Thus, unionized workers are Union employers spend As defined benefit plans are preferable—they provide a guaranteed benefit in retirement—these data indicate that union workers are more likely to have better pension plans. Union workers also get more paid time off. This includes having Another estimate, which includes vacations and holidays, indicates that union workers enjoy For example, in industries and occupations where a strong core of workplaces are unionized, nonunion employers will frequently meet union standards or, at least, improve their compensation and labor practices beyond what they would have provided if there were no union presence.
Union wage-setting, which has gained exposure through media coverage, has frequently established standards of what workers generally, including many nonunion workers, expect from their employers. As unions weakened, especially in the manufacturing sector, their ability to set broader patterns has diminished.
However, unions remain a source of innovation in work practices e. The impact of unions on wage dynamics and the overall wage structure is not easily measurable. First, the union presence will likely be felt most in the markets where unions are seeking to organize—the nonunion employers affected are those in competition with unionized employers.
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These markets vary in nature. Some of these markets are national, such as many manufacturing industries, while others are local—janitors and hotel and supermarket workers. Some markets are defined by the product—what employers sell, such as autos, tires and so on—while other markets are occupational, such as music, carpentry, and acting. In practice, economists have used union density, the percentage of an industry that is unionized, as their proxy.
The assumption here is that employers in highly organized settings face a higher threat of union organization than a nonunion employer in a mostly unorganized industry. In broad strokes, this is a reasonable assumption.
III. Libertés incertaines et nouvelles incertitudes
However, taken too literally and simply, union density can be misleading. Second, the relationship between union density and nonunion wages is not linear. Empirically, this means a 20 percentage point change in unionization density from zero to 20 may have no effect, but a change from 20 to 40 will have an effect. Therefore, the relationship between union density and nonunion wages depends on the level of density: significant effects after a threshold level of density e. The sensitivity of the results to the specification—a linear or nonlinear specification of union density—is seen in studies of the union threat effect.
A linear specification assumes that small changes at any level have the same impact, while a nonlinear specification allows the union effect to differ at different levels of unionization—perhaps less at low levels and more at medium or high levels. They found that union density had no association with higher nonunion pay the relationship was positive but not statistically significant. Mishel replicated those results p. Farber , has conducted the most recent analysis of union threat effects, the relationship between union density and nonunion wages across industries, in the private sector.
In one analysis, Farber finds a positive threat effect for the s, s, and mids. Farber also shows, not surprisingly, that the threat effect is greater for workers with no more than high school degree but minimal for those with a college degree. Nevertheless, threat effects still prevailed across decades for those without high school degrees and for those with high school degrees, and in the s for those with some college education.
For example, nonunionized high school graduates the largest category of workers in the United States earned 2. The union effect on total nonunion wages is nearly comparable to the effect of unions on total union wages. Table 5 illustrates the union impact on union, nonunion, and average wages among workers with a high school education.
The total effect of unions on the average high school wage in this example is an 8. Two conclusions can be reached based on these studies. First, unions have a positive impact on the wages of nonunion workers in industries and markets where unions have a strong presence.
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Second, because the nonunion sector is large, the union effect on the overall aggregate wage comes almost as much from the impact of unions on nonunion workers as on union workers. An extensive array of labor laws and regulations protects workers in the labor market and the workplace. However, beyond their role in initiating and advocating enactment of these laws and regulations, unions have also played an important role in enforcing workplace regulations. Common to all of these rules is a desire to provide protections for workers either by regulating the behavior of employers or by giving workers access to certain benefits in times of need Weil ; Davis ; Amberg Over the years, these rules have become mainstays of the American workplace experience, constituting expressions of cherished public values Gottesman ; Freeman and Medoff Government agencies charged with the enforcement of regulations cannot monitor every workplace nor automate the issuance of insurance claims resulting from unemployment or injury.
This is done either by reporting an abuse or filing a claim. Unions have been crucial in this aspect by giving workers the relevant information about their rights and the necessary procedures, but also by facilitating action by limiting employer reprisals, correcting disinformation, aggregating multiple claims, providing resources to make a claim, and negotiating solutions to disputes on behalf of workers Freeman and Rogers ; Weil ; Hirsch, et al.
Evidence of the vital role of unions in implementing labor protections can be found in the research on various programs and benefits.
Values and assumptions in American labor law
Union membership significantly increases the likelihood that a worker will file a claim or report an abuse. Unemployment insurance UI is a joint federal and state program that was created in the Social Security Act of to provide some income replacement to workers who lose their job through no fault of their own.
Budd and McCall offer a cost-benefit decision-making analysis to explain the costs facing the unemployed worker in filing a UI claim. In fact, the main reason that many unemployed workers never file a claim is because they thought they were not eligible Wandner and Stettner The threat of an employer retaliating by not rehiring a laid-off worker might be another cost weighing on the decision to file a claim. Unions can help offset the costs of workers who are laid off. Primarily, unions provide information to workers about benefit expectations, rules, and procedures, and dispel stigmas that might be attached to receiving a social benefit.
Unions also can negotiate in their contracts layoff recall procedures based on seniority and protection against firing for other than a just cause, as well as help workers build files in the case of a disputed claim Budd and McHall Additionally, the union-wage differential reduces the likelihood that unemployed workers will be ineligible for benefits because their pay is too low Wenger At the peak of UI coverage in , one in every two unemployed workers received UI benefits. Blank and Card found that the decline in unionization explained one-third of the decline in UI recipiency over this period.
These findings underscore the difference unions make in ensuring that the unemployment insurance system works. Considering that UI acts as a stabilizer for the economy during times of recession, the role of unions in this program is pivotal Wandner and Stettner The employer is liable in the system, regardless of fault, and in return they are protected from lawsuits and further liability. Once again, lack of information about eligibility and the necessary procedures for filing a claim forms the greatest obstacle to receipt of benefits.
Fear of employer-imposed penalties and employer disinformation are important other factors weighed by workers deciding whether to act. As with unemployment insurance, unions provide information to workers through their representatives, and they often negotiate procedures to handle indemnity claims. Through grievance procedures and negotiated contracts, unions protect workers from employer retaliation and, furthermore, act to dispel the notion among workers that employer retaliation is commonplace Hirsch et al.
Hirsch et al. According to Biddle, higher denial rates lead to lower claim rates. The robust finding of Hirsch et al. They currently have only 2, inspectors to monitor over seven million establishments.
Following the trend of declining unionization, OSHA claims have dropped from their peak in of over 71, and are currently at close to 37, Siskind ; OSHA The leave taker is guaranteed the same or equivalent position upon return. There is also widespread misunderstanding on the part of the employer about whom the act covers and when it applies. There is evidence that this leads employers to reject legally entitled leaves Budd and Brey Union members were found to have significantly less anxiety about losing their job or suffering other employer-imposed penalties for taking leave.
And although the authors did not find union membership significantly increases the likelihood that a worker would take leave, they did find that union members were far more likely to receive full pay for leave taken. The biggest obstacle to workers exercising their rights under the FMLA—besides the fact that the leave is unpaid rather than paid—is information, since only a very slim majority has even heard of the act.
This act, passed in , had two main features: first, it established a federal minimum wage. Second, it established the hour work week for hourly wage earners, with an overtime provision of time and a half the hourly wage for work done beyond 40 hours. Trejo examined the union effect on compliance of the latter part of the FLSA, finding that employer compliance with the overtime pay regulation rose sharply with the presence of a union.
He hypothesizes that this result reflects the policing function of unions because unions often report violations to enforcement agencies. The research evidence clearly shows that the labor protections enjoyed by the entire U. The workplace laws and regulations, which unions helped to pass, constitute the majority of the labor and industrial relations policies of the United States. Research has shown convincingly that unions have played a significant role in enforcing these laws and ensuring that workers are protected and have access to benefits to which they are legally entitled.
Unions make a substantial and measurable difference in the implementation of labor laws. Legislated labor protections are sometimes considered alternatives to collective bargaining in the workplace, but the fact of the matter is that a top-down strategy of legislating protections may not be influential unless there is also an effective voice and intermediary for workers at the workplace—unions.
American Labor and Working-Class History, 1900–1945
Labor legislation and unionization are best thought of as complements, not substitutes. This paper has presented evidence on some of the advantages that unionized workers enjoy as the result of union organization and collective bargaining: higher wages; more and better benefits; more effective utilization of social insurance programs; and more effective enforcement of legislated labor protections such as safety, health, and overtime regulations.
Unions also set pay standards and practices that raise the wages of nonunionized workers in occupations and industries where there is a strong union presence. Collective bargaining fuels innovations in wages, benefits, and work practices that affect both unionized and nonunionized workers. However, this review does not paint a full picture of the role of unions in workers lives, as unions enable due process in the workplace and facilitate a strong worker voice in the broader community and in politics.
Many observers have stated, correctly, that a strong labor movement is essential to a thriving democracy. Nor does this review address how unionism and collective bargaining affect individual firms and the economy more generally. Analyses of the union effect on firms and the economy have generally found unions to be a positive force, improving the performance of firms and contributing to economic growth Freeman and Medoff ; Mishel and Voos ; Belman ; Belman and Block ; Stiglitz ; Freeman and Kleiner ; Hristus and Laroche ; with a dissenting view in Hirsch There is nothing in the extensive economic analysis of unions to suggest that there are economic costs that offset the positive union impact on the wages, benefits, and labor protections of unionized and nonunionized workers.
The ECI overstates nonunion benefit coverage to the extent that uncovered nonunion workers are present in unionized occupation groups.
Amberg, Stephen. Albany, N.
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Barkume, Anthony J. Some recent evidence for U. Belman, Dale. Voos, eds. Sharpe, pp. Belman, Dale and Richard Block. Kalamazoo, Mich. Upjohn Institute for Employment Research.