Chapter 1

Introduction to Labor Relations

The history of America has been largely created by the deeds of its working

people and their organizations – there is scarcely an issue that is not influenced by labor’s organized efforts or lack

of them.

William Cahn, Labor historian

LABOR

RELATIONS

Roadmap of Labor History

What is a Labor Relations?

In unionized employers, labor relations is the ongoing interchange between the union and the employer that identifies their common and specific interests and creates mechanisms to clarify, manage, reduce, and resolve conflicts over their specific interests.

Employers, would like complete freedom to alter the terms and conditions of employment in their workplaces, as necessary, to maximize returns on investments and/or achieve organizational goals.

Unionization offers employees a method for countering employers’ powers to unilaterally change employment conditions.

Early Unions & the Progressive EraThe labor movement coincides with the birth of the United States as a country.

As early as 1778, NY Journeyman printers joined together to “collectively” get a wage increase – something that they could not accomplish individually.

The “labor movement” did not gain much traction at this point due to the rural nature of the U.S., the unskilled immigrants competing for jobs at low wages, and some adverse legal decisions.

Early Unions & the Progressive EraIt wasn’t until the late 1800’s and early 1900’s before Labor Unions gained national prominence.

One of the problems with these early unions was that they did not coordinate their efforts – they worked solely for the members of their specific trade/group.

It wasn’t until 1886, when the American Federation of Labor was formed (bringing together 25 national labor groups) to address the frustration of craft workers with the mixing of skilled with unskilled workers.

AFL

Samuel Gompers was the first president. He was president from 1886 through 1924 – he sought gains through bargaining and not through legislation.

The way the AFL was structured was that each union would keep its own management & autonomy and the AFL would address problems between them.

Employers were unhappy with unions and their growing influence and power. The early 20th century is marked with many disputes between labor & employers – some resulting in violence and death.

Red Metal: The Copper County Strike of 1913

What Unions Do

Unionization creates monopoly power through contracts by fixing wages for a specified period of time. The wage is usually better than the market average and it also provides employees with a voice in how the employment relationship is implemented in their workplace.

Large differences exist in the degree of unionization across industries and occupations. Some of the differences relate to their varied mix of occupations, ages, and employment practices.

Page 6 of your text has a good chart of changes in union membership based on the type of job.

What Unions Do

The philosophy or values of a union can be summarized as the following:

In society there is a productive class that ultimately creates the tangible products or

delivers the services people demand. Labor is thus the ultimate creator of wealth and entitled to its returns. Society generally

includes a monied aristocracy that owns the means of production and controls most of society’s wealth. Unless major efforts are

exerted to avoid it, education will be unequal and undemocratically provided, which in turn supports class distinctions and the goals of employers and workers differ. Thus, trade unions are necessary to protect workers’

rights.

Why Workers Unionize

Employees become union members through one of three processes.

1. Nonunion employees may organize a union to bargain collectively for them.

2. Employees in a unit covered by a collective bargaining agreement may decide to join the union.

3. Newly hired employees may be required by the collective bargaining agreement where they work to join the union as a condition of continued employment.

Workers are more likely to unionize as job dissatisfaction increases.

Unions have a controversial image in the U.S. A recent study revealed that 48% of those polled supported unions while an almost equal amount (45%) disapproved.

A union cannot exist at a workplace unless a majority of the effected employees votes in favor of unionization. Once that takes place, then a slate of officers are elected by the local members. These officers, along with the national representatives of the union, will then negotiate an employment contract with the employer.

Union Strategies

Unions’ strategies usually fall into one of four categories:

1. Uplift Unionism: concerned with social issues, aimed at the general betterment of educational and economic outcomes and labor-management systems for workers.

2. Revolutionary Unionism: primarily oriented toward changing the fabric of society, overthrowing the capitalist system and replacing it with worker control of industry.

3. Business Unionism: representation of employees’ immediate interests, primarily the regulation of wages, hours, and terms and conditions of employment.

4. Predatory Unionism: where the primary goal of the union is to enhance itself at the expense of the workers it represents. (You may an example of this in the Harlan County documentary)

Union History

While unions have been around since the birth of this country, they really didn’t gain much traction or power until right after the Civil War (late 1860’s).

During the early years, unions were faced with a number of problems, including employers who doubted their legitimacy, courts that enjoined and punished collective activity, and employment competition from increasing numbers of immigrants who would work for lower wages (and argument many people still cling to today).

One of the earliest successful unions was the Knights of Labor (1869). It was so successful that by 1886 it had 700,000 members.

(Much of it gained as a result of the 1885 strike against the Wabash Railroad to stop the firing of its members)

Union History

This success was short-lived. Members were impatient and wanted the success of the first strike to be repeated. The leadership, however, took a longer-range approach and a more conservative perspective about what members were entitled to:

“Do not strike, but study not only your own condition, but that of your employer. Find out how much you are justly entitled to, and the tribunal of arbitration will

settle the rest.”

By 1893, a mere 7 yrs. after the membership explosion, membership had dropped to 75,000 members. Many of the dissatisfied members who left the Knights formed the American Federal of Labor

(They disagreed with the Knights practice of mixing skilledand unskilled workers into the same union).

Union History

At the same time that the national labor movement was gaining ground, the local union activities were marred by repeated episodes of violence – both on the part of workers and employers.

In the 1870’s, Irish immigrant miners went on strike when mine owners cut their wages below an agreed minimum. As the strike dragged on, a few hardcore union members formed a secret organization called the Molly Maguires and started sabotaging mines and threatening owners and supervisors. Mine owners countered by hiring private security & investigators to infiltrate the unions. Some of the “Molly Maguire” members were found guilty of various crimes and 10 were hanged and 14 thrown in jail.

Union History

In the summer of 1877, railroads cut wages while continuing to pay high dividends to their stockholders. Rail employees went on strike and in some cases they seized railroad property. In Pittsburgh it got so serious that federal troops were called in to retake the property. In the skirmish, 25 people were killed. Widespread rioting broke out and railroad property was burned and local businesses were looted.

In 1886, a riot broke out at the end of the workday at McCormick Harvester’s Chicago manufacturing plant. It was part of a 2-yr. labor battle over many work condition issues including the 8-hr. work day. Many of the strikers were armed (expecting trouble with the police) and as a result, 4 people were killed. A rally was held where a bomb went off killing a police officer. After the melee was over, 7 more police and 4 workers were dead and more than 100 people were injured.

Union Strike History

Two major strikes that failed in the 1890s divided the unions between skilled and unskilled workers and lend support to the idea that unskilled workers were less powerful and had a lesser chance of success in having their demands met.

• 1892 Homestead Strike in the Carnegie Steel Company: federal troops brought in after striking workers shot at strikebreakers being escorted by private detectives.

• 1894 Pullman Company Strike: wage cut and layoffs (but no reduction in rent on company owned housing). Widespread support for strikers. Mail cars were hooked to Pullman cars which made interference a federal offence. Union leader went to jail.

Legislation

Finally, 1914, President Woodrow Wilson & Congress passed the Clayton Act. It was hailed as the:

“Magna Carta upon which the working peoplewill rear their structure of individual

freedom.”

The Clayton Act removed unions from coverage under the Sherman Act (which courts had been using to prevent boycotts and strikes and to award large damages to companies impacted by these strikes/boycotts) and limited the ability to get federal injunctions to break/stop strikes. Unfortunately it was a poorly worded law that left courts room to interpret it in a way that removed much of its power to protect unions.

Next class we will discuss the following:

1. The American Plan2. Norris-LaGuardia Act (1932)3. National Industrial Recovery Act (1933)4. Wagner Act (1935)5. Taft-Hartley Act (1947)6. Landrum-Griffin Act (1959)

And we will start our discussion of Employment Law

Harlan County USA: The MinersStrike of 1972