TPT May 2019

G LOBA L MARKE T P L AC E

G LOBA L MARKE T P L AC E

a refrain that goes back to union roots – contracts. “The only way we can ensure that we have a voice in the company, and have equal rights across the board, is with a union contract,” said Aaron Nicpon, a member of the internal organising committee. Contracts and collaboration Despite figures from the Bureau of Statistics showing a decline in union membership, from 20.1 per cent of workers in 1983 to 10.1 per cent by 2017, Selko found unions are still very much alive and effective, though with roles that move beyond their traditional place. Many see a new, more collaborative, future for unions. “A few economic factors have caused the role of unions to evolve and strengthen its relationships with companies,” said Scott Paul, CEO of the Alliance for American Manufacturing. “Unions are now helping companies recruit workers. And given the worker shortage, this takes some pressure off the employers’ shoulders.” A union workforce is also a benefit in times of worker scarcity; they have a lower turnover, reducing recruiting costs for employers, and, Paul added, training for future skill sets is also easier and more economical when working with tenured employees. Unions have also been active partners with companies and economic development organisations in strengthening the manufacturing sector. “While many people associate unions with securing higher wages and better benefits, which is still true, unions are now much more aggressive in seeking capital investments for plants to modernise domestic facilities,” Scott said. New workforce, new concerns Paul Shearon believes that future unions will reflect the makeup of the younger workforce and its concerns, but not in the form of organised unions as we know them. “Look at what is going on in places like Google, where employees are walking out,” said Shearon. “There’s not a traditional union but, if you look at the structure, it is the beginning of associations of workers.” And what issues are they addressing? Historically unions negotiated for defined benefit pension plans, but many younger workers have never had these plans in their employment contract. Shearon believes the younger workforce is interested in hiring practices, such as the promotion of women, and they want to know that companies have policies that don’t discriminate on gender, race or ethnicity. Other benefits, such as pension and healthcare, will need to become portable, given the migratory pattern of younger

Industr ial unions What role for the unions in the future workplace? Adrienne Selko, in Industry Week , considered the changing role of the unions. Interviewing the president of the International Federation of Professional and Technical Engineers, Paul Shearon, she asked: “If an employer treats employees fairly, why do you need a union?” His answer was simple. “Employers have contracts with their vendors and their senior executives, and should have contracts with their employees.” Contracts though, by their very nature, are subject to change and sometimes the change happens so quickly, and in such a dramatic way, as to challenge the fundamental nature of the agreement. This was the case when, in November 2018, GM announced it was closing five plants in North America and laying off over 14,000 workers. GM’s announcement sparked concern on many fronts. Just a few years ago, decisions in the auto industry were made in collaboration with the union. “Previous GM leaders would have surely negotiated with the UAW before taking such steps,” said David Cole, chairman emeritus of the Center for Automotive Research in Ann Arbor, in an article for the Toledo Blade . A statement from UAW president Gary Jones objected to “GM’s unilateral decision regarding four US manufacturing facilities,” concluding: “UAW members and US taxpayers invested in GM during their darkest days. Now is time for them to invest in us.” Selko observed that, while the auto industry is generally an indicator of union activity, other unionised industries have different experiences. In December 2018, UAW Navistar members voted to ratify a new six-year contract that included profit sharing, pension plan improvements, the elimination of tiered wages, and the addition of a “no closing agreement” that allows for the contract to be retained if the company is sold or merged. Other unions are also succeeding in their contract negotiations. The United Steelworkers Union prevailed in recent negotiations and, in December 2018, approved a four-year agreement with Arcelor Mittal that provides for an increase in wages, better retirement plans, and improved benefits for its 15,000 hourly employees. The United Steelworkers continue to push forward in a big way, as evidenced by their partnership with the International Brotherhood of Electrical Workers to organise production and maintenance workers at Tesla’s solar products factory in South Buffalo. This follows a move towards unionisation by employees at Telsa’s plant in Freemont, California. This apparent move back towards union influence carries with it

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MAY 2019