About This Discussion Paper
This paper is being used as a tool for discussion within SEIU -- the Service Employees International Union.
It was sparked by a recognition that, despite many victories and reasons for hope within SEIU and the broader labor movement in recent years, the strength of working people and unions in the United States continues to decline.
No single local union or international union can reverse that decline by itself. We have to take a step back and ask ourselves: What obstacles to greater strength for workers are within our control? How could we help each other in ways that we don’t today? What could we change in labor’s culture and structure that would give working people a fighting chance?
SEIU approaches this discussion without a clear prescription or agenda but with a deep commitment to greater unity and strength throughout the labor movement. The problems discussed in this paper can be found in our own organization, not just in others, and solutions will require change and sacrifice on everyone’s part.
Given that it deals with complex problems that have no easy answers, this paper is not intended to be a finished document but rather a contribution to continuing discussion both within the union and with others in the labor movement. Discussion questions at the end of the paper are designed to encourage the debate we need.
While the paper mainly uses SEIU examples because we know them best, it draws on the insights and experience of many people in many unions. We hope that readers will add their voices to the discussion; contribute their experiences with a wide variety of industries; agree, disagree, and add missing points; and, most importantly, propose alternative analyses and conclusions.
February, 2003
Contents
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Summary
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1. Working people in America are facing a serious crisis.
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2. Trying harder – doing more of what we’re doing now – won’t prevent the continuing decline in labor’s strength and workers’ living standards. |
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3. Building strength in particular industries, markets, employers, political jurisdictions, or unique skilled occupations is the key. |
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4. The labor movement needs a structure, rules, and culture that help workers build industry and market strength. |
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Questions for Discussion |
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Appendix
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Notes |
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Summary
Working people in America are facing a serious crisis. Domination by corporate special interests at the expense of working families is steadily increasing, and victories for working people are the exception, not the rule. While union members in America are better off than nonunion workers, the continuing decline in union strength is making it harder and harder even for union members to achieve and maintain real gains.
We cannot reverse these trends and build a more just and humane society unless millions more workers join unions. A much stronger, united labor movement is the key to winning real victories for working people both on standards for pay, benefits, and working conditions and on broader economic and community issues that affect us all. Yet, the percentage of the workforce in unions continues to drop -- to 13.5% overall and only 9% in the private sector.
We have to build the strength to overcome one of the biggest obstacles to uniting more workers in unions: employer interference. Polls show that 50 percent of American workers who don't have a union want one. That's more than 50 million workers. But employer interference -- much of it currently legal -- prevents all but a handful from uniting in a union each year. Legislation could protect workers’ right to form a union, but without finding ways to reduce employer interference and increase the percentage of workers in unions, the labor movement cannot build the strength to win those reforms.
Trying harder – simply doing more of what we're doing now -- won't help millions more workers join unions. Even if the labor movement could somehow double or triple the number of workers who join unions each year, the percentage of union members in the workforce and the strength of union members in nearly all sectors would continue to decline.
To change the balance of power between workers and corporate interests, overcome employer opposition, and help millions of workers unite with us, the labor movement must build strength in numbers in particular industries, markets, employers, political jurisdictions, and unique skilled occupations. A labor movement that has national industry and market strategies can…
· Achieve enough unionization in an industry or market, or demonstrate a serious plan to do so, so that nonunion workers have more incentive to take the risk of trying to join the union and employers less incentive to resist.
· Use collective bargaining by existing members -- including strikes if needed -- to win the right of other employees of the same employers to join the union so everyone will be stronger.
· Develop long-term bargaining, organizing, political, and community strategies based on strength in and deep experience with an industry or market.
To build industry and market strength, the labor movement needs a structure and strategies that have that focus. Union members have shown that we can win when we have…
· Unions that have the size, resources, focus, and skill to unite the strength of workers in particular industries, markets, employers, political jurisdictions, and unique skilled occupations.
· A united strategy that uses our combined political, bargaining, capital, and community resources to reduce employer interference with workers trying to form unions.
· A commitment to act like one united movement to carry out industry strategies -- pooling resources, coordinating in dealing with employers and elected officials, and holding each other accountable.
· A strategy to build workers’ strength in both the private and public sectors – because one cannot be sustained without the other.
The labor movement's current structure and culture actually stand in the way of building workers’ industry and market strength.
· While corporations constantly restructure to build and maintain strength, the labor movement's adjustments too often are too little, too late. If workers were to start from scratch to design a labor movement that could build industry strength in today's economy, it surely would have a very different structure and culture than we now have.
· Without making a conscious strategy decision, the labor movement has become a collection of a few very large general unions, each of which may organize workers in any industry or sector and may, like SEIU, be a mixture of workers in different sectors. Nearly half of all AFL-CIO members are in 6 of the federation's 65 affiliates, and more than 3/4 are in the 15 largest. In 13 of the 15 major sectors of the economy, at least 4 unions have a significant presence. In 9 of those sectors, there are at least 6 significant unions.
· Meanwhile, many affiliates lack the strength to pursue effective industry strategies. The average membership of the smallest 50 affiliates is 58,000.
· The unions of the AFL-CIO generally do not work together to design and carry out strategies to build workers’ industry and market strength.
· The rules the AFL-CIO unions have created do not provide for mutual accountability to carry out united action.
· United strategies are not in place for unions in the private and public sectors to work together to build workers' strength in both, to help workers form unions in the huge emerging nonunion service sector, nor to reestablish workers' strength in traditional sectors such as manufacturing.
The labor movement desperately needs a new debate leading to new joint action based on a recognition that we either sink or swim together – and that the ultimate test of a new strategy will not be whether SEIU or other individual unions benefit as institutions but whether working people build and exercise the strength to win.
1. Working people in America are facing a serious crisis.
q We don’t have the strength to stop living standards from declining.
q The decline in standards for most workers makes it increasingly difficult to achieve and maintain gains for union members.
q While helping more workers join unions is the key to winning more victories for working people, the labor movement generally lacks the strength to reduce one of the main obstacles to workers forming a union: employer interference.
A. Declining living standards.
¯ Workers not sharing the benefit of productivity growth. Until 1973, median worker pay and benefits went up as productivity went up. Since then, productivity has increased by 55% while median compensation has risen less than 10%.
[1] In the past year, worker productivity rose 5% while real weekly earnings actually declined.[2]
¯ Growing inequality of income. From the end of World War II through 1979, family income grew roughly equally across the income spectrum. However, from 1979 to 1998, while the top 5% had a 64% increase in real income, the bottom 20% of families lost ground and the middle 60% saw little or no gain.
[3]
¯ Extreme inequality of wealth. In 2001, the richest 1% of households controlled about 38% of the nation’s wealth, while the bottom 80% held 17%.
[4]
·¯
Decline in health care affordability, coverage, and quality.
·o
Health care costs rose by 13.7% in 2002 and are expected to rise another 15.4%
in 2003.
[5]
·o
Workers' share of premiums is rising even faster -- up 27% in 2002.
[6]
o More than 1 out of 3 workers don't have employer-provided coverage.
[7]
·o
41.2
million people were uninsured in 2001, up by 1.4 million from 2000. More than
80% of them were employed.
o About 37 million adults have no drug coverage.
[9]
·o
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Understaffing contributes to 1 out of 4 incidents leading to hospital patient deaths or injuries, according to the industry's accrediting agency.
[10]

·¯
Decline in secure retirement benefits.
·o
Half
of people who work are not provided pensions by their employer.
[11]
o While in 1979 more than four of five retirement plans provided defined, guaranteed benefits, today a majority of plans provide only a defined contribution, with no guarantee of benefits.
[12]
o About two-thirds of retirees depend on Social Security for at least half their income, and for one in five it's their only income. Yet, the average benefit is only $874 per month.
[13] Now, anti-worker politicians want to privatize the system, putting benefits at risk.
¯ Parents working longer hours, with less time to spend with family. Two-parent families had to work an average of 12 weeks more per year in 2000 than in 1969.
[14]
·¯
Largest transfer of wealth in history from working people to the rich as a
result of tax changes.
The
2001 Bush tax law reduced by $832 billion the contributions by the wealthiest
20% to public services for working people and other public needs.
[15]
¯ 11 million working people denied right to vote and other rights because they are undocumented. The power of working people in elections and on the job is drastically cut when a significant percentage cannot fully participate.
[16]
¯ Severe cuts in vital public services at federal, state, and local levels. As those whose wealth skyrocketed in the 1990s pay less to support public services and as unemployment grows, many states are facing the largest deficits ever, threatening funding for education, health care, and other needs. Meanwhile, Bush proposes to turn over services 850,000 federal workers provide to profit-making corporations.
¯ Trade agreements that help corporations drive down living standards and buying power for workers everywhere.
o Trade agreements like NAFTA that protect corporate interests but not workers have cost 3 million U.S. jobs and have helped many employers hold down U.S. wages and benefits by threatening to move abroad.
[17] Meanwhile, wages in Mexico are lower and poverty levels higher than before NAFTA. Many workers in both the U.S. and Mexico are now losing jobs as work is being shifted to even lower-wage countries in Asia.
B. Increasing difficulty in achieving and maintaining gains for union members as standards decline for all workers.
è Attacks on living standards and security. Contract negotiations for many union members these days are not about taking major steps forward but about fighting to maintain their jobs or their health and retirement benefits.
o Union members average only 11.5% more in wages than nonunion workers similar in occupation, experience, region, and other factors.
[18]
o Average wages for white-collar workers are essentially the same for union and nonunion employees.
o The biggest differences are still in health coverage (84% of union workers but only 62% of nonunion)
[20] and pensions (69% of union members are provided defined benefit plans but only 14% of nonunion workers are).[21]
o Blue-collar workers receive more than twice the health benefits that nonunion counterparts receive, and 3½ times the pension benefits.
[22]
·è
Attacks on worker rights through government action.
Recent attacks like those listed below may become even more frequent as a
result of the 2002 elections:
-o
Use
of presidential executive power to undermine the ability of union members at
major airlines to negotiate freely with their employers.
-o
First-ever use of the Taft-Hartley law by the president against workers who
were locked-out by their employer, as the White House attempted to undercut
the ability of longshore union members to negotiate freely.
-o
Repeal of the Clinton “ergonomics” standards established to protect workers
from preventable injuries caused by poor job design.
o The right to a union stripped from 170,000 public service employees under the so-called Homeland Security law
[23] and from thousands of Justice Department employees by executive order.
-o
“Project labor agreements” that provide fair treatment to workers on federally
funded construction jobs ended by executive order.
o “Right to Work" for Less passed in Oklahoma and discussed elsewhere.
o Other anti-worker state ballot initiatives that divert workers' resources from fighting for new gains even if the ballot measures are voted down.
o Use of tax money by Connecticut’s governor to pay for strikebreakers brought in by nursing home owners in a state-wide strike.
C. Lack of strength to reduce one of the biggest obstacles to workers who want a union: employer interference.
Ø 50% of American workers who don't have a union say they would vote to have one, according to a new national poll. That's more than 50 million workers.[24]
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Ø Nearly 7 million public employees in 22 states aren't provided a legal process for achieving union recognition. The same is true for millions of contingent workers, farm workers, and employees designated as supervisors under the law.
[25]
Ø Most workers will choose to have a union if their employer doesn't interfere with their choice, as shown by the experience of those employees who have the legally established right to organize in the public sector – where employer interference traditionally has been much less. One study found that 80% of public workers won union elections, while fewer than half of private sector workers did.
[26]
Ø An average of only 84,000 private sector workers per year make it through the National Labor Relations Board (NLRB) process to win a union representation election,
[27] and only about a quarter of those have a contract in place five years later. Some workers organize through non-NLRB election processes, including public sector elections and recognition after presenting cards, but their numbers aren't enough to keep the union percentage of the workforce from dropping.
Ø About 24,000 workers won cases in 1998 proving they had been illegally discriminated against for union activity. In most cases, it takes so long to process cases and the penalties are so weak that the employer action has the intended effect of discouraging other workers from supporting a union.
[28]
Ø Some of the most effective interference by private sector employers is legal – for example, pressure on employees during work time by supervisors who control their working conditions, schedules, and chances for promotion, or mandatory meetings with management to be browbeaten into opposing a union.
Ø A combination of legal and illegal tactics is used against virtually every group of private sector workers who try to form a union:
[29]
o 91% force employees to attend meetings to hear anti-union presentations.
o 80% require immediate supervisors to attend training on how to attack unions.
o 80% hire outside consultants to run anti-union campaigns.
o 79% have supervisors deliver anti-union messages.
o Half of employers threaten to shut down if employees unionize.
o 31% illegally fire workers because they want to form a union.
2. Trying harder – simply doing more of what we're doing now -- won't be enough to prevent the continuing decline in labor’s strength and workers’ living standards.
Even if the number of workers who join unions each year doubled or tripled, from the current 84,000 per year
[30] through the NLRB process to 168,000 or 252,000, the percentage of union members in the workforce and union members' strength in nearly all sectors would continue to decline.
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B. Disappearing strength in the private sector. A drastic decline of union membership in the private sector has not only left private sector workers without the strength they need but also deprived public service employees of a key organized political constituency to help maintain and improve vital public services.
From 1973 to 2001, the number of private sector union members dropped from nearly 15 million to 9 million – from 24.2% of the total private sector workforce to 9%.
Meanwhile, the number of public sector union members rose from 3 million to more than 7 million – from 23% of all public employees to 37.4%.
[32]

C. Lack of strength to stop the devastation of union jobs in manufacturing.
From 1973 to 2001, union manufacturing jobs dropped by 66% during a period in which the total number of U.S. manufacturing jobs dropped by only 12%.
[33] Big corporations have been able to win trade policies that have made it easier to move jobs overseas while doing little to maintain domestic manufacturing industries nor raise labor standards and workers' buying power in other countries. They have also been able to reduce unionization through a shift to nonunion white-collar jobs, corporate restructuring and contracting out, job-cutting technology, and the expansion of nonunion industries such as high-tech electronics.
About 85% of the approximately 16 million manufacturing jobs still in the U.S. are nonunion. Protecting the remaining union jobs and figuring out how to help a substantial number of those nonunion workers join unions remain major challenges for the entire labor movement.
Manufacturing union membership
[34]
|
Yr |
Manuf. union members |
% of all members |
Total decline |
% decline |
|
|
73 |
7,827,700 |
38.9% |
|
|
|
|
78 |
7,076,800 |
34.2% |
750,900 |
9.6% |
|
|
83 |
5,302,800 |
27.8% |
2,524,900 |
32.3% |
|
|
88 |
4,516,000 |
22.1% |
3,311,700 |
42.3% |
|
|
93 |
3,591,800 |
19.2% |
4,235,900 |
54.1% |
|
|
98 |
3,127,200 |
15.8% |
4,700,500 |
60.0% |
|
|
01 |
2,658,100 |
14.6% |
5,169,600 |
66.0% |
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·D.
Little strength in fastest growing sectors and
companies.
[35] In private sector industries that are losing employment, 20.2% of workers are in AFL-CIO unions, but union membership is only 8.5% in sectors that are growing. In many high growth sectors (retail trade, business and personnel services, finance and insurance), the percentage of union membership is less than 3%. In general, jobs in these sectors are more difficult to move overseas than jobs in manufacturing, but the labor movement has no coordinated plan to help these millions of workers join unions.