Money Minute: Do labor unions have a future? [Video]
More grim news from the labor front: American Airlines reportedly plans to ask a bankruptcy judge to throw out its union contracts if workers won’t agree to yet more cutbacks.
This would mark another big setback for organized labor, which has seen its influence wane as fewer workers join its ranks.
According to the Bureau of Labor Statistics, union membership dropped to just 11.8% of the U.S. workforce last year. That’s only about a third of the peak unionization rate of 35% in the 1950s.
Labor has taken a particular pounding in the private sector. In 2009, government employees accounted for more than half of the nation’s union head count for the first time ever.
I suppose it could be argued that managers are more enlightened these days and are treating workers better. That suggests there’s less need for unionization.
It could also be argued that organized labor is dealing with self-inflicted wounds after decades of reports of corruption and internal squabbling.
But I wonder how this will all play out. For example, deep-pocketed businesses say they need to shower conservative “Super PACs” with money to counter political spending by unions. But as unions grow smaller and weaker, what’ll be left?
It’s this: a political landscape dominated solely by what employers want, with precious little regard for employees. I’m thinking here about healthcare, and retirement planning, and the welfare of families.
Things have changed a lot since Jimmy Hoffa’s day -- for better and worse. Where we go from here is an open question.
