Historical Analysis: Formation and Impact of US Trade Unions

This report provides a comprehensive overview of the historical backdrop that led to the formation of trade unions in the United States. It examines the key issues that spurred unionization, such as poor working conditions, low wages, and the need for worker protection. The report traces the growth of union membership, highlighting significant historical events like the AFL-CIO merger and the impact of the Great Depression. It also explores the effects of union membership on American society and workplaces, including changes in labor-management issues over time. The report analyzes governmental measures related to unionization, the power of present-day unions, and managerial actions that can limit union potential. Finally, it identifies factors affecting the future effectiveness of trade unions and offers recommendations for balancing union growth with organizational affordability, concluding that improved workplace management could potentially diminish the need for unions.

Running head: HISTORICAL BACKDROP LEADING TO UNION FORMATION
HISTORICAL BACKDROP LEADING TO UNION FORMATION
Name of the Student
Name of the University
Author Note

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HISTORICAL BACKDROP LEADING TO UNION FORMATION
Executive Summary:
The purpose of this report is to discuss about the incidents of the past which led to the
formation of trade union groups in USA. Inthis report, the historical background of the
unionization is highlighted with the corncerns of the employees contributing to the
structuring of the union groups. The affects of the growing trade union groups in the
organizations and the steps adopted by the employers for addressing the challenges are
mentioned in this paper. The report also carries the recommendations in regards with
balancing the growth of the union groups with the affordibility of the organizations so that
the system can operate concurrently. It is concluded by mentioning that the improvement in
the management of a workplace can eliminate the need for trade union.

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Table of Contents
Introduction................................................................................................................................3
Discussion-.................................................................................................................................3
Issues resulting in Unionization:............................................................................................3
1954- Growth in Union Membership:....................................................................................4
Historical events depicting effects of Union membership in American Society and
workplace and challenges faced by the organisations:..........................................................5
Changes in the labor-management issue over the last 10 years:............................................6
Governmental measures for unionization:.............................................................................6
Power of present-day unionship in America:.........................................................................7
Managerial actions that can limit the labour union’s potential:.............................................8
Factors affecting the effectiveness of trade unions in the future:..........................................8
Recommendations:.....................................................................................................................9
Conclusion:................................................................................................................................9

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Introduction
Trade unions are the formation of structured group, which aims at improving the
working conditions, increasing the pay scale, ensuring job security and in elimination of
partial practices by acting as an intermediary connecting employees and the management in a
system (Mathers, Upchurch & Taylor, 2019). This report intends to discuss on the occurance
of the historical incidents which resulted in the formation of the trade union groups in US.
The report is structured by fragmenting the issues concerning the formation and presence of
the trade union groups by stressing on the various parameters. The parameters constitutes of
the reasons behind the existence and growth of the union groups, the challenges faced by the
organizations due to this phenomenon followed with the tackling steps adopted by the
employers as well as the factors which can affect the future of trade unions in US.
Discussion-
Issues resulting in Unionization:
In United States, labor movement emerged out of requirement for preserving the
similar needs of the workers. The structured labor union groups in the US industrial sector
fought for a decent working environment, better wage scale and rational working hours.
Labor unions contributed for the prevention of the practice of child labor in the US markets
and took care of the rights of acquiring financial and medical aids. The craftsmen were
migrating to the costal regions of US, which resulted in the unfair utilization of their skills by
providing unequal opportunities and creating a competitive market leading to their hindrence
in mobility (Dubofsky & McCartin, 2017).

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The growing years of America marked the emergence of the labor union. In the year
1768, few journeymen tailors objected for their wage reduction. In the year of 1794, the first
sustained labor union institution emerged form the formation of the Federal Society of
Journeymen Cordwainers (shoemakers) in the city of Philadelphia. To defend the practice of
cheap labour association and reducing the obstructive working hours, the local craftsmen
developed a feeling of job-consciousness resulting in the phenomenon of Unionism in United
States (McBride & Parry, 2016).
1954- Growth in Union Membership:
The main factor, which contributed in the rise in Union membership in USA was the
AFL and CIO merger in the mid 1950s that marked an ending of a 20 years old operation of
separate institutions. Another factor can be the Great depression as unionism facilitated
protection from the impact (Phipps & Prieto, 2016).
In the year 1954, US experienced a growth in the labor union membership rate
peaking up to 35 percent in respect to the total number of workers. Although the estimation in
the union membership numbers in the year 1979 was about 21 million, it did not protect the
steady decline in the 2010s in union membership of private sector but public sector
experienced a stable growth in the rate of union membership (Dundon, 2016).

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HISTORICAL BACKDROP LEADING TO UNION FORMATION
1947 1954 1961 1968 1975 1982
0
5
10
15
20
25
30
35
40
UNION MEMBERSHIP
Figure 1: Chart depicting the growth of union membership in the year 1954
(Young &Zuleta, 2015).
Historical events depicting effects of Union membership in American Society and
workplace and challenges faced by the organisations:
The rate of labour union membership in United States declined after the rise in the
year 1954 making the workers vulnerable by reducing the health as well as security
standards. The role of the labour union groups as a power equalizer has been undermined by
the fall of the union density (Tomlins, 2013). The primary social influence of the living
condition and health is income, which is higher in union influence rather than in anti-union
jobs. The decline in the union membership power can affect the lower-skilled employee to a
greater extent in preserving their rights (Frank, 2016). Public health can get affected by the
decline in union membership for which, the Public Health Association of America support
the role of the trade unions (Flavin & Shufeldt, 2016).

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HISTORICAL BACKDROP LEADING TO UNION FORMATION
One of the most important historical matters in the assessment of unionization effect
in the workplace as well as in the American society is the Knights of Labor that collapsed in
the mid 1880s, thereafter giving birth to the American Federation of Labor (AFL). It prepared
the working segment for a revolution. The AFL kept its notion pure and simple and
concentrated on job related goals and concentrated on the fact that the workers should be
equipped with all such qualities that would help them securing their industrial
emancipation. The AFL represented all type of working classes irrespective of class,
religions, castes, gender or nationality (Hagedorn et al., 2016).
Changes in the labor-management issue over the last 10 years:
Few changes are mentioned below:
 The early labor movement followed the Ricardian labor theory and the ideals of
the American Revolution.
 Then came the Knights of the Labor that came to an end in the mid 1880s.
 The failure of the Knights of the Labor gave rise to the American Federation of
Labor that followed the principle of pure and simple unionism.
 After the Great Depression the Committee for Industrial Organisation was formed
that aided the emerging unions and helped the existing unions (Mathers, Upchurch
& Taylor, 2019).
Governmental measures for unionization:
In 1980s, the federal government body of US successfully convinced the employers
for adopting various strategies to supress the power of labor union groups (Pierce & Schott,

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2016). The federal government has helped and hindered the unionization in America in
different stages. It can be discussed by the following stages:
1. The Anti Union Stage (1830's – 1932) - The government took the factory workers’ side as
it followed the mentality of Laissez Faire.
2. The Pro Union Stage (1932 – 1945) – Certain laws were passed by the government
supporting union activity. The Laissez Faire mentality died in this era.
3. The Balance Seeking Stage (1945 – Present) - The government has been trying to
maintain a proper balance between the management and the union groups since the very end
of the World War II. The government or the President himself acts as a mediator in order to
maintain a fair structural balance.
4. At Present – It is assumed that the government is again taking the side of the management
but what is reserved for the future is unknown (Dol.gov, 2019).
Power of present-day unionship in America:
The percent of union member participation was 6.9 in private sector in the year 2011.
The US job composition has shifted from manufacturing jobs having high union density to
service jobs having low union density, which resulted in the downward trend in the
unionization. It is not the changing composition of the jobs but the union density of the
sectors that acts as a major factor in demonstrating the union strength (Kaufman & Bennett,
2017).
Several analysts argue that there is no sign of reduction because of the downward
trends in the private sector. Organizing became difficult as unions were unable to get the
support from Congress related to the labour law reforms. The union leader has emphasized

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HISTORICAL BACKDROP LEADING TO UNION FORMATION
more on organizing by keeping it at the top of the union agenda, but with no notable
results. The function of the trade union in the public sector has been threatened as it faces
severe attacks on the collective bargaining process (Guenther, Mahutga & Suppatkul, 2016).
Managerial actions that can limit the labour union’s potential:
1. While hiring the employees, the employees must be communicated clearly that the
organization does not support or need any union as all the communications can be openly
communicated without any harassments (Proxy1.ncu.edu, 2019).
2. The supervisors and the managers should communicate in a positive and a friendly
manner so that the employees do not fear while communicating any grievances.
3. Employers must maintain a fair work place that provides opportunities for all and must
maintain interactive communication system.
4. Employers can also setup suggestion boxes or personal meetings.
5. Employee feedback related to the work place, job role, grievances procedure should be
taken (Labor Relations, 2019).
Factors affecting the effectiveness of trade unions in the future:
The factors are mentioned below (Labor Relations Rubric, 2019).
1. Poorly managed trade union
2. Refusal in bargaining power
3. Disputes within the union because of intimidation and misunderstandings.

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HISTORICAL BACKDROP LEADING TO UNION FORMATION
4. Splintering, fund mismanagement, change in the mentality and lack of innovation.
5. Political and social democratization along with government interference.
Recommendations:
The unionization movement should begin to focus on the principles of freedom,
voluntarism, and employee values. The primary motive of the trade union policy in the
coming decade should be government neutrality of the government and free collective
bargaining system preservation.
Conclusion:
It is to be concluded that the labour law should not aim at helping unions in winning
representation elections but to provide the employees with choices between either bargaining
collectively or individually. There should prevail, collective rights in today’s free society. In
order to maintain the standard of living as well as the competitive advantage, the Americans
should maintain proper labour management system, which will ensure an open exchange of
thoughts, ideas and policies with minimum or no government intervention. The policy makers
must involve in free exchange of ideas and persuasion rather than coercion while achieving
goals.

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