Unions and the New Management

Abstract

The union movement in the United States is in trouble. Indicators of its health show it is very ill. The only debatable point is whether the illness is terminal or simply represents another one of the down cycles from which the union movement has suffered during its lifetime. The severity of the illness is best illustrated by declining membership: Data from the Bureau of Labor Statistics show that union membership has fallen from 23%(, of the workforce in 1980 to 18.8%, in 1984, the lowest in recent history and the lowest of any other free industrial nation, with the possible exception of Spain. This decline represents a loss of 2.7 million union members. As recently as the 1950s, over 30, of the workforce belonged to unions. Data from decertification and certification elections point to a significant decline as unions lose an increasing number of elections. The reasons commonly cited for the decline in union membership are many and varied. Some reflect trends in the economy: globalization resulting in the decline of traditionally unionized industries such as automobiles, garments, food processing, and steel; a sharp growth in the service sector, which is harder to organize; the emergence of nonunion competition in newly deregulated industries such as airlines and trucking; and a decrease in demand and/or overproduction in industries, e.g., meat packing. Other threats to unions include automation, the changing legal situation with respect to union organizing and employee rights and, finally, the changing expectations of the new workforce. Unions are not the only institutions threatened. The changing environment has made its impact on the viability of many businesses themselves and on the way in which they are managed. In fact, management's actions in adjusting to an altered environment have constituted further threats to the health of unions. Believing unions to be an encumbrance to competing effectively in a rapidly changing global economy, some managements resort to antiunion tactics with increased intensity, sophistication, and success. More important, from our perspective, management is trying to create a new way of managing, one more suitable to a rapidly changing economy, increasingly advanced technologies, and a better educated, more sophisticated workforce. This new approach to managing includes greater responsiveness to employee needs for involvement, responsibility, and meaningful work. As part of the new way of managing, these organizations accept responsibility for creating a positive and motivating work environment for their employees. In doing so, they discover that the result is a stronger, more competitive enterprise. The increased adoption of involvement-oriented management approaches raises the question of what role there is for unions. The role unions once filled is not viable in the new management environment: they must change or continue to decline. Should we worry about their decline and possible extinction? We take the position that society should be very concerned about the rapid weakening of organized labor. It potentially eliminates effective input by a major stakeholder, labor, into the decisions shaping businesses of the future. In the past, unions have been the primary voice for workers. Now their survival depends on finding a new role, given the changes that have taken place. Before we can discuss some of the changes that unions will have to make, we first need to consider the success in fulfilling their traditional role. We will then look at the "new management" to which unions must adjust.