ORGANIZING PROSPERITY Union Effects on Job Quality, Community Betterment, and Industry Standards MATT VIDAL with DAVID KUSNET Economic Policy Institute and UCLA Institute for Research on Labor and Employment Copyright © 2009 Economic Policy Institute 1333 H Street, NW Suite 300, East Tower Washington, DC 20005-4707 www.epi.org ISBN: 1-932066-37-3 Table of Contents Acknowledgements .......................................................................................................................... II Executive Summary ............................................................................................................................1 Introduction: Unions and the American dream .......................................................................7 CHAPTER 1 Hospitality Workers: In the winners’ circle in Las Vegas ................................9 CHAPTER 2 Nursing: Improving patient care and RN’s jobs ............................................ 15 CHAPTER 3 The Grocery Industry: Islands of high wages in the retail sales sector ........................................................................... 21 CHAPTER 4 Meatpacking: The human costs of deunionization ..................................... 27 CHAPTER 5 AT&T: High tech, high skills, and high wages ................................................ 31 CHAPTER 6 Janitorial Services: Up from poverty ................................................................. 33 CHAPTER 7 Trucking: Deregulation and deunionization drive down job quality .......................................................................................... 37 CHAPTER 8 Brightside Academy: Teaching a lesson in how to reduce worker turnover and improve child cared ..................................................... 41 CHAPTER 9 Building Security: A union raises standards for skills and wages ........... 43 CHAPTER 10 Construction: Unions build high skills and high wages ............................ 47 CHAPTER 11 Industrial Laundries: Unions clean up dangerous conditions ................ 51 CHAPTER 12 Home Care: Bringing fairness and stability .................................................... 55 Afterword ........................................................................................................................................... 59 Endnotes ............................................................................................................................................. 61 Bibliography ...................................................................................................................................... 63 About the author ............................................................................................................................. 70 About EPI and ILRE ........................................................................................................................... 71 I ACKNOwledgements Matt Vidal wishes to thank the Economic Policy Institute for primary funding for this project. He also wishes to thank the Institute for Research on Labor and Employment at UCLA, which provided general support for this research. Ruth Milkman provided constructive guidance and feedback throughout the research and writing. Larry Mishel was the impetus behind this project, and Ross Eisenbrey, David Kusnet, and Patrick Watson all provided expert editorial assistance. Finally, the author would like to thank the following people for their help providing background information and clarification on details in certain industries: Wilfredo Larancuent, international vice president and manager, Laundry, Drycleaning and Allied Workers Joint Board, UNITE HERE; Sam Savalli, special project director, Culinary Workers Union, Local 226; Eric Sharfstein, assistant director of communications, media, UNITE HERE; and Katie Unger, research coordinator, UNITE HERE. II Executive Summary The accomplishments that result from working Americans joining together and reaching understandings with their employers are some of the most important and instructive but often ignored stories in society today. This study tells the stories of how unions have made a positive difference in a cross-section of industries, occupations, companies, and communities, from casino workers in Las Vegas to child care providers in Pennsylvania. It also tells how weakening or eliminating unions has worsened conditions in industries and occupations. At a time when the nation is grappling with serious economic challenges, these stories should be told and their lessons understood. Hospitality workers in Las Vegas Nearly 90% of the employees in the major Las Vegas, Nevada hotels have union representation, and hospitality workers in Vegas and the surrounding county typically earn at least 50% more than similar workers in non-union Reno – plus they have health insurance and limits on onerous workloads. Through a consortium of hotel casinos and unions, workers receive education, training, retraining, and opportunities for career advancement. Their relatively high wages have enabled them to join the ranks of homeowners; to address the lending downturn in late 2008, the union announced a new housing program, the cost of which is shared equally by the unionized casino companies and a grant from the state government. The union has the support of community leaders and even many business leaders in Las Vegas. J. Terrence Lanni, the chairman of the MGM Mirage, sees the union as playing an important role in ensuring that service workers are able to present a good image to guests. Nurses in hospitals Nurses are generally paid much less than other professionals in health care. In addi- tion, because of reduced staffing and increased workloads over the last two decades, they increasingly suffer from stress, exhaustion, and frustration at work. We are in the midst of a nursing shortage – in 2005 there were estimated to be between 126,000 and 153,000 vacant RN positions – but the problem is not a shortage of qualified nurses; the problem is a shortage of working nurses: the number of trained nurses not working in their profession far exceeds the number of vacancies. Unionization among nurses has surged over the last decade, and the union partner- ship with Kaiser Permanente in California provides an example of how workers and 1 OrganiZING PROSPERITY management can work together to transform labor relations, improve patient care, and expand the customer base. Grocery workers For decades after the industry became highly unionized in the 1930s and 1940s, grocery work was a middle-class career, and the industry offered stable, high-wage jobs. But beginning in the early 1980s, non-union competitors began opening stores in rural areas where there was little threat of unionization. After getting a foothold there, these firms began to enter urban markets. Chief among them is Wal-Mart, which has been found guilty of and has had to settle numerous suits relating to its bending and breaking of the law to avoid paying overtime. Wal-Mart has been effective in staving off unionization; anti-union training for employees begins on the first day of work. But, in cases in which employers have remained neutral, grocery workers have voted to unionize. The CEO of Safeway praised a 2007 contract at the company’s Vons subsidiary for providing employees “with the best wages, benefits, and working conditions in the Southern California retail market, while making certain Vons has the tools to thrive in a highly competitive environment.” Meatpackers After a union shakeout in the late 1970s and early 1980s, wages and working conditions in the once heavily unionized meatpacking industry began a steady slide downward. By closing or selling unionized plants and opening non-union plants so it could undercut union sources, Iowa Beef Packers transformed the meatpacking industry in ways that reached beyond wages and benefits. First, it restructured the labor process by elimi- nating skilled workers and reorganizing the factory into a one-story disassembly line. Second, it opened its new slaughterhouses in rural locations, where the factories could be close to feedlots and far from heavily unionized urban areas. Third, IDP and much of the rest of the industry developed an indifference to employees’ health and safety, recreating the conditions exposed in The Jungle a century earlier. As a result of deunionization, meatpacking no longer supports middle-class communities. During the unionized era meatpackers could afford to own their own homes; now, they’re likely to live in trailer parks – or share rooms in motels. Tech workers at AT&T The nation’s largest provider of Internet access and wireless service as well as local and long-distance telephone service, AT&T is overwhelmingly unionized. It has almost 180,000 union members among its 300,000 employees, and it partners with the Com- munications Workers of America on education, training, and counseling. 2 Union Effects on Job Quality, Community Betterment, and Industry Standards The generally cooperative relationship between AT&T and CWA is based on re- specting workers’ rights to join and organize unions. The company’s Cingular Wireless division reached a neutrality agreement with CWA under which the company and the union both refrain from attacking each other or coercing workers during organizing campaigns. The agreement also allows workers to form unions by majority sign-up on authorization cards. According to a vice president at the company, “AT&T and its customers benefit from the skills