The American Worker - Labor Unions

Although many historians trace the origins of labor unions to medieval guilds (organized groups of tradespeople and artisans in the Middle Ages), the modern labor movement is more directly linked to the trade unions of the early Industrial Revolution, when working conditions in factories and mines were barely tolerable and employees began to join together to demand reasonable work hours, safe conditions, and decent wages. Unions have always had tense relationships with both employers and government; at times they have been banned altogether, and the struggle between labor and employers often has resulted in violence.

Labor unions have, however, had a significant impact on the American workforce and labor policy. Unions are often able to secure higher wages and increased benefits for their members. The Bureau of Labor Statistics reported in "Union Members in 2004" that union members who worked full time had median weekly earnings of about $781, while median weekly pay for full-time nonunion employees was about $612 (Union Members Summary, January 27, 2005).

According to the BLS in "Union Members Summary" (January 27, 2005), union membership between 2003 and 2004 declined slightly, from 12.9% to 12.5% of all wage and salary workers; membership has declined steadily from a high of 20.1% in 1983. The government sector had a significantly higher rate of union membership (with 36%) than the private sector (with 8%). The occupations with the highest percentage of membership were those in education, training, and library work; and police officers and firefighters—both with 37% membership. In 2004 men were more likely to be union members than women (13.8% versus 11.1%). According to the BLS, about 15.1% of African-American workers belonged to a union in 2004, compared to 12.2% of white workers, 11.4% of Asian-American workers, and 10.1% of Hispanic workers. Workers ages forty-five to fifty-four had 17% membership, while those sixteen to twenty-four had 4.7% membership.

Despite their successes on behalf of American workers, contemporary labor unions continue to face opposition from employers, and often from employees, who question whether the benefits of being associated with a union are worth the costs. Union members are required to go on strike when the union has an unresolved grievance against an employer, and striking union members receive only a fraction of their income in strike pay. Workers who are part of a union may also find themselves facing fines for not abiding by the union bylaws.

For employers unions can pose other problems. Business operations can be greatly interrupted by unresolved negotiations, whether or not they lead to a strike. Further, due to the increased expenses associated with employing union members, a company's products or services might become less competitively priced in the market place. If sales are lost to foreign or nonunion competitors, companies may be forced to lay off employees or even go out of business.