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We need to rebuild the labor movement, and that means not going back to the kind of unions that existed in the postwar era. We need unions with a radical vision, unions that exert power in the workplace and society.
With Labor Day 2024 upon us, it is important to critically reflect on the current state of the U.S. labor movement and the challenges that it faces in an environment where Big Business dominates the economy and mainstream society continues to abide allegiance to the values of a Lockean political culture in which ruthless individualism reigns supreme. To put it mildly, without a strong labor movement and a public spirit guiding our institutions, the country will never succeed in realizing the vision of a just and fair society.
However, the news on the labor front is not very encouraging. The share of U.S. workers who belong to a union has been declining since the early 1980s—an era which coincides with the full swing of the neoliberal counterrevolution and deindustrialization. In 1983, the first year for which comparable data are available, the union membership rate was 20.1 percent and declined to 11.1 percent in 2015.
In 2021, the union membership rate was 10.3 percent and dropped to 10.1 percent in 2022. In 2023, union membership declined even further to 10.0 percent, which is a historic low.
The irony is that the United States has seen a “union boom” over the last couple of years. Thousands of employees at Starbucks stores across the country have voted to unionize and workers at Amazon warehouses and Trader Joe’s, grad students, and Uber and Lyft drivers also joined the unionization fight. But the data, as cited above, tells a different story. The share of U.S. workers belonging to a union continues to decline and is now at the lowest rate in history. Today, organized labor in the United States is dominated by public-sector employees, which is more than five times higher than the 6 percent rate of private-sector employees.
In the U.S., it is politics—manifested in the form of a vicious class struggle orchestrated from the economic elite and its supporters—that keeps workers from joining or creating a union.
The United States is near the bottom among industrialized democracies when it comes to union membership rates. The average level of union membership across the European Union (EU) is 23 percent, but the average is held down by relatively low levels of membership in some large EU states, such as Germany with 18 percent and France with 8 percent. However, even in countries where union density is lower, such as in France, virtually all workers are covered by a collective bargaining agreement. In Denmark, Sweden and Finland, union density is 70 percent. Incidentally, the Nordic countries consistently rank among the happiest nations in the world. In the latest World Happiness Report, the United States doesn’t even make the top 20 list. Trade union density is even higher in Africa and most parts of Asia than it is in the United States.
Why is union membership in the United States so low? This is something of an anomaly considering the fact that polls consistently reveal that majorities of U.S. adults see the decline in union membership as bad for the country and for working people. It is mostly ultra-conservatives and reactionary think tanks like the Hoover Institution that believe that the decline of unions is good news.
Globalization, technology, and the transformation of an industrial economy into a service-oriented society are the most common reasons offered for the decline of U.S. unions. However, these explanations, even when put together, are not sufficient in explaining why the U.S. has one of the lowest union membership rates in the world. Europe is much more open than the United States, according to the International Monetary Fund. Thus, globalization alone cannot be an explanation for the general decline in unionization in the U.S. Europe’s technology lags behind the U.S., but it is not technology but rather institutional arrangements and intentional policy decisions that succeed in altering in significant ways the balance between capital and labor that can explain why union membership has plateaued at 10 percent among workers in the United States. We must acknowledge that neoliberalism itself is not a monolithic process; rather, it is affected by a variety of domestic pressures and thus plays out differently in different national contexts.
In the U.S., it is politics—manifested in the form of a vicious class struggle orchestrated from the economic elite and its supporters—that keeps workers from joining or creating a union. The basic rights of U.S. workers to unionize and engage in collective bargaining have been under attack throughout the history of U.S. capitalism. Strikes figured prominently during the height of the industrialization era and well into the twentieth century, with immigrant workers from Ireland, Italy and Germany being at the forefront of labor radicalism, but so did employer and government violence directed against striking workers. The U.S. has the most violent labor history in the western world. The U.S. government may be the only government in the industrialized world that has engaged in systematic massacres of striking workers.
The National Labor Relations Act (NLRA), also known as the Wagner Act, was passed in July 1935. The Act, whose broad intention was to guarantee employees “the right to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and to engage in concerted activities for the purpose of collective bargaining or other mutual aid and protection” was probably instrumental in the dramatic increase in unionization rates that was witnessed from the late 1930s to the 1950s, hitting its apex at 32 percent; yet, its failures are well established and can, conversely, be attributed to the decline in private sector unionization rates that started taking place following their peak in the late 1950s. In fact, NLRA, however ironic this may sound, may be responsible for the creation of “a vibrant non-union sector instead.”
The Supreme Court, of course, has also been instrumental in creating a “vibrant non-union sector.” The Court has consistently made decisions that limit union power, including the right to strike. Rather typical here was the stance taken by the union-busting Supreme Court Justice Sandra Day O’Connor when she said that employees who strike in support of union bargaining “gamble” their jobs.
In no other country in the western world is anti-union consulting as huge of an industry as it is in the United States.
Indeed, in no other country in the western world has the right to strike been as severely undermined as in the U.S. In fact, U.S. labor law is an outright failure when it comes to safeguarding one of the key International Labor Organization (ILO) principles, which is to guarantee the right to strike, as it allows employers to enjoy the right to replace workers who strike for better wages and conditions.
Indeed, in no other country in the western world is anti-union consulting as huge of an industry as it is in the United States. As shocking as it may sound, it’s estimated that employers spend more than $400 million per year in hiring “union-avoidance” consultants.
Moreover, “the party of the people” is equally guilty for throwing U.S. workers under the bus. All three living Democratic presidents (Jimmy Carter, Barack Obama, and Bill Clinton) let down unions and certainly were no friends to working people. In fact, they worked ceaselessly to promote neoliberalism and overall policies that were a disaster for labor, with Clinton leading the pack.
But no narrative for the dismal state of unionization in the U.S. can be fully complete if the role that unions themselves played in undermining the vision and the goals of the labor movement can be left out. As David N. Gibbs points out in his outstanding book The Revolt of the Rich, the largest union in the country, the AFL-CIO, “was conceived on very conservative terms as an institutional reaction against leftist strains within the labor movement” and one of its main activities was working with the Central Intelligence Agency in fighting communism both at home and abroad. Getting rid of class struggle unionism was a primary objective of the AFL-CIO even when the union had begun its steady decline. Worse still, the ties between mafia and labor unions, which go back to the early 1930s, had reached such a high point by the late 1950 that government investigation on labor racketeering got underway that in the ensuing decades would lead to convictions of major labor leader and mob figures. As James B. Jacobs argues in Mobsters, Unions, and the Feds: The Mafia and the American Labor Movement, “labor racketeering” was a major feature of U.S. organized labor and contributed in a very big way to the decline of U.S. trade unionism.
We need unions as they are absolutely a critical force in the struggle to create a fair and just society.
The U.S. labor movement has been experiencing a renaissance of sorts over the last few years, although the truth of the matter is that union membership remains stagnant. The challenges ahead are indeed immense as there is no alternative left party in the U.S. and no social democratic traditions which rely on trade unions for softening the injustices inflicted by the capitalist system. U.S. capitalism is brutal and the reactionary forces, which lead all the way up to the Supreme Court, are extremely powerful, well organized, and massively funded.
Yet, we need unions as they are absolutely a critical force in the struggle to create a fair and just society. We need to rebuild the labor movement, and that means not going back to the kind of unions that existed in the postwar era. We need unions with a radical vision, unions that exert power in the workplace and society. There is no reason why a service-based economy, which is mainly associated with low wages and insecure employment, should offer less opportunities for union membership. In this context, there is much to learn from the experience of the Union of Southern Service Workers, a union that doesn’t shy away from taking militant action on the job against low pay and dangerous work conditions and to demand a seat at the table.
Rejecting business unionism and renewing in turn labor militancy is the only way to increase union membership and fight back labor exploitation and inequality."It all begins with high levels of trust between citizens and our institutions," said one official in Finland, which was ranked as the happiest country.
Finland and other social democracies in the Nordic region continued their streak of ranking at the top of the annual World Happiness Report, an accounting of people's attitudes and outlooks in 140 countries that was released Wednesday—but countries including the United States marked striking shifts in the level of happiness among their populations.
The U.S. fell out of the top 20 happiest countries for the first time, driven largely by declining happiness among people under 30.
The report—compiled by Oxford University's Wellbeing Research Center, Gallup, and the United Nations Sustainable Development Solutions Network—found that people under age 30 in the U.S. rank 52 places behind people aged 60 and up in terms of happiness.
If only the youngest respondents were asked about their happiness levels, the U.S. would rank at number 62 in the annual report, while Americans aged 60 and up ranked at number 10 worldwide.
Researchers told The Guardian that after 12 straight years of young Americans reporting higher levels of happiness than their older counterparts, the trend flipped in 2017.
Jan-Emmanuel De Neve, director of the Wellbeing Research Center and editor of the study, told the outlet that the drops in happiness among young people in North America and western Europe were "disconcerting."
U.S. Surgeon General Vivek Murthy, who has frequently spoken about the effects of social media on young Americans, spoke to The Guardian and highlighted high levels of social media use as a contributor to unhappiness among young people.
Murthy said it was "insane" that the U.S. has not yet passed laws regulating social media features such as "like" buttons or infinite scrolling to disincentivize frequent use of the platforms, noting that American adolescents spend an average of nearly five hours on social media.
But Jukka Siukosaari, Finland's ambassador to the U.K., attributed the country's high levels of happiness to an "infrastructure of happiness," including relative economic equality and affordable opportunities for Finnish people.
"It all begins with high levels of trust between citizens and our institutions," Siukosaari told The Guardian.
Finland's public healthcare system ranked number 3 worldwide in U.S. News and World Report's survey last year, and a report by the Organization for Economic Cooperation and Development (OECD) found that in 2019, 64% of the Finnish population reported trusting the government, compared to an OECD average of 45%.
Finland ranked at the top of the list for the seventh year in a row, while other Nordic social democracies in the top five happiest countries included Denmark, Iceland, and Sweden.
A 2023 study published in the journal Telematics and Informatics found that similar concerns about frequent social media use among young people exist in Finland as in the U.S., with about 10% of Finnish teens displaying "problematic" use of platforms, including experiencing withdrawal from social media and continuing use even after experiencing negative consequences like anxiety and depression.
Young adults in Finland spend about 20 hours per week, or nearly three hours per day, on social media, according to the study.
Another survey by YPulsepolled young people in Western Europe about their social media use, finding they spend an average of 3.5 hours per day on social media platforms and that 84% agreed with the statement, "My generations are obsessed with social media."
But many Western European countries ranked far ahead of the U.S. in terms of the happiness of people under age 30, including Iceland (4), Denmark (5), Luxembourg (6), and the Netherlands (9).
"Social media is believed to play a part in driving down self-esteem and robbing young people of their wellbeing. But it is the lack of education, skills training, and affordable housing that underpins the decline in the positive outlook traditionally displayed in surveys by those broadly fitting the Gen Z age group," wrote Phillip Inman, an economics correspondent for The Guardian, about the rankings of the U.S. and its peers, such as the U.K. and Australia, in which happiness has also dropped precipitously for young people.
While social media use is increasingly common among young people in many countries, the decrease in happiness and life satisfaction also comes amid the rising threat of the climate emergency, with scientists reporting last year that devastating climate events like wildfires and deadly heat waves were direct consequences of continued fossil fuel extraction and planetary heating.
Young Americans are also coming of age as the wealthiest people in the country have gotten richer since the coronavirus pandemic, while millions of working families are part of what Oxfam last year called a "permanent underclass... who are denied their economic rights, trapped in poverty, and unable to accumulate wealth no matter how hard they work."
The cost of a college education in the U.S. has risen by about 40% in the last two decades, when adjusted for inflation, and housing affordability is no better—with half of renters telling Harvard University's Joint Center for Housing Studies in January that they are paying more than they can afford to in rent.
"Young adults are being hit from all sides by a toxic combination of government policy, a housing affordability crisis, stagnating wages, and a high cost of living," the Intergenerational Foundation told The Guardian in response to the report.
Inman wrote that the latest World Happiness Report "is a warning sign to governments that have put the welfare of older people above that of younger generations."
"If young people cannot establish themselves in the workplace with a decent home and time and money to visit friends and family," said Inman, "the ramifications will boomerang on the old."
"The mistake Tesla made was challenging the collective agreements that set sector-specific minimum wages in Sweden, a country where 70% of the population is unionized," said one political scientist.
Tesla CEO Elon Musk's tough lesson in labor rights continued in Scandinavia Thursday, as one Danish progressive politician offered some advice to the electric vehicle executive: "Don't mess with Nordic unions."
Musk's refusal to sign a collective bargaining agreement for just 130 mechanics in Sweden has proven to be a significant miscalculation about the power of unions in Nordic countries, as more than a dozen collective bargaining units across Sweden have made Tesla's operations increasingly difficult in the country in solidarity with the mechanics and their demand for a minimum wage.
As Common Dreams reported earlier this month, Musk—the world's richest person—has appeared flat-footed in recent weeks as unionized postal workers, delivery drivers, and electricians have refused to work with Tesla to help pressure the company to sign the mechanics' contract.
France 24reported last week that "garbage is piling up outside Tesla centers as refuse collectors refuse to pick it up" and cleaning staff are also declining to work in Tesla showrooms.
"I cannot get enough of this story," said Sarah Anderson of the U.S. economic justice think tank Institute for Policy Studies last week.
"The mistake Tesla made was challenging the collective agreements that set sector-specific minimum wages in Sweden, a country where 70% of the population is unionized," political scientist Yohann Aucante told France 24.
Beyond Sweden, powerful unions representing dockworkers in Denmark and transit workers in Norway and Finland have made clear their members won't help Tesla circumvent the Swedish work stoppage that was started in October by the mechanics at the company's service centers.
The unions have pledged in recent weeks to block the transit of Tesla's EVs unless the company could reach an agreement, giving Musk a deadline that expired on Wednesday.
"Swedish workers have [the Transport Workers' Union]'s full support," said Ismo Kokko, president of the Finnish union AKT. "It is a crucial part of the Nordic labor market model that we have collective agreements and unions support each other... The Nordic transport unions stand united in this matter."
Musk has demonstrated little understanding of the display of solidarity that has spread from Sweden to its neighboring countries—calling the postal workers' solidarity strike "insane" and attempting to compel the Swedish postal authority to continue crucial deliveries to Tesla, an effort that was rejected on December 7 by a Swedish court.
Pelle Dragsted, a member of Danish Parliament and a democratic socialist, posted a video on social media telling Musk to accept the lesson he's been given since October: "Get unionized or get out" of Nordic countries.
"In the Nordics, we love our unions, because they make our lives so much better," said Dragsted. "Here in Denmark, our unions have secured a decent living wage for all workers, a workweek of 37 hours, the right to at least five weeks of vacation, paid sick leave, and the right to one year of parental leave... So dear Elon, respect your workers."
In addition to angering unionized workers across Scandinavia, Musk's refusal to abide by the region's strong protections for workers has been trying the patience of powerful investors.
The pension fund PensionDanmark sold more than $70 million in Tesla stock earlier this month, tellingReuters, "In the light of the conflict now spreading to Denmark as well as Tesla's recent very categorical refusal to enter a labor union agreement in any country, we have come to the conclusion that we as investors at present hardly can influence the company."
A coalition of investors that manages $1 trillion in assets—including KLP in Norway, Folksam in Sweden, and PFA in Denmark—also demanded a meeting with Musk to discuss the matter after the new year.
"We as Nordic investors acknowledge the decade-old tradition of collective bargaining, and therefore urge Tesla to reconsider your current approach to unions," said the group.
As Aucante pointed out to France 24, Musk has risked his company's reputation in a region where Teslas are more popular than anywhere else in Europe, suggesting that Tesla will ultimately have to concede to the workers.
"The company has no interest in prolonging a conflict that will severely damage its image," Aucante told the outlet.