The post-war decline of organized labor

Organized Labor and its Decline


Organized labor has greatly influenced employer-employee relations in America. During the labor unions’ height of popularity in the 1950s, they represented about a third of the country’s workforce. However, since then organized labor has declined sharply. This change is attributable to three key factors.


The Waning of the Manufacturing Base


Firstly, blue-collar jobs have declined due to the waning of the country’s manufacturing base. During the first half of the 20th century, industry jobs dominated the American economy. These jobs were not only strongly organized but also well-paid. American companies faced strong competition from foreign companies and had to adapt in order to survive. Outsourcing evolved as a viable option to reduce costs. Additionally, technological advancements led to the gradual replacement of industrial workers. Labor unions therefore lost one of their most important components.


Government Intervention and Legislation


Secondly, the government took over issues that were previously the mandate of unions. Laws regarding overtime pay, working hours, off-days, and employee rights replaced the traditional role of union contracts (Hattam, 2014). Organized labor slowly lost its purpose and employers could offer incentives in the form of compensation and benefits to keep out unions.


Cultural and Demographic Shift


Lastly, culture and demographic shifts have also led to the decline of organized labor. Today, people do not appreciate the role of organized labor. History books no longer highlight the achievements of union leaders as was the case in the 1950s and 1960s when organized labor was at its zenith. On the same note, a declined sense of community observed in contemporary culture also explains why people would be less inclined to engage in collectivist groups such as unions.


Trends in the Future


Do you see these trends continuing in the coming years?


The factors that caused the decline of organized labor are still relevant today and will continue to affect unions in the coming years. Government legislation has formalized the relationship between employers and their employees, hence eradicating the need for a third party. The effective implementation of such laws convinces many that organized labor is not necessary. Future generations will be more dismissive of unions since they will have no recollection of the benefits of unionization.


Additional Trends to be Aware of


Are there additional trends that we should be aware of as we contemplate the future of organized labor in America?


Labor unions have always been perceived as the voice of the poor. In America, the gap between the rich and the poor is increasing steadily. The union movement has already started aligning itself with disenfranchised groups and is for the expansion of democracy. In the future, organized labor could rebrand as the champion of the fight against intolerance in an increasingly polarized nation. As a social champion, organized labor is poised for a revival.

References


Hattam, V. C. (2014). Labor visions and state power: The origins of business unionism in the United States (Vol. 141). Princeton University Press.

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