Labor Unions: United Auto Workers - Case Study Example

Ethics Labor Unions (United Auto Workers)  Introduction The Depression of the 1930s led the rapid growth of trade unions in America. It also led tothe emergence of the Congress of Industrial Organizations (CIO). President Franklin Delano Roosevelt further promoted the need for trade-union organization in order to improve the employment and work standards. The passing of acts like the National Labor Relations (Wagner) Act 1935, Fair Labor Standards Act 1938 and the Social Security Act 1935 helped in the enhancement of the rights of trade unions and granted a protective environment for labors. However, there were constant conflicts between the American Federation of Labor (AFL) and Congress of Industrial Organizations (CIO), which disturbed the labor legislations. In 1925, the two bodies merged to form the AFL-CIO. (In the United States. Early Years to the AFL-CIO, N.D.) In this context, the paper draws an outline on the growth and survival strategies of the United Auto Workers, one of the largest and diverse trade unions of North America. (UAW. 2010). The paper also endeavors to reflect on the current position of the union in regards to the present labor practices. United Auto Workers The Rise Franklin D. Roosevelt’s introduction of the National Industrial Recovery Act curbed the industries from generating wage cuts and promotion of unhealthy completion. Moreover, Section 7a of the Act gave freedom to the workers for collective bargaining and forming of unions. The passing of the National Labor Relations Act also guaranteed the right to organize unions and to negotiate collectively. It helped in the fostering a healthy government employee relation. In this light, the American Federation of Labor found itself helpless to stop the autoworkers in forming their union. Thus, on August 26, 1935 the United Automobile Workers was formed under the official charter of the American Federation of Labor. (UAW, 2010) The Bendix Strike Inspired by the workers agitation in the Goodyear Rubber Plant in Akran, Ohio, which had won them a rise in wages the workers in parts maker of Bendix Products in South Bend, Industries boycotted the production for seven days. The strike worked leading to an increase in the benefits. It was later recognized by the Bendix authorities that the bargaining agent behind the strike caused was none other than the United Automobile Workers. United Automobile Worker’s effect was not restricted only to the realms of the automobile sector. It spread along to the aviation and agricultural sectors also. In 1937, the workers of an agricultural implement maker staged a strike for fifteen days, which was triggered by United Automobile Workers. (UAW, 2010) Battle with the Ford Henry Ford made it clear that he will not accept the demands of the United Automobile Workers or of any other union also. Thus, he was against the creation of the unions. The workers in Ford factories were beaten up and thrashed on being suspected of having any ties with the union. However, some of the workers retained courage to organize unions within the limits of the company. United Auto Workers union carried on their protests outside the company in secret locations. They also organized mass promotion activities by conducting rallies, putting up billboards, making slogans in the radio and through distribution of leaflets. In this context, the leaflet campaign held on May 26, 1937 can be cited. United Auto Workers union members Walter Reuther and Richard Frankensteen who were the chief organizers of the campaign were badly beaten up by the Ford authorities. This incident in the history of trade unions came to be known as the “Battle of the Overpass”. The aftermath of the above incident led to the joining of 14,000 Ford workers to the United Automobile Workers union in 1940. It was in June 1941 that Ford recognized the United Auto Workers union following a strike called by the fired employees of the grievance committee. The recognition of the union not only equated the wage structure of Ford to that of General Motors and Chrysler but also accepted to constitute a grievance cell. It also led to the granting of leaves, paid holidays, overtimes and a host of other benefits. (UAW, 2010) United Auto Workers Union and the Second World War  The battle with the Ford being accomplished United Auto Workers’ focus shifted to the war front. United Auto Workers’ union called for a moratorium on the event of calling strikes after the Pearl Harbor invasion by the Japanese. The calling off the strikes during the war period was seen as the Union’s support for the war cause. The workers however went for an hourly protest on event of their protest to job conditions. Wildcat strikes as the hourly protests were known as were conducted without any union intervention. The wildcat strikes cost the company one-tenth of one percent of the total work time. The inception of the war led to the emergence of the women in the workplace. Women who prior to the war period were mostly busy in their homes were employed in factories. The period also found the concept of racism gain ground with the employment of the blacks in defense force. In this context, the United Auto Workers Union made its stand clear of vehemently opposing racial discrimination. The Union conducted educational programs to promote racial equality. Moreover, in 1944 the establishment of the women bureau was made which not only sought equal pay for women but also conducted 24-hour childcare services for the working mothers. (UAW. 2010)  Activities at Home The return of the union members from the war spurred new agreements with major automobile companies for a rise in pay by 18 cents on an hourly basis combined with other benefits. The strike called in the General Motors plant on November 21, 1945 led to the walk out of 200,000 Union members. The strike was held for 113 days. However, on March 13, 1946 General Motors agreed to grant a hike of 18 and a half-cent rise per hour and a host of other benefits. The strike of 1949 called by the United Autoworkers Union in Ford’s River Rouge plant led to the maiden employer paid pension program. (UAW. 2010) United Auto Workers Union – The Fight for the Social Cause The increase in the price of oil in 1973 led to the growth in the demand for small and fuel-efficient cars. United Auto Workers union’s prior suggestions for the development of small cars were left unheeded by the auto giants. The loss in demand and sale led to the retrenchment of 100,000 Union workers in 1973. The figure rose to 300,000 by 1975. In this context, the United Auto Workers Union extended 203 million US Dollars to Chrysler to support the Union’s members. The endorsement of the Equal Rights Amendment Act in 1970 by the United Auto Workers Union marked a historical social event on the part of any union. The delegates to the union formulated resolutions on the support of women in granting them maternity leaves, equal treatment at workplace and on employment of women in skill trades. The Union also focused on the environmental cause by conducting programs on water and air pollution. (UAW. 2010)  United Auto Workers Union and the Ohio Crankshaft Strike The strike at Ohio Crankshaft was recorded to be the longest strike conducted by the United Auto Workers Union. The breaking down of the negotiations in July 1983 led to the start of the strike, which lasted for nine years. The workers went on a fast. This agitation of the workers led to the re-employment of the workers with a host of other guaranteed benefits. (UAW. 2010) Current Position Currently the United Auto Workers Union has a total active membership of more than 390,000 people. It has a retired membership base of 600,000 all spread across countries like United States, Canada and Puerto Rico. The total number of the Union’s contracts amount to 2500. The United Automobile Workers Union in the current context encompasses the International Union, Aerospace and Agricultural Implement Workers of America and the United Automobile spread across the economy of North America. (UAW, 2010) Labor Union and the Stakeholders Labor Union and the Management The growth in the unemployment statistics of any region triggers the conflict between the labor unions and the management. The people involved in the strike find it difficult to be absorbed in other companies. It is observed that in small firms the effect of goodwill for both the management and the labor unions triggers the happening of strikes. The management does not want to linger its disturbed relations with the union for long. Labor Unions on the other hand do not want to spoil their image in the long run. (Holley, Jennings & Wolters, 2008, p. 64).  Strikes and the Employees Stake-Legality and Morality Issues The strikes caused can be divided mainly into two types viz. violent and partial. The violent strikes are generally prohibited and are seen to be illegal. The workers can stage a protest by not working in their positions and even not allowing replacements to be done in their posts. These types of actions on the part of workers are illegal. On the contrary, if the workers abandon work for a temporary period only to resume at a later period, the strike is referred to as partial. This practice however disrupts the operation as management fails to draw replacements to the strikers. Legally the management has the right to hire replacement workers at time of strikes. (Beatty & Samuelson, 2006, p. 744). Consumers and the Labor Unions It is seen that the activities pursued by the unions only contribute in raising the cost of goods and services. Hence, it raises the cost of living. The unions force the promotions to be conducted on seniority and not on performance leading to low quality of goods and services produced. This in turn leads to loss of business as the customers shift elsewhere. Moreover, the member’s cost of living also increases for rendering donations to the unions. (Say No To Labor Unions, N.D.). Conclusion Labor Unions have become an integral part of a company’s operation. The spur of industrial activities in the western countries made the Unions emerge as negotiators between the employer and the employees. The unions were responsible for addressing grievances of the employees. However, in the modern context they are often found to lead political roles in the companies with their own vested interests. They force the employees to become members by giving donations with little or no help in times of need.   References 1. Beatty, J. & S. Samuelson. (2006). Business Law and the Legal Environment. Cengage Learning. 2. Holley, W. Jenings, K. & R. Wolters. (2008). The Labor Relations Process. Cengage Learning. 3. “In the United States. Early Years to the AFL-CIO”. Infoplease. (N.D.). Retrieved on September 21, 2010 from: http://www.infoplease.com/ce6/bus/A0861691.html 4. “Say No To Labor Unions”. Sqidoo. (N.D.) Retrieved on September 21, 2010 from: http://www.squidoo.com/AntiUnion 5. UAW. “UAW History”. (2010). Retrieved on September 21, 2010 from: http://www.uaw.org/node/271 Read More