The Purpose of Labor Unions
Labor unions are organized groups of dues-paying workers from the same or related fields who have joined together to present a collective voice in matters of negotiation. They have internally elected leadership and have been a powerful force in the American workplace for many years. By joining together in a group, they provide a more powerful voice than individual workers. Using tactics such as strikes and boycotting allows them to exert pressure on management to have their requests met.
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History: 1800s
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In the mid- to late 1800s, organizations resembling modern labor unions began forming. One of the first was the Order of the Knights of Labor. Formed in 1869, its goal was to unionize all American workers to give them stronger negotiating power. Reaction to unionization was extreme and violence occurred in several incidents. One of the most famous such confrontations happened in Chicago during the Haymarket Square Riot of 1886. The American Federation of Labor (now known as AFL) also began that year. 1890 saw the passage of the Sherman Antitrust Act as a means of controlling the unions.
History: 1900s
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In contrast, the Clayton Antitrust Act was passed in 1914, declaring that boycotting, strikes and picketing did not break federal law. The Adamson Act was initiated by President Woodrow Wilson and established the eight-hour workday. The National Labor Relations Board was created as a result of the Wagner Act of 1935. The board could hear labor complaints and issue "cease and desist" orders for labor practices found to be unfair. The 1950s saw a decline in unionism but the '60s saw much turmoil as industry moved into the nonunion South and corruption became evident in some union's leadership.
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Benefits
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Much of the modern worker's work experience has been affected by the existence of unions. Maximum work hours, child labor and fringe benefits all have been impacted by labor unions or labor-oriented legislation. According to the Economic Policy Institute, unionized workers are more likely to have paid leave and employer-provided health coverage and pension plans.
Pay
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It is estimated that in the 1990s, belonging to a union raised the average salary of a member 20 percent and total compensation 28 percent. Unions also benefit nonunionized workers. According to the Economic Policy Institute, "A high school graduate whose ... industry is 25 percent unionized is paid 5 percent more than similar workers in less unionized industries." By sheer numbers, a member of a union has the negotiating power of the entire organization rather than only his own.
Unions Today
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In recent decades union membership has declined. According to the Library of Economics and Liberty, union membership in the private sector had peaked in 1970 with 17 million members. That number had dwindled to 8.8 million by 2002. Public sector jobs have an estimated 37.5 percent unionization rate. It is estimated that in the near future, public sector jobs will house the majority of unionized workers while the private sector will dwindle to numbers comparable to those of a hundred years ago.
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References
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