FREE ESSAY ON LABOR RELATIONS

LABOR RELATIONS

This paper will attempt to discuss the cost and benefit of trade unionism, as it exists in
the United States. To understand the pros and cons, it is important to understand the
environment in which trade unionism developed and the needs they attempted to satisfy. It
will discuss the evolution of Trade Unionism through the centuries. From that
understanding we can discuss the topic as it relates to our current environment.
Historians agree that American Unionism started in the early 19th Century. These early
organizations were formed along the lines of Craft. Daniel Mills explains, in Labor
Relations, Crafts people worked for themselves, or in small shops. They were often in
conflict with customers or merchants which they supplied. (35) These associations were
formed to protect their craft, rather than as a collective bargaining union. In the mid
19th Century, America was in the middle of the industrial revolution. We were becoming an
urban industrial society. Immigration was becoming a great source of labor supply. These
large manufacturing enterprises, exploiting workers without regards to human cost, were
ripe for National Union Organization. Jerry Borenstein states in his work, Unions In
Transition,  They were often loosely organized associations, which were quite short-lived
and likely to disappear under hostile pressure from employers and government. (15) The
unions of the late 19th and early 20th centuries were formed largely to protect basic
human dignity in the work place. Unions addressed basic concerns regarding safety issues,
length of work day and wage. They were largely unsuccessful due to the public perception
of unions as Socialistic as well as anti American. People viewed trade unions as being
disruptive to the flow of free trade. It was only during the 1930's that trade unions, as
we know them today, were created and accepted. With the passing of the Wagner Act of
1935, formal, legal protection was now afforded Trade Unions in America. Trade unions
moved from being virtually outlawed by the US Government to being the beneficiaries of
their legal protection. Morgan Reynolds tells us, in his Power and Privilege,  the common
definition of Labor Union in the American dictionaries is an organization of workers
formed for the purpose of advancing its members interests in respect to wages, benefits,
and working conditions, through the process of collective bargaining. ( 33 ) This
definition is an all encompassing one that justifies the existence of unions. Assumptions
must be made by unions and the union members that these items are not being provided for
by the employer and therefore require an organization, the union, to fight for them. This
definition describes a Good Guy / Bad Guy relationship between worker and Employer, that
I believe is too simplistic. Both Union and Management act in a checks and balance
relationship that is difficult to describe. We must take specific points of concern and
describe the benefits trade unionism brings to the table. Union Approach Wages Trade
unions are filling a need of the American worker just as much today as they did 30, 50 or
70 years ago. Unions historically have represented the workers who were from
manufacturing, Blue Collar, job classifications. These workers are not being paid an
equitable share of the profits that corporations are making. The disparity between the
union worker and the management personnel is ever growing. The AFL-CIO News dated June
28, 1996 describes an incident where Steelworkers were locked out of a Common Wealth Gas
plant for turning down a contract calling for more than 50 concessions while two weeks
previously management was given 3 million dollars compensation. This occurred while the
company was making a record 54 million dollar profit. ( 2 ). It follows, when considering
the previous statement, inequities in pay are as prevalent in 1996 as they were in 1926.
Unions are needed to lessen these inequities by fighting for workers wages. In Richard
Freeman's, What Do Unions Do, he states, Union membership advances pay treatment for
groups that are historically the least paid. There is a wider disparity in the wages of
Union vs. non Union workers among the following groups. The young, who are the lowest
paid, the worker with least tenure, non whites and women. ( 47 ). The last groups
mentioned, non whites and women are making up more and more of the American work force.
The following is from an AFL/CIO news release dated April 18, 1996. Of the 100 million
women 16 and older in the US, 60 million are in the work force. The statement goes on to
state, Woman that work in union jobs earn on average $145 more each week and have better
job security, training, and promotional opportunities, health care and pension plans. ( 1
) Benefits Fringe Benefits are an ever increasing part of the employees compensation
package. Freeman and Medoff states, in What Unions Do, In 1951, 17 percent of the
compensation of American blue-collar workers consisted of fringe benefits, defined as
employer payments beyond money wages. In 1981 that figure had risen to over 30 per cent.
( 61 ) These increases are a direct result of union representation and the collective
bargaining process. With the ever spiraling cost of health care in the United States more
and more companies are looking to share this cost with the union represented workers. In
1985 NYNEX implemented a FLEX policy of health coverage for their management workers.
This policy required management to share that cost. In 1990, NYNEX attempted to institute
that same policy to its organized workers represented by CWA. A six month strike ensued
which was finally resolved with NYNEX withdrawing the Flex Medical policy from the
negotiation table. It was CWA's active protest, through a work stoppage, that prevented
this policy from being instituted. Unions are intensely opposed to employee paying for
medical. Daniel Mills tells us in, Labor Relations, employees cannot afford to make
contributions or pay deductibles. Employees should be encouraged to get health care, not
given incentives to avoid it. (552) Working Conditions In the turn of the century the
working conditions of the American worker were appalling compared to today's standards.
Child Labor was accepted as evidenced in the Coal Mines and sweat shops of Pennsylvania
and New York. There were no guidelines or regulations defining acceptable work hours or
duration. Safety in the work place was governed at the whim of the employer. Federal laws
were implemented in an attempt to eliminate these abuses inflicted by non scrupulous
management. Unions would argue that regulations are not enough to deter these abuses. The
unions are the mechanism by which these well intentioned regulations are enforced. The
unions are the whistle blowers who police the regulations governing the work place.
Without union representation, these blatant violations of law would be a constant. The
garment industry, utilizing poor immigrant workers, is a prime argument for the need of
present day union representation. OSHA, the government agency established to oversee
safety conditions at work locations, is being scrutinized by federal regulators. The
AFL/CIO news reports congress is pursuing making OSHA a consulting organization rather
than a regulatory one. Unions view themselves as a strong lobbying force which will fight
this latest trend. Management Approach Corporations and the management teams that run
them, exist for the primary purpose of making a profit. These corporations are not social
entities who exist for the betterment of there work force. Rather they are business
entities that exist for the financial betterment of the owners and share holders. The
interest of the business in many cases goes against the interest of the union. One is
concerned about maximizing profits to the business the other is concerned about
maximizing profits to its members. Wages While it is true that union workers have better
wage scales than their non union counterparts, it must also be understood, at what cost
this occurs. There is not an unlimited supply of moneys that an organization possesses.
Union contracts by their nature are not open to discussion before the end of the
contract. Unions themselves are not open to the concept of give backs, regardless of how
the corporation is performing. Unions members are more likely to retain negotiated
treatments, to the detriment of their fellow workers, rather than give these up. Morgan
Reynolds states, in Power and Privilege,  Union pricing tends to increase the average
level of unemployment among non union workers. The average level of unemployment among
union members also is higher because of the inflexibility of union pricing. ( 165 ) What
this means is many unions would rather except temporary layoffs than concede bargain for
wages and benefits. The inflexibility of Unions to respond to economic crisis, ties the
hands of many employers and prevents them from quickly responding to market conditions.
The ever increasing union pay requirements become an a catch 22 situation without end.
Unions demand pay increases, corporations raise associated costs to pay for them. The
same union members demand more increases to keep up with the corporations increased
prices. Benefits An ever increasing proportion of compensation goes towards fringe
benefits. These benefits are no longer considered as a luxury provided in excess of wages
but rather as part and parcel of the compensation package. Unions treat this as a
requirement not a benefit. Unions are as inflexible with benefits as they are with wage.
The most pressing issue concerning business today is the rising cost of Health Care. Many
of the unions are unwilling to absorb this ever increasing cost. Companies are being
expected to pick up the cost regardless of circumstance. An argument can be made that the
unions, by increasing wages, is at the same time taking non wage benefits away from there
workers. Working Conditions One of the primary reasons Unions were formed was the need to
protect workers from unsafe, unsanitary, hostile working conditions. With the ever
increasing regulatory nature of Federal, State and Local government, this need has been
removed. Federal laws dictate wages, such as the minimum wage law, OT compensation. The
Fair Labor Standards Act, dictates payment for many workers beyond the 40 hour per week.
Safety concerns in the work place are regulated and inspected by OSHA. Currently OSHA
inspect millions of work places each year and levies fines against companies who fail to
follow federal guidelines. Many would have you believe the vast amount of government
regulation concerning wages, benefits and working conditions, has made the need for
unions obsolete. Goals Jonathan P. Hiatt General Council of the AFL/CIO states in his
article for the AFL/CIO news, Union Survival for the Twenty-First Century, the labor
movement must develop strategies that respond to two trends which together are wreaking
havoc on the lives of working men and women. ( 1 ) The trends he speaks of are the ever
increasing gap between the high paid skilled worker and the low paid labor. The latter
comprises most of our work force and is the lower educated members of society. The second
trend is the trend to hire what is perceived as a temporary work force. It is the goal of
unions of this nation to organize and represent these temp workers. They are viewing the
hiring of these  peripheral workers  as a company ploy to exploit American workers. Trade
unionism in America is committed to continuing its role as a bargaining agent for core
workers while it seeks to organize this new temp worker. Management's long term goals
must be to guide American industry into the Global Market place while being as
competitive as possible. We must do that while maintaining an ethical treatment of our
work force. Management for the twenty first century must change the work force policies
it has implemented towards the end of this century. We cannot show the disregard of our
work force that reaped havoc on so many of our workers. American Industry cannot succeed
without the cooperation and loyalty of its workers. An absolute goal of both management
and Unions must be a cooperative open dialogue. The adversarial, confrontational
relationship must be replaced by one of a common direction. America is no longer faced
with an internal marketplace. Most all goods and services can be produced cheaper and
just as easy abroad. Labor and Management alike must develop competitive techniques which
can compete in a global market place while providing the benefits and compensation we
have all come to expect. Compromise Jerry Borenstein makes an excellent point in his book
Unions in Transition. In it he states, Perhaps nothing better illustrates the profound
changes in the role of unions in society today than what has happened in the auto
industry itself. The current President of the UAW, Doug Fraser, has been elected to the
board of directors of the Chrysler Corporation. ( 13 ) This exemplifies the need for
Union leadership and management to coexist and ultimately succeed. Management needs to
understand the changing nature and demographics of its work force. It needs to address
the social issues that in previous generations it did not have to be involved with. It
has done so as exampled by the implementation of child care programs, dependent care
accounts for elderly family members and flex time for varying needs modern family life
demands. Unions on the other hand need to take responsibility for the overall success of
the companies that employ their members. We are beginning to here signs of Union
leadership working in a cooperative partnership rather than an adversarial one. The key
to success is the partnership of both factions towards a common goal. It is my belief
that Unions are every much a needed force today as they were 100 years ago. If left
unchecked corporations will continuously breech the line of ethical treatment of workers.
This is evidenced by the maltreatment of much of the management work forces of the
downsized corporations. Because of the lack of solidarity and representation, much of the
management work force of such companies as NYNEX, IBM and others have been thrown to the
wolves after long tenures of service. Unions provide a means of checking the uncontrolled
power of large corporations. This is not a one way street, though. Unions must come to
terms with the public perception of them as money grabbers with criminal leadership. They
must do all they can to cleanse themselves of corruptness. Else they will drive
themselves out of existence. This will be to the detriment of the American Society as a
whole. 
Bibliography Works Cited Borenstein, Jerry. Unions in Transition. New York Simon ans
Schuster. 1981 Reynolds, Morgan. Poer and Privilege. New York. Universe Books. 1984.
Freeman, Richard. Medoff, James. What Do Unions Do. New York. Basic Books. 1984. Quinn,
Daniel. Labor Management Relations. New York McGraw-Hill. 1994 Hiatt, Jonathan. Union
Survival Strategies for the 21st Century. on-line
http//aflcio.org/publ/press96/pr03203.html March 1996. Kameras, David. AFLCIO News .