UNION ADVANTAGE
The Case for Organized Labor and Democracy in the
Workplace
If the great pamphleteer Tom Paine were alive and
agitating today, chances are he’d be barnstorming on behalf of
workers who have suffered the same experience that he endured before
immigrating to America: being fired for trying to organize a union.
While Paine is best remembered for inspiring
American revolutionaries, he was a working class hero in his native
England, where he once worked as an “exciseman,” or traveling
tax-collector and smuggler-catcher. When his co-workers complained
they were underpaid, he organized them, took their case to
Parliament, and was fired for his troubles.
Soon afterwards, Paine moved to North America,
where his pamphlets, “Common Sense” and “The Crisis,” helped
build support for a war of independence to replace monarchy with
democracy. King George, the revolutionaries declared, had denied
Americans the rights Englishmen had enjoyed since the Magna Charta.
On Labor Day 2001, a modern-day Paine would argue
for reviving, modernizing, and enforcing a Depression-era law that
once was hailed as “Labor’s Magna Charta.” The National Labor
Relations Act (NLRA) of 1935 guarantees working Americans the right
to organize without fear of reprisal and to bargain with their
employers for better wages, benefits, and working conditions. Until
it was weakened in 1947 and systematically flouted by employers
since the 1970s, this law made it public policy to encourage the
growth of unions to lift living standards and serve as
counterweights to corporate power.
For Paine’s spiritual descendants, the time is
right to make the case for restoring the nation’s earlier
commitment to collective bargaining, a system that encourages a
small measure of democracy in the workplace. Many of the arguments
for protecting workers’ rights to organize that were made in the
depths of the Depression still ring true today. Now as then, unions
are essential because they raise wages, reduce economic
inequalities, and help individual employees redress grievances
against powerful employers.
Moreover, now that Americans are increasingly
nervous about the churning new economy, the nation can benefit from
many other roles that unions have played. Unions are sources of
education and training, providers of portable health and pension
benefits, referral services matching skilled workers with job
opportunities, and partners for responsible employers, such as
Harley-Davidson motorcycles and the Kaiser Permanente hospitals and
health plans, that are seeking to provide quality to their
consumers.
The Union Advantage. Today’s
Tom Paine would point to how, over the past half century, unions
helped to build a more prosperous, egalitarian, and inclusive
America, and how the deunionization of America has coincided with
increasing inequality and stagnating living standards.
The case is clear: Thanks in large measure to a
labor movement that reached a high-watermark of 35 percent of the
entire workforce by the middle of the 1950s, American family incomes
grew by an average of 2.4 percent to 3 percent a year from 1947
through 1973, with every sector of society seeing its incomes
roughly double. Then unions started their steady decline to their
present position: 16 percent of the entire workforce and scarcely 10
percent of private sector workers. Meanwhile, real wages (average
hourly pay, adjusted for inflation) stagnated, with most families
maintaining their living standards by having husbands, wives, and
even teen-age children working longer hours. When real wages finally
increased at the end of the 1990s, when a booming economy approached
full employment, Congress increased the minimum wage, and a feistier
labor movement put the problem of wage stagnation on America’s
agenda.
Even now, unions help workers raise their wages
and improve their benefit package. By the end of the 1990s, union
members earned 32 percent more than unrepresented workers, according
to the Bureau of Labor Statistics in the U.S. Department of Labor.
Moreover, the “union advantage” was even greater for workers who
are vulnerable to discrimination. Union women earned 39 percent more
than their non-union counterparts, and the union premium was 54
percent for Latino workers and 45 percent for African Americans.
Union members are also more likely to have health courage and
pension plans. And from the longstanding apprenticeship programs in
the building trades to innovative efforts to help telecommunications
workers learn how to use new technologies, unions are second only to
the military as a source of job training and skill development.
Embattled Workplaces. Before
more workers, and the entire nation, can benefit from what unions
can do, more workers need to be able to form and join unions. But,
when workers in the private sector try to form unions, companies
often go ballistic, resorting to their ultimate weapons of
terminating union supporters or threatening to close down the entire
workplace, possibly moving it to Mexico.
The widespread use of these tactics has been
documented in a growing bookshelf of studies by academic observers.
Harvard Law Professor Paul Weiler estimates that
one in 20 union supporters — an average of approximately 10,000
workers a year — are fired by their employers during union
organizing campaigns.
Similarly, in a study of 400 elections on union
representation conducted by the National Labor Relations Board, Dr.
Kate Bronfenbrenner of Cornell University found that 50 percent of
the employers threatened to close the office or plant and 32 percent
fired workers who actively supported the union. These actions are in
violation of the NLRA’s provisions prohibiting employers from
firing, harassing, or threatening employers who seek to organize
unions. But, as the journalist Michael Kinsley once said of campaign
finance, when it comes to employer opposition to workers’
organizing efforts, the real scandal is not what is illegal but
rather what is legal.
Because of amendments to the NLRA in 1946, spotty
enforcement by over-burdened federal officials, and slick tactics by
the lawyers, publicists, and employee relations specialists who earn
an estimated $300 million a year advising employers how to defeat
organizing drives, union-bashing tactics have become commonplace.
All in all, according to Bronfenbrenner, 80
percent of employers who face employee organizing efforts hire
consultants to help them conduct anti-union campaigns. And their
tactics make a mockery of the NLRA’s promise that workers are
guaranteed “the right to self-organization, to form, join, or
assist labor organizations, to bargain collectively through
representatives of their own choosing, and to engage in concerted
activities for the purpose of collective bargaining or other mutual
aid or protection.”
Brofenbrenner found another, uglier reality. In
addition to the 32 percent of employers who break the law by firing
pro-union workers and the 50 percent who skirt the law by
threatening to close down the workplace, others use legal but
hardball tactics: 91 percent of employers facing organizing efforts
force employees to attend anti-union meetings; 77 percent distribute
anti-union leaflets; and 58 percent show anti-union videos.
In addition to these efforts, employers can often
also get away with these tactics: firing employees who refuse to
attend the anti-union meetings or who insist on asking embarrassing
questions; excluding known union supporters from these meetings; and
barring union representatives from the workplaces during the weeks
before the federally supervised elections where workers decide
whether to be represented by a union.
These conditions resemble sham elections in
totalitarian countries. In fact, they violate international
conventions that the United States has signed protecting freedom of
association — a right that’s a close cousin to the U.S.
Constitution’s guarantees of free speech and freedom of assembly.
According to a recent study by the international watchdog group,
Human Rights Watch: Workers’ freedom of
association is under sustained attack in the United States, and the
government is often failing in its responsibility under
international human rights standards to deter such attacks and
protect workers’ rights.
The Forgotten Wagner Act. All
this is a far cry from the original vision of the National Labor
Relations Act, which saw unions as indispensable institutions in an
industrialized democracy. Introduced by Senator Robert F. Wagner
(thus, the NLRA is frequently called “The Wagner Act”), a
liberal Democrat from New York, and signed into law by President
Franklin D. Roosevelt, the NLRA reflected the era’s egalitarian
economic philosophy. The Depression had been caused by corporate
excesses, the New Dealers believed, and by the lack of consumer
demand resulting from low wages. Moreover, ordinary citizens were
powerless to right these wrongs unless they joined together. Thus,
unions were desirable because they offered workers a way to resist
corporate abuses, raise their wages, and restore their rightful role
in the nation’s economic, social, and political life.
Today’s Tom Paine might argue that such
organizing is an essential element not only of a free society but of
any truly free market economy, as it ensures that the price of
products on the shelf reflects their true cost of manufacture,
including the cost of just working conditions. He might cite the
forthright legislative “findings” that precede the provisions of
the NLRA, which read like a populist treatise about the causes and
consequences of economic inequality and, remarkably, are still the
law of the land.
Thus, the law begins by blaming hostile employers
for labor unrest, declaring: The denial by
some employers of the right of employees to organize and the refusal
by some employers to accept the procedure of collective bargaining
lead to strikes and other forms of industrial strife.
The law goes on contend that individual workers
don’t have the power to improve their conditions and to present
collective action as a cure for the lack of mass purchasing power
that produced the Depression: The
inequality of bargaining power between employees who do not possess
full freedom of association or actual liberty of contract and
employers who are organized in the corporate or other forms of
ownership association ... tends to aggravate recurrent business
depressions by suppressing wage rates.
Because its backers believed in the desirability
of unions and collective bargaining, the NLRA was based on the
principle that workers should decide whether to form organizations
of their own without their employers being involved. The law created
the National Labor Relations Board (NLRB) to administer a simple
democratic procedure for workers to decide whether to be represented
by a union. Workers would sign cards authorizing a union to
represent them. The NLRB would verify the validity of these cards.
If a majority of the employees at a workplace expressed their
support, the NLRB would “certify” the union as their “exclusive
representative.” If there were a legitimate question about whether
the majority of workers wanted union representation, the NLRB would
conduct an election where the employees would choose between the
union and “no representative.”
Employers were expected to stay out of this
process. Because employers control their employees’ livelihoods,
the New Dealers believed that any efforts on their part to
discourage workers from forming unions would have the effect of
coercing the employees. This concern even trumped traditional
considerations of free speech, since employer involvement in the
process could intimidate, not inform, the employees. This view was
expressed in a 1941 decision by the legendary civil libertarian,
Judge Learned Hand: Language may serve to
enlighten a hearer ... but the light it sheds will in some degree be
clouded if the hearer has no power ... What to an outsider will be
no more than the vigorous presentation of a conviction, to an
employee may be the manifestation of a determination which is not
safe to thwart.
With federal law supporting them, workers
organized the automobile, steel, rubber, and garment industries,
with union membership increasing from less than 4 million in 1935 to
almost 11 million on the eve of World War II.
But the post-war years brought a wave of strikes,
a Republican resurgence, and a corporate drive to limit labor’s
rights. In 1947, Congress overrode a veto by President Truman and
enacted amendments to the NLRA introduced by two conservative
Republicans, Senator Robert A. Taft of Ohio and Representative Fred
Hartley of New Jersey, that weakened unions in many ways. Now,
employers would be allowed to conduct campaigns against union
representation as long as there is “no threat of reprisal or
promise of benefit.”
With a green light from federal law, companies
began to resist their employees’ efforts at organizing. By the
late 1970s, with the nation’s economy mired in inflation and
stagnation and American companies facing international competition,
organizing campaigns resembled trench warfare between employers and
employees more than the deliberative process envisioned by the New
Dealers who drafted the NLRA. Workers who tried to form unions often
found their workplaces had become hostile environments, with
managers making thinly veiled threats of shutdowns, layoffs, or pay
cuts. That was the conclusion of the bipartisan Commission on the
Future of Labor Management Relations, which was appointed by
President Bill Clinton and chaired by John Dunlop, who had served as
Secretary of Labor under President Gerald Ford. The panel reported
in 1994: The United States is the only
major democratic country in which the choice of whether or not
workers are to be represented by a union is subject to such a
confrontational process.
In other words, workers who try to organize unions
often find that their jobs become a living hell. This puts the lie
to the glib generalization, promoted by conservative academics,
corporate spokespeople, and elite editorialists that union
membership has declined because workers no longer want to join
unions. In fact, while Americans make an individual decision to join
organizations such as the NRA, the PTA, or the AAA, people join
unions as part of an entire workforce, usually after a federally
supervised election, and often after their employers have tried to
frighten them out of it. And there are two important indications
that, given a less intimidating process, many more working Americans
would choose to join unions.
First, there’s the large number of teachers,
state and local government employees, and other public sector
workers who belong to unions. Educators, librarians, and highway
engineers are hardly hotheads, but they are covered by state or
local labor relations policies, and, in most parts of the country,
their employers don’t discourage them from organizing.
Second, there is the survey of working Americans
conducted for the Dunlop Commission in 1994. The study found that,
even without any organizing efforts in their workplaces, about
one-third of non-union private sector workers would vote for a union
if given the chance. If their preferences prevailed, union density
in the private sector would increase to 44 percent five times the
current level and the highest in history.
Restoring the Right to Organize. So
how to offer these workers the opportunity to make a choice that
should be their birthright as Americans? There’s no shortage of
ideas for reforming labor law, including: toughening penalties
against employers who fire or harass union supporters; encouraging
companies to recognize unions after a majority of workers have
signed authorization cards; and making organizing easier for workers
whose wages and working conditions are determined by large companies
that contract with their nominal employers, such as building service
workers employed by janitorial firms hired by major building owners.
Many of these ideas were endorsed by the Dunlop
Commission in 1994. Still others were part of a labor law reform
proposal supported by President Jimmy Carter in the late 1970s but
stymied by the familiar coalition of conservative Republicans and
southern Democrats. At neither time was there a national movement
for restoring the right to organize capable of energizing
progressive Democrats and winning over moderate Republicans and
border-state Democrats.
Even if progressive Democrats win the White House
in 2004 and sweep both houses of Congress, there will still be a
need for a national sense of urgency, similar to the worker
organizing, intellectual ferment, and governmental innovation that
produced the National Labor Relations Act in 1935.
Once again, if workers start organizing across the
economy, responsible business leaders may seek new ways to stabilize
labor relations. Once again, opinion-makers may call attention to
problems that unions can help solve, such as lagging purchasing
power, increasing inequality, and the growing sense that faulty
management policies are preventing many employees from doing their
best work. And once again, public policymakers may define larger
public purposes that would be served by restoring the right to
organize, such as lifting the working poor into the middle class,
serving as a source of skill-development and stability in churning
industries like high-tech, and creating a mechanism where workers
can offer ideas for improving the quality of the products they make
and the services they provide.
But first, it will take a sense of outrage at how
workers are fired, harassed, or intimidated simply for joining
together to speak their minds.
And that will take today’s Tom Paines arguing
that restoring the right to organize is simply “common sense.”
David Kusnet was
chief speechwriter for President Clinton from 1992 through 1994. A
former staffer for the American Federation of State, County and
Municipal Employees, AFL-CIO, he is now a visiting fellow at the
Economic Policy Institute. This article first appeared at www.tompaine.com.