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INDUSTRIAL RELATIONS IN U.S.A Prepared by Anjali Jayadev HRR3035 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: Local unions Intermediate bodies at regional or industry level National unions Labour unions developed: Ownership rights in jobs Increase job security

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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 National Union: 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

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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

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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

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Association of employers 1) National Association of Manufacturers(1895) Economic matters 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 Norris La Guardia Act, 1932 Wagner Act, 1935 Taft- Harley Act, 1947 Landrum Griffin Act, 1959

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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.[

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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.

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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

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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)

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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.

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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

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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.

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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.“

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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.

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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)

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