Workshop Three



Workshop Three

Labor Trends

Dante Dionne

University of Phoenix

MGT 434: Employment Law

Group GA01BSM09C

Instructor: Walter "Cary" Herin, Jr., J.D.

January 14, 2003

Introduction

The following paper explores the trends in the global labor union climate, influential environmental factors, and the consequences of socio-economic, cultural and political trends.

Globalization

Estimates of over “400,000 jobs that either existed in the United States or would have been created” have been “moved to Mexico” states Mark Anderson of the AFL-CIO (Bennett-Alexander, 2001). Labor costs are seen to be the largest single operating cost for most organizations and is gradually being offset by American companies relocating resource intensive operations (e.g. manufacturing) to foreign countries. The result of this practice is having adverse impacts on labor reform efforts as potential sources for recruitment of new union members are widely diminishing. Consequently the diminishing membership dues are adversely impacting the availability of financial resources that provide union services such as legal support for its members.

Globalization of corporate holdings and operations in this manner and foreign macro-economic policies are influencing great changes in the composition of local, national and international labor markets and have initiated and given rise to considerable changes in the areas of organizational and labor reform. As evidenced by articles in the Journal of Southern African Studies (Jansen, 2001) and the San Francisco Gate Chronicle (Associated Press, 2003), the globalization trend to outsource key functions to sub-contractors has resulted in creating an unwelcome climate in the labor union and is forcing union members to reconsider the strength and value that their union can provide.

The overall dimension in determining a union’s strength as perceived by its members and the community at large, is its workplace organization and membership base. Amongst the global trends of self-employment, sub-contracting, and government support of greater small business development, organized labor is now faced with the urgency to develop contemporary recruitment and retention strategies.

Indicators

According to a South African Sociological Association article (Wood, Geoffrey; Brewster, Chris, 2002), “unions are both made and broken by its present and potential members.” The article identifies this to be “the causes and nature of trade-union decline in Great Britain and South Africa.”

The author points out that even though “unions were the pioneers of social democracy,” they (labor unions) “are trapped in a vicious cycle” where “public policy and employer strategies marginalize unions.”

The political influence of the current Republican dominated U.S. congress is also having a significant impact on the continuing instability of labor unions and their bargaining leverage.

According to a Business Week article (Dunham, Richard, 2002), “Election Day surveys by Democratic pollster Stanley B. Greenberg show that his party's share of union members' congressional votes shrank to 58%, down from 64% in 2000.” It goes on to state that, “Without a compelling economic rationale for backing congressional Democrats, many union members decided to support a President they view quite favorably because of his toughness and plain-guy demeanor.” However “Democrats will continue to face fierce competition for union votes if they can't articulate a coherent economic revival agenda.” In addition, “AFL-CIO officials dispute Greenberg's findings but acknowledge their own polling shows a two-point drop in support for House Democrats from 70% in 2000 to 68%.”

In another article in Personnel Today (2002), it states that, “The proportion of UK employees who are also trade union members has fallen for the tenth year running, according to a government survey.” In addition, “Labor Market Trends, July 2002, shows that the proportion of UK employees with union membership fell from 29.5 per cent in 2000 to 29.1 per cent in 2001.”

Summary

In conclusion, there are many challenges facing organized labor in today’s advanced industrial economies, which are rapidly diminishing overall union membership and density, and threatening the political influence and bargaining leverage power that took several decades to establish. No longer can neglect for union innovation to adept new services, structures and strategies toward evolving membership aspirations be afforded.

These broad socio-economic shifts along with new employer sourcing strategies are forcing today’s labor unions to take a more progressive approach and devote considerable attention to re-evaluating their respective positions and purpose.

Reference

Dunham, Richard S., Business Week, (2002). Are Democrats Losing Their Grip On The Union Hall? Retrieved January 12, 2003 from .

Personnel Today (2002). Membership of Trade Unions Still In Decline, Reed Business Information Ltd. p55, 1p, Retrieved January 12, 2003 from EBSCO database.

Wood, Geoffrey; Brewster, Chris (2002). Decline and renewal in the British labour movement: trends, practices and lessons for South Africa, South African Sociological Association Vol. 33 Issue 2, p241, 17p, Retrieved January 12, 2003 from EBSCO database.

Crush, Jonathan; Ulicki, Theresa; Tseane, Teke; van Veuren, Elizabeth Jansen (2002). Undermining Labour: The Rise of Sub-contracting in South African Gold Mines, Journal of Southern African Studies, Mar2001, Vol. 27 Issue 1, Retrieved January 12, 2003 from EBSCO database.

Associated Press, (2003). "Sprint, union face Tuesday strike deadline in 5 states over local telephone operations", San Francisco Gate Chronical (SFGC), Jan 21, 2003, retrieved January 12, 2003 from .

Bennett-Alexander, D. D., & Hartman, L. P. (2001). Employment law for business (3rd ed.). Burr Ridge, IL: McGraw-Hill/Irwin.

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