How Should Trade Unions Deal
With Tough Economic Times?

There’s no question that the nation’s workers have been hit hard by the continuing decline of a weakened economy. The problems they have to face are overwhelming. Even the smartest business economists don’t have ready answers, for the future except to agree that the recession—or whatever else you want to call it—will continue well into 2009.

Large companies have a ready, knee-jerk response to a business downturn; they cut their costs. They slash their payrolls with little regard for their employees. In June, they wiped out 68,000 jobs, the sixth consecutive month they failed to increase the employment rolls, for a total loss of 438,000 jobs, according to the U.S. Bureau of Labor Statistics. By these wholesale layoffs (Starbucks, for example, closing 600 stores), they are contributing to the economic crisis.

Those who are lucky enough to hold onto a job have plenty to beef about. Wage increases in recent years have been skimpy and sparse, because employers have pressured unions into concessionary bargaining. Workers have actually suffered a loss in the purchasing power of their wages.

The average wage increase for the past year, ending in June, was 2.8 percent, which was wiped out by a 4 percent rise in inflation. The exorbitant cost of gasoline has not only increased the cost of transportation, but has impacted on the price of food, clothing and other necessities for working families.

The auto industry, which has laid off tens of thousands of employees in the recent past, reported losses of from 18 percent to 28 percent this June, an omen for more layoffs to come. Then there is the housing crisis, accompanied by a credit crunch, with fewer homes being bought or built, causing slowdowns and layoffs in construction, real estate, home furnishings and other industries.

The one bright spot amid the pervasive gloom: Congress added 13 more weeks of unemployment benefits to the long-term jobless. The legislation, sought by labor, was wrapped up in a supplemental funding bill for the war in Iraq.

Should Labor Have a Voice in Deciding National Policies?

One wonders why organized labor has so little influence in Washington when such weighty questions as dependence on foreign oil or the size of the federal budget are debated and voted upon in Congress. It is indeed rare to see prominent labor leaders testifying before congressional committees in behalf of millions of workers Far-reaching decisions on trade or the environment are made by political and business representatives, while labor is downgraded as a “special interest,” not worthy of much respect or attention.

The sad fact is that leaders of the AFL-CIO and Change to Win have accepted their low status on the nation’s political landscape. They almost never appear on national talk shows to proclaim labor’s position on controversial issues or to propose new policies. Since they don’t appear on national radio or television, millions of workers, including their own members, do not know who they are or what they stand for.

Unions contribute millions of dollars and legions of volunteers to Democratic candidates, but there is little evidence that their leaders are involved in strategy sessions or the choice of candidates.

Unions in Western Europe play a more active and public role. Unions in England have a voice in national policy by their membership in the country’s Labor Party. In France, powerful labor federations openly challenge government policies affecting the working class, conducting strikes and nation-wide rallies to support their cause. The same is true in Germany and Italy, where huge public demonstrations have been used to stop mass layoffs or prevent the privatization of state-owned property.

What Changes Should Labor Make to Better Serve Workers?

Union leaders must be more assertive in defending worker rights. They must insist on a partnership role with government and business on major national decisions, especially those affecting the well-being of working people.

It will help to increase labor power, if more opportunities for leadership are opened up to tens of thousands of qualified union activists. There should be regional training programs to develop articulate, knowledgeable spokespersons, who would express labor’s viewpoint on public issues.

For organized labor to participate effectively on the national scene, we will need leaders who are recognized and respected for their ability and integrity, and who will not shrink from militant action when it is required.

The American people are tired of the status quo, which is largely responsible for their current difficulties. They want change. Our political system is undergoing some of the most fundamental changes in our history. Change is in the air!

The American labor movement must accept change! Its future depends on it!

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