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.     

Congressional support for unions’ positions across diverse legislation

Organized labor has become increasingly active in national politics. This development has encouraged research into union political activities, particularly in the area of legislative politics. But little research has been published on the basis of congressional support for union positions on diverse public policy items. This paper has examined the correlates of congressional support for unions’ positions across 33 roll-call votes taken in the first session of the 98th Congress. Empirical analyses suggest that certain factors, such as legislators’ party affiliation and constituents’ ideology, are consistent correlates of such support across diverse legislation. The authors wish to thank John Delaney and Jack Fiorito for their generous comments on a previous version of the paper. They also wish to thank the union lobbyists who granted interviews. A Faculty Research Grant from the Graduate School of Business, University of Pittsburgh, provided partial support.     

Outsourcing and union power

The outsourcing of union work and jobs either diffuses or diminishes union membership, depending on perspective and situation. The correlation of trends in union membership to trends in union power, while less than perfect, has until recently been relatively strong over the past sixteen years. The fact that as diverse a sample of unions as AFSCME, SEIU, and UAW have chosen to make outsourcing a prominent labor/public relations issue suggests that the correlation continues to be perceived by the union movement to be significant, notwithstanding the efforts of the “new” leadership of the AFL-CIO to break that link with respect to union political power by “taxing” member unions and their members to contribute both money and militancy to the 1996 election cycle. Although outsourcing may lead only to the diffusion of union membership either within or between unions, as opposed to the diminution of union membership, this fact has not received a great deal of attention. The net effect on total union membership of outsourcing from one union employer to another union employer is unclear, although the effect on the membership of the union at the outsourcing employer is not. The redistribution of membership within a union as a result of outsourcing is likely to have little immediate impact on union power. However, as even the best case scenario presented above suggests, it may have significant long-run deleterious effects on union bargaining power by taking labor out of a sheltered market and putting it into potentially competitive market. This is particularly likely to be the case when outsourcing (1) places the outsourced work into a different industry or wage contour and (2) creates the possibility of moving from sole-source to multiplesource supplier arrangements. The redistribution of membership between unions as a result of outsourcing is unlikely to have a major impact on union power broadly defined. It can have, however, serious deleterious effects in terms of the power of an individual union, as suggested in my “competitive case” scenario. The fact that one union’s losses due to outsourcing may be another union’s gain is of little consolation to the losing union. That act, in and of itself, may make the threat of outsourcing a potential union “Achilles heel” at the bargaining table by placing it into competition with some other, perhaps unknown, union as well as possibly nonunion competition. The most obvious threat to union power comes from outsourcing that diminishes union membership overall by transferring jobs from union to nonunion employers. The willingness and ability of employers to move work/jobs entirely out of the orbit of union control constitutes, in terms of power and particularly union bargaining power, a revisitation of the phenomenon of the “runaway shop.” It may also be viewed as a proactive form of hiring permanent replacements for (potentially) striking workers. The union options in dealing with such a challenge are to endeavor to preclude outsourcing through legislation or collective bargaining or to chase the work by organizing the unorganized, hopefully with the help of the unionized outsourcing employer. Neither option may be easy, but as the 1996 auto industry negotiations suggest, the former may be less difficult than the latter. The possibility that outsourcing from union to nonunion employer may provide unions with the power to organize from the top (outsourcer) down (outsourcee) cannot be entirely ignored as the issue of supplier “neutrality” reportedly was raised in the 1996 auto negotiations. The adverse effects of outsourcing on union political and financial power, by virtue of its impact on the level or distribution of union membership, can and may well be offset by an increase in union activism—as measured by dues levels, merger activity, organizing commitment, and political action. The adverse effects of outsourcing on union bargaining power are more problematical from the union standpoint. The effect of outsourcing, whatever its rationale or scenario, appears to be to put union labor back into competition. Thus, outsourcing constitutes yet another challenge to the labor movement in its ongoing and seemingly increasingly unsuccessful battle to take and keep U.S. union labor out of competition by proving itself able and willing to organize to the extent of the market and standardizing wages in that market.     

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.     

A Not Merely Charitable Alliance: Anti-Poverty Workers Within and Against the State

This essay explores the insurgent practices of members of the Volunteers in Service to America (VISTA) program from 1965–1973. VISTA is situated historically in relation to New Left community organizing projects and the War on Poverty. Testimonials of VISTA workers demonstrate that many developed political perspectives critical of the “war” in which they had enlisted. Records of collective mobilization chart how VISTA workers attempted to form a labor union and bring the program under community control. Their largest organization, the National VISTA Alliance, represented a form of social justice unionism ante litteram within and against the U.S. state.     

The Color of Neoliberalism: The “Modern Southern Businessman” and Postwar Alabama’s Challenge to Racial Desegregation1

Prior research on the origins and diffusion of the neoliberal project have emphasized the role of elite economists, yet no explanations have been provided as to why neoliberal reforms were attractive to the broader U.S. population. To fill this gap in the literature, this article focuses on the voluntary sector struggles against desegregation and corporate taxation in postwar Alabama. I examine the emergence of a language of privatization that degraded all things public as “black” and inferior and all things private as “white” and superior, which provided the pretext to attract national white support for the neoliberal turn. Empirically, the article focuses on the construction of the modern southern businessman that emerged from struggles to economically modernize the South, and the construction of a publicly financed private school system that emerged from the struggles to fight school desegregation. These two struggles fused under the George Wallace political umbrella, whose regional and national political career diffused the racial language from its origins in 1950s Alabama to the national level in the 1960s and early 1970s.     

The politics of Latino publics: Immigration reform,political participation and intention to vote

Latinos are the largest U.S. minority group and are poised to play an increasingly important role in U.S. society. Public relations practitioners who work in politics should be interested in what motivates young Latinos to participate in politics. This study reports the findings of a national nonprobability survey with young Latinos (N = 434). The analysis explores how demographic variables, acculturation, political ideology and media use predict perceptions of the importance of immigration reform, reported political participation, and vote likelihood in the 2016 U.S. presidential election. Of the dependent variables, findings show that acculturation (β = ?0.13) only predicts perceptions of the importance of immigration reform, suggesting acculturation’s effects are issue specific. Interest in politics is the largest influential factor in predicting all of the dependent variables.     

The impact of legislator attributes on interest-group campaign contributions

Legislators possess political assets that economic interest groups may find valuable in pursuing their goals. This paper examines the effect these legislative assets have on the campaign contributions made by two large and easily identifiable interest groups: corporations and labor unions. Committee assignment, voting record, and electoral security are significant predictors of both corporate and union contributions to House incumbents, while party affiliation and years in office also influence the behavior of union political action committees.     

Union legislative records during president reagan’s first term

It has been assumed that organized labor’s political record has declined markedly since President Reagan was elected in 1980. This study shows this contention to be only partly true. While organized labor’s political influence has declined somewhat, particularly in the executive branch, there is considerable variation in the legislative agendas, objectives, and successes across a sample of eight major unions studied. This suggests that union legislative activity should be studied on a union-by-union basis. The authors are indebted to the many union lobbyists who agreed to be interviewed as a part of this study, and to Jack Fiorito, Donna Sockell, and an anonymous referee for helpful comments on an earlier draft of this paper. This study was partially funded by a Columbia University Graduate School of Business Faculty Research Fellowship.     

The ideologies of U.S. and Canadian IR scholars: A comparative analysis and construct validation

This paper: (1) reports the findings of a 1991 survey of the values and beliefs of U.S. IR scholars and compares these to the findings of a Canadian survey conducted a year earlier and (2) examines the structure, covariates, and construct validity of a scale measuring ideology developed from the Canadian data and incorporated in the U.S. survey. It finds U.S. scholars in general to be slightly more conservative than their Canadian counterparts. However, as in Canada, they evince considerable support for enhanced legal rights and protections for workers, while at the same time supporting the cooperativist schemes associated with the progressive HRM paradigm. This suggests aquid pro quo of sorts: that if workers are to undergo the sacrifices associated with these schemes (e.g., reduced rights under the collective agreement), they should be provided with increased rights under the law. Finally, the measure of ideology developed from the Canadian data is replicated by the U.S. survey; its covariates are also similar; and it conforms to a number of construct validity criteria. I thank Martin Morand and Jack Fiorito for comments on an earlier draft of this paper. Liz Campbell and Peter Stoyko provided research assistance.     

Unions in the 2000 election: A strategic-choice perspective

In the 2000 elections, organized labor mounted a“massive“ political effort. The AFL-CIO spearheaded a program that emphasized both grassroots and“checkbook” politics. Labor 2000, however, represented much more than an attempt to influence elections. Political action, dedicated to a“Working Families Agenda“ became a strategy of choice to elect candidates, influence lawmakers, mobilize union members, and recruit workers into the labor movement. In this paper, I examine Labor 2000 from a strategic-choice perspective. Specifically, I look at the scope and variety of labor's political effort; how labor allocated its political resources; the degree of competition it faced; and the election outcomes. In addition, I examine the effort in terms of its potential for transforming unions. Data from a variety of sources, some of which have not been previously used, are examined to put Labor 2000 into perspective as a strategy. The results indicate that labor did have some success in mobilizing union members politically. However, labor's impact proved insufficient to achieve immediate national election goals. Questions remain about the wisdom of political action as a strategy of choice, especially in terms of its viability as an instrument for institutional revival.     

NGOs and Their Vulnerabilities During the Time of Transition: The Case of Poland

This paper focuses on the development of nongovernmental organizations (NGOs) in Poland, as a case study of the sector's development in the Central and Eastern European countries of transition. It is argued that, in this situation, the development and growth of the NGO sector though shaped, as in the West, by a set of legislative, political, economic, cultural, and historical forces, nevertheless is circumscribed by the specific conditions of political transformation. The nature of and the power with which legislative, fiscal, or organizational forces condition the development of the sector varies according to the scale at which they operate (local, national, or international). Moreover, it is argued that the position of NGOs is significantly regulated by the state's political ideology, and the formative and evolving character of the latter translates into instability in states' actions vis-à-vis the nonprofit sector.     

Colonial Legacies and the Struggle for Social Membership in a National Community: The 1946 People's Uprisings in Korea

The historical experience of colonialism exerts a profound influence upon emergent postcolonial societies. Yet colonial legacies are not passed on in precisely the same way; rather, they are contingent on particular historical processes. In the case of Korea, Japanese colonialism gave way to a brief liberation phase that was followed by another foreign occupation (the U.S. in the south and the U.S.S.R. in the north) during which efforts were made to rebuild the political community. Focusing on the 1946 people's uprisings, the largest popular social movement during the U.S. occupation period, as a pivotal historical event, this article examines why the primary target of the uprisings was not the foreign military government but fellow Koreans, especially police officers, bureaucrats, and wealthy landlords, thereby revealing how Japanese colonial rule influenced the movement's choice of targets as well as its eventual failure. Through this historical analysis, I demonstrate that internal conflicts among Koreans, which were created and rearticulated through Japanese colonial rule, became critical sources of social and political struggles under the American occupation, the important consequence of which lies in the creation of a pattern of internal exclusion that characterized South Korea's post‐war political trajectory.     

Evidence of a transnational capitalist class‐for‐itself: the determinants of PAC activity among foreign firms in the Global Fortune 500, 2000–2006

Transnational capitalist class (TCC) theory is rooted in the claim that the globalization of the economy has led to a globalization of economic interests and of class formation. However, systematic evidence linking the indicators of transnational class formation with political behaviour is largely missing. In this article, I combine data on board of director interlocks among the 500 largest business firms in the world between 2000 and 2006 with data on the political donations to US elections of foreign corporations via the corporate political action committees (PACs) of their subsidiaries, divisions or affiliates. Controlling for the various interests of individual firms, I find that foreign firms that are highly central in the transnational intercorporate network contribute more money to US elections than do the less central foreign firms. Given prior research on board of director interlocks, this finding suggests that a segment of the transnational business community has emerged as a class‐for‐itself.     

LOBBYING FOR MINIMUM WAGES

Using a common agency lobbying framework, this paper illustrates how the minimum wage set reflects the interaction between economic and political factors and under what circumstances will the policymaker be induced, through lobbying, to change the minimum wage. Specifically, when the labor demand elasticity is large, lobbying is successful in inducing the policymaker to set the minimum wage in accordance with her political ideology. However, the paper also shows the conditions under which lobbying will reverse the ideological preference and induce a business‐friendly government to increase the minimum wage. Empirical analysis on a panel data for ten Canadian provinces gives considerable support for theoretical predictions. The real minimum wage decreases in skill‐adjusted union density and political ideology, while larger labor demand elasticity reinforces the influence of political ideology in the presence of lobbying. (JEL J38, D72, D78)     

Pleasures and Perils in Looking Back Response to Fogel,Grand, Kahane,and Namir

I take up three themes that run through the commentaries on my book, The Pillar of Salt. First, I discuss the nature of remembering, particularly in the light of the lessons that have emerged from the recovered-memory debate. Second, I identify areas where feminism and psychoanalysis may inform one another, particularly at the level of clinical and political practices. A third theme centers on the contemporary revival of discourse on hysteria and problems that emerge in locating sources of misery in the histories of women.     

Developments in gender and U.S. politics: A call for intersectionality

Since “women and politics” scholarship emerged in the 1970s, social, institutional, and theoretical developments have shaped the trajectory of U.S. scholarship in this field. First, the presence of women in formal politics has increased, albeit unevenly across parties and minority groups over time. Simultaneously, the capacity to study “political women” has become supported through institutional mechanisms such as academic journals and communities of practice. Moreover, gender as a critical focus of analysis has been developed and refined. In the literature on women and politics, the shift from studying sex differences to interrogating gendered political institutions is especially salient. This institutional focus, along with recent intersectional studies of gender and politics, increases opportunities for cross‐pollination of sociological and political science perspectives. In this review, I provide a brief history of the U.S. scholarship on gender and politics and map these relevant social, institutional, and theoretical advances. I highlight the value of recent intersectional contributions in this field and make the case for bringing partisanship—an increasingly salient political identity and structure—into intersectional approaches to gender and politics.     

Industrial relations reform in Britain since 1979

Important changes to British industrial relations law were undertaken by the Thatcher and Major governments. A succession of legislative measures narrowed the scope of labor union action in pursuit of a dispute, made unions financially responsible for torts committed by their members, removed government support for collective bargaining, abolished the closed shop, and reformed unions' internal structures. At least in part as a result of these measures, union density and the coverage of collective bargaining have fallen; strikes have become rare; and Britain’s productivity performance has improved. The unions and the Labour Party have largely become reconciled to measures which they initially fiercely opposed, and the influence of these reforms is likely to endure even though the Conservatives have lost office.     

The Living Arrangements of Children in Immigrant Families in the United States1

Little is known about the living arrangements of first‐ and second‐generation immigrant children. Using data from the Current Population Survey and a multivariate approach, I compared living arrangements of immigrant children to U.S.‐born white children with U.S.‐born parents. Findings show, except for foreign‐born black and some Hispanic children, that foreign‐born children lived with married parents more frequently than did U.S.‐born white children with U.S.‐born parents. However, by the third generation, a pattern emerged showing a decline in living with married parents among some immigrant children and a rise in living with single parents. The noticeable “downward assimilation” amon some second and third‐generation immigrant children fits a theory of segmented assimilation and is concerning because single‐parent families confront more social problems and sociodemographic risks.     

Political instrumentality perceptions and desires for union representation

This paper examines the concept of union instrumentality in light of theoretical literature and contemporary trends in union political activity. A broad concept of union instrumentality, including a place for the concept of union political instrumentality (e.g., union influence on general elections or legislation), is suggested. The practical importance and applicability of the political instrumentality concept is demonstrated in empirical models of nonunion worker voting intent in union representation elections. As predicted, workers perceiving higher levels of union political instrumentality are significantly more likely than others to indicate a pro-union voting intent. Given the importance of political versus economic activity as a defining characteristic of labor movements and given recent increases in political activity by U.S. unions, these results have significant implications for the way we think about U.S. unions and for future union organizing and political activities. The author wishes to acknowledge helpful comments on an earlier version of this paper from Mario F. Boganno, Frederic C. Champlin III, William N. Cooke, James A. Craft, John T. Delaney, Richard B. Freeman, Daniel G. Gallagher, Cynthia L. Gramm, Charles R. Greer, Wallace E. Hendricks, Marick F. Masters, Lee P. Stepina, and William A. Wines. An earlier version of this paper was presented at the Thirty-Eighth Annual Meeting of the Industrial Relations Research Association, New York, NY, December 1985.