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Organized labor is a strategy in which workers come together to participate in collective bargaining to increase wages and job benefits or improve working conditions. Organized labor associations are also known as unions.

How does organized labor work?

Workers participate in organized labor by joining a union that negotiates with the employer on their behalf. Because unions represent a large number of workers, they are able to secure higher wages and benefits than most workers could achieve through negotiation on their own.

In most countries, the formation of unions is regulated by a government agency, such as the National Labor Relations Board in the United States. Employees who wish to organize their workplace must first sign a union card giving the union the right to represent them.

Once a workplace has enough signatures, the workers can file a petition to hold a union election at that location. If a majority of non-managerial employees vote in favor of the union, it will be granted the authority to negotiate with management on behalf of all employees. There are two types of unions: horizontal unions, where all members share a common skill, and vertical unions, which consist of workers from the same industry.

The National Education Association (NEA) is the largest labor union in the United States, with about three million members. Its goal is to advocate for education professionals and unify its members to fulfill the promise of public education.

Federal laws prohibit employers from punishing or retaliating against any employee for union activities.

History of organized labor

Organized labor arose from the Industrial Revolution. As production shifted from agriculture to large-scale factories, the pursuit of higher profits led to grueling working conditions and long hours.

In the early days of industry, it was common for employees to work seven days a week, with shifts lasting twelve or even fourteen hours. Because workers could be easily replaced, they could not demand better working conditions and were often fired if they were injured on the job. Child labor, wage theft, and other unfair practices were also common.

There were 14 million union members in the United States in 2021. This represents 10.3% of the total workforce.

The first successful unions in the United States organized skilled workers, such as railroad workers. The American Federation of Labor, founded in 1881, sought to bring together emerging trade unions in the country under one association. At the same time, radical unions like the Industrial Workers of the World aimed to organize all workers regardless of their skill level.

Employers strongly opposed union organizing efforts, often using alternative options and lockouts to prevent workers from organizing. In some cases, government authorities and police used violence to suppress labor unrest.

Eventually, organized labor was able to achieve significant improvements, such as an eight-hour workday, paid weekends, and job security. The Wagner Act, signed by Franklin Roosevelt in 1935, affirmed workers’ rights to organize and form unions.

Advantages and disadvantages of organized labor

Organized labor plays an important role in protecting workers’ rights. Proponents argue that workers in unionized industries tend to have higher wages, longer vacations, and better benefits than those who are not represented by a union. Even workers who are not union members often have higher wages as a result of union activity.

Naturally, companies are less enthusiastic about organized labor. Some say that the increased cost of organized labor raises their product prices, making their businesses less competitive in the global market. Many point to the decline of the automobile industry in the United States, where companies struggled to adapt effectively due to the cost of honoring union contracts.

Businesses spend

Some companies, such as Starbucks or Amazon, spend millions of dollars to defeat union organizing efforts. For example, Walmart claimed that increased costs from organized labor would require it to raise its prices.

Some retailers used Walmart’s example as a means to renegotiate with their unions, claiming that they would have to cut wages or eliminate jobs to remain competitive with Walmart. This is known as the Walmart effect.

What is the main goal of organized labor?

The main goal of organized labor is to improve the economic conditions and power of the working class. Unions can negotiate on behalf of their members for wage increases, improved benefits, or protection from layoffs. Additionally, they also work to promote better labor laws with lawmakers and politicians.

Has organized labor been successful?

In the United States, organized labor has succeeded in improving the lives of millions of workers in manufacturing and agriculture. By 1979, union membership was considered a fast track to the middle class, and there were more than 20 million union members in the United States.

What caused the decline of organized labor?

In the United States, organized labor began to decline in the 1980s due to anti-union government policies and increased competition from abroad. One of the first actions of the Reagan administration was to fire all 11,300 air traffic controllers who were on strike against the Federal Aviation Administration. In the following decades, free trade agreements and globalization made it easier for companies to outsource their operations to foreign labor markets, reducing the bargaining power of local unions.

Conclusion

Organized labor represents a major political force for the working class. By coming together to advocate for their common goals, organized workers can negotiate for better wages and working conditions. However, the power of organized labor has declined in recent decades, due to increasing competition from low-wage workers abroad.

Source: https://www.investopedia.com/terms/o/organizedlabor.asp