Why Unions Matter – Now More Than Ever

Elaine Bernard, PhD Labor and Worklife Program & The Trade Union Program,

Harvard Law School©

Washington State Council of Fire FightersWenatchee Convention Center, WA

Tuesday, April 22, 2014

Elaine Bernard

• Executive Director, Labor & Worklife Program & Harvard Trade Union Program, Harvard Law School

• Work with a variety of unions – in the U.S., Canada, Australia and U.K. - on developing skills & educational programs for union leadership

• Teach in fields of international comparative labor movements, leadership & organizational change and strategic planning

International (OECD) Trend Line

• Widespread decline in union density in most countries (though not necessarily in Collective Bargaining coverage)

• Most sever decline in union representation primarily in the private sector

• Growing gap between union density in public sector vs private sector

(ETUL 2009)Union Density CB Coverage

Austria 35

Belgium 55

Czech Republic 22

Denmark 80

France 8

Germany 22

Italy 34

Japan 22

Korea 11

Spain 16

Sweden 78

United Kingdom 28

(ETUL 2009)Union Density CB Coverage

Austria 35 98

Belgium 55 96

Czech Republic 22 44

Denmark 80 80

France 8 93

Germany 22 64

Italy 34 80

Japan 22 18

Korea 11 13

Spain 16 82

Sweden 78 90

United Kingdom 28 34

(ETUL 2009)Union Density CB Coverage

Austria 35 98

Belgium 55 96

Czech Republic 22 44

Denmark 80 80

France 8 93

Germany 22 64

Italy 34 80

Japan 22 18

Korea 11 13

Spain 16 82

Sweden 78 90

United Kingdom 28 34

U.S. Union Density 1945-2013 - 11.3%

40

35

30

25

20

15

10

5

0

%

1954=35%

1945 1949 1953 1957 1961 1965 1969 1973 1977 1981 1985 1989 1993 1997 2011

20131973

Changes in Public/Private Sector Union Density in U.S.

PP uu bb ll ii ccss ee cc tt oo rrunion membersunion members

PrivatePrivate ss ee cc tt oo rrunion membersunion members 7.3 million

15 million

7.2 million

3 million

Private Sector Density 6.7%Public Sector Density 35%

Private Sector Density 24%Public Sector Density 23%

USDL 12-0094

U.S. Union Members (by industry) 2013

• 47% elementary/secondary education• 42% local government• 25% utilities• 20% transportation• 13% construction • 10% information industries• 10% manufacturing• 9% healthcare • 2% accommodation

BLS USDL 13-0105

Reasons for Decline…• Globalization – intensification of international economic &

political integration (free trade race to the bottom)

• Changes in organization of production and employment (privatization, technological change, contracting out, offshoring, lean production, JiT inventory systems…)

• Decline of job-based/workplace focus of employment• Decline in large, concentrated workplaces • Transformation of employment relationship (decline in full time,

regular, permanent employment – growth in part time, contingent, limited term, precarious employment)

• Employer (including government) hostility/opposition to unions

Washington State Union Density(37.5% decrease in density over 30 years)

Year Members Coverage

1983 27 321993 24 26

2003 20 21

2013 19 20

Declining rates of unionization… even among Fire Fighters Nationally

(19% decline over 30 years)

Year Membership coverage

1983 78.3 81.71993 74.6 76.3

2003 67.8 69.6

2013 63.4 66.5

War on Public Employees“from heroes to zeroes”

War on Public Employees“from heroes to zeroes”

War on Public Employees“from heroes to zeroes”

“Every person in every town in America will know the reason their library is closing early is that public employees have defined benefit pensions.”

-Grover Norquist

SCAPGOATINGPUBLIC

EMPLOYEES

Assault on the very idea of Government

Well planned offensive…

• Get unions to spend down revenues (2012 and beyond)

• Permanently weaken unions(Attack on dues collection, organizing, collective bargaining)

• Get public revenue streams for private corporations (privatization)

• Target - Education, Health (public safety later)

ALECAmerican Legislative Exchange Council

Attack on Pensions• Eliminate Defined Benefit

Pensions• Stir “pension envy” (of public sector

workers’ pensions)

• Pensions a massive source of capital to be tapped

• Companies & Government seek to shift long term risk (onto individual workers)

• Financial industry interested in new savings programs (with hefty transaction & management costs)

Why Unions Matter to Members

Union Won Benefits…• Job security• Salary protection• Paid holidays• Paid vacation• Sick leave• Health insurance and health benefits• Pensions and retirement benefits• Promote consistent/fair treatment• Voice in work scheduling• Recognition & premium for overtime• A say in hiring/promotion• A united voice in dealing with the employer• Impartial process for resolving complaints• Protection against unfair treatment• Role in setting and enforcing occupational health & safety standards• Collective power in standard setting • Promotion of the profession

What Do Unions Do? Beyond Wages & Benefits

• Organization for winning rights• Vehicle for exercising rights• Schools for democracy – where workers learn they have a right to

participate in decisions that affect them• Builders of a community of interest among members and with the

wider community• Provide “voice” vs “exit” - providing management with valuable,

knowledgeable “feed back” essential for systems improvement• Premier institution of civil society, promoting democracy in the

workplace, economic and social justice and equality

Why Unions Matter to Management

How Unions Benefit Management & the Company/Firm/Service/Agency…

• Aggregate employee interests

• Greater commitment of employees

• Promote (pride) & professionalism

• Bring additional training resources • Negotiate mutually agreed upon standards

(procedural justice)

• Promote voice (vs “exit” & reduced turnover)

• Force competition on factors other than wages (skill, innovation)

• Provide an institutional memory• Form a flexible, private, system of workplace

regulation (firm based grievance & dispute resolution)

"In democratic countries,

knowledge of how to combine is the mother of all other forms of knowledge; on its progress depends that of all the others."

Alexis De Tocqueville

1831

Why Unions Matter to Society

Collective Bargaining – a right not a privilege

Freedom of association in the workplace means…

• The right to organize (form a union/association)

• The right to engage in collective bargaining (over wages & working conditions)

• It’s not a privilege granted by government but a right exercised by workers

Louis Brandeis US Supreme Court Justice 1916-1939

“Strong, responsible unions are essential to industrial fair play. Without them,

the labor bargain is wholly one sided.”

Unions Awaken Citizens – A vital contribution to democracy

• Political role of unions (organizing and promote participation in politics)

• Social goods (acquiring & assuring universality & quality)

• Economic fairness (for workers in general, social security, medicare/medicaid, minimum wage)

• Democracy (rights & responsibilities to participate in society)

• Learning Democracy (democratic, self-governing organizations)

• Develop Leadership Skills

Unions – folks who created the middle class

Unions and Shared Prosperity

Louis Brandeis US Supreme Court Justice 1916-1939

“We may have democracy, or we may have wealth

concentration in the hands of a few, but we

cannot have both.”

Concentrated Wealth & Corporate Power is Undermining Our Democracy

Unions: An“experience good”

An experience good is a product or service where product

characteristics, such as quality or price are difficult to observe in

advance, but these characteristics can be ascertained upon

consumption.

As “an experience good” unions need to be experienced to appreciate their true value

The Challenge for Today’s Unions …

• New workforce (different needs/expectations)

• New members with little knowledge of labor/union history

• Grew up in anti-union environment • View union as “service” or

“insurance” (at best)

• Did not seek out their jobs as method to become a union activist

• Have not “experienced” the union as collective action (less than 5% of members ever use grievance system)

Unions – the myth

• Members went through a hard fought organizing campaign

• Members know that their most important protection is a negotiated collective agreement

• Members recognize that the rights, benefits, and protections that they enjoy are because of the union

• Members recognize that the union power comes from an engaged and active membership.

Unions – the reality

• Vast majority of members did not participate in an “organizing” campaign.

• They simply “discover” they are union members – as a result of the job and employer they chose.

21st Century Unionism….• Unions an “experience good”• Create value (for members, fire

service, community)

• Economic justice & equality (fight to reverse growing inequality)

• Defend the “commons” (public goods and wider public sector)

• Share the “knowledge of how to combine” vital for democratic communities.

The Best Way to Predict the Future is to

Create it