Micro-Economics
Labor Unions
Necessary or Outdated?
Jarod Conrady
Labor unions have been a part of the industrial and commercial landscape in the
United States since the early twentieth century. The industrial revolution led to money
hungry businesses and a massive demand for cheap and exploitable labor. However; as
time has passed, the question has been raised as to whether labor unions have outlived
their usefulness. With governmental regulation and heightened social awareness,
perhaps working conditions and pay scales could be maintained more effectively
without the bureaucracy and questionable methods of a one hundred year old system
based on the “us versus them” mentality.
There are those that would say that the American worker needs their labor union
more than ever in these times of economic instability and social unrest. But it is
important not to forget the tumultuous times that America has survived over the last
century before we succumb to the “woe is me” attitude. In an editorial found in the
Kansas City Star, John Sweeny writes that there has been a “sustained attack against
workers freedom to form unions to bargain for better deals.” Of course, as president of
the American Federation of Labor and Congress of Industrial Organizations or AFL-CIO,
Sweeny would be expected to describe the natural resistance to the formation of a
labor union in such dramatic terms. Unions have been formed time and time again over
the last century for good and not so good reasons in thousands of industries across the
country. Everything for working conditions and benefits to wages and promotion have
been bartered by unions and served their constituents well. There certainly have been
many situations that the unions have single handedly come to the aid of the American
worker and been victorious.
It is important to keep the principles that drove the formation of labor unions in
context when examining the current situation. At the time labor unions were originally
formed, American industry was in its infancy; and as such, was incapable of being self
governing. A parallel can be drawn to the infancy of this very country, without the
revolutionary war, our country would not be what it is today. Americans joined together
to revolt against the tyranny of England and forged a workable solution, just as labor
unions stood in the way of tyrannical businesses and the industries that they
represented. Although both groups were justified in their respective uprisings, it is no
more reasonable to think that we still need labor unions than it would be to consider
the formation of a new revolutionary army justified. We have put into place many
checks and balances and allowed every person equal representation both in
government and industry by extension.
A recent example of union action came in the screen writer’s strike that began in
2007 and lasted for fourteen weeks. Nearly every member of the screen writer’s guild
pledged loyalty to their union when they went on strike to protest their under
compensation for sales related to internet based sales of movies and television shows. Is
it naive to imagine that this disagreement could have been solved with mediation
between representatives from each side compromising on a mutually acceptable
alternative? Instead, it has been estimated that 3 billion dollars in revenue was lost
during the strike and 28 writers who continued to work through the strike are now
being scrutinized for exercising the right to do so.
Have we as human beings not evolved beyond these petty arguments? Are
American businesses not self aware enough to know right from wrong? Perhaps it is
naive to think that is the situation. However; what other ideals of the early 20th century
do we as a society still expect to be effective today? The labor unions may still have
their place but that does not exclude them from adapting to the culture and society of
21 century America.
Rueters .com Article by Steve Gorman
Denverpost.com Opinion article dated 4/2/08
Kansascity.com Opinion article dated 4/8/08