From union hegemony to union disintegration: Collective bargaining in cement and related industries

The cement industry provides an interesting example of the impact of collective bargaining where management determines that it cannot afford a strike, yields to extreme union demands, but deludes itself that it can withstand the economic impact of unionism under such circumstances because almost all competitors are similarly situated and labor costs can be partially offset by automation. The small Cement, Lime, and Gypsum Workers Union won not only high wages and benefits, but imposed restrictive rules as severe as those in any industry. Eventually, however, foreign competition and economic realities forced the companies to revolt, and the union found that it could not sustain strikes. An ill-conceived merger broke up, an independent union was formed, and today unionism, once so strong, is weak and divided as management imposes or forces acceptance of its conditions. The story, while unique in many ways, resembles what has occurred in other industries with high fixed costs, militant unions, and the reluctance of management to sacrifice current gains for longer run needs. Professor Emeritus of Management and former Director, Industrial Research Unit. Ms. Sue Torelli, Librarian, Industrial Research Unit, and Kevin Barry, Librarian, Industrial Relations Section, Princeton University, provided helpful information and numerous documents.