The Case for Unions In the Time Magazine article The Decline of Unions Is Your Problem Too, Eric Liu attempts to show that all workers in America need labor unions and that their decline in power is hurting both union and non-union workers. He sates that with the decline of the organized labor movement a devastating effect on the economy is taking place for everyone. By having several links in the article, Mr. Liu tries to make his case for it. Mr. Liu makes the point to say that when organized labor is strong the economy does better for everyone. Mr. Liu goes on to say that by unions raising the wages of workers it gives them more money to spend and help the economy. Linking to a Wikipedia article concerning the Union Wage Premium, that …show more content…
Mr. Liu links to an article from CNN Money that shows that businesses’ profits have raised to over $1.75 trillion at the time his article was written. But at this same time, wages have fallen for the workers for those companies that made the record profits. The article goes on to say that wages have fallen to record level lows for workers, even lower that the 1970s, to 43.5% of the gross domestic product. In the 1970s it was as high as 49%. Another source that Mr. Liu’s article sites on this matter is from the website Newswise. From the year 1973 to the year 2007, the range of wage inequality for men increased by 40%. For women it was even higher for a total of 50%. With businesses hoarding profits, they do not hire as much to keep as much of the profits they make for …show more content…
Liu claims in his article that a side effect of strong unions is that it help raise the pay rate of non-union workers. The website, Center for American Progress Action Fund, states that a simple 10% increase in unionization in a state’s union numbers will increase the income of a household by $1,501 a year for non-union workers. With the weakening of the union workforce workers for union companies and non-union companies have seen their pay levels slowly decrease over the last couple of decades, making it harder for workers for both union and non-union companies to make ends meat. Mr. Liu finish his article by stating that people need to be taught that unions are not a burden on the economy but actually help it. The problem with the decline of unions is everyone’s concern and all workers’ responsibility to turn around. The main problem with his article is that it does not go into detail about the problems with organized labor and what problems it can have for the worker. The article The Pros and Cons of Union Jobs by Larry Keller from the website Bankrate goes into detail about the adverse effects that unions can have on the workforce. The raising cost of union dues can have an impact on the workers’ paychecks is the first thing listed. With dues ranging from $200 or more a year offsetting the higher wages that unions gain for their
The paper will discuss minicases on ‘The White-Collar Union Organizer’ and ‘The Frustrated Labor Historians’ by Arthur A. Sloane and Fred Witney (2010), to understand the issues unions undergo in the marketplace. There is no predetermined statistical number reported of union memberships in this country. However, “the United Bureau of Labor Statistics (BLS) excludes almost 2 million U.S wages and salary employees, over half of whom are employed in the public sector, who are represented at their workplaces by a union but are not union members. Not being required to join a union as a condition of continued employment, these employees have for a variety of reasons chosen not to do so. Nor do the BLS estimates include union members who are currently unemployed” (Sloane & Witney, 2010, p.5). Given this important information, the examination of these minicases will provide answers to the problems unions face in organizational settings.
As companies look to expand operations and hire new employees, many economic and environmental factors are taken into consideration. The cost of labor is one of the primary concerns as labor generally constitutes a large part of company budgets. The organization of labor by unions further increases this concern. The wages of unionized workers are significantly higher than the wages of nonunion workers in almost every industry (Fossum, 2012). Higher wages generally result in reduced company profits, lower share prices, and reduced shareholder returns (Fossum, 2012). Unionization also reduces the employer’s flexibility with regards to hiring, transferring, or promoting employees (Fossum, 2012). Productivity may be negatively impacted by unionization because merit is often eliminated as a criterion for wage increases or promotions (Fossum, 2012). As a result of these negative impacts, employers are motivated to oppose unionization.
Modern democratic ideas were sprouting in America, especially within the organized labor movement from 1875 to 1900. During this period, blue-collar industrial Americans sought to abate their plight through the formal use of collective bargaining and the voice of the masses; seeking to use their strength in numbers against the pocket-heavy trusts. America’s rise in Unions can be traced back to 1792, when workers in Philadelphia formed America’s first union which instituted the avant garde method collective bargaining. It is because of these grass roots that America’s organized labor has continued to grow to this day, however not unchallenged. The challenges unions face today stem directly from the challenges faced in 1875. The organized labor movement from 1875 to 1900 is to blame for the problems unions face today as early labor unions crucified themselves politically, alienated themselves socially and failed to increase the socio-economic position of the worker, and in many cases only succeeded in worsening such positions.
Throughout the history of the United States of America the continuation of misfortunes for the workforce has aggravated people to their apex, eventually leading to the development of labor unions.
Throughout the years, “ U.S income inequality has been increasing steadily since the 1970s and now has reached levels not seen since 1928” (Source A).
Wallerstein, M. & Western, B. 2000. Unions in Decline? What Has Changed and Why? Annual Review of Political Science. 3: 355-377.
Beginning in the late 1700’s and growing rapidly even today, labor unions form the backbone for the American workforce and continue to fight for the common interests of workers around the country. As we look at the history of these unions, we see powerful individuals such as Terrence Powderly, Samuel Gompers, and Eugene Debs rise up as leaders in a newfound movement that protected the rights of the common worker and ensured better wages, more reasonable hours, and safer working conditions for those people (History). The rise of these labor unions also warranted new legislation that would protect against child labor in factories and give health benefits to workers who were either retired or injured, but everyone was not on board with the idea of foundations working to protect the interests of the common worker. Conflict with their industries lead to many strikes across the country in the coal, steel, and railroad industries, and several of these would ultimately end up leading to bloodshed. However, the existence of labor unions in the United States and their influence on their respective industries still resonates today, and many of our modern ideals that we have today carry over from what these labor unions fought for during through the Industrial Revolution.
... of Labor Unions in Labor Markets. In R. C. Free (Ed.), 21st Century Reference Series. 21st Century Economics (Vol. 1, pp. 163-172). Thousand Oaks, CA: Sage Reference. Retrieved from http://go.galegroup.com.library3.webster.edu/ps/i.do?id=GALE%7CCX1700400026&v=2.1&u=edenweb_main&it=r&p=GVRL&sw=w
Fletcher says that when unions and politics come together, people especially interpret unions’ missions and their power critically. He does not expand on how he titles the myth, but skims the surface on union consensus regarding politics. The myth is about the belief that “unions should stay out of politics and focus on what’s happening in the workplace” (Fletcher 65).
The disadvantages of union membership are viewed from the employee and employer perspective. Through the employee lens, the disadvantages manifest in the form of fees, loss of autonomy, and less collaborative work environment. As part of the union, you surrender many of your individual rights in exchange for the organized results that can potentially manifest through the collective bargaining process. Therefore, there isn’t any assurance that your individual concern will even be addressed.
The Industrial Revolution that took place after the Civil War made for a more economically sound country. American workers, however, were becoming more and more dependent upon their wages; a fear of unemployment also stemmed from this. Workers didn’t share in the benefits that their employers reaped. In a chart representing the hours and wages of industrial workers, from 1875 to 1891, it shows that even though their wages were subtly increasing, their 10-hour work day remained the same (Doc. A). Factories were headed by large corporations; this, in turn, meant that new machines lessened the amount of workers in certain fields. As a result of these unsuitable conditions, labor unions were formed. The challenges that these unions faced weren’t easy. If the workers involved in organized labor got too far out of line, these corporations could get federal authorities involved. Moreover, these companies could enforce “ironclad oaths” upon their employees. In a Western Union Telegraph Company employee contract, in 1883, it states that the employee will not be affiliated with any societies or organizations (Doc. E). Despite such setbacks, by 1872 there were over 32 national unions.
The balance of power between management and labor has long been an issue. Historically, employers had the upper hand, and workers were afforded few rights in terms of pay, working conditions, or fair treatment (Fossum, 2012). Individual workers found that they had little influence over their own work situations and were frequently at the mercy of employers. Over time though, some progress was made in drawing attention to the plight of workers. The power of organizing began to give groups of workers some voice in workplace matters. Unfortunately, however, initial attempts at unionization of workers during the nineteenth century were short-lived and often marked by violence (Fossum, 2012). It was not until the twentieth century that major legislation gave unions a sense of legitimacy and workers slowly gained some leverage in the employer-employee relationship.
According to the textbook, labor union are “group of individuals working together to achieve shared job-related goals” (P.331) . Mainly these shared job-related goals could be need for salary/wages increase,
Unions have become commonplace in the labor arena. They provide employees with a valuable tool that allows them to stand together against their employer to make sure that their rights are upheld in the workplace. This paper will focus on labor unions with regards to how they work in two very different companies, Ford Motor Company and United Airlines. Also, a brief history will be outlined as well as legislation regarding unions.
The gap in wealth between the rich and the poor continues to grow larger, as productivity increases but wages remain the same. There were changes in the tax structure that gave the wealthy tax breaks, such as only taxing for social security within the first $113,700 of income in a year. For CEOs this tax was paid off almost immediately. Free trade treaties broke barriers to trade and resulted in outsourcing and lower wages for workers. In “Job on the Line” by William Adler, a worker named Mollie James lost her job when the factory moved to Mexico. “The job in which Mollie James once took great pride, the job that both fostered and repaid her loyalty by enabling her to rise above humble beginnings and provide for her family – that job does not now pay Balbina Duque a wage sufficient to live on” (489). When Balbina started working she was only making 65 cents an hour. Another huge issue lies in the minimum wage. In 2007, the minimum wage was only 51% of the living wage in America. How can a person live 51% of a life? Especially when cuts were being made in anti-poverty and welfare programs that were intended to get people on their feet. Now, it seems that the system keeps people down, as they try to earn more but their benefits are taken away faster than they can earn. Even when workers tried to get together to help themselves they were thrown