7/24/2019 Labor Unions Can Help Businesses, Workers, And Customers

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Labor Unions can help businesses, workers, and customers

I had an interesting experience of different wages within a union. In the U.S.

Postal service there are four categories of workers. The letter carriers (mail delivery

persons) the mail handlers (mostly dock workers) the clerks (they sort the letters and

work with customers) and the supervisors all have unions. In !"## the minimum wage

was $!.%& an hour and letter carriers made a'out $.* an hour. +y father worked as a

letter carrier 'ut he left 'ecause of low pay and he found a ,o' that paid a'out $- an

hour. In +arch of !"& there was a national wildcat strike at the Post which was then a

government agency. In ugust of !"& President /ixon a'olished the United States Post

0ffice 1epartment and created the United States Postal Service as an independent

government agency.

The new agency paid for itself through income from its services. 2ven though

la'or is one of its ma,or costs the Postal Service kept postage price increases 'elow the

rate of inflation. +uch of the financial saving came from automation. There has also

'een a healthy la'or3management relationship 'ased on a contract that specifies

management and la'or 'ehavior. There were no further strikes after !"& 'ut some

contract negotiations ended up 'eing settled 'y mediators. Postal managers would tell

you that they are happy when the line workers get raises from a new contract they get

raises a'ove the line workers. This concept is similar to union workers getting raises to

maintain wages on par a'ove minimum wage.