American Airlines has spent the week trying to persuade a bankruptcy judge to allow it to chuck all its labor contracts and put the squeeze on thousands of union employees.
If things go as expected — that is, a victory for management and not for rank-and-file workers — it will be the latest blow to organized labor and yet another indication that, in the workplace of the future, most of us will be fending for ourselves.
“Workers in the United States are facing a number of difficulties,” said Daniel J.B. Mitchell, a professor emeritus of public policy at the University of California-Los Angeles. “Job security, health care, retirement funds — we haven’t seen such levels of uncertainty since the Great Depression.”
American Airlines says sky-high fuel costs and hefty payrolls have put too great a strain on operations. The carrier’s parent company, AMR, says it needs to slash $1.25 billion in labor costs to remain operational.
An AMR lawyer, Jack Gallagher, said in court that the company must make 20 percent across-the-board reductions in employee costs. About half that amount, he said, has to come from increasingly costly medical benefits.
Unions representing airline employees say they shouldn’t be punished for poor decisions by management in response to changing economic circumstances, and that workers have already been called upon to make substantial sacrifices.
AMR’s Gallagher was sympathetic. But he said this doesn’t change things.
“It’s not the unions’ fault we’re in bankruptcy,” he acknowledged. “But it’s not about whose fault it is. It’s about the facts of our business.”
You could say the demise of organized labor is about the facts of all businesses, as well as a changed political climate that, since the Reagan administration, has emboldened employers in standing up to unions.
Private-sector union membership in this country hit its peak in the 1950s, when about 40 percent of the workforce carried union cards.
As of last year, private-sector union membership hit a record low of 7.6 percent of the workforce, according to the Bureau of Labor Statistics.
Public-sector union membership remains strong at about 40 percent of the workforce, although public employees such as teachers are under growing pressure to give up a variety of traditional protections, such as seniority safeguards.
Some of organized labor’s setbacks have been self-inflicted. Allegations of corruption have been a perennial problem for unions, as has a seeming inability to adapt to changing times.
Damon Silvers, policy director for the once-mighty AFL-CIO, described this as a sense of “self-satisfaction” that prevented unions from “being able to effectively respond to efforts to wipe us out.”
“The labor movement in the United States was built by people who were prepared to put everything on the line,” he said. “What happened later is that unions were less willing to take such risks.”
At the same time, many employers gradually became more sensitive to meeting employees’ needs, such as health and retirement benefits, thus making union membership less necessary in the eyes of some workers.
Perhaps the greatest damage to organized labor was done by the ailing economy. Workers today are fearful of losing their jobs, and that has significantly tipped the balance of power in favor of employers.
“In a soft labor market, employers feel they can push people around,” Silvers said. “Fear has been dominant in the American workplace for years now.”
Is organized labor dead? Not quite. If nothing else, it will still require a generational shift before public-sector unions bow to the same pressures as their private-sector cousins.
But it’s hard to escape a sense that the labor movement’s best years are well behind it.
And that raises a serious question: What protections can U.S. workers reasonably expect in years ahead?
UCLA’s Mitchell said workers will increasingly turn to legal recourse, such as lawsuits involving disability claims or charges of discrimination.
“They’ll have protections, but perhaps not the same protections as under unions,” he said.
Silvers at the AFL-CIO said he doesn’t think unions will fade into the sunset, not as long as workers still have grievances against employers. But he thinks the labor movement of the future will look different from the sign-wielding, picket-line-walking actions of years past.
Workers will increasingly air grievances and organize online, Silvers said, citing the role of Facebook and Twitter in recent efforts to bring democracy to the Middle East.
He also said labor movements will be led not by professional organizers but cyber-savvy young people who know how to put social networks to good use.
That’s probably true. As for how effective they’ll be, that may be another matter.
“What can labor do for itself?” union leader Eugene V. Debs asked more than a half-century ago. “The answer is not difficult. Labor can organize, it can unify; it can consolidate its forces. This done, it can demand and command.”
That’s not so easy to do in 140 characters or less.
Business
Consumer Confidential: Ailing economy deals a blow to organized labor
- Business
-
-
Stock market falls as traders fear stimulus cuts
Stocks are falling after the Federal Reserve gave a slightly more optimistic outlook for the U.S. economy, which investors took as a hint that the bank was nearer to a decision to reduce its economic stimulus program.
-
Top UK court overturns sanctions on Iranian bank
Britain’s Supreme Court quashed sanctions against an Iranian bank penalized over its alleged links to Iran’s nuclear weapons program, saying Wednesday that Bank Mellat had been arbitrarily singled out.
-
Netflix to expand to Netherlands later this year
Netflix is going Dutch.
-
World Bank highlights climate-poverty link
The World Bank says it will increasingly view its efforts to help developing countries fight poverty through a “climate lens.”
-
Japan formally OKs new nuke safety requirements
Japan’s nuclear watchdog formally approved a set of new safety requirements for atomic power plants Wednesday, paving the way for the reopening of facilities shut down since the Fukushima disaster in a move critics charge is too hasty.
-
World Food Prize goes to 3 biotech scientists
The World Food Prize Foundation on Wednesday took the bold step of awarding this year’s prize to three pioneers of plant biotechnology whose work brought the world genetically modified crops.
-
Investors look for answers on economy from Fed
Worry and speculation have consumed investors since Chairman Ben Bernanke spoke to Congress last month about the Federal Reserve’s drive to keep long-term interest rates at record lows.
-
Dish won’t submit revised bid for Sprint
Satellite TV operator Dish Network Corp. said Tuesday it would not submit a revised bid for Sprint, leaving the path open for the wireless carrier to accept what it already considers a superior offer from Japan’s Softbank.
-
West Virginia mine safety lab creates disasters to train
Orange flames lick at the roof of the coal mine, heat building and visibility dropping as smoke begins to fill the underground passageway.
-
Stocks edge lower as investors wait on Fed
Stocks edged lower in early trading on Wall Street Wednesday as investors waited for word from the Federal Reserve.
- More Business Headlines
-



