain exactly how many Walmart workers participated in the event, the publicity drew atten- tion to the store and some of its employment policies.

Fast Food Forward Another organization similar to OUR Walmart is Fast Food Forward, which was organized under the auspices of the Service Employees International Union (SEIU) and New York Com- munities for Change. This group led a successful strike of fast food workers from across the United States, rep- resenting restaurants from McDonald’s to Wendy’s. It was estimated that SEIU contributed more than $15 million to the campaign to ensure a successful strike (Hines, 2012). This group held the first nationwide fast-food workers convention in Chicago in 2014.

Restaurant Opportunities Centers United Thirteen thousand restaurant servers make up the Restaurant Opportunities Centers (ROC) United, which is attempting to change the way they are paid. Historically, servers are paid an hourly wage that is far below minimum wage, with the expectation that they make up the difference in tips (ROC United, 2014). According to the New York Times:

The current minimum wage for such workers, $2.13 an hour, has not been raised since 1991—a testament to the power of the restaurant industry. For nearly 30 years after the minimum wage was first instituted, in 1938, res- taurant owners were exempt, and waiters and waitresses had to live on tips alone. Now, an employer of tipped workers is in compliance with the law as long as $2.13 plus tips equals at least $7.25 an hour, the minimum wage for other workers. (Editorial Board, 2014)

In other words, employers must guarantee that their servers earn at least minimum wage by making up the difference between a server’s tips and the current minimum wage. So, for example, if the current minimum wage was $9.50 and a server averaged $8.00 per hour in tips, the business owner would have to pay the server an additional $1.50 per hour.

ROC has branches across the United States in which they operate what are called opportunity centers to help workers get jobs and organize to open their own cooperative restaurants. In addition to wages, the organization takes up other issues on behalf of workers; for example, the organization has recently examined the problem of sexual harassment against service workers (ROC United, 2014).

Can alternative labor revive U.S. trade unions’ fortunes? Lacking the fundamental power to negotiate a contract and enter into a collective bargaining agreement, it is difficult to see how alternative labor groups could successfully make fundamental changes on behalf of labor. What these groups might be able to do, however, is organize enough workers to join a union, through which their collective efforts could then achieve change.

Watch This

For more information about the fast-food workers strike, watch http://www.you tube.com/watch?v=Xe1X9W9Q8XE

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Section 9.3 Labor Organizations in the 21st Century

Ground-Up Organizations Closely allied with alternative organizations are ground-up organizations. These are char- acterized by the way organizing takes place from the bottom up by workers, rather than from the top down via a labor union. One example of such a union is Justice for Janitors (J4J), which was formed to support janitors in the city of Los Angeles. That city is home to many high rises that need to be cleaned overnight, while not populated by their daytime workers. To clean them, custodians must work in small groups that move from building to building throughout the night. Organizing such a disparate group of workers is challenging, since it is not usually possible to find all of them in the same place at any one time.

This was the problem that spurred the creation of J4J. Rather than following the traditional approach of orga- nizing from the top down by professional union orga- nizers, they took a bottom-up approach, using some of the methods that both community organizers and the civil rights movement used successfully. The employees met with one another in small groups and spread the word about unionizing. As increasing numbers of work- ers spread the word, they eventually had a groundswell of workers interested in trying to change their low pay, long hours, and lack of medical insurance. The workers held sit-ins, protest marches, and other events that pub- licized their plight. They involved civil rights workers and church leaders, who joined them in their push for better wages. The national union, SEIU, which helped to eventually organize the workers, flew out organizers who helped take aggressive action in recruiting new workers, resulting in 35,000 new union members.

Same Union, Better Organization Another approach that labor organizations have tried is to organize more effectively within their ranks. The following scenarios are examples of how labor successfully organized cam- paigns for better wages or working conditions.

The Steelworkers and Bridgestone/Firestone In 1996 members of the United Steelworkers of America (USWA), which represents workers in the steel, tire, and rubber industries, ratified a contract with Bridgestone/Firestone after a bitter and hotly contested 2-year strike and boycott. One of the few stories of a successful labor effort in the past few decades, the USWA members took a different path in their dealings; they waged a corporate campaign, meaning that the union went after Bridgestone/Firestone, the parent company rather than the local regional employer.

Bridgestone had acquired Firestone in 1988, during an economic downturn. As a result, the company demanded the right to impose 12-hour shifts, pay new hires lower salaries, reduce health benefits, and tie pay increases to productivity (Greenhouse, 1996). When the workers went on strike in 1994 and the company announced it would use permanent replacement

Watch This

For more information, photos, and videos from SEIU’s Justice for Janitors campaign, visit http://www.seiu.org/division /property-services/justice-for-janitors

For the history of Justice for Janitors, see http://www.seiu.org/2011/04/justice -for-janitors-campaign-rooted-in-the -strugg.php

For videos of the Justice for Janitors campaign, see http://www.seiu.org/a /justice-for-janitors/justice-for-janitors -videos.php

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Section 9.3 Labor Organizations in the 21st Century

strikers (meaning the striking workers would lose their jobs), more than 1,000 workers capitulated, crossed the picket line, and returned to work. This critically undermined the suc- cess of the strike. Union workers also alleged that Bridgestone/Firestone imported Japanese and Brazilian workers to replace the striking employees (RubberNews.com, 1995).

As a result, the USWA assembled a strategy team to articulate both long-term and short-term goals and to craft a plan for how to reach them. The team hired 50 boycott coordinators from each of the USWA districts to devote all their time to organizing the boycotts. The coordinators undertook a monumental picketing and handbill campaign: They distributed 3.6 million hand- bills, nearly a million “Don’t Buy Bridgestone/Firestone” stickers and bumper stickers, 250,000 campaign buttons, 115,000 small black flags, 15,000 “Don’t Buy” T-shirts, and 63,000 yard signs.

They then attended numerous car races, including the Indy 500, where 1,200 steelworkers stood outside the race. They passed out handbills to all of the patrons and then held a motor- cycle brigade. Next they picketed Bridgestone’s European regional headquarters in Brussels. Back in the United States, they held a news conference outside Bridgestone’s headquarters, followed by a march of 1,000 union officials, and then set up a camp across the street from the headquarters.

These activities attracted so much publicity that then president Bill Clinton, four senators, the Japanese prime minister, and the Japanese ambassador to the United States became involved in the dispute. Eventually, there was a settlement,

because the Steelworkers and their worldwide allies made it clear that they would not go away, not ever, no matter how long it took. The commitment of the union, its members, their families, and their communities to win, what- ever it would take, took on new meaning in the context of this new global strategic campaign. (Cimini, 1997)

At the end of the campaign, the company came back to the bargaining table and negotiated an agreement in 1996 that won the strikers all but two of their demands (Juravich & Bronfen- brenner, 2001).

UPS Workers Another successful strike involved 185,000 UPS workers who walked off the job in 1997 to protest pension policies as well as the use of part-time workers. It was the first nation- wide strike in the history of UPS, and shutting down UPS represented 5% of the nation’s gross national product (Teamsters Strike, 1997). The fact that UPS hired so many part-time workers, who were paid less and received no health benefits, was the number one issue that workers wanted remedied. What made the strike so effective was the early organizing the union engaged in, which included mailing information to its members explaining the issues and urging them to participate in a shutdown of the company. When the strike occurred, the employees managed to cut the number of packages delivered in a day from 12 million to just 1 million. That kind of economic pressure, and the resulting loss of profits, forced the com- pany to settle (Bacon, 1997).

After only 15 days, UPS management acceded to the union’s demands, including combining numerous part-time positions to create 10,000 new full-time jobs. The Wall Street Journal

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Section 9.3 Labor Organizations in the 21st Century

interviewed UPS executives and learned that they had seriously misjudged the strength of the union and workers’ loyalty to union leadership (Leumer, 1997).

Organizing the Nontradable Sector Unions may also turn to organizing other sectors of the economy that have not traditionally been part of organized labor. One such sector is called the nontradable sector. Tradable jobs include manufacturing, such as making automobiles, while nontradable jobs consist of wash- ing those cars. The nature of such jobs means they cannot be sent overseas—if the cars are located in the United States, then the workers who wash the cars cannot be outsourced—and thus such jobs are guaranteed to remain in the United States. As such, unions are hoping to grow their membership from this sector, which includes jobs in carpentry, plumbing, and driving (Davidson, 2013).

Organizing Undocumented Workers Another sector consists of foreign-born workers, who research shows “are more receptive to joining a union than the native-born” (Ludden, 2008). In this sector there is a vast network of foreign-born workers who are also undocumented. Some such workers have been successful in organizing. One example involves workers at a waterbed factory in Los Angeles who not only organized, but successfully obtained union representation and negotiated a collective bargaining agreement (Delgado, 2013). The workers boycotted the stores that sold the water- beds, left work early en masse to pray at the factory gates, and wore pro-union shirts to work, all indicative of the united front they presented to management, which eventually realized the workers would not let up until their demands were met (Murulo & Chitty, 2012).

What is the legal status of undocumented aliens? The following U.S. Supreme Court case offers an excellent discussion of the legal challenges facing workers who are not documented.

HOFFMAN PLASTIC COMPOUNDS, INC. v. NATIONAL LABOR RELATIONS BOARD, United States Supreme Court, 535 U.S. 137 (2002)

The National Labor Relations Board (Board) awarded backpay to an undocumented alien who has never been legally authorized to work in the United States.

The NLRB found that management selected four employees for layoff including an employee named Castro, who was an undocumented alien. The NLRB found that the layoff was in vio- lation of § 8(a)(3) of the National Labor Relations Act. To remedy this violation, the Board ordered that Hoffman’s management (1) cease and desist from further violations of the NLRA, (2) post a detailed notice to its employees regarding the remedial order, and (3) offer reinstatement and backpay to the four affected employees.

The issue before the court was whether or not an illegal immigrant is entitled to backpay. The court held that “if an employer unknowingly hires an unauthorized alien, or if the alien becomes unauthorized while employed, the employer is compelled to discharge the worker upon discovery of the worker’s undocumented status.” Employers who violate [the Immigra- tion Reform and Control Act of 1986] IRCA are punished by civil fines, and may be subject to criminal prosecution. IRCA also makes it a crime for an unauthorized alien to subvert the

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Summary & Resources

employer verification system by tendering fraudulent documents. It thus prohibits aliens from using or attempting to use “any forged, counterfeit, altered, or falsely made document” or “any document lawfully issued to or with respect to a person other than the possessor” for purposes of obtaining employment in the United States. Aliens who use or attempt to use such documents are subject to fines and criminal prosecution. There is no dispute that Cas- tro’s use of false documents to obtain employment with Hoffman violated these provisions.

Under the IRCA regime, it is impossible for an undocumented alien to obtain employment in the United States without some party directly contravening explicit congressional policies. Either the undocumented alien tenders fraudulent identification, which subverts the corner- stone of IRCA’s enforcement mechanism, or the employer knowingly hires the undocumented alien in direct contradiction of its IRCA obligations.

We therefore conclude that allowing the Board to award backpay to illegal aliens would unduly trench upon explicit statutory prohibitions critical to federal immigration policy, as expressed in IRCA. It would encourage the successful evasion of apprehension by immigra- tion authorities, condone prior violations of the immigration laws, and encourage future vio- lations. However broad the Board’s discretion to fashion remedies when dealing only with the NLRA, it is not so unbounded as to authorize this sort of an award.

The expansion of businesses around the globe has resulted in new frontiers for labor. What was once a defined (and confined) arena has become limitless, resulting in the decentraliza- tion of workers. Decentralization has made organizing much more challenging. Additionally, other elements, such as treaties that allow workers in countries without labor laws to manu- facture goods for menial wages, have contributed to the decline of unions. What the future holds for labor organizations, and whether they will maintain their current form or transform into an alternative or ground-up type of organization, remains unknown.

Summary & Resources

Summary of Chapter Concepts

• Globalization is the expansion of business into all corners of the world. • Transnational corporations are large conglomerates that do business in multiple

countries. They diminish unions’ power by spreading labor over numerous coun- tries, which presents many obstacles to organizing.

• Businesses have the option to outsource work to other countries, which diminishes the effectiveness of strikes.

• Transnational collective bargaining occurs when workers in one organization are located in different countries yet bargain their contract jointly with the company.

• Labor organizations in the United States are forming alliances with global organiza- tions in order to have more presence.

• UNI Global Union and the International Trade Union Confederation are examples of global unions that represent workers from many countries.

• Trade treaties between the United States and other countries impact the power of labor by lifting tariffs and making foreign products cheaper.

• Changing attitudes among Americans reflect evolving views about the necessities of unions to protect workers’ rights.

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Summary & Resources

• Employer resistance to unions has increased and poses a threat to labor organizations.

• Future models for unions include ground-up organizations, collaborative models, alternative labor organizations, better organized labor activities, and the organiza- tion of disenfranchised workers such as undocumented aliens.

• The future of labor in the 21st century remains uncertain, with many factors work- ing against its success.

Key Terms

alternative labor Nonprofit associations that organize workers to participate in wild- cat strikes, boycotts, protests, and the like; also called alt-labor.

domestic corporations A corporation that does business only in its place of incorporation.

globalization The expansion of a busi- ness outside its home or domestic country to other countries, be it in trade, finance, or investments, such that the business is dependent financially on operations in two or more countries.

global unions Unions that represent work- ers from more than one country.

ground-up organizations Organizations that are characterized by their formation and impetus taking place from the bottom up by workers.

International Trade Union Confederation (ITUC) A global union that represents workers from many countries; the world’s largest trade union.

nontradable sector An area of business that cannot be outsourced because its jobs consist of service-type occupations.

North American Free Trade Agreement (NAFTA) A treaty signed by the United States, Mexico, and Canada in 1994 in order to open up trade between the three coun- tries by lifting trade tariffs.

OUR Walmart An organization consisting of Walmart workers who protest their treat- ment by Walmart, especially as it relates to hours worked and pay.

outsourcing Sending jobs from one country to another to take advantage of lower labor costs.

Restaurant Opportunities Centers (ROC) United An association of more than 13,000 restaurant servers seeking better wages and benefits.

tariffs Taxes imposed by a country on goods imported from another country.

transnational collective bargaining A process that takes place when unions in more than one country negotiate jointly with the same company.

transnational corporations (TNCs) Large conglomerates doing business in multiple countries.

Trans-Pacific Partnership A treaty that may have a deleterious impact on labor by providing incentives for offshore jobs to low-wage countries.

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Summary & Resources

treaty An agreement between countries.

UNI Global Union A global union that encompasses more than 900 trade unions and represents 20 million workers.

works council A group within a company consisting of labor representatives recog- nized by company management to advocate for worker rights and provide advice to management.

Critical Thinking Questions

1. The decline of union membership in the United States raises questions about whether unions will continue to exist in their present configurations. What do you think are the major problems with unions that are costing them membership? Do you think that unions will survive, or do you think they will have to change? What do you imagine unions will look like in the future? Why?

2. Globalization impacts all business, foreign and domestic. How does globalization impact a union in the United States? Is the impact positive or negative? What aspects of globalization do you think will have the greatest impact on unions? Why?

Research Project

1. Visit the UNI Global Union website at http://www.uniglobalunion.org. On the website you will see a link labeled “Campaigns.” Click on it and pick a campaign that interests you. Describe the campaign, where it is taking place, what the workers are trying to accomplish, whether they are successful, and why or why not.

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