DOCUMENT RESUME ED 255 434 SO 016 328. AUTHOR Marshall, Ray; Rungeling, triad TITLE The Role of Unions in the AmericanEconoMy. Second , Edition. INSTITUTION Joint Council on Eco.mic Education, New York, N.Y. PUB DATE 85 NOTE 183p. AVAILABLE FROMJoint Council on Economic Education, 2 Park Ave., New York, NY 10016.(JCEE Checklist No. 337, $8.00). PUB TYPE Guides - Classroom Use Guides (For Teachers) (052) EDRS PRICE MF01 Plus Postage. PC Not Available from EDRS. DESCRIPTORS Arbitration; Collective Bargaining; Economic Factors; *Economics Education; Futures (of Society); Labor Demands; Labor Problems; Labor Relations; Resource Materials; Secondary Education; *Unions,; United States History; Work Environment ABSTRACT IntenSed, as a resource for secondary teachers, this book analyzes the role. of unions in the American economyand examines the main' forces influencing unions in the United States.This second edition includes important domestic and external events thathave affected U.S. economic policy and unions-since thefirst edition was published in 1976. There" are eight chapters. The first chapter presents the basic rationale for the emergenceof labor movements in response to the labor problems createdby industrial societies. The origin of labor movements and the history of theAmerican labor movement are dealt with in chapters 2 and 3. The next twochapters explore the relationship between unions and the economy.Major problems facing labor unions, such as organizing,collective bargaining, and dispute settlement, are examined in chapters 6and 7. The concluding chapter discusses the role ofunions in the 1980s. The appendix contains the names of major U.S. unions.(RM) *********************************************************************** Reproductions supplied by EDRS are the best that can be made from the original document. *********************************************************************** U.E. DEPARTMENT OF EDUCATION NATIONAL INSTITUTE OF EDUCATION EDUCATIONAL RESOURCES INFORMATION CENTER !ERIC) This document has been reproduced as received hom the person or orgarearition 11, originating it Minor changes have been made to improve reproduction quality Points of view or motions stated in this docu ment au not mutt/sent official NIE. position titUOtu y "PERMISSION TO REPRODUCE THIS MATERIAL IN MICROFICHE ONLY HAS BEEN GRANTED BY Lck_u.fenc..e... er . V . TO THE EDUCATIONAL RESOURCES INFORMATION CENTER (ERIC)." 4 14- fVy ;44%, 3, f , V.4 (0,+ WALTER G. DAVIS, 1920-1984 3 Of THENNE1111111141OP 0 INTNE S EDITION SECOND BY NAYMARSHALL EDUCATION ONECONOMIC COUNCIL RUNGELINI JOINT No. 337 BRIAN Chickitst JCEE I% 40 r ABOUT THE AUTHORS RAY MARSHALL was U.S. Secretary of Labor in the Carter administra- tion. At present he is Bernard Rapoport Centennial Professor of Economics and Public Affairs at the University of Texas at Austin. BRIAN RUNGELING is protossor of economics and chairman of the aepartment at the University of Central Florida in Orlando. The Joint Council on Economic Education is extremely grateful to the members of its Publications Committee who reviewed the manuscript of this volume, However, _responsibility for the published version rests with the authors and publisher. .1976, 1985 Joint Council on Economic Education 2 Park Avenue, New York. New York 10016 All rights reserved, 04 First edition published 1976: second edition published 1985 t' 2 :1 4 5 Director of Publications: Lawrence A. Mayer Associate Director: Ester Moskowitz 5 L Aveteran labor leader, Walter G. Davis (1920-1984) was also a staunch supporter ,of economic education. For nearly a quarter of a century, beginningin 1967, he served the Joint Council as a trustee. He be- came a member ofthe Executive Committee in 1975 and was a Vice Chairman from 1975 to 1980. Mr. Davis's association with the JCEEis an. outstandingexample of the bipartisan com- mitment to economic education that has been the hallmark of the Joint Council since its in- ception. Dedication of this new edition of The Role of Unions in the American Economy tohim is especially fitting, for it was his determination and leadership that made possible thefirst edi- tion of this publication. g S'' Contents 5, Walter G. Davis Frontispiece Preface to Second Edition ix Preface to First Edition xi 1. Introduction: Unions and Labor Movements 1 2.The Origin of Labor Movements 5 3.History of the American Labor Movement 17 4.Unions and the EconomyThe Broad View 54 5.Economic Impact of the Union on Firms and Workers 67 6.Contemporary Union Problems: Organizing, Collective Bargaining, Dispute Settlement 83 7.Other Problems of American Unions 108 8.The Role of Unions in the 1980s 158 . Appendix 169 Preface to the Second Edition The first edition of The Ro!e of Unions in the American Economy was published' in 1976, just before one of theauthors, Ray Marst.all, was appointed Secretary of Labor inPresident Carter's administration. in which he served from 1977 to 1981. The book went intwa secor printing in 1979 and was translatedvabroad into French, Chint, .e, Japanese, and Pcirtuguese in the late 1970s. and early 1980s. About nine years have gone by since the first editiOn was actually written, and it is time for an updating because a number of importaat domestic and external events have meanwhile affected U.S. economic policy and unions. The election of Ronald Reagan as president touch .d off possibly the most drailitic shift in economic policycertainly in economic philosophyin nearly fifty years. And the Reagan presidency soon ran into a severe economic reces,sion.Although a recovery was underway by early 1983, the impact of this recession both on organized labor and on all workers in the United States,was severe. Monthly unemployment rates in 1982 were the highest since the 1930sa time when the economy was still in the Great Depression. or -tryingto emerge from it. As discussed inboth the present and the first edition of this book, recessions and depressions tend to greatly restrict the growth of union membership and finances. Consequently, unions have recently been struggling to survive. Workers were also affected by U.S. efforts to retain its external markets in the ever more competitive world economy of the 1980s. This edition incorporates the essential features of the earlier one, and attempts to cover and analyze the major events affecting unions since the publication of the original version. This version also benefits from the practical experience of a Secretary of Labor attempting to shape and put into practice economic policy affecting all human resourcesboth union and nonunion. We also examine the interaction between economic policy and unions (in a new chapterChapter 4) as well as the impact that unions, in turn, have on the economy (in another new chapterChapter 5). Other specific changes or additions include updated material on union membership, size, finances (Chapter 3); an expanded section on certification as well as the inclusion of decertification data (Chapter 6); also in Chapter 6, new material on the views of workers about unions and updated material on strikes; a new section on the Occupational Safety and Health Act (OSHA); and a discussion of participative man- agement (including worker participation and qualitycircles). A section ix r. on the effects of the growingiriternationalization of the economy ap- pears at the end of Chapter 7. In addition, we have rewritten a number of passages in Chapter 7 as well as throughout. the text. Or ultimate goal in this new edition has been to continue to carry' out the. objectives specified in the preface to theoriginal. We hope that this version will servy to improve the understanding of unions by all who seek to learn. ' Finally, we wish to. thank Lawrence A. Mayer, directorof publica- tions of the Joint Council on Economic Education for manyuseful suggestions offered during the preparation of this edition. Wealso extend thanks to those associated with the word processing unit ofthe College of Business Administration of the University of CentralFlorida for their work on the first draft. Summer 1984 RAY MARS1111.1. BRIAN RUMIELING 9 x Preface to the First Edition. I n one way or another, we are all affected by labor unions. The young person preparing to enter t-helabor force will have to decide whe4her or not to join a union, and which union to joinif he or she decides to join at all. Th&person entering business either as an owner or in some sort ofmanagerial position will probably have to deal witly- st least one union, and .perhaps with several: As consumersand ..citizens, we are affected-by unionproglems. When strikes occur, we are ofteri forced to take sides .whether we like it or not. Is there a. union picket line at the entrance of the store you intend to enter? if you cross. the picket line and buy goods in that store; many will feel that you have take) sides with management against the striking workers.If you refuse to cross the picket line, you canbe seen aq hE;ving sided with the union. As a voting citizen, you may be called upon to vote on issues relating.to unions. Candidates for public office -will favor or oppose stronger controls over union activities. They mayalso favor or oppose such things as higher minimum wages, a special minimum wage for. teenagers, more unemployment insurancebenefitsand these are issuesv that' could affect you personally. Your representative in Congress or the state legislature may send you a questionnaire in tiv future asking for your opinions on such matters. Your concern about unions should go far beyond your feelings when you inconvenienced by a strike or when your own union (if you are a unionunion member) isinvolved in wage negotiations. Are you in favor of the policies of American unions when they try to bringabout social changes? Do you understand what they are trying to do? Do you favor the means by which they achieve these goals? Howwill you per- sonally be affected if they are successful? How will society as a whole he affected? Although this book will not answer all of these questions for youonly you can answer some of themit will help to give you a knowledge of the labor movement that will aid you in making important choices and decisions.