HRLR 313 Midterm (****)
Qualitative uncertainties and External Numerical Flexibilities
Skill obsolescence Loss of social status
Qualitative Uncertainties and Functional Flexibilities
Skill obsolescence Work intensification Work-life balance deterioration
Craft Union Skills
Skilled, Transportable, Union-Controlled
How do we classify workers in 2020?
Some states codify existing labor court rulings into law (New Jersey) Some states pass stricter requirements to classify as employees (California) Some states exempt gig workers from employment law (Texas) Dept. of Labor supports exemption
Welfare Capitalism
Sought to win worker loyalty Increased efficiency by improving supervisory practices w/ orderly hiring/firing procedures provided wage incentives, protective insurance benefits, positive culture improved physical work environment/safety provided employee voice
What are the 3 shortcomings that led to the Wagner Act?
Specifying a certification procedure for establishing whether a majority of workers want union representation Defining illegal employer actions Creating an independent agency, the National Labor Relations Board (NLRB), to enforce the act
Employee Payment Procedure (Union)
Standard rates (conflict) standard rates (new deal) pay-for-knowledge, contingent pay (Participatory)
Welfare Work
Strategy by employer to avoid unions Created harmony between employers/workers thru family-like company spirit Enhanced welfare of workers, evolved into creation of personnel management function Switched employers from aggressively suppressing unions to avoiding thru less confrontational tactics
PATCO Strike (1981)
Strike by the Professional Air Traffic Controllers Organization to which Reagan responded by firing all controllers not back to work within 48 hours (Taft-Hartley Act) and were banned from federal employment for life; ban lifted by Clinton in 1993, severely decreased union membership
Law of capitalist division of labour (Braverman)
Subdivision of tasks increases managerial control over workers and deskills the labour force which alienates workers/depresses wages Service/knowledge economy not immune to deskilling (Uber)
Business Unionism
Suppression of militant/communist trade unionism Against wildcats Limits itself to wages/benefits of members Pattern bargaining
Danbury Hatters Case
Supreme Court decision in 1908 that ruled trade unions were subject to the Sherman Anti-Trust Act and union members could be held personally responsible for money lost by a business during a strike.
Non-standard work contracts (Atypical)
TAW, fixed-term, part-time Middles between flexible/secure
Pattern bargaining
Takes place when unions negotiate provisions covering wages and other benefits similar to those already provided in other agreements existing within the industry or region; also known as parallel bargaining.
Job Security (Non-Union)
Temporary Work (paternalistic) Cyclical insecurity (bureaucratic) career development (HR management)
Poverty Rate in America as compared to other countries
Tends to be on the higher side of the scale
Ecological movements concerned w/
The Environment
Who started the conspiracy doctrine in labor relations?
The Philadelphia shoemakers
Industrial Relations School
The labor problem is believed to stem from unequal bargaining power between corporations and individual workers. Need to increase workers' bargaining power. Sees unions as important agents to counter corporate monopoly over bargaining power.
Keynesian economics
Theory based on the principles of John Maynard Keynes, stating that government spending should increase during business slumps and be curbed during booms to counter business cycle.
Pluralist Perspective
There's at least some conflict of interest between workers and employers that can't be solved thru unitarist management policies Employee voice is important
Benefits of Collective Agreements for Employers
Transaction costs of employment relationships reduced Wages taken out of competition - price cartel conflict resolution formalized/ordered limited for trade union interference (managerial prerogative) Limits for statutory interference (managerial prerogative) Agreements tailored to company, unlike laws solves collective action problems among employers
Efforts to revitalize unions
Union Cities Project: revitalization of Central Labor Councils Worker Centers Militants within unions (i.e., people with background in social movements) Closer relationships between labor and academics
Is the AFL a union federation or a labor union?
Union federation
Consequence of business unionism
Unions are no longer social movement, but get benefits from bargaining Public attention to labor movement in 1950 (focused on union corruption allegations)
General Union Skills
Unskilled
Job Security (Union)
Unstable (conflict) Seniority-based layoffs (new deal) Employment security (participatory)
Strongmen
Use of undemocratic/coercive methods to maintain position of power
Logic of U.S. up to 1930s
Very anti-union legal climate (e.g. conspiracies, legal injunctions, etc.) Property rights > Labor rights Intellectual foundations: Mainstream economics (unions are monopolies)
Size of Platform/On-Demand Economy
Very small
Craft Union Political Action
Voluntarism, "Free Collective Bargaining"
Transition to a service economy entails a trade-off between what?
Wage inequality (productivity = wages) and employment Could be solved w/ public sector expansion, but this comes with a cost.
The 1920s were characterized by _____
Welfare Capitalism
What were the Industrial Workers of the World called?
Wobblies
Qualitative Uncertainties and Wage Flexibilities
Work Intensification Work-life Balance Deterioration
Qualitative Uncertainties and Internal Numerical Flexibilities
Work intensification Work-life balance deterioration
Norris-LaGuardia Act of 1932
Workers should be able to unionize to balance corporate power (decent wages/working conditions!) Seeks to remove courts from labor relations Forbids injunctions on strikes, payment of strike benefits, publicizing a dispute, peaceful picketing, and workers joining unions
Revolutionary Unionism tries to create
Working-class solidarity vs. solidarity by occupation Wants to overthrow capitalism Form "one big union"
Closed Shop
Workplace closed to everyone but union members, union controlled who became a member
Does the IWW still exist?
Yes, still helps organize Starbucks and JJ's
Does the Wagner Act establish exclusive representation?
Yes, uniquely to North America
National Industrial Recovery Act (NIRA)
a law enacted in 1933 to establish codes of fair practice for industries and to promote industrial growth Fair competition in each industry code - employees can now collectively bargain/organize and be free of interference, restraint, and coercion of employers
The Women's Emergency Brigade
a militant expression of the United Auto Workers (UAW) Women's Auxiliary movement, on 24 hour alert for picket duty, with red berets and armbands played key role in rest of strike, played a crucial role in a battle that enabled UAW members to seize control of the plant that produced all General Motors engines, "We will form a line around the men, and if the police want to fire then they'll just have to fire into us."
Social Democratic Model
a model of conflict management that advocates government intervention to regulate and manage capitalism in order to ensure both economic stability and justice. Focuses on earnings equality and employment growth
Stages of social movements
emergence, coalescence, bureaucratization (success/failure/cooptation/repression/go mainstream), decline
Employers only work w/ trade unions if...
forced to
Statutory Law
laws (statues) passed by legislatures Business law, labor law, employment law
Smoot-Hawley Tariff Act
legislation passed in 1930 that established very high tariffs. Its objective was to reduce imports and stimulate the domestic economy, but it resulted only in retaliatory tariffs by other nations
The Treaty of Detroit
nickname for a 1950 agreement between the United Auto Workers and GM where the two parties peacefully negotiated for health insurance, pension plans, COLAs. Chrysler and Ford followed suit thru pattern bargaining 5 yr contract Set the new standard that stability raises wages, not strikes
Fordism
the manufacturing economy and system derived from assembly-line mass production and the mass consumption of standardized goods. Named after Henry Ford.
Enterprise Union Security
"Enterprise Community"
Enterprise Union Structure
"Enterprise Community"
Union density of fast food
1%
Representation Gap
1/3 of nonunion workers want a union in workplace
First union convicted of being an illegal conspiracy when?
1806
When were labor injunctions applied to yellow dog contracts?
1900s
The New Deal
1932 - FDR Created active gov't role in guaranteeing welfare Security of pop, including federally mandated minimum wages + overtime premium
Wagner Act
1935 - Encouraged Unionization, enacted legal protections for workers, outlawed company unions
When was Wagner Act found constitutional?
1937 - Supreme Court ruling in NLRB v. Jones and Laughlin Steel Corp
Congress of Industrial Organizations (CIO)
1938 35 affiliated Industrial unions, growth thru the roof By end of decade, CIO unions became centralized (necessity w/ big corporations, grassroots initiatives pushed aside for leadership control, aggressive tactics such as sit-down strikes morphed into collective bargaining)
Taft-Harley Act
1947 Union certification less flexible, outlawed "closed shops", permits "right-to-work" laws
When did the AFL and CIO merge?
1955
Why is 1955 important for unions?
1st contested presidential elections w/in AFL-CIO John Sweeney eventually becomes president Important leaders such as Linda Chavez-Thompson come to forefront
OECD (Organization for Economic Cooperation and Development) U.S. Ranking of Inequality
4th Highest
Watershed GM sit-down strike - December 1936
6-week sit down strike Governor ordered Nat'l Guard in Flint to preserve peace GM agreed to recognize UAW, lead to unionization wave in auto industry
Theory of Industrialism (Tech Change)
Advanced industrial tech leads to higher skill levels/specialization, which leads to consensual employment relations Automation leads to higher skill levels/less alienation Optimistic Theory
When did GM Memorial Day Massacre occur?
After passage of Wagner Act
Why was SEIU able to grow in postwar?
Aggressive merger strategy In public sector: less aggressive campaigns against unions Sweeney had doubled dues to support increase in staff (from 20 to 200) New staff brought aggressive and innovative organizing techniques to SEIU SEIU more open and less aristocratic as union
Enterprise Union Skills
All skills - workplace-specific, employer-controlled
Digital Economy
An economy that is based on digital technologies, including digital communication networks, computers, software, and other related information technologies; also called the Internet economy, the new economy, or the Web economy.
Employment at Will
Any employer can dismiss an employee at will w/o being legally in the wrong. Exceptions to this are protected classes in antidiscrimination laws.
High-Road vs. Low-Road
Are companies patient/impatient? Are workers seen as resource/cost? Are labor unions necessary to regulate competition between companies?
Gig economy - Independent Contractor perspective
Are their own bosses Flexibility to drive whatever hours they want Can drive for competitors like Lyft Can say no to trips, albeit to an extent
Engel's Law
As disposable income of a consumer increases, higher demand for manufactured goods
General Union Employment
At Will
The Great Strike Wave of 1945-46
At end of WWII, large strikes in auto, steel, coal, rail, oil refinement, longshoring, and meatpacking Wagner Act -> Taft-Harley Act of 1947
Push-button unionism
Automatic dues check-off system Business agents > organizers Servicing > mobilizing Grievances system
multiemployer bargaining
Bargaining that takes place when a union negotiates with more than one employer in an industry or region at a time.
Why is it hard to choose the high road as an HR specialist?
Because finance wants to constantly restructure!
Second New Deal, 1935
Began in 1935 after the midterm congressional elections in 1934 which further expanded Democratic majorities in Congress thus giving FDR a mandate to go further with the New Deal. Created Works Progress Administration which put over 3 million people to work paid by the government among many other programs. Most important legacies: Social Security & Wagner Act
Industrial Democracy
Belief that workers in a democratic society are entitled to the same democratic principles of participation in the workplace
General Union Work Organization
Bureaucracy job control + seniority
Industrial Union Work Organization
Bureaucracy, Negotiated flexibility
Enterprise Union Work Organization
Bureaucracy, autonomous working groups
What does employer strategy largely depend on?
Business strategy of company (Industry, Labor/capital input, Product/Service market competition, Size Corporate Governance, cf. Lazonick and O'Sullivan)
Requirements for HR Specialists
Business/analytical/planning skills Expertise in traditional labor relations activities and personnel/HR management activities Thorough understanding of business finance Ability to work as member of multidisciplinary team in implementing labor relations strategies/policies Skills in managing innovating labor-management organizational change efforts Expertise in web-based communications and service delivery
How did labor injunctions break strikes?
By turning public opinion away from strikers Draining the unions' financial and human resources thru legal proceedings Demoralizing strikes thru fear/confusion
Gig economy (Are they employees/independent contractors?)
Can be argued to be either! Do not yet know.
Self-employed work contract
Can be very secure or very flexible
Business Unionism accepts what?
Capitalism and need for employers to make a profit
Neoliberal Model
Capitalism could drive development through economic competition and free markets Emphasizes removal of barriers to the movement of goods, services, and capital Earnings inequality accepted Growth of low-wage services
Institutions that Empower Trade Unions
Certification Procedures Regulation of Industrial Action Extension Mechanisms Ghent-systems
Explanations of union membership decline
Changes in demographics, occupations, & industries Changes in workforce values Substantive employment law substitutes for unions Movement by employers toward union avoidance + resistance Limitations of union structure + internal loss Faster employment in southern states Young workers less likely to unionize Representation Gap
What outlawed discriminatory practices by employers/unions?
Civil Rights Act of 1964
Core features of social movement unions
Collective of workers and allies Change-oriented Some degree of organization Target Extra-institutional tactics Collective identity, solidarity Leadership Some sustainability
Worker-manager relations (unions)
Combative (conflict) Arms-Length (New Deal) Participatory (Overlapping roles)
Platform/Gig economy
Common in high-tech industries, with a corporation headquartered in the United States but most of the work on its products done overseas. Effective hourly wage under federal minimum wage Supplemental part-time income (40% of Uber drivers remain active a year after taking their first trip) No benefits linked to economic activity
Gig economy - Employee perspective
Company hires and fires (activates/deactivates) the drivers Company sets their fares Takes 20% commission from fares Gives drivers weekly ratings Orders them not to ask for tips
From workers' perspective, what is a labor union?
Concerns collective work-related protection, influence, and voice
Labor movements work for
Control of the workplace
Due Process
Core standards of legal treatment, such as right to fair trial and to hear and present evidence
Injunction
Court order requiring individual/organization to stop a proposed/current action on the belief that the action would case irreparable harm/damage (e.g. order to prevent picketing in 1800s) Frequently issued to stop/limit picketing during strikes Temp restraining orders/injunctions issued by judges w/o full hearings
What happens if we decide gig economy workers are employees?
Covered by minimum wage, overtime, anti-discrimination laws Uber would need to make contributions to Social Security, Medicare, workers' compensation, unemployment insurance Unionization
National War Labor Board (NWLB)
Created by President Roosevelt with a tripartite structure Built to resolve labor disputes to keep war production moving - give up right to strike for job security Created fringe benefits (Holiday pay, shift differentials, health insurance around wage controls) Unwittingly drew women into factory work
American Federation of Labor (AFL)
Created in 1886 - 25 National Unions Sometimes coordinated bargaining/strikes when multiple unions involved Provided financial aid to striking unions
Conspiracy
Crime for 2+ individuals to plot to derive someone else of their rights/property
Industry 4.0
Current trend of automation and data exchange in manufacturing technologies
As manufacturing employment increases, manufacturing industrial production what?
Decreases.
Work Organization (Union)
Detailed classifications (Conflict) Detailed classifications (New Deal) Teams (Participatory)
Open Shop Movement
Drive by employers and employers' associations in early 1900s to create/maintain union-free workplaces Thoroughly nonunion operation of employees selected by employer Portrayed ideology of individual freedom (unions violate individual liberties, etc.) Renamed "The American Plan" in 1920s
Three Objectives for Employment Relationship
Efficiency Equity Voice
Goals of IWW
Emphasizes complete harmony of interests of all wage wages as against the representatives Seeks to unite skilled/unskilled Direct Action vs. signed contracts
What is essential for Industrial Democracy?
Employee Voice
Voice
Employees have meaningful input e.g. employee participation, autonomy, unions
Core of the Wagner Act
Employees shall have the right to self-organization. They may bargain collectively through representatives of their own choosing. They may engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection.
Why were elections contested in 1955?
Employer and government assault on union Social contract no longer existed Members felt they had little to loose by not voting for traditional leadership Sweeney had shown that the SEIU was able to grow in membership during postwar
Precarious work
Employment that is uncertain, unpredictable, and risky from the point of view of the worker
Industrial Union Structure
Encompassing "class-based"
National Labor Relations Board (NLRB)
Established by the Wagner Act to enforce its provisions Independent fed agency Conducts rep elections and adjudicating unfair labor practices Made up of general counsel's office and 5-member board of presidential appointees If individual believes unfair labor practice has occurred, can file w/ NLRB regional office - if merit in charge found, hearing before administrative law judge - violators can be order to cease/desist from illegal activities
Important Activity of AFL Unions
Establishing/maintaining job standards thru work rules Control over decision making seen as necessary to promote human dignity
Complaint Procedure (Union)
Excessive Delays (Conflict) Grievance System (New Deal) Continuous Problem Solving (Participatory)
AFL unions guided by principle of ____
Exclusive Jurisdiction
Industrial Union Labor Market
External - occupational and internal
Craft Union Labor Market
External, Occupational
Equity
Fairness in the distribution of economic rewards, administration of employment policies, provision of employment security e.g. dismiss employees only for valid reasons, benefit packages, decent wages
Informal Sector work contract
Flexible > Secure
Christian Democratic Model
Focuses on fiscal discipline and earnings equality
Mainstream Economics School
Focuses on the economic activity of self-interested agents, such as firms and workers, who interact in competitive markets Sees unions as interfering agents w/ free-market model
Memphis Sanitation Strike
For two months 1,000 black sanitation workers went on strike and demanded not only improved wages and working conditions, but also civil rights and respect. Signs read "I am a man."
Labor Union
Group of workers who join together to influence the nature of their employment
Relationship between prices, wages and demand under Fordism
Growing incomes leads to higher demand for manufactured goods (Engel's Law), which leads to lower prices of manufactured goods and higher demand. Eventually leads to Growing Incomes Positive link between productivity, demand and employment in manufacturing
Relationship between prices, wages and demand under Service Economy
Growing incomes leads to saturated manufacturing market (quality > quantity) which leads to lower prices of manufactured goods, so there's less demand which stagnates employment due to productivity increases. Eventually leads to transition to service work Negative link between productivity, demand and employment in manufacturing
Strategies for recalibration of flex/security
Have courts and NLRB rule that drivers are employees State legislation stipulating that they are employees (California) Have states and cities give Uber drivers collective bargaining rights as independent contractors (Seattle) Try to create a system of portable benefits
Work-manager relations (non-union)
Hierarchical + personal (paternalistic) Hierarchical (bureaucratic) Individual (HR Management)
Rise of shareholder value maximization
Holding management accountable to shareholders Shareholders react to 'bad management' + inflated companies Corporate restructuring resulting from companies being bought/sold on the market - efficiency in market of corporations Goes from "retain/reinvest" to "downsize/distribute"
Why is the labor problem such a big problem?
Human Perspective (people should have better lives than that) Economic Perspective (people should be able to afford decent living, etc.) Business Perspective (Keep employees loyal - raise wages to reduce turnover, make sure employees can buy business's product!)
How do politics affect the economy?
If tech change, there's skill gaps - might need intervention Floor under wages = Some jobs not created, so what other jobs can be? Training regimes Taxation
AFL and its affiliated unions emphasized what?
Immediate improvements in basic employment condition (wages, hours, working conditions)
IWW view on short-term improvements
Important for bettering workers for advancing alrger struggle against capitalists
Industrial Union Skills
Includes all skills - partly workplace specific, contested control
General Union Structure
Incompletely Encompassing
How to get out of the Trilemma
Increased productivity in services equals higher wages/less inequality/more tax revenue Traded services Technological change
Fast Food Franchising Structure
Increasing degree of fragmentation
Standard work contract
Indefinite, full-time Secure > Flexible
Individual attempts to influence wages/working conditions are consistent with what?
Individual freedom
Rules Management Style (Union)
Inflexible/aggressive (conflict) Formal/adversarial (new deal) Flexible/involvement (particapatory)
Rules Management Style (Nonunion)
Informal Managerial Discretion (Paternalistic) Formal, Rule-bound (Bureaucratic) Flexible, Strong Corporate Culture (HR Management)
Institutions that Requires Worker Voice
Information Consultation Co-Determination
Enterprise Union Labor Market
Internal
When did U.S. union density in private sector peak, and how much?
It peaked at 35% in the mid-1950s
Craft Union Work Organization
Job Control
Craft Union Employment
Job-by-job
Critical (Marxist) Industrial Relations School
Labor Problem stems from ruling class over means of production. Need to restructure capitalism w/ help of strong, militant unions, as collective bargaining isn't adequate. Sees unions as important but inadequate.
Unitarist
Labor as a managerial problem, interests of employers and employees can be aligned (HR/OB)
Principles of the Wagner Act
Labor is more than a commodity Labor and mgmt are not economic or legal equals.
bureaucrat
Labor leaders were older men who wore suits
HR Management School
Labor problems result from poor management, so need to align management skills w/ interests of workers and firms Sees unions as unnecessary; healthy companies shouldn't have unions, only company unions (which aren't independent)
Labour Market Segmentation (Piore, Rubery & Edwards)
Labour market divided into segments of good/bad jobs and there's virtually no mobility between the two segments Skill-biased technological change erodes the need for certain occupations through automation and/digitization
IWW biggest victory
Lawrence, MA. textile workers strike - 1912 Workers all walked out after wage reduction >3 days 20,000 workers on strike
Common law
Laws based on custom and judicial precedent Conspiracy, Contract, Injunction, Due Process
Employment Law
Laws written to establish minimum standards for the individual employment relationship (e.g. Civil Rights Act of 1964, Occupational Safety + Health Act 1970, FMLA 1993)
Business Law
Laws written to govern business activities (Sherman Antitrust Act of 1890 to prevent monopolies)
Labor Law
Laws written to govern collective employment relationship (unions/union activity) E.g. Wagner Act 1935
Industrial Union Security
Legal + political institutionalization
Grievances System
Legalistic procedures away from shop floor
Contract
Legally binding/enforceable agreement between 2 parties governed by common law
Fast Food Franchisees
Legally independent, but strong control from corporate
What job type has highest percentage of hourly paid workers at or below federal minimum wage?
Leisure/hospitality
Enterprise Union Employment
Lifetime
General Union Political Action
Limited due to voluntaristic tradition
The Labor Problem
Long hours, low wages, unsafe conditions, insecurity, managerial dictatorship, workers as machines Extreme job specialization (no ownership in work, division of labor renders people "stupid/ignorant"
Quantitative Uncertainties and Wage Flexibilities
Loss of income
Quantitative Uncertainties and Internal Numerical Flexibilities
Loss of income Loss of benefits
Quantitative uncertainties and External Numerical Flexibilities
Loss of income Loss of benefits Loss of job's protection
Quantitative Uncertainties and Functional Flexibilities
Loss of income Loss of job protection
Work Organization (Nonunion)
Low skill (Paternalistic) Detailed Classifications (Bureaucratic) Teams (HR Management)
General Union Labor Market
Mainly External, general
4 Schools of Thought About Employment Relationship
Mainstream Economics School HR Management School The Industrial Relations School The Critical Industrial Relations School
Major Sector Productivity vs. Real Wages of Goods-Producing Workers
Major Sector Productivity much higher than real wages
Stages of Labor Movements
Market-enhancement, Counter-mobilization/revitalization, state-backed institutionalization, institutionalized governance, deregulation/competition & Tech change, REPEAT
Unions
Massive bureaucratic systems w/ huge financial resources
End of postwar social contract stemmed from
Massive contract concession
employment protection vs. stock market capitalization
More employment protection = less stock market capitalization
Fast Food Industry Franchising Rank
Most highly franchised industry in U.S.
Union density now vs. past
Much less union density than there used to be!
Problems with NIRA
National Labor Board created to help settle disputes, but had no specific enforcement powers - ineffective Employers established fake unions to "comply" w/o recognizing independent unions
Skill-Biased Technological Change (SBTC)
New Technological Requires Certain General Skills Technology Changes Relative Demand for Skill Sets (college degrees for computer skills rewarded, physical labor punished) Interacts w/ Off-Shoring
Do all employer preferences favor no unions?
No, some favor unions - can help employers collectively by taking wages out of competition, thus passing on higher labor costs to consumers
Complaint Procedure (nonunion)
None (Paternalistic) Written policies (Bureaucratic) Ombudsman (HR Management)
Enterprise Union Political Action
Nonpolitical
Exclusive jurisdiction
Only 1 union per craft AFL resolved jurisdictional disputes
Property Rights
Optimal for achieving efficiency (right of worker to quit job, no union needed!)
Fast Food Campaign
Origin: NYC/Chicago Role of SEIU/community organizations Demand $15 hr/unionization w/o retaliation Uses minority unionism, geographically coordinated 1-day strikes, workers fly in from other cities Class action lawsuits against corporations to target franchisor as joint employer Coalition builder w/ other groups such as BLM Helped elevate debate about inequality and raise min. wage in several states
Craft Union Structure
Particularistic, Fragmented by Trade
How would gig economy employment be described in the service economy?
Patchwork at best
Union density
Percentage of workers who are union members
Employee Payment Procedure (Nonunion)
Piece rates (Paternalistic) Job Evaluation (Bureaucratic) Pay-for-skills, performance-based pay (HR Management)
Democratic movements work for
Political Rights
Industrial Union Political Action
Political and Industrial action in different combinations, tripartism
General Union Security
Post-entry closed shop
Hard Work (Book by Fantasia and Voss)
Postwar bureaucratization of the labor relations system and De-radicalization (e.g., loyalty oaths) At the same time: powerful and large unions Dominant positions in U.S. economy (e.g., automobile, steel) Workers occupying critical nodes (miners, truck drivers) Trade away militant solidarity and radical political language for social legitimacy and institutional standing
Sources of labor movement turbulence
Postwar civil rights movement Economy
Only when trade unions have enough what will employers engage?
Power Also depends on what kind of power union has
Craft Union Security
Pre-entry closed shop
Private sector union density vs. public sector union density (2008)
Private < Public
Private sector union density vs. public sector union density (1950)
Private > Public
Efficiency
Productive, profit-maximizing use of labor to promote economic prosperity e.g. workplace policies that promote flexibility, productivity
Baumol's Disease
Productivity in services tends to increase at a lower rate, if at all, than in the production of goods Assuming equal wage developments across sectors, unit labor costs must then increase faster in the production of services than in the economy as a whole
Downsize and distribute
Profits used for shareholder dividends Short-term perspective External labor markets/poaching Downsizing/outsourcing Focus on Core Business and LEAN Shareholder view: Shareholders and financial markets
Retain and reinvest
Profits used on corporate growth Long-term perspective Internal labor markets/promotions Retention of Personnel Focus on diversification in other markets Stakeholder view: Owners, managers, workers, local economy
Yellow Dog Contract
Promise by a worker not to join/support a union Refusal to agree to such conditions meant either termination/not being hired Union's attempt to organize employees could result in injunction Union ignore = penalties for contempt of court
Before the New Deal in the 1930s, legal doctrine favored what?
Property rights + individual liberty
Legal rules and court decisions try to balance what?
Property rights and labor rights
Industrial Union Employment
Protected
Collective Bargaining
Reps of employer + employees negotiate terms/conditions of employment that will apply to employees (compensation, employee rights + responsibilities, etc.)
How did craft unions want to control standards of their crafts?
Restricting entry to skilled workers to maintain high wage levels Having workers > employers determine all aspects of work to maintain worker dignity
Creating shareholder value
Retain/reinvest Downsize/distribute
What kind of unionism did IWW promote?
Revolutionary Unionism
Intangibles such as the _______ are also part of an employer's property rights
Right to do Business
Theory of post-industrialism (knowledge economy)
Rise of services + knowledge economy leads to higher skills/tertiary ed needed R/D replaces production jobs in advanced capitalist countries Optimistic Theory
First president of AFL
Samuel Gompers
What section of the Wagner Act prohibits employers from interfering, restraining, or coercing employees?
Section 8 (a)(1) Only unfair labor practice technically necessary to enforce Wagner Act Also establishes that it's an unfair labor practice for employer to refuse to bargain w/ certified majority union
Industrial unionism
Seeks to organize all the workers in workplace/industry Significant force in mid-1930s
Craft Unionism
Seeks to win labor's fair share of profits thru collective bargaining backed up by threat of striking Unions divided along craft line by occupation/trade Hostile toward unskilled labor/represented only skilled labor Excluded minority/immigrant/female workers
As agriculture decreases, what increases?
Services
How is high skill work solved by collective action?
Sets wage ceiling so predatory wage premium does occur and only a few companies can afford employees w/ desired skill set
How is low skill work solved by collective action?
Sets wage floors so predatory wage dumping doesn't occur and jobs/labor productivity doesn't become too low
Non-standard work contract (Very Atypical)
Short fixed-term Short part-time No contract Zero hours/on call More flexible than secure