Mgmt 583

1. Mgmt 583 Chapter 5: Unions - Member Attitudes … Political Activities Fall 2008

2. Member Participation • Union membership entails participations in specific union activities: • Voting for union officials • Voting for strike authorizations • Voting for contract ratifications • The option to run for union offices • Attending meetings (most attend only mandatory meetings)

3. The Reality of Member Participation • Less than half (48%)* of all union members are active in union activities. • Studies show that activity levels are predicted by pro-union attitudes. • Most union members want their elected official to “run” the local for them. *Flood, P., Turner, T. and Willman, P. (2000). A segmented model of union participation. Industrial Relations 39: 110.

4. Predictors of Union Participation • Subjective norms • Perceived instrumentality • Marxist work beliefs • First-year socialization • Shop steward leadership Source: Kelloway, E. K.,and Barling, J. (1993). Members participation in local union activities: Measurement, prediction, and replication. Journal of Applied Psychology 78: 274.

5. Local Union Effectiveness & Member Behavior • If unions are effective only so long as they accomplish goals important to their members. • Factors associated with union effectiveness: • Member participation • Preparations for future negotiations • Involvement in political & civic activities • Union mentality (compatibility with members’) • Union’s leadership

6. Commitment to the Union • Similar to organizational commitment – again, pro-union attitudes are a strong predictor of union commitment. • Commitment is correlated with pursuit of union goals. • Commitment is correlated with participation in union activities. • Like organizational commitment, commitment to the union is a function of cohesiveness. • Dual commitment employee is committed to both the union and his/her employer. Usually found in situations involving good labor relations.

7. Threats to Union Cohesiveness • Multiple contracts in a single bargaining unit (different contracts are negotiated for different occupations within the BU). • Women – desire different bargaining outcomes than male counterparts [causes factional bargaining]. • Ethnic minorities – concerned about representation on executive council.

8. Underrepresentation in Union Leadership • Women and ethnic minorities are underrepresented in union leadership positions at both the local and national level. • Only 2 of 95 union presidents are female. • There is a reason Anna Burger is the chief officer of the Chang to Win Federation. • There have been no minority union presidents except those in minority dominated unions. • United Brotherhood of Maintenance of Way Employees (BMWE) [on September 7, 2007 the Brotherhood of Maintenance of Way Employees merged with the IBT].

9. Impact of National Unions • National unions have a vested interest in creating a legal environment that facilitates collective bargaining and achieve workplace goals. • Pro civil rights legislation (however, there are no minority presidents except in minority dominated union –United Farm Workers, e.g.) • Health and safety legislation • Unemployment compensation • Workers compensation

10. Effects of the Economy on National Unions • Corporate restructuring in the global economy in order to survive has reduced worker belief that the union can enhance long-term job security. • June 2005 GM announces it will cut 25,000 jobs, or about 23 percent of its work force and shut several North American factories. • Cuts are in response to a $1.3 billion loss in the first quarter 2005. • United Auto Workers President Ron Gettelfinger promised members that the union won't open GM’s CBA before its 2007 expiration to renegotiate spiraling health care benefits, which will hit $5.6 billion this year.They did.

11. Effects of Industry Health on National Unions • United Auto Workers made cost concessions to both GM and Ford in 2005. • UAW negotiated a health-care pact with GM that the auto maker expects will trim its health-care liabilities for hourly workers by $15 billion, while saving the company $1 billion in cash starting next year. • Ford followed with a UAW deal in December 2005 that allowed the auto maker to trim about $850 million of its estimated $3.5 billion annual health-care bill. • Now Chrysler wants the same.

12. Effects of NAFTA on National Unions • North American Free Trade Agreement (NAFTA) reduced tariffs on imports from Mexico and Canada removing incentives to purchase American made goods. • It has led to the wholesale movement of labor intensive jobs to the cheaper labor markets of Mexico. • NAFTA has focused attention of the remaining American manufacturers on controlling labor costs.

13. Affects of Globalization • Textile manufacturing has virtually left the US for the PRC, Africa and the West Indies. • Assembly operation have moved to Central America. • Dumping cheaper subsidized foreign manufactured goods in US markets. • Plant closings • Layoffs

14. Affects of NAFTA • Wage gap between US Canada and Mexico • Mexican compensation costs are only 12.5% that of US costs. • Canada is 7.5% higher. • There is more than sufficient economic incentive for labor intensive processes to relocate.

15. Union Political Action • Despite decline numbers, union continue to exert great political influence. • Political Action Committees (PACs). • Endorsing candidates (Committee on Political Action of AFL-CIO) • Lobbying • Public sector PACs have been very successful • Financial support for pro-union candidates. • Get-Out-the-Vote Drives

16. Union Political Action • Problems maintaining solidarity. • Rank and file members tend to be socially and politically conservative. • In 2004, 45% of union members voted for the Republican candidate. • Union leaders tend to be socially and politically liberal. • In 2005-2006, roughly 88% of labor PACs contributions went to the Democrat party.

17. Union Political Action • The top ten PACs in America:

18. Use of Union Dues for Political Activity • In Communications Workers v. Beck (487 U.S. 735), the Supreme Court ruled that individual union members may request that that their union dues be limited only to the amount necessary to provide representational activities.

19. Breaking News • NEW YORK (CNNMoney.com) -- The United Auto Workers union launched a nationwide strike against General Motors on Monday as 73,000 UAW members walked off the job and hit the picket lines at the nation's largest automaker. UAW President Ron Gettelfinger blasted GM management, saying that the company had not been willing to meet the union part way in negotiations. • Members of UAW Local 31 at GM's Fairfax assembly plant in Kansas City, Kan., begin picketing shortly after 11 a.m. ET Monday [September 23, 2007]. • "This is nothing we wanted," he said about the strike. "No one benefits in a strike. But there comes a point where someone can push you off a cliff. That's what happened here." • The union president said he was looking for assurances from the company about the job security of UAW members. He said he wanted guarantees about how much GM would invest in U.S. plants and about how many new vehicles would be built in the United States. • The UAW has seen its membership at GM plummet by 70% since 1994, as the automaker dumped its parts unit and closed plants to try to align its production more in line with its shrinking U.S. market share. • The strike halted operations at 80 facilities, ranging from assembly lines to parts distribution centers, in 30 states coast to coast. It also is likely to soon stop operations at GM plants in Canada and Mexico that depend on production from U.S. facilities, as well as the plants of many GM suppliers.

20. Breaking News • "We are disappointed in the UAW's decision to call a national strike," said a statement from GM. "The bargaining involved complex, difficult issues that affect the job security of our U.S. work force, and the long-term viability of the company. We are fully committed to working with the UAW to develop solutions together to address the competitive challenges facing General Motors. We will continue focusing our efforts on reaching an agreement as soon as possible." • Since the start of 2005, GM has taken a hit in its core North American auto unit, which posted nearly $13 billion in net losses in 2005 and 2006 combined. Losses continued in the first quarter of 2007 before the unit posted a narrow profit in the second quarter, but it was likely to report continued losses this year even without the costs associated with a strike. • For his part, union boss Gettelfinger did not dismiss the notion that GM was in trouble. But he said there is only so much the union can do to stem losses at GM facilities. • While the strike GM plants and facilities, it does not affect the two other automakers whose workers are represented by the UAW, Ford or Chrysler, which between them have more than 100,000 UAW still on the job. Members at those companies have been working under their own contract extensions as the union concentrated on reaching a deal with GM.

21. Breaking News • A key to the contract talks is GM's goal of shifting an estimated $51 billion in future health care costs for retirees and their family members to union-controlled trust funds (voluntary employee beneficiary association or VEBA). GM has more than 340,000 retirees and surviving spouses receiving such benefits today. • Shifting those costs is seen as a key to GM efforts to close its cost gap with nonunion automakers such as Toyota Motor and Honda Motor. Ford and Chrysler combined are facing nearly $50 billion of retiree health care costs as well. • Shares of Dow component GM were narrowly lower in mid-afternoon trading, although that's well off of the 2.6% gain they were showing before the strike started. • Most analysts have said that a long strike at General Motors would be a crippling blow for the automaker's efforts to return its North American operations to profitability, the automaker is probably in a relatively good position to weather a short strike.