Union Membership in the USA: A Post-Industrial Perspective
The recent report from the US Bureau of Labor Statistics shows a significant decline in labor union membership, with only 10% of private sector workers belonging to a union. This reduction is a reflection of a profoundly changed labor market environment that has evolved beyond the era where unions were paramount.
Understanding the Decline
The core reason for this decline is multifaceted. Historically, labor unions played a crucial role in the economy by ensuring fair wages and protections against exploitative practices. However, the economic landscape has shifted. Regulations and other institutions now provide the necessary safety nets, making the traditional role of unions less critical.
Changes in the Economy
Many once heavily-unionized industries, such as Bethlehem Steel, WestPoint Stevens, Burlington Industries, and Sun Shipbuilding Drydock, no longer exist in their prime forms. These companies and their jobs have disappeared, a stark testament to the tectonic shifts in industry. Even where these names remain in some form, they have lost their former prominence.
Education and Economic Empowerment
The critical turning point towards understanding the value of a cooperative workforce came when an Economics teacher wrote 'MP' (mass production) across the blackboard in 1964. He asserted that American mass production was superior to that of other countries, and thus our workers deserved higher pay. This insight from a future Economics teacher proved prescient, as it anticipated the future where worker productivity and company profitability became more intertwined.
The Evolution of Management
Perhaps the most significant change is the shift in management perspectives. Today, owners and management recognize that a happy and well-organized workforce leads to greater productivity and profitability. Workers, educated by the economy, have also come to understand that cooperation and productivity are essential for both individual and organizational success. This understanding has essentially rendered traditional union structures less necessary for many companies in the modern economy.
Consequences for Unions
Given these changes, labor unions are often seen as obsolete. They are criticized for holding down high performers, rewarding lazy workers, and enriching lawyers who run them. The remnants of union power and influence are less crucial in a world where laws like OSHA and state labor departments provide extensive protections for workers.
Remainder of Unions
The main role of unions today seems to be counterproductive in a competitive labor market. In a post-industrial society, industries focus on efficiency and innovation. Unions that fail to adapt are seen as detrimental to the workforce's overall health and productivity.
Economic Models of the Future
There are positive examples where no union presence leads to better workforce management. Companies like ConocoPhillips have demonstrated that a non-union environment can foster high productivity and profit. These models suggest that while unions may serve a purpose in some cases, they are increasingly becoming less necessary as management and workers learn to work together.
For now, the landscape suggests that the decline in union membership is a permanent part of the economic evolution. However, the cycle may recur if worker exploitation resurges, or if new management practices fail to deliver the productivity and profitability that are now expected.