Union survival strategies for the twenty-first century

Clearly, the necessary changes in the law and culture will not come easily or quickly. But, transcending all forms of these labor market segments is a set of concerns that arguably should spur a search for common ground between labor and management. The proliferation of automated technologies, together with the continuing impact of foreign competition with cheap labor markets, has led some to predict that, over the next quarter century, we will witness the elimination of the blue-collar, mass assembly-line worker from the production process.¹⁴ Moreover, the theory that those losing jobs in the manufacturing sector will be generally absorbed into the service sector is losing currency as it is becoming clear that service jobs are, themselves, not invulnerable either to offshore outsourcing (e.g., telephone operators, data processors) or to automated technology (e.g., bank tellers, office secretaries). Nor is it realistic to expect the new “knowledge sector” to absorb more than a fraction of the unemployed and underemployed casualties of this transformation. As a result, the widening gap between the haves and have nots will only continue to grow. As the trend accelerates, certain possibilities for a labor-management accommodation emerge. For one thing, although corporations may be enjoying short-term gains from present wage stagnation, downsizing, outsourcing, and casting off of permanent employees, the longer term effects include a work force with considerably diminished consumer purchasing power. In some industries, corporations are already acknowledging the adverse effects of this trend. Furthermore, as employers are contributing into pension funds on behalf of fewer and fewer “employees,” the forced savings pool that has for many years constituted a primary financing source of capital investments in our economy, will gradually be depleted.¹⁵ At the same time as employers are coming face to face with the disadvantages of the union-free environment they have so long sought, employers are also rediscovering the contributions to productivity, quality, and efficiency that can be gained from a truly empowered work force with an independent voice in the workplace. All of this should lead an enlightened management to place less currency on resisting unionization and other legitimate forms of independent employee representation, and to join labor in advocating strong labor standards and effective labor law for all four of the labor market segments that exist today and will exist tomorrow. The authors wish to convey their deep appreciation for the invaluable contributions to this paper made by David Silberman of Bredhoff & Kaiser and Craig Becker, Associate General Counsel, Service Employees International Union. Another version of this paper was published in Labor Lawyer.