Monday, September 5, 2011

A Labor Day Story: 'Twas the Night Before a Union Representation Vote!

The following pre-empted the regular entry because of recent articles, Labor Day and concerns.

The wages, protections and benefits enjoyed and taken for granted by U.S. workers today were not given freely to them by employers.  This includes the 5 day 40 hour work week, overtime pay; work breaks, lunch hours, vacations, medical coverage and/or retirement, to name just a few.  In the late 1800s and throughout the first half of the 1900s, U.S. workers banded together, many at their own physical peril, demonstrated, marched, demanded change, voted for and got workers protection rights laws passed by Congress.  Because employers had been notoriously pro-profit and anti-employee, among these is the right to organize and be represented by a union. 

Recent Work Force Management stories have been an eye opener.*   With the slow attrition of union representation in the private sector, from 36+% in the ‘40s and ‘50s, 20.1% (1983) to 6.9% (2010)**, Labor unions re-directed their activity toward the public sector, education (government) and, most recently, healthcare.  The result?   36 – 37%** of public sector employees (including education) are currently covered by union contracts.  Healthcare representation is skyrocketing!   This has meant a steady decline in experience to and with any Labor oriented activities, issues and actions in the private business sector.  With the past decade’s lack of federal funding, emphasis and enforcement toward and by the NLRB (National Labor Relations Board), private sector business and HR has had little, if anything, to fear.  That has changed under the current administration. Enforcement of existing laws is now being emphasized, including DOL/FLSA/Wage and Hours - the fastest growing segment of federal legal enforcement actions directed toward employers.

The last decade has been a worker’s nightmare.  High unemployment, outsourced jobs, a shaky economy and a generation of workers who can’t retire as planned.  Employee loyalty, engagement and reliability are at an all time low, as is morale.  Even SHRM (a professional organization – Society for Human Resource Management) is a pro-business advocate for anti-labor/organizing legislation.  Yet the same business efficiency metrics and poor people policies drive today’s business’ need for short term profit and large investors, Wall Street and banks are once again phenomenally profitable.

Of great concern to U.S. business today is the resurgence in union activities and laws. From my perspective it represents a natural union/worker reaction to some of the same worker concerns which propelled the first worker/union protection and rights movement during the 1900s.  There are disturbing U.S. trends toward reduced worker pay, benefits, protections and use of temps in attempts to lower costs.    High unemployment, non-funded pension fund liabilities, decimated 401 plans, employer’s ignorance of or purposefully ignoring of Wage and Hour laws are all occurring right now. Because of these experiences, the younger workforce (and most working generations) distrusts employers.  They have no desire to join or stay with companies that mistreated their parents and/or relatives or mistreat its current employees. 

Most of this resurgence in private sector Labor activity can be traced to a deplorable track record employer's narrow focus on profits has had to the exclusion of all else, especially its employees.  At the top of the list is the employer’s failure to live up to prior legal agreements and ignoring laws designed to protect workers, their rights and safety…. i.e. General Motors and United Airlines (and numerous others) unfunded pension liabilities; Mine/Environmental/Worker safety regulations and law, Oil exploration and production environmental and safety regulations and law; management bullying workers and failing to pay per federal DOL/FLSA/Wage and Hour statutes –  to name just a few. 

The old norm was to have a Labor Relations specialist handling Labor issues - contract negotiation, arbitration, grievances, interpretation, etc. (not usually an attorney but utilizing law firms for legal backup).   It would also have been normal for an HR generalist to undertake these duties in smaller companies.  Labor Relations is not covered in most HR related BA/BS degree programs or by professional organizations, such as SHRM, except as an elected certification – Cornell, others and some MA/MS special emphasis degrees.  In my state the largest two public universities do not even offer Labor Law Juris Doctorate - JD (poor demand?). 

Another component is the "brain drain" caused by baby boomers retiring and/or having their position(s) eliminated.   Because of this lack of recent/current private sector business Labor exposure and need, the number of experienced Labor Relations or HR/Labor Relations people is quite small.   As a result, many companies/corporate try to fill Labor Relations positions with Labor attorneys, many with little or no actual experience.  This small pool of Labor attorneys is already far outweighed by demand!

Where is the pro-worker executive company leadership?  The surest way to help minimize union organizing activity is to pay employees as good as or better than union wages and benefits provide.  Next is to treat employees as a valuable asset, not with lip service but with actions and deeds.  I hope executive leadership will carefully consider the path current employment policies are taking.   How employees feel at this very moment is already documented and well known.  If employers fail to enact fully integrated pro-employee wages, benefits, policies and procedures they are forcing employees into the welcoming arms of union’s.

Consider this:  If business is no longer a partner with and for their workers who will defend the worker’s rights?  If people work and can’t afford health care, but get sick or hurt, how can they continue to work?  If they work a lifetime and can’t afford to retire but can’t continue working who will support them and how will they survive?  How will this affect our society as a whole?  Labor unions have an answer and disgruntled workers everywhere are looking and listening.   Don’t think your employees are any different.  BEWARE!!!

Employers have a choice.  Be a more employee friendly and supportive operation and reap the benefits of being an employer of choice and a best place to work.  Or, continue to alienate your own employees and prospective job candidates portraying yourselves as anti-people to both your employees, future employees and outside to your customers.  You will end up having the pick of only those whom others will not hire to produce a product or service others will not buy.

* ”Heightened Union Activity Putting HR on Notice


* “A Little Labor Knowledge Could Go a Long Way for HR as Unions Push Into Private Sector”


** Bureau of Labor Statistics:  http://www.bls.gov/news.release/union2.nr0.htm

Next week:  The regular installment - Employers can’t seem to hire.  (Have you heard this before?)  

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