Can an individual be both pro-union and pro-employer, or does being pro-union mean one has to be anti-employer? Can an indivi

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Chapter 2Chapter 2

Historical PerspectiveHistorical Perspective • Two interrelated dimensions:Two interrelated dimensions:

 Relationships between labor and management Relationships between labor and management organizationsorganizations

 Organizational characteristics of labor organizationsOrganizational characteristics of labor organizations

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Criteria for Comparing the Criteria for Comparing the Efectiveness of a Labor OrganizationEfectiveness of a Labor Organization • The union’s structural and financial stabilityThe union’s structural and financial stability • The ability to work within the political and The ability to work within the political and

economic systemeconomic system • The presence of mass media and legislationThe presence of mass media and legislation • The ability of union leaders to identify and satisfy The ability of union leaders to identify and satisfy

members’ goals and interestsmembers’ goals and interests

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1869 to World War I1869 to World War I • The Industrial Revolution (1850s)The Industrial Revolution (1850s)

 Markets and firms expanded due to:Markets and firms expanded due to:  New mass-production technologiesNew mass-production technologies—factory systems—factory systems

 Improved road and rail transportation systemsImproved road and rail transportation systems

 Effects on workersEffects on workers  Increased competition created pressures on employers to Increased competition created pressures on employers to

minimize labor costs through lower wages.minimize labor costs through lower wages.

 Demand was principally for low or semi-skilled workers.Demand was principally for low or semi-skilled workers.

 Employers unconcerned about working conditions or Employers unconcerned about working conditions or benefits.benefits.

 Few laws were available to protect workers.Few laws were available to protect workers.

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2–5

Legal Interpretations Involving Labor-Legal Interpretations Involving Labor- Management Relationships (1806-Management Relationships (1806- 1931)1931) • Basis for the Legal SystemBasis for the Legal System

 Protection of employers’ tangible property rightsProtection of employers’ tangible property rights

 Protection of employers’ intangible rights to do Protection of employers’ intangible rights to do business and make a profitbusiness and make a profit

• Criminal Conspiracy DoctrineCriminal Conspiracy Doctrine  Common law interpretation held that it was illegal for Common law interpretation held that it was illegal for

workers to join together to pressure employers for workers to join together to pressure employers for better wages or working conditions.better wages or working conditions.

 Cordwainers case upheld criminal conspiracy.Cordwainers case upheld criminal conspiracy.

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2–6

Legal Interpretations…(1806-1931) Legal Interpretations…(1806-1931) (cont’d)(cont’d) • Civil Conspiracy DoctrineCivil Conspiracy Doctrine

 Legal justification was that employees who acted in Legal justification was that employees who acted in concert (unlawful means) could inflict harm on other concert (unlawful means) could inflict harm on other parties even if the employees’ cause was just (lawful parties even if the employees’ cause was just (lawful ends).ends).

 Commonwealth v. HuntCommonwealth v. Hunt (1842) ended the use of (1842) ended the use of criminal conspiracy but left in place civil conspiracy.criminal conspiracy but left in place civil conspiracy.

 Courts continued to use jury trials and injunctions to Courts continued to use jury trials and injunctions to prevent concerted acts and the organization of prevent concerted acts and the organization of workers.workers.

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Legal Interpretations…(1806-1931) Legal Interpretations…(1806-1931) (cont’d)(cont’d) • Breach of Contract and the Use of the Labor Breach of Contract and the Use of the Labor

InjunctionInjunction  The concept that labor disputes constituted The concept that labor disputes constituted

interference in contracts between employers and interference in contracts between employers and employees.employees.

 Yellow dog contractsYellow dog contracts  Employment contracts requiring an employee to refrain from Employment contracts requiring an employee to refrain from

all union activities or be subject to dismissal.all union activities or be subject to dismissal.

 Courts issued labor injunctions to stop the concerted Courts issued labor injunctions to stop the concerted activities of employees.activities of employees.

 Common law doctrine still in use today is employment-Common law doctrine still in use today is employment- at-willat-will

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2–8

Legal Interpretations…(1806-1931) Legal Interpretations…(1806-1931) (cont’d)(cont’d) • Application of Antitrust Legislation to UnionsApplication of Antitrust Legislation to Unions

 Sherman Antitrust Act (1890)Sherman Antitrust Act (1890)  Originally intended to prevent the restraint of trade by Originally intended to prevent the restraint of trade by

regulating business monopolies.regulating business monopolies.

 Danbury Hatters (Danbury Hatters (Loewe v. LawlorLoewe v. Lawlor) case) case  Supreme Court ruled that the labor organization’s use of the Supreme Court ruled that the labor organization’s use of the

boycott was an illegal restraint of trade.boycott was an illegal restraint of trade.

 Individual union members held liable for damages.Individual union members held liable for damages.

 Unions supported Clayton Act (1914)Unions supported Clayton Act (1914)——labor no longer labor no longer considered a commodity and injunctions were limited to considered a commodity and injunctions were limited to prevent injury to property.prevent injury to property.

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2–9

1869 to World War I (cont’d)1869 to World War I (cont’d) • The Knights of Labor (KOL), 1869-1917The Knights of Labor (KOL), 1869-1917

 Founded as a secret society (to protect members Founded as a secret society (to protect members from discharge for union activities)from discharge for union activities)

 First union with a national base of membershipFirst union with a national base of membership  Adopted a One Big Union” philosophyAdopted a One Big Union” philosophy

 Accepted both employees and employersAccepted both employees and employers

 First union to win concessions from employersFirst union to win concessions from employers

 Focused on social and economic reformsFocused on social and economic reforms  Reducing mass-production’s adverse impact on workersReducing mass-production’s adverse impact on workers

 Fostering the moral betterment of workers and societyFostering the moral betterment of workers and society

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2–10

1869 to World War I (cont’d)1869 to World War I (cont’d) • Strategies of the Knights of Labor (KOL)Strategies of the Knights of Labor (KOL)

 Political action by voting workersPolitical action by voting workers

 Encouragement of producer and consumer Encouragement of producer and consumer cooperatives (employee-owned establishments)cooperatives (employee-owned establishments)

 Use of voluntary arbitration and avoidance of strikes Use of voluntary arbitration and avoidance of strikes to obtain its goalsto obtain its goals

 A preference for education of workers over economic A preference for education of workers over economic pressure tactics (job actions—strikes and boycotts)pressure tactics (job actions—strikes and boycotts)

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2–11

1869 to World War I (cont’d)1869 to World War I (cont’d) • Reasons for the KOL’s Failure and DemiseReasons for the KOL’s Failure and Demise

 Assumption that technological advancement could be Assumption that technological advancement could be stopped and possibly reversedstopped and possibly reversed

 Overestimation of the shared interests of employees Overestimation of the shared interests of employees and employersand employers

 Overestimation of interests shared in common by all Overestimation of interests shared in common by all workersworkers

 Lack of legal protection from employers discharging Lack of legal protection from employers discharging workers for engaging in union activitiesworkers for engaging in union activities

 Inability of KOL leadership to identify with rank and Inability of KOL leadership to identify with rank and file membership goalsfile membership goals

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2–12

1869 to World War I (cont’d)1869 to World War I (cont’d) • The 8-Hour Workday Movement and the The 8-Hour Workday Movement and the

Haymarket Riot (1886)Haymarket Riot (1886)  Movement’s purpose for reducing 10-hour day to Movement’s purpose for reducing 10-hour day to

8-hour day was to increase overall employment.8-hour day was to increase overall employment.

 Seven policemen were killed by a bomb explosion at Seven policemen were killed by a bomb explosion at a mass meeting of movement supporters in Chicago.a mass meeting of movement supporters in Chicago.  Rioting ensued in which several striking workers were killed Rioting ensued in which several striking workers were killed

and hundreds were wounded.and hundreds were wounded.

 Eight alleged riot leaders were “tried” and four were hanged.Eight alleged riot leaders were “tried” and four were hanged.

 The violence turned public opinion against the KOL The violence turned public opinion against the KOL and labor movement.and labor movement.

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2–13

1869 to World War I (cont’d)1869 to World War I (cont’d) • The American Federation of Labor (AFL), 1886The American Federation of Labor (AFL), 1886

 Formed by skilled craft unions expelled from the KOLFormed by skilled craft unions expelled from the KOL  A federation of unions that each independently A federation of unions that each independently

represented a unique skilled craft or occupationrepresented a unique skilled craft or occupation  Decentralized authority to national and local unionsDecentralized authority to national and local unions  Adopted the principle of Adopted the principle of exclusive jurisdictionexclusive jurisdiction  Endorsed the use of economic pressure tacticsEndorsed the use of economic pressure tactics  Favored the pursuit of equitable treatment and economic Favored the pursuit of equitable treatment and economic

betterment for workers (betterment for workers (business unionismbusiness unionism))  Utilized a “pure and simple” approach to unionism within the Utilized a “pure and simple” approach to unionism within the

capitalist system; did not adopt a social reform agendacapitalist system; did not adopt a social reform agenda  Focused on collective bargaining to settle labor disputesFocused on collective bargaining to settle labor disputes

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2–14

1869 to World War I (cont’d)1869 to World War I (cont’d) • Strategies and Tactics of the AFLStrategies and Tactics of the AFL

 The use of strikes and other economic pressures to The use of strikes and other economic pressures to attain union goalsattain union goals

 Active involvement in the political arena without Active involvement in the political arena without forming a political partyforming a political party

 Improving the image of organized labor and collective Improving the image of organized labor and collective bargainingbargaining

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2–15

1869 to World War I (cont’d)1869 to World War I (cont’d) • The Homestead Incident (July 6, 1892)The Homestead Incident (July 6, 1892)

 The lockout of employees at the Carnegie Steel The lockout of employees at the Carnegie Steel Works in Homestead, Pennsylvania.Works in Homestead, Pennsylvania.  Pinkerton detectives and unionized workers clashed violently Pinkerton detectives and unionized workers clashed violently

until National Guard troops secured the town.until National Guard troops secured the town.  Management maintained the lockout, breaking the strike after Management maintained the lockout, breaking the strike after

five months.five months.  The company’s success bolstered the anti-union efforts of The company’s success bolstered the anti-union efforts of

other employers.other employers.  The press faulted the company for provoking the incident.The press faulted the company for provoking the incident.  Unions gained status and public sympathy for their cause.Unions gained status and public sympathy for their cause.

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2–16

1869 to World War I (cont’d)1869 to World War I (cont’d) • The Pullman Strike (1894)The Pullman Strike (1894)

 American Railway Union (ARU)American Railway Union (ARU)  Struck the national railroads to put pressure on the Pullman Struck the national railroads to put pressure on the Pullman

company to reach an agreement with the union.company to reach an agreement with the union.

 Railroad OwnersRailroad Owners  Placed federal mail on the trains and obtained an injunction Placed federal mail on the trains and obtained an injunction

prohibiting the union from interfering with the trains.prohibiting the union from interfering with the trains.

 Had federal troops protect trains and strikebreakers.Had federal troops protect trains and strikebreakers.

 The strike failed and Eugene Debs, president of the The strike failed and Eugene Debs, president of the ARU, was sent to jail for violating the injunction.ARU, was sent to jail for violating the injunction.

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2–17

1869 to World War I (cont’d)1869 to World War I (cont’d) • The Industrial Workers of the World (IWW)The Industrial Workers of the World (IWW)

 Initial goal was to overthrow the capitalist system by Initial goal was to overthrow the capitalist system by any means necessary.any means necessary.

 Wanted to remove any societal aspect or group that Wanted to remove any societal aspect or group that supported capitalism.supported capitalism.

 Believed that the AFL had sold out to capitalism.Believed that the AFL had sold out to capitalism.

 Failed to establish an effective organization.Failed to establish an effective organization.  Lack of permanent membership and financial baseLack of permanent membership and financial base

 Inability to satisfy members’ interestsInability to satisfy members’ interests

 Identification with sabotage and violenceIdentification with sabotage and violence

 Alienation of the news media and government officialsAlienation of the news media and government officials

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2–18

World War I to World War IIWorld War I to World War II • Union Organizing after WWI: Problems and Union Organizing after WWI: Problems and

ProspectsProspects  Recognition of labor’s power during wartime:Recognition of labor’s power during wartime:

 To guarantee uninterrupted war production, government To guarantee uninterrupted war production, government contracts enforced union standards.contracts enforced union standards.

 Congress restricted immigration to reduce the labor supply.Congress restricted immigration to reduce the labor supply.

 Post-war problems for unions:Post-war problems for unions:  Poor economic conditionsPoor economic conditions

 Failed national strike in the steel industryFailed national strike in the steel industry

 Lack of organizing successLack of organizing success

 Aggressive employer opposition to unionsAggressive employer opposition to unions

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2–19

World War I to World War II (cont’d)World War I to World War II (cont’d) • Counteractions by EmployersCounteractions by Employers

 Open Shop Movement (American Plan)Open Shop Movement (American Plan)  Employees did not have to be or become members of a Employees did not have to be or become members of a

union to get or keep a job.union to get or keep a job.  Mohawk Valley Formula for an open shop.Mohawk Valley Formula for an open shop.  Closed ShopClosed Shop

– An agreement requiring that an individual must be a An agreement requiring that an individual must be a member of the union before being hired by the employer.member of the union before being hired by the employer.

 Other actionsOther actions  Hiring spies to ferret out union supporters for blacklistingHiring spies to ferret out union supporters for blacklisting  Offering increased benefitsOffering increased benefits  Establishing company unions (employee representation plan)Establishing company unions (employee representation plan)

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World War I to World War II (cont’d)World War I to World War II (cont’d) • Factors Contributing to Labor’s Inability to Factors Contributing to Labor’s Inability to

Overcome Antiunion SentimentOvercome Antiunion Sentiment

 Employees’ reluctance to join unions and forfeit their Employees’ reluctance to join unions and forfeit their paycheckspaychecks

 Unions’ image as corrupt organizations controlled by Unions’ image as corrupt organizations controlled by socialists, radicals, and communists socialists, radicals, and communists  The V technique used to dominate union meetingsThe V technique used to dominate union meetings

 Union leadership that negotiated Union leadership that negotiated sweetheart contractssweetheart contracts to line their own pocketsto line their own pockets

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2–21

World War I to World War II (cont’d)World War I to World War II (cont’d) • Rise of the Congress of Industrial Organizations Rise of the Congress of Industrial Organizations

(CIO) and Industrial Unionism(CIO) and Industrial Unionism

 Production workers were becoming an increasingly Production workers were becoming an increasingly larger percentage of the labor force.larger percentage of the labor force.

 Most AFL unions resisted inclusion of production Most AFL unions resisted inclusion of production workers in their unions and the AFL.workers in their unions and the AFL.

 AFL unions expelled for dual unionism (in support of AFL unions expelled for dual unionism (in support of industrial unions) form the CIO under the leadership industrial unions) form the CIO under the leadership of John L. Lewis.of John L. Lewis.

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World War I to World War II (cont’d)World War I to World War II (cont’d) • Factors Accounting for the CIO’s Success as a Factors Accounting for the CIO’s Success as a

Labor OrganizationLabor Organization  Strong leadershipStrong leadership

 Realistic goalsRealistic goals

 Effective use of sit-down strikesEffective use of sit-down strikes

 Passage of the National Labor Relations Act (1935)Passage of the National Labor Relations Act (1935)

 Changes in employee attitudes toward independent Changes in employee attitudes toward independent unionsunions

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2–23

World War II to the PresentWorld War II to the Present • During WWIIDuring WWII

 Unions pledged no strikes during the war.Unions pledged no strikes during the war.

 The imposition of wage and controls (“Little Steel The imposition of wage and controls (“Little Steel Formula”) limited wage increases but prices Formula”) limited wage increases but prices increased.increased.

 Wartime strikes resulted in strong negative public Wartime strikes resulted in strong negative public sentiment toward unions.sentiment toward unions.

 Unions’ postwar economic demands (full employment Unions’ postwar economic demands (full employment and wage increases) were strongly reinforced with and wage increases) were strongly reinforced with numerous strikes.numerous strikes.

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2–24

World War II to the Present (cont’d)World War II to the Present (cont’d) • Developments in Organized Labor Since WWIIDevelopments in Organized Labor Since WWII

 Increased concern over collective-bargaining issuesIncreased concern over collective-bargaining issues  Guarantees of job securityGuarantees of job security

 Employee benefitsEmployee benefits

– Health-care cost shifting (higher deductibles, co-payments Health-care cost shifting (higher deductibles, co-payments and increased premiums)and increased premiums)

 Real wage protection from inflationReal wage protection from inflation  Wage concession bargaining demands of managementWage concession bargaining demands of management

– Two-tier pay plans for current and new employeesTwo-tier pay plans for current and new employees

– Lump sum performance paymentsLump sum performance payments

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2–25

World War II to the Present (cont’d)World War II to the Present (cont’d) • Developments in Organized Labor Since WWIIDevelopments in Organized Labor Since WWII

 Organizing drives aimed at white-collar and public-Organizing drives aimed at white-collar and public- sector employeessector employees  Increased attention to large groups of government workersIncreased attention to large groups of government workers

 Merger of the AFL and CIOMerger of the AFL and CIO  Death of long-time presidents of both unionsDeath of long-time presidents of both unions

 Recognition of the ineffectiveness of union raidingRecognition of the ineffectiveness of union raiding

 Sharing of common goals to influence the political Sharing of common goals to influence the political environmentenvironment

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2–26

World War II to the Present (cont’d)World War II to the Present (cont’d) • Formation of the Change to Win FederationFormation of the Change to Win Federation

 Several national unions left the AFL-CIO to form a Several national unions left the AFL-CIO to form a new federation called the Change to Win federation.new federation called the Change to Win federation.  Dispute over extent of resources to be devoted to organizing Dispute over extent of resources to be devoted to organizing

new union members.new union members.

 CTW still shares same basic principles and philosophies as CTW still shares same basic principles and philosophies as unions affiliated with the AFL-CIO.unions affiliated with the AFL-CIO.

 CTW will spend less time and money on political parties and CTW will spend less time and money on political parties and more on grassroots organizing.more on grassroots organizing.

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2–27

World War II to the Present (cont’d)World War II to the Present (cont’d) • Aspects of Organized Labor Unchanged Aspects of Organized Labor Unchanged

Since WWIISince WWII  The principle of exclusive representationThe principle of exclusive representation

 The concept of collective bargainingThe concept of collective bargaining

 The use of grievance procedures and arbitrationThe use of grievance procedures and arbitration

 Non-intervention by the governmentNon-intervention by the government

 Continued involvement in the political processContinued involvement in the political process

 Difficulty in maintaining consensus among member Difficulty in maintaining consensus among member unionsunions

 Pursuit of short-term economic and job security goalsPursuit of short-term economic and job security goals

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2–28

U.S Labor History Time LineU.S Labor History Time Line

1750 1900

Agrarian to

Industrial Economy

Labor Injunctions

Haymarket Square Riot

Pullman Strike

Local Craft

Unions

Commonwealth v. Hunt

1800 1850

Knights of Labor

American Federation

of Labor (AFL)

Erdman Act

Industrial Workers of the World (IWW)

United Hatter’s Union

Triangle Waist Company fire

Department of Labor

Homestead Strike

1925

Railway Labor

Act

Norris- LaGuardia

Act

National Labor Relations Act

Council of Industrial

Organizations (CIO)

Labor Management Relations Act

19501940

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2–29

U.S Labor History Time Line (cont’d)U.S Labor History Time Line (cont’d)

1950 1960

Executive Order 1088

Employee Retirement Income Security

Act (ERISA)

AFL and CIO

merger Equal Pay

Act

Industrial-based to Service-based

Economy

Occupational Safety and Health

Act (OSHA)

Global Competition

Civil Service Reform Act

1980

Labor Management

Reporting and Disclosure Act

Civil Rights

Act

1970 1975

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2–30

Key TermsKey Terms • U.S. ConstitutionU.S. Constitution • Common lawCommon law

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