The balance of power between labor and management seems to shift from one side the table to the other. When the economy is booming and unemployment rates are low, the balance of power toward labor. When the economy is in recession and unemployment rates are high, the balance of power shifts toward management. Owners want to see their company succeed by earning higher and higher profits, top level executives want to command higher and higher salaries, and shareholders seek ever-higher returns on their investments. Caught in the middle of the battle between labor and management is the HR manager who represents the concerns of labor to management and they convey the positions of management to labor. The purpose of this paper is to discuss how a recession affects a union’s ability to strike and win concessions from corporate management, describe what the organizational climate will be like once the strike is over and employees come back to work, and explain what HR actions are needed to improve workplace relations after a strike.
Recessionary Bargaining Power
Going on strike can be a risky endeavor even in the best of times when the economy is healthy and jobs are plenty. When the economy is strong and unemployment is low, workers have the luxury of picking and
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Some unions are recording record increases in wage and fringe packages as they nail down agreements. (para 1)
However, the tables turned during and after the 2008 economic collapse. Going on strike to extract wage and benefit concessions during a recession can and often does have devastating consequences, up to and including loss of jobs, reduced wages and benefit cuts. Making matters worse for union members is the fact that these cuts can occur in spite of the fact the owners, top executives and shareholders are earning record
Workers became “more numerous, better organized, more disciplined, and more successful” even though employers tried to stop them (Who Built America 113). Many of these workers led strikes for better hours, better wages and better conditions. When comparing the 1800s to today, we see that strikes were very effective, an example of this is shown in the 8-hour movement. Unions helped win “more than 60 percent of the strikes waged in 1889 and 1890” (Who Built America 113). Due to these workers, employees now face fewer obstacles. Whenever workers felt as though they were being taken advantage of they could “refuse to work, if they withdraw their cooperation, every social institution can be brought to a halt” (Brecher 5). Without workers, the employers will have no one to complete products therefore not being able to make a profit. Subsequently, employees will have leverage over the employers so they can finally sit down and negotiate their conditions. This was shown in the Michigan Central Railroad where workers fought for their wages to increase by two dollars. The workers exhibited their resistance when “streetcars, wagons, and buggies were stopped; tanneries, stoneworks, clothing factories, lumberyards, brickyards, furniture factories, and a large distillery was closed in response to roving crowds” (Brecher 31). The result of this strike was “victorious, and 2 dollars a day became the standard wage in Galveston” (Brecher 31). This strike was important because it exhibited to others that if they unite then they can achieve better conditions. If the workers did not unionize they would not have achieved equality in the workforce and better wages and conditions. Without resistance, these workers would have never gotten negotiations or the necessities they need. Even if workers lost because of outside interference they eventually had the power to change the minds of
There was a clear divide between bosses and workers which led to a certain level of disdain between the two; a disdain that could be set off very easily by the actions of one another. Businesses were booming and economy was expanding, so business owners had to find a way to stay in business and not let other companies take over. To do this, they often resorted to cutting wages or even lockouts. The lockouts forced workers to either quit or agree to a pay cut, but only cutting wages gave workers reason to strike. This greed from both sides caused conflict which sometimes led to violence. As strikes went on, strikers and bosses became more desperate. Strikers resorted to violence and bosses called in higher authorities-strikes were declared illegal, militias were sent in, and people got hurt. As a result of The Great Upheaval, 100 people died and 1,000 others were imprisoned (37a. The Great Upheaval). Although strikes almost never turned out the way they
Some consequences of the strike were longer workdays. Days went from eight hour shifts to twelve hour shifts, six days a week. Wages were cut; all employees were working with a mandatory increase of hours and not making what they should have been making. People were not able to provide for their families. Conditions would continue this way until the steel industry unionized, but that would not be for about another forty-four years later. Because of the way the economy is today, unfortunately history seems to be repeating itself. There seems to be a big push to get the unions out of the work force again. Businesses cannot afford the hirer wages, benefits and security that unions afford. Businesses are being forced to downsize resulting in the layoff of workers. Cutting medical benefits and hiring more employees but only for part time positions, to keep costs down. Employees are
The changes brought up labor unions in the United States over recent history has brought about a movement. This specific movement has shaped the way that employees and workers are treated in the workforce,and how they maintain their quality of life through this employment. Many people think that the labor unions’ influence has created a power struggle between management and union leaders. In many cases this can be considered true, as there have been countless feuds between management teams and labor unions, especially in recent history. In today’s times, on the one hand, some people believe the existence of unions are a necessity in order to ensure and promote employee freedom; while on the other hand some people view labor unions as just another problem in the line of employee success.
The unions of yesterday have left the public feeling fearful of what might happen in the future. Will history repeat itself? Will employees be deceived through the mighty power of Labor Unions? Promoting benefits of unionized labor is one approach to regaining the trust of the public. Benefits include medical aid, heath insurance, worker compensation and overall respect of employees in the workplace. I feel with these measures taken Labor unions will once again reach the productivity that it once had pre-WWII.
Throughout American history, labor unions have served to facilitate mediation between workers and employers. Workers seek to negotiate with employers for more control over their labor and its fruits. “A labor union can best be defined as an organization that exists for the purpose of representing its members to their employers regarding wages and terms and conditions of employment” (Hunter). Labor unions’ principal objectives are to increase wages, shorten work days, achieve greater benefits, and improve working conditions. Despite these goals, the early years of union formation were characterized by difficulties (Hunter).
“It is the refusal of employers to grant such reasonable conditions and to deal with their employees through collective bargaining that leads to widespread labor unrest. The strikes which have broken out… especially in the automobile industry, are due to such “employee trouble.” (Document G)
The union will need to engage in intra-organizational bargaining in order to reach a greater consensus as to what is essential to our workers. By going through this process away from the bargaining table, we can come to the table with a firm and unified stance. We indent to do this in a number of ways. First, we can educate workers about how in actuality, their interests are aligned because a victory for the union is a victory for all members. For example, an improved pension plan does not only benefit older workers, but also younger workers because of the precedent that this proposed pension plan will set for their future pension plans. The same is true for job security. We will ensure the workers that we as their union are their agents in their desire to improve their wages and working conditions. This emphasis on unity will increase our relative power and aid us when it comes time for zero-sum bargaining.
The fights the workers had did give long, and short term effects, but was it worth it? The long term effects were, safety codes were improved [ learned from the triangle fire article], wages and conditions improved [ From the Bread and Roses article]. Others are labor laws and rights. Some short term effects are destruction of property, and Economical, emotional, and physical effects from the strikes. Also some of the strikes gave workers an image of terrorists. The strikes did not really help the workers because at the end of most strikes they lost, and lost their jobs and reputation.
There was a downside to the economic recovery which came in the form of Republican offensive against labor unions. One such event was the firing of more than 10,000 air traffic controllers for their violations of a no-strike clause in hiring agreements (Abbot, 2011). There was also a decline in union membership as well as blue collar positions. When union membership waned, unions had difficulty managing with the changing economy. Corporations took the opportunity to mandate wage rollbacks and compromises on working
As stated, many labor unions that were created utilized strikes to negotiate and come to a compromise between business leaders and their workers. However, it got to the point where they were being overused, and starting to turn very violent. The first time this had occurred is the Great Strike in the year of 1877. It occurred in the city of Baltimore, where workers from the Ohio Railroad company were on strike due to their pay checks being cut. However, a compromise was unable to be in a timely manner, causing the railroad system to come to a halt. This delay lasted for about a week or two, even causing the federal government to get involved as the economy and commerce was being greatly affected by this. To bring an end to this, the President,
Sometimes unions encourage people to boycott products from an industry or company. Managers can bring in strikebreakers, who work, but are not a part of the union. They can also use a lockout, which means that the management just locks the employees out, until they agree to the terms of the contract that the management draws up.
The labor union movement over the years has shaped the way individuals work and live for both the nicest and unpleasant. Some would think the unions influence has created a power struggle between management and union leaders. In today’s time, some citizens insist the existence of unions are a must to aid in employee freedom, while others view the labor unions as just another problem in the line of progress. The purpose of labor unions was for employed workers to come together and collectively agree on fundamental workplace objectives. The rise of the union came about after the Civil War- responding to the industrial economy. Surprisingly at the least unions became popular within the 1930-50’s and began to slowly decrease,
A union is an organization of workers who join together in order to have a voice in improving their jobs and the quality of work within the organization. In many occasions, unions help employees of an organization negotiate pay, benefits, flexible hours and other work conditions that may arise. Unions have a role because some degree of conflict is inevitable between workers and management (Noe, 2003). In this paper, I will be discussing the impact of unions and labor relations within an organization.
Though, unions are declining, the role of union have evolved over time. Now, it is more common to view unions’ primary role as collective bargaining, which is the product of the economic decision and making process with unionism of the private sector. A long time ago, Union was seen as the shield that protects American workers against some of the abusive employers. Many public sector employees have unionized. However, the National Labor Relations Act was designed for the private sector. Despite that, union has become a model for most public sector collective bargaining right. Regardless of the success that Unions have with collective bargaining in the private sector, there are still a few who are opposed collective bargaining in the public sector. Of course, there are some differences between the public and private sectors.