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September 2010

Commentary

Businesses And Unions--A Complex Relationship

Publication Date: 
February 2007

By Thomas J. Donohue, President and CEO, U.S. Chamber of Commerce
February 20, 2007

In decades past, unions and business used to clash on factory floors and farms and in hotels and hospitals in knock-down, drag-out fights over unionization of workers. The unions are still trying to organize today, but their appeal among workers has been declining for decades. The percent of the workforce that is unionized has dropped from a peak of 35.7% in 1953 to 12% today. Only 7.4% of the private sector is unionized and a near majority of union workers are government employees.

While it might be tempting to write-off the union movement as a relic of a bygone era, it's not that simple. With a declining base, unions have stolen a page out of businesses' book—they have innovated. But, ironically, they are not innovating to better win over the hearts, minds, and votes of workers. Rather unions have shifted to tactics such as "corporate campaigns" designed to put massive economic and other pressures on employers, such as driving away customers, to force a company to recognize the union without a worker election.

And while it also might be tempting to consign the business-labor relationship to one of unending conflict, it isn't that simple, either. There are number of areas where business and labor can and will clash, but there are several areas where we can and do cooperate.

The business community will certainly continue to oppose unions in the areas of unfair organizing, corporate governance, and politics. In fact, we are currently battling over legislation that would allow unions to bypass secret ballot elections for workers and instead allow a simple "card check" to represent the true intent of the employees. The problem with that is it opens the process to intimidation, threats, and badgering. We will also oppose union attempts to meddle in the governance of corporations through their power as pension shareholders. The goal of corporate directors is to make the company and its owners money, not advance pet issues or special-interest agendas. And we will continue to devote massive resources to ensuring that pro-business candidates are elected to Congress.

Where might we cooperate? Transportation, energy, health care, and immigration. In fact, the Chamber has partnered with unions in coalitions designed to increase funding for badly needed transportation improvements, to spur domestic production of energy, to help cover the uninsured, and to create a sensible guest worker program to help fill jobs Americans don't want but are essential to our economy. When business and labor join forces behind a particular policy, you can bet Washington sits up and takes notice!

The U.S. Chamber will continue to fight for pro-growth policies, the very policies that happen to be the best for job creation and employees. Both business and labor want what's good for America and its workers, we just have radically different views on how to get there. So we will compete when we must, and cooperate when we can.

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