Effectiveness of Labor Unions and Laws - Research Paper Example

Labor Relations - Labor Unions Labor relations are regarded as the study of relationships which exists in the workplace among employees as well as between workers and employers in different organizations. It represents all the employers as well as employees, the government of the country, and also other types of organizations and institutions in society. The concept of labor relations incorporates the study of literature on personnel management, the study of collective bargaining, different aspects of labor laws, and also social insurance systems. Therefore, the process of understanding of all sub-fields related to different labor relations are regarded important to provide researchers with various insights into the very real world of work. This also provides concepts of how to solve different problems associated with such a structure of the world, like workplace disputes between the employer and trade and “labor unions, strikes, and lockouts, to promote fairness, efficiency, and a satisfying relationship between the two parties as well as to foster win-win solutions for the labor-management problems in the workplace” (Napathorn, and Chanprateep, 2011, p. 66). This paper is aimed at providing a detailed description of different theories in regard to operations of labor unions as well as labor relations. Effectiveness of labor unions and laws: In the United States labor unions have been established under the control of the International Labor Organization to get obliged “to respect, to promote and to realize . . . freedom of association and the effective recognition of the right to collective bargaining”. However, in the United States of America, state as well as federal laws and regulations also create significant amount of influence upon labor unions exiting in the country. State and federal laws and regulations are also creating limitations upon these labor unions in the country. The present legal status of labor unions in the country can, at least partially, be described as the result of the century’s negotiations among different interest groups which have varieties of economic stakes in public and private labor policies. However, these laws and regulations also express a theory about aspects which comprises a legitimate union along with acceptable union behavior. Although these normative theories are subject to various criticisms, since the early 1930s neither lawyers nor scholar and political philosophers (external to the Marxist theories) have written much regarding the legitimacy of labor unions. For the purpose of devising a normative account it would not be sufficient to incorporate the academic exercise; rather it might also affect those citizens as well as representatives of these labor unions who are undecided about organized labor (Levine, 2001, pp. 527-528). Labor unions raise such values as the “community,” “economic and social equality”, “democracy”, “solidarity” and different “rights of association” in the business and production domains of countries. However, trade unions are also regarded as important entity of establishing coercive powers over members of these unions and also among others. But the legitimacy of labor unions are considered as lower compared to elected government officials, public or private enterprises and different voluntary organizations. Due to this reason fewer numbers of American people know ways of organizing their power through labor unions (Levine, 2001, pp. 528-529). In 1935 with the advent of the Wagner Act establishment of labor unions has been announced as a legal structure of decision. During this time the Congress discussed this legal structure in respect to utilitarian terms. According to this term people need to consider consequences of actions in the light of maximization of aggregate happiness of the people living in the society. According to this Act “experience has proved that protection by law of the right of employees to organize and bargain collectively safeguards commerce from injury, impairment, or interruption, and promotes the flow of commerce by removing certain recognized sources of industrial strife and unrest . . . .” (Levine, 2001, p. 529). This Act has also been established in the country for the purpose of raising the level of wages received by each worker and thus to reduce the intensity of exploitation of labor within the industrial sector of the country. This Act has also been implemented into the industrial sector of the country in order to increase the level of happiness, welfare in the country and to remove all those obstacles which have been hampering the attainment of happiness and increased level of welfare (Levine, 2001, p. 529). Labor unions are regarded as highly significant in terms of raising the wage rates received by each worker through effective bargaining policy with the employers. It is also effective in regard to reducing the working conditions in favor of the workers by reducing the volume of strikes and labor or employer revolution in the industrial sector of any country. With the effective use of labor unions workers and employers can interact with each other in most effective way in order to solve any problem or grievance which is prevailing within the working conditions of the industry. If there lays any dispute or problem regarding the behavior of the employer toward the workers, then the labor unions are given the power to declare strikes or to legitimate with the employer and the government regarding the problems faced by these workers. However, various cases have been found where employers used their power to fine the workers who have attended such strikes. But in the process of making negotiated interactions with the employers the role of the labor union cannot be ignored. Again, evidences have been found by researchers which have shown that in some cases leaders of labor unions use their power on the workers who have disagree these leaders’ opinion. Hence, it can be said that there are close association of interaction and discussions in the process of operation of labor unions across countries. However, in the process of developing the welfare as well as level of income earned by workers, labor unions are regarded as one of the most effective institution in the world (Levine, 2001, pp. 529-531). Structure and functioning of labor unions: Labor unions are expected to be organized in two core ways. The craft union represents those workers who possess the same level of skill or working conditions in the identical profession. “The United Brotherhood of Carpenters and Joiners of America” as well as the “National Football League Players’ Association” are both regarded as craft unions. Industrial unions are said to represent those workers who possess their employment in the identical industry without regarding their certain skills or profession. Although industrial unions are supposed to contain some workers who are highly skilled among their members, large numbers of the workers represented as semiskilled or even as unskilled workers. “The Transport Workers Union and the United Steelworkers of America” are both considered as examples of different industrial labor unions. The core building blocks of international as well as national labor unions exist within local unions. These labor unions are, in most of the times, just referred to as locals. Large volume of worker interactions and negotiations with their respective labor union happen at this level. The local labor unions provide union members with the possibility of creating opportunity for participating directly in various labor union affairs through attending meetings as well as different union-sponsored functions. The primary level of a grievance processes are transferred at the local union level. These processes are usually established by the locals that systematize workers for the purpose of carrying out different labor union activities, such as, strikes, at the time where different labor disputes arise within the working sector of the industry (Labor Unions and Collective Bargaining, 2007, pp. 3-4). Labor relations in companies: Labor relations vary across countries as well as across companies. In South and Central America also labor relations differ widely. However, labor relations within these two areas possess a common feature which is related to the fact that in these two areas labor unions are closely connected with the political parties. The degree of unionization in the United States is clearly lower than that of in European countries. In European countries the formation of the European Union created the need for analyzing the existing forms of labor relations for the purpose of increasing the volume of production and trade with the rest of the world. Also the establishment of the European Union increased the level of integration among these countries in regard to the development of association among these countries (Holley et al., 2011, p. 671). Politics as well as political systems of countries across the globe create direct impacts upon the activities and techniques of operations among labor unions. Politics and political system in a country, which is a source of legislative law, together regulates operations of labor unions. These operations include management as well as rights of labor unions which have direct impacts on membership of workers. On the contrary, political systems have indirect impacts on the working conditions of workers. In the face of creation of restriction on different rights and powers of a labor union to a significant extent various facts have been established. One of the most important facts has been that it cannot perform its traditional function of negotiating better terms and status thus determining the maximum level of utility of each worker. Different cases in which a trade union, after getting bounded with different labor laws, cannot stand in favor of rights and powers of its members may discourage membership. This discouragement might happen because of the fact that there hardly exists any difference between the union members and non-union members. Political influence and political system can similarly be realized through politician’s threats on leaders of labor unions and operations. These threats might discourage which discourage workers to include themselves as members of labor unions (International Labor Office, 2006). In similar way, political systems, politicians and their integrated traditions indirectly affect membership of labor unions. A capitalistic political system with its privatized initiatives and union’s empowerment promotes cause and initiatives for union’s actions. On the other hand socialistic systems do not seemed to facilitate activities of labor unions. This fact is realized due to the absence of capitalistic resource owners who are responsible for undermining workers to effectively bargain for their rights. Rather, political systems in the socialistic society are featured by a significant level of equality among the universal working class and the spirit of social responsibility as well as equality that acts as substitutes of objectives of labor unions. The unions and their memberships are therefore expected to be effective in capitalistic political environment as opposed to socialistic economies (Smith, 2005). Similar to different political systems as well as policies, generational features have significant impacts on strength and membership of labor unions across countries. Among most important values of workers in labor union, leaderships and membership represents effective effects on the trends exhibited by labor unions. According to Daniels and Mcllroy the level of labor unions’ leaders “adversarialism and radicalism” which is defined by the degree of success and strength of the union. This degree in effect depends on the center values of wide variety of generations which these labor unions have registered (Daniels and Mcllroy, 2009, p. 144). The basic trend in the process of changes in efficiency as well as popularity of labor unions across generations which incorporate the veterans and the baby boomers. In this context, it has been argued by researchers that the generation x and the generation y has been consistent in respect to creation of this effectiveness and popularity of labor unions. The generation of veterans is regarded as examples which are identified with “respect for authority, conformers and discipline”. On the contrary, the baby boomers are identified as the “optimism and involvement” where the generations x and the generation y exhibits less volume of commitment to unionism and on the counter part prefers informal and personal approaches for the purpose of solving problems besides extreme focus in different economic and social activities (Hammill, 2005, p. 1). Change among members of labor unions: Weak level of commitments of members of labor unions has been rectified with every evolving generation in countries. The veterans had been regarded as committed towards the labor unions; the generation y lacks the interest and thus drives to be the part of those labor unions. These divergences are corresponded to the trend in change which is experienced in these labor unions and which can be expected to be continued in the process of shaping these labor unions (Hammill, 2005). There are various other external dynamics which are affecting labor unions and labor activities: Globalization and the Corporate World: Labor unions are, in many times affected by different other factors which lie outside the institutions. Some of these factors influence operations and administration of different labor unions which include “business cycle, domestic institutions, globalization, and union density” (Sano, n.d., p. 1). Labor union’s jurisdictions face interactions with the country’s corporate sector as well as institutions whose employees pledge to these labor unions. The strength as well as bargaining power of these institutions compared to that of the labor unions thus defines the degree of success of the labor union under consideration (Sano, n.d). In similar way, globalization creates a destabilizing effect on a domestic labor union. This is due to the fact that an employer, such as of an international organization, which can resort the recruitment of foreign workers in a bid to avoid demands from the labor union. This significant level of competition in the labor market forces labor unions to moderate their demand for employers. Globalization has also decentralized unions to smaller units that are less effective (Sano, n.d). There has been a declining trend in strength, popularity, and membership among trade unions over the past five decades. Workers confidence in the effectiveness of the unions in defending their rights has similarly declined over time. A review of past surveys for example illustrates a steady decline in workers’ confidence in unions. While more than sixty percent of respondents in a survey approved effectiveness of trade unions in the year 1988, only about twenty percent approved of the effectiveness in a different survey conducted in the year 2001 (Tebo, 2007). Generational change: Supported by generational change, through the changed characteristics from the veterans to generation y implies a steady decline in effectiveness in trade unions. The gradual consistent change in generational behavior forecasts further decline in union’s effectiveness in future periods (Tebo, 2007). The program related to the Founding Congress regarding “International Trade Union Confederation (ITUC)”, established in November 2006, started to organize “the bedrock of trade union strength and influence [which] provides the basis upon which the global trade union movement can be a genuine countervailing force in the global economy” (Carver et al., n.d., pp. 1-2). In the present structure of globalized economy, organization of workers, in intense coordination with the “Global Union Federations (GUFs)”, is regarded as the major challenge faced by ITUC affiliates. Rhetorical catchphrases for the world’s laborers to unite as well as to organize across different borders, on the contrary, have been usual since the Communist Proposal. If the requirement is considered as greater than ever, then the actual practice in relation to global labor organizing must remains sparse as well as unsystematic. Most case studies in respect to cross-border organizing of labor unions and bargaining campaigns which have been published in recent years spotlight on struggles in different regions of the United States, Central America, Mexico, and the Caribbean. “The Global Companies - Global Campaigns - Global Unions Conference”, which has been organized by the Cornell University in February of 2006, incorporated many panels along with workshops on different cross-border organizing in various cities of the Americas. In this context it has been revealed that the approaching conference publication will contain wide variety of excellent studies in different areas related to effectiveness of labor unions. Until recently, on the contrary, there has been lesser number of concrete analyses regarding structures and methods needed to organize laborers on the local as well as the global scale. “Four staff members of the International Union of Food workers (IUF) have described and analyzed what they have learned by participating in an ongoing experimental global organizing venture in the food and drink industry” (Carver et al., n.d., pp. 2-4). Case study: Since the year 1990 the “Nestlé European Works Council” has been established through direct negotiations with the IUF which has provided supports in the process of consultation with labor unions and different employee representatives. Semi-annual and three-day meetings are also afforded on regular opportunities and possibilities for Nestlé union or employee representatives in all offices in the Europe for the purpose of meeting separately before as well as after different joint sessions with the management to plan different strategies. However, the company has refused to expand its recognition and popularity of the IUF outside European countries. This fact has marked a problematic and divisive imbalance in the structure of labor union of the company. After conducting a global meeting of the company’s labor unions which has been held in Manila in the later phase of 1999, the IUF has launched a campaign which “organized IUF affiliated Nestlé unions throughout the world to send Nestlé letters supporting the IUF’s demand to extend that recognition to the global level”. When the company refused to meet the level of demand, the IUF has lacked the volume of capacity to create greater degree of strength behind the labor unions. One lesson that the IUF has obtained from this unexpected failure was related to the fact that a campaign strategy which has been focused ‘on securing global union recognition is not compelling enough to win a strong commitment from many affiliates’. Strategic campaigns are regarded as most important for focusing on different issues which are highly immediately relevant to labor unions. In the context of Nestlé, this fact has proven to be important in securing stable and effective permanent employment in different countries as opposed to the temporary and/or casualized labor. Another significant lesson which was related to the concept that the need for increasing union density within the company’s global structure with the help of recruiting nonaffiliated labor unions to the IUF as well as through organizing different new members into prevailing affiliated unions. These factors are needed to be incorporated particularly in developing areas of the country. Two certain union rights along with bargaining victories against the company have became springboards in the process of increasing the labor unions’ organizational strength and power within and outside the company (Carver et al., n.d., pp. 7-8). Difference between labor union and NGOs: Researchers have pointed out that national as well as international campaign model which are most familiar among all American activists, those incorporating ‘apparel manufacturing in maquiladoras and free trade zones in Central America and the Caribbean, stem from union weakness based on inability to control highly mobile labor-intensive industries’. This partial vacuum has been addressed by different NGOs, such as LEAP, “National Labor Committee, and United Students” etc. Against Sweatshops, which mobilize all the students as well as other consumers for the purpose of putting useful pressure on different companies, ranging from offshore manufacturers which repress workers. Their campaigns have been regarded for forcing manufacturers, possessing different brand names to get worries about the susceptibility of all valuable brands of their respective companies. This fact has been regarded important for creating the general atmosphere which makes such TNCs, such as Coca-Cola, Nestlé, and other companies more concerned and awake about accusations of laborers’ rights violations. Some joint or cooperated union-NGO campaigns, like the actions which have forced PepsiCo and Heineken to pull out from Burma. These have worked comparatively smoothly in favor of these companies (Carver et al., n.d., p. 17). Labor unions in public agencies: In different government agencies also labor unions are regarded as one of the most important institutions in developing the working conditions and wage rates through effective bargaining with the government. These facts, however, be contradicted by the fact that in government organizations, compared to private organizations, the dominance of political parties and politicians in the country. Labor relations in these organizations are also getting significantly biased toward the effectiveness of political parties in the process of appropriation of surplus from the working structure of the industry of the country. Hence, a significant level of management of labor relations is also needed to be implemented within the industrial and organizational structure of the country and also in the rest of the world (Riccucci, 2007, p. 258). Conclusion: Labor unions are regarded as highly significant in terms of creating favorable effects on the development of working conditions of workers in industrial organizations all over the world. Labor unions in the world have been effective in terms of raising the level of wage income earned by each worker. Also in the United States, labor unions have been effective in respect to improving the working conditions of the workers. Greater degree of integration among the working class and the employer has also been established within the industrial structure of the country. These factors of rising wage income of workers and greater association between the employer and the employee have created significant positive effects upon the production level in the country. This increased production has also increased the level of level of income generated in the industrial setting of the United States of America and also in other countries of the world. Hence, both the prosperity of the workers living in the country (who belong to both the domestic country as well as different foreign countries) and the prosperity of the overall economy of the country are increasing at rapid speed. However, there are several aspects which have been affecting this effectiveness of labor unions in the country. Among these aspects political systems of the country and politicians’ influences are creating significant level of obstacle on the path of creation of effective communication between the workers and the employers. Labor unions have been effective but have continually lost its degree of influence among its members, the community, and also among the employers. This effect has been resulted from creation of negative effects by factors within these labor unions, such as administration and service delivery and external factors. These factors also incorporate politics, political systems, corporate systems, different generational change, corporate changes, and globalization. The systematic trend in labor union’s effectiveness forecasts a further future decline in effectiveness of the union’s activities and influence. 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