Most businesses reject these policy objectives - they are for low taxes on businesses, minimum regulation of their businesses, and no government help for unions.ĭespite the greater power of employers, sometimes workers are able to form unions and win contracts for two reasons. Employees want businesses to pay higher taxes to government, and they often want government to regulate businesses in ways that help employees. All this soon leads to more general disagreements over the rate and progressivity of taxation, the usefulness of labor unions, and the degree to which business should be regulated by government. The conflicts that these disagreements generate can manifest themselves in many different ways in a step-by-step escalation: workplace protests, strikes, industry wide boycotts, massive demonstrations in cities, pressure on Congress, and voting preferences.
These conflicts are therefore best described as class conflicts because the two sides have many conflicting objectives even though they have to cooperate to keep the company going. Thus, the nature of the economic system means that there is going to be at least some degree of conflict over a wide range of issues between owners/managers and employees/workers. More generally, business owners are used to being in charge, and they don't want to be hassled by people they have come to think of as mere employees, not as breadwinners for their families or citizens of the same city and country. And even when business is good, small wage cuts, or holding the line on wages, can lead to higher profits. In fact, wages and salaries are a very big part of their overall costs, maybe as much as 80% in many industries in the past, and still above 50% in most industries today, although there is variation. If they are going to compete successfully in an economy that can go boom or bust, then they need a great deal of flexibility in cutting wages, hiring and firing, and adding extra hours of work or trimming back work hours when need be. And if unions grow strong, then, well, they try to go on the offensive, by asking for higher wages.īusiness owners, on the other hand, don't like unions for a variety of reasons. In the United States, as we will see, the early trade unionists also wanted the same kind of rights at work that they already had as independent citizens. More generally, they want more certainty, which eventually means a contract that lasts for a specified period of time. They also want a way to force management to change what they see as dangerous working conditions or overly long hours. By then the figure was as low as it was in 1916.īut why do workers want unions in the first place, and why do business owners resist them so mightily? Workers originally want unions primarily for defensive purposes - to protect against what they see as arbitrary decisions, such as sudden wage cuts, lay-offs, or firings. The account ends in 2012 through a quick overview of a failed legislative issue initiative in 2009 and information on the declining figures on "union density" (the percentage of wage and salary workers in unions). Then the document goes on to explain how and why the act was all but dead by 1978 due to an all-out and unrelenting battle against it by the entire corporate community from the day it was passed, and then finally killed in the 1980s.
In telling this story, the document shows that corporate moderates had more of a role in creating the legislation than is usually understood, even though they fiercely opposed its final form. Whatever the NLRA's shortcomings and long-term failures, it changed the American power structure for the next 50 years. The NLRA was a major turning point in American labor history because it was supposed to put the power of government behind the right of workers to organize unions and bargain collectively with their employers about wages, hours, and working conditions. The heart of this document focuses on the unlikely set of events leading to the passage of the National Labor Relations Act of 1935 (NLRA). The Rise and Fall of Labor Unions In The U.S.
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