Union decline: A view from Canada

Important changes are occurring in the Canadian unions’ political and economic environments. This paper argues that such changes may be detrimental to Canadian trade unions, given their structural and institutional situation. To support this argument, private-sector union and nonunion firms in Alberta are compared. This comparison uncovers some structural (union members’ employment patterns and union firm characteristics) and institutional (union services) attributes of unions. Combined with the politico-economic environments that Alberta unions have faced since the early 1980s, these attributes have led to a decline in union membership. Because these attributes are shared by many other Canadian unions, those unions may increasingly confront some of the same hardships currently plaguing their Alberta counterparts. I am indebted to Brian Bemmels, Alan Murray, and John G. Fricke for helpful comments on an earlier version of this paper, and to Mike Jones for his research assistance.     

Public employee unions: A study in the economics of power

This paper examines how public employee unions influence the allocation of public sector jobs. The empirical results indicate that vote maximizing public officials’ employment decisions are influenced by the political clout of highly-unionized employees. The political clout of public-sector unions influences the functional distribution of public-sector jobs by increasing demand for the relatively more organized functions. These results suggest that consideration should be given to the growth of public sector collective bargaining in the allocation of public sector resources. The author wishes to acknowledge the helpful suggestions of Bernard Lentz.     

The future of public sector unionism in the United States

The future of nonpublic safety, non-teacher, non-federal public sector unions is bright. As a result of past success, the unions, led by AFSCME, have an organizing culture and sufficient power within the sector to maintain and increase density. However, the challenges that lie ahead in the 21st century will surely test the strength of AFSCME and the other public service unions. The large gains in public employee membership achieved in the last third of the 20th century are not likely to come with the relative ease with which they were achieved during that period. The remaining unorganized workers are in locations and occupations that have not been historically fertile ground for unions, public or private. In addition, the threat of privatization of jobs requires public unions to re-think their traditional strategies and organize in the more hostile private sector while simultaneously protecting the public sector from attacks. The public sector unions recognize that they have a tenuous grasp on their relatively strong position and must organize to maintain and strengthen their position. Absent dramatic changes in federal private sector labor law, and adoption of numerous public sector labor laws, the resources necessary for organization will be tremendous. The future is bright for the public sector unions only because they have demonstrated a willingness to adapt to change, make sacrifices, and deploy sufficient resources to achieve growth. The views herein are the author’s and do not necessarily represent the views of AFSCME.     

The composition of public sector compensation: The effects of unionization and bureaucratic size

This paper examines the effect of the political power of public sector unions on the composition of public sector compensation. Public employee unions provide a relatively low-cost vehicle for organizing workers’ political activity in support of the rent-seeking behavior of local politicians. The unions also provide a conduit for employees to capture part of these rents as payment for political services. Since the public has little interest in paying for the political activities of public workers, these payments are most likely to be made through fringe benefits so as to minimize public scrutiny. The authors would like to thank an anonymous referee for helpful suggestions. Any errors remain those of the authors.     

Private sector unions: The myth of decline

Conventional wisdom holds that private sector labor unions are in “crisis” due to the loss of millions of members over the past two decades which has resulted in a dramatic decline in their economic viability and political power. Financial data for selected years between 1960 and 1987 are analyzed to show that, contrary to prevailing opinion, private sector unions are financially prosperous despite membership erosion. Evidence is also presented which indicates that union political efforts and influence have increased rather than declined in recent years. Resources have been allocated to political advocacy to obtain a more favorable public policy environment for labor organizations and to achieve gains that have eluded unions in collective bargaining. The author gratefully acknowledges the assistance of Ms. Sybil Jones at the National Institute for Labor Relations Research.     

Exclusive representation and american industrial democracy: An historical reappraisal

Exclusive representation in the public sector has been defended on the basis of private sector experience, which purportedly demonstrates that stable, orderly, peaceful collective bargaining is otherwise impossible or impracticable. Nevertheless, nonexclusive collective bargaining was the norm in most industrial nations when the Wagner Act was passed in the 1930s, and it still is the rule outside the U.S. Historical evidence is presented for the thesis that exclusivity was adopted in the private sector primarily in order to pave the way for a corporative state. Peaceful, orderly collective bargaining by “responsible” unions in a competitive economy was a minor, secondary consideration. Editor’s Note: This Symposium was jointly sponsored by theJournal of Labor Research and the National Institute for Labor Relations Research and was held February 10, 1984 at the Westpark Hotel, Rosslyn, Virginia.     

Exclusive representation in public employment: A public choice perspective

Public sector unionization has grown rapidly in recent years, and research has suggested that among the reasons for such growth is legislation granting special privileges to public employee unions. This paper examines one form of legislative privilege, exclusive representation, from a public choice perspective. It is shown that exclusivity reduces employees’ freedom of choice, increases the welfare of union leaders at the expense of union members, limits employment opportunities to “outsiders,” entrenches the monopoly provision of public services, and generates conflict and instability in labor relations.     

The effect of unions on professors’ salaries: The evidence over twenty years

No study has recently examined how unions affect professors’ salaries. In the only studies using micro-level data, both Ashraf (1992) and Barbezat (1989) used data from 1977. I update earlier work by using data from 1988. In conjunction with data from 1969 and 1977, the effect of faculty unions over a twenty-year period is examined. While faculty at unionized colleges earned significantly less than their counterparts at nonunion institutions in 1969, they earned marginally more in 1977 and 1988. The author is currently on leave from the University of West Florida and is serving as Professor and Vice-President of the Textile University of Pakistan. An earlier version of this paper was presented at the Southern Economic Association meetings in New Orleans, November 21–23, 1993. The author thanks some of the participants for very useful suggestions.     

Mandatory agency shop laws as an explanation of Canada-U.S. union density divergence

X. Conclusion During a period of strength the Canadian labor movement was able to secure enduring legislation providing for their institutional protection. In the 1940s Justice Rand justified his decision by invoking the spirit underlying the operationalization of a collective bargaining regime. In the 1990s the Canadian Supreme Court continued this tradition by refusing to hollow out unions’ rights to a secure financial base and autonomy in decision making. Between the 1940s and the 1990s, the unions' voice was heard in legislatures throughout the country through the NDP. Canadian unions now benefit from, among other things, first-contract arbitration, job protection for striking workers, and a card process of union certification. Thus, although current Canadian attitudes towards unions show considerable detachment, the embeddedness of legal protections helps hold such challenges as RTW in Alberta at bay. During the same years, American labor was unable to translate its strength of numbers into gains in public policy: in fact, as union density peaked, legislation such as the Taft-Hartley Act and Landrum-Griffin Act eroded union institutional protections. An earlier version of this article appears as “Union Security in Canada,” in The Internal Governance and Organizational Effectiveness of Labor Unions, edited by S. Estreicher, H. C. Katz, and B. E. Kaufman, Kluwer Press. We are grateful for their permission to reproduce portions of the chapter. Comments from Dennis Nolan (University of South Carolina) and John Godard (University of Manitoba) are greatly appre-ciated. The article benefited from their excellent suggestions. Research assistance from Fred Jacques is acknowledged. We follow the Canadian spelling of “labour” for accuracy when it is used in citations, quotes, and titles.     

Pensions and the uses of ignorance by unions and firms

Pensions are contingent claims contracts that are often fashioned by collective bargaining under conditions of asymmetric information and market power. Pensions are not an employer’s or a union’s optimal contract; they represent compromise. Employers use pensions to minimize labor costs and to adjust to market changes. Pensions help unions improve and protect their members’ work lives and help unions to survive as institutions. When workers’ estimations of their pensions differ from their employers’ estimations a moral hazard can exist. Less mobile workers and those with less influence subsidize the pension benefits of other workers or reduce an employer’s costs. Econometric results based on data from the President’s Commission on Pension Policy show that certain workers, namely women, overvalue their plans, which provides an opportunity to lower labor costs and redistribute benefits. Unions have a contradictory effect on information. The author thanks participants in the Cornell University Collective Bargaining workshop and the Harvard Labor Economics workshop. I especially thank James Medoff for his comments.     

Pay comparability in state governments

Earnings differentials between state government and private industry employees are estimated for each state using 1990 Census data. Female employees in most state governments receive higher earnings than comparable private sector employees, whereas the opposite result applies to males. However, the size of the state government earnings advantage or penalty is not uniform across states for either sex. The relative earnings of state employees increase with their membership in unions and with the revenues generated by state government’s tax and financing policies.     

Trust violators in the labor movement: A study of union embezzlements

Union embezzlements, considered by many as one of the most serious breaches of trust, have not been seriously examined. My study sheds light on this topic by studying violations of the federal statute which prohibits union embezzlements, 29 U.S.C. 501 §(c). During the period October 1, 1993 to September 30, 1995, 104 individuals were convicted of violating this statute due to their collective victimization of 98 unions. Some findings were: loses tended to be under $25,000; victim unions were small in financial and membership size; unions lack basic financial controls; and offenders were usually male, acted alone, and tended to be part-time officers. I was an investigator with the United States Department of Labor, Office of Labor Management Standards for more than eight years (1/89 to 6/97). The information in this article is the result of my independent research and does not represent the findings, view, or opinions of any agency of the United States government.     

Part of the welfare mix: The third sector as an intermediate area

This article presents a conceptional framework which analyses the third sector as a part of a mixed welfare system, otherwise made up of the market, the state and the informal private household spheres. From this perspective, the third sector appears as a dimension of the public space in civil societies: an intermediate area rather than a clear-cut sector. Third sector organisations are understood as polyvalent organisations whose social and political roles can be as important as their economic ones; they are portrayed as hybrids, intermeshing resources and rationales from different sectors. In present policies of ‘welfare pluralism’ the emphasis is consequently more on ‘synergetic’ mixes of resources and rationales than on mere issues of substitution processes between different sectors of provision. The last section discusses the potential distinguishing features of such policies with respect to ‘pluralist’ approaches which try to safeguard the conventional hierarchies in a mixed economy of welfare. This paper draws in part on the author's introduction to Evers and Svetlik (1993).     

Union wealth: The bargaining power implications

Conventional wisdom holds that U.S. unions are in crisis. Recently, however, unions have shown both boldness and initiative, remarkably in the proposed merger between the Auto Workers, Steelworkers, and Machinists. Regardless of whether labor is genuinely on the rebound, unions need money in order to retain clout and expand. I explore the financial wealth of the 28 largest U.S.-based unions during the period 1979–1993, and find that these unions, overall, maintained their wealth during a period of substantial membership decline even after adjusting for inflation. At the same time, however, unions vary widely in terms of both their wealth and related trends over the past decade and a half, but wealth has nonetheless remained substantially concentrated among a small set. Yet, several unions possess a seemingly robust financial capacity to sustain a strike, and the pursuit of additional union consolidations might reinforce this capacity. These consolidations may also have political implications.     

Financial and political resources of nine major public sector unions in the 1980s

Current research offers two potentially competing perspectives on union strength: membership and financial/political resources. We update and broaden the research on the financial and political resources of nine major public sector unions in the U.S. by reporting these unions’ financial assets, net worth, revenues, and political action committee (PAC) receipts during the 1980s and the early 1990s. We find that unions may expand their financial and political resources even though membership levels stagnate or decline. Overall, the unions have amassed larger asset bases, even though some have actually lost members. On a per member basis, federal executive branch unions do not appear as financially weak as the level of their financial resources suggests. Postal unions as a group are clearly the strongest in terms of per member financial and political resources. Federal executive branch unions have experienced a striking reduction in their PAC activity, while the postal and the state and local union PACs have grown substantially. Our analysis indicates that union membership may not adequately measure union strength.     

Analyzing gender in public places: Rethinking Goffman’s vision of everyday life

In this study, I discuss critically some of Goffman’s work on public places, with regard to how that work represents women’s experience in public and how women’s experience changes the notions of public places that Goffman portrayed. I draw on an eighteen-month participant observation of one small city (Santa Fe, NM) and a set of in-depth interviews done with both female and male residents of the city. Here, I concentrate on three areas: the normalized distaste for public places that is encouraged in women by their fear of crime in public and the measures they are informed they must take as crime-conscious pedestrians and shoppers; street remarks that are often difficult to manage and impossible to resolve successfully; and access information—information the woman discloses that can be used as a clue to her identity and home and, potentially at least, as ammunition for further harassment of her. I use these areas to illustrate how gender-conscious appraisal is necessary in order to appreciate the character of public places. Her book,Urban Ritual, is forthcoming from University of California Press.     

Scholarly ethics and courtroom antics: Where researchers stand in the eyes of the law

In 1993 the author, then a Ph.D. candidate in sociology, was jailed for 159 days after refusing to violate the American Sociological Association’sCode of Ethics provisions prohibiting the sharing of confidential research data with law enforcement authorities. This article discusses theCode, presents the facts of the case, answers critics of the author’s and the ASA’s stance, summarizes an attorney’s analysis of researcher’s rights in the eyes of the law, and concludes by urging sociologists to seek federal legislation protecting them and their work product from intrusions by public and private institutions. with emphases in environmental sociology, social movements, research methods, and science and technology at Montana State University.     

The involvement of canadian unions in political activities: An exploratory analysis

A conceptual framework is presented that depicts the political activities of public employee unions. The framework explicitly recognizes that access to elected officials affects unions’ ability to achieve political influence. Data covering 95 local unions in 26 major Canadian municipalities are used to test the framework. The results generally support the framework and suggest several observations about the effectiveness of union political activities. We are grateful to Susan Schwochau for helpful comments on an earlier draft of this paper.     

External legitimacy of unions: Trends in New Zealand

Just 5 years ago, at the pinnacle of their success, New Zealand unions negotiated collective agreements covering over 720,000 employees and were successful in persuading some 603,000 of these employees to join. In May 1991, the Employment Contracts Act, which withdrew totally any state-endorsement or sponsorship of union activity, radically altered their position. Union membership fell by around 40 percent in the four years since the enactment of the Act — from 603,000 to 376,000 members in December 1994; the overall number of unions remaining has declined to around 80; a number of unions have become insolvent and have filed for liquidation; staff retrenchments within unions has been widely reported and, in some cases, this has led to a reduction in services and capacity. Data for 1993 suggest that union decline may have “bottomed out” with unions losing fewer than 20,000 members in that year. However, decline is again apparent in the 1994 data. The removal of external legitimacy has had a significant impact on unionization rates. We review the conditions under which the restoration of legitimacy would bring about a reversal of union decline.     

The future of public sector collective bargaining in Canada

Conclusion Looking to the future of Canadian public sector labor relations, the glass is half full. Despite regular intervals when government fiscal and economic policy “trump” public sector bargaining rights through legislation, public sector unions and collective bargaining will survive. Public sector compensation and job security will likely continue to be at least comparable to the unionized private sector, and public sector union density should remain stable, at or near its currently high levels.