INDUSTRIAL RELATIONS IN U.S.A : INDUSTRIAL RELATIONS IN U.S.A Prepared by
Section E introduction : introduction Industrial relation:
Management : Labour Costs, productivity and profitability
Workers and representatives: High wages and benefits, safe working conditions and a voice in the workplace
In USA, industrial relation governed by National Labor Relation Act 1935 Growth of industrial relation system : Growth of industrial relation system a) Collective Bargaining
b) Strike( Boston Telephone Strike-1912):telephone rates increased but telephone operators salary half of that of govt clerk
c) Right to Organise granted by American Constitution: Growth of Trade Union and free bargaining Trade union organisation : Trade union organisation Pyramidical manner:
Intermediate bodies at regional or industry level
Labour unions developed:
Ownership rights in jobs
Increase job security Slide 5: Local Union:
Works as collectors of fees and dues, solve important grievances initially
Collective contracts ratified by majority vote of local union before becoming effective
Building construction, building services etc local union power to call strike and negotiate agreements without formal approval from National Union
Officers of Local union- President, Vice President etc elected
Size varies according to number and size of affiliates
Complete autonomy in fixing dues, formulate policies, negotiating agreements, calling strikes and organise new local unions Slide 6: Two important Central organizations:
AFL ( American Federation of Labour)-1886
Samuel Gompers- Founder
Ist and largest federation of Unions in USA
The Federation of Organized Trades and Labor Unions merged to form AFL
Craft union and not industrial union emphasis
Conservative as didn’t challenge capitalism
Improvements in working condition
Prohibition of child labor, a national eight hour day, and exclusion of foreign contract workers.
Failed: couldn’t organize into industrial unions when important sectors like auto, steel etc grew Slide 7: 2) Congress of Industrial Organisation (CIO- 1935)
Organise workers into industrial unions rather than focus on certain crafts
Dissenters of AFL
Later both merged to form AFL-CIO in 1955 which
has regional councils and local units all over USA
Now: 60 unions in USA and Canada affiliated to AFL-CIO( American Federation of Labour- Congress of Industrial Organizations)
Major activities of American Unions:
Represent members at collective agreements
Negotiations over employment relationship
Joint decision with management Employer’s Association : Employer’s Association Reaction against trade union
Employees Association of Dayton: Labour Bureau resisted against trade union pressure and gave rewards to those abstaining from strike and helped through stike fund Slide 9: Association of employers
1) National Association of Manufacturers(1895)
Health care, labor, energy, climate, corporate finance, tax, trade / exports, technology, regulatory and infrastructure policy
In 1903, David MacLean Parry speech at the annual convention of the National Association of Manufacturers argued that unions' goals would result in "despotism, tyranny, and slavery."
Parry advocated the establishment of a great national anti-union federation under the control of the NAM Government’s Role : Government’s Role After 1920s non-interventionist policy in industrial relations
Promoted trade unionism
Statutory and voluntary procedures for settling labour disputes
Free collective bargaining with self- corrective mechanism LABOUR LEGISLATIONS IN USA : LABOUR LEGISLATIONS IN USA Norris La Guardia Act, 1932
Wagner Act, 1935
Taft- Harley Act, 1947
Landrum Griffin Act, 1959 Slide 12: 1) Norris-La Guardia Act-1932
President Herbert Hoover- Founder
Could enter into collective bargaining
No unfair employment contracts
The act outlawed Yellow dog contracts, which were documents some employers forced their employees to sign to ensure they would not join a union; employees who refused to sign were terminated from their jobs.[ Slide 13: 2) Wagner Act-1935
Earlier named: National Labour Relation Act
Protection of their rights to organise
Right to strike
Secret ballot elections for representative unions
Engage in union activities, to bargain collectively without coercion of employer
Employer bargains with union regarding wage, bonus, terms and conditions of employment
National Labour Relations Board: for representations election and investigate unfair labour practice and remedy them. Slide 14: 3) Taft-Hartley Act-1947
Named as Labour-Management Relations Act
Amended Wagner Act
Balance powers of Labour and management in collective bargaining relationship
Right to self-organise, to form, to join and assist labour organizations
Injunction on strikes affecting national health or safety
Established Federal Mediation and Conciliation Service( FMCS): assist in setting contracts without work stoppages and maintains arbitrators to decide contract interpretation disputes Slide 15: 4) Landrum-Griffin Act-1959
Bill of rights for union members- equal rights in voting, freedom of speech in union matters, right to vote on due increases and right to sue their unions
No financial dealing between management and union
Protect the union members from possible wrong-doing Change To Win Federation(2005) : Change To Win Federation(2005) New Unity Partnership formed because of coalition of
Service Employees International Union (SEIU),
The Union of Needletrades, Industrial and Textile Employees (UNITE) and
Hotel Employees and Restaurant Employees Union (HERE),
The United Brotherhood of Carpenters (UBC) and
The Laborers International Union of North America (LIUNA) Slide 17: The NUP was formally dissolved in 2005, but its member unions, namely the Teamsters Union and the United Food and Commercial Workers (UFCW), created a new coalition, Change to Win, which introduced a program for reform of the AFL-CIO.
The coalition was founded on two basic principles:
Working people, including current union members, cannot win consistently without uniting millions more workers in unions.
Every worker in America has the right to a union that has the focus, strategy, and resources to unite workers in that industry and win. Slide 18: Service sector unions :women, immigrants and people of color as no discrimination found, as opposed to the manufacturing unions which formed the basis of labor's strength for many years. Industrial Workers of the World : Industrial Workers of the World The Industrial Workers of the World (IWW): called as "Wobblies“ founded in 1905 by a group of about 30 labor radicals.
Among their most prominent leaders was William “Big Bill” Haywood.
More emphasis on industrial unionism rather than craft unionism
One Big Union and abolition of wage system
20,000 textile workers went on strike and in 1917 Agricultural Worker’s Organization formed Slide 20: Eventually the concept of One Big Union spread from dock workers to maritime workers, and thus was communicated to many different parts of the world.
Organized workers of all races and nationalities, without regard to current employment status.
At its peak it had 150,000 members but it was fiercely repressed during, and especially after, World War I with many of its members killed, about 10,000 organizers imprisoned, and thousands more deported as foreign agitators. Slide 21: Unskilled workers got a sense of dignity and self-worth.
The IWW exists today with about 2,000 members, but its most significant impact was during its first two decades of existence. Timeline of labour movements in brief : Timeline of labour movements in brief 1866 : National Labour Union - 1st national labor federation in the US and dissolved in 1872
1869 : Uriah Stephans organized a new union known as the Knights of Labor.
1884 :The Federation of Organized Trades and Labor Unions, forerunner of the American Federation of Labor, passed a resolution stating that "8 hours shall constitute a legal day's work from and after May 1, 1886.“ Slide 23: 15 March 1917 : The Supreme Court approved the Eight Hour Act under the threat of a national railway strike.
9 November 1935 :The Committee for Industrial Organization (CIO) was formed to expand industrial unionism.
25 June 1938 :The Wages and Hours (later Fair Labor Standards) Act is passed, banning child labor and setting the 40-hour work week. The Act went into effect in October 1940. Slide 24: 20 June 1947 :The Taft- Hartley Labor Act vetoed.
5 December 1955 :The two largest labor organizations in the U.S. merged to form the AFL-CIO, with a membership estimated at 15 million.
14 September 1959 :The Landrum-Griffin Act passed restricting union activity.
2005: Change to Win federation USA IN 2005 : USA IN 2005 % of work by union from 35% in 1945 to 12.5% in 2005
Union density high in public sector: 36% govt workers represented by union and in local govt (41%)
Private sector: 8% represented by unions
New york( 25%), Hawaii(24%), Michigan(22%), Alaska(20%)
North Carolina(3%) and South Carolina(3%) Reasons for decline : Reasons for decline Employment from manufacturing jobs and other jobs represented by unions( railroads and mining) to services and high technological jobs
More white collar jobs and part-time jobs
Centralised collective bargaining( national and not local level) Slide 27: THANK YOU