Employee Compensation Negotiations in America’s Workforce

By: Sean M. WalshResearch Seminar/Dr. Kevin Downing DePaul University

AbstractWith the growing number of nonstandard jobs in the United States, I’d like to research the effects of the American labor union membership shrinking, and discover if there is a correlation with the increase in nonstandard jobs. Knowing if the American worker prefers a nonstandard job over a standard job can benefit employers by understanding the compensational value of the American worker. In turn, the employee will understand weather their

value is worth more, or would it be beneficial to employ a third party (labor union) for negotiations. It is important to understand the value of

the American worker in order to sustain an American workforce and economy. I intend to understand if better compensation can be awarded to

an employee negotiating individually, or collectively through a labor union. I would like to conduct several interviews with labor unions, private

companies, and employees of all types to ask several questions about their self-value. After all the data is collected, I hope to have a better understanding of what the American employee needs, and what the

American employer is willing to provide, and whether or not a third party negotiator is needed.

Project DescriptionHistory of Labor Unions and Collective

Bargaining• Labor Unions in America

formed in the late 1800’s – Knights of Labor (Griswold 181).

• In 1866, the American Federation of Labor was formed (Gildemeister 263).

• Unions negotiated collectively for safer working conditions, a minimum wage, reasonable working hours, and job security.

By 1945, 34.2% of the American workforce was represented by a Union (Hogler 83).

Post WWII to 1979 – The Growth and Expansion of Union Member Population

• In 1955, the AFL merged with the Congress of industrial Organizations forming the AFL-CIO (Lichtenstein 147).

• In 1958, the American Federation of State, County, and Municipal Employees (AFSCME) was formed in New York City (Lichtenstein 182).

• In 1979, union member population reached an all-time high at 21 million workers out of the 45 million American workers. 46% of the American workforce was represented by a union (Western).

1980 to Present Day – The Decline of Union Member Population

• The Professional Air Traffic Controller’s Organization (PATCO) goes on strike disrupting air transportation.

• President Regan stripped PATCO of their federal charter, and Union busting campaigns began.

• Mass Union layoffs throughout the American workforce (Cheney 523).

• Introduction of nonstandard employment in the American workforce.

• Americans transition form collective bargaining, to individual negotiations.

Union membership as of September 2015 only makes up one-tenth of the American working population (Western).

HypothesisMy proposed research will attempt to determine the

best economic outcome (salary, health, and retirement benefits) for employee compensation of

the American worker through either, collective bargaining or individual negotiation. Furthermore,

my proposed research will try to determine whether or not the American worker prefers collective

bargaining, or individual negotiation for services rendered to an employee. Finally, I will attempt to discover if the future of the American workforce is

shifting from being a standard workforce, to a nonstandard workforce. Standard

JobNonstand

ard JobWhat does the

American worker prefer?

Statement of JustificationIt is important to understand where the American worker will get the best

monitorial benefits for services rendered. Another fact to consider is representation for the American worker. Representation for employees is

important when it comes to disciplinary proceedings and wrongful termination within the workplace. Knowing what laws are in effect to protect the American worker is important to understand when employers are asking, in some cases demanding, the abolishment of their Unions and collective bargaining rights

(Greene, pg 75). It would be prudent to know whether a union representative, or an attorney, would best suit the employee in matters of discipline or termination.

Individually?

Union? Collective Bargaining?

Expected Significance

The significance of the research presented will offer answers to the questions, how much is the

American worker worth? And how should the American worker negotiate? Shall the American

worker negotiate certain positions one on one with their employer, or is it best to negotiate

collectively? The answers to these questions will be critical in order for the American worker to

negotiate successfully. It would be economically beneficial for the United States to see a growing

middle class, instead of the widening spectrum of the rich and poor.

Methodology

Public Sector Unions Private Sector Unions Management GroupsBusinesses

 

Chicago Firefighters,

Local 2

Chicago Plumbers, Local

130City of Chicago General Electric

Chicago Fraternal

Order of Police, Lodge

7

Hoisting Engineers, Local

150

Chicago Contractors

AssociationTarget

Chicago Teachers

Union

Chicago Laborers, Local

1001Suburban Municipalities McDonalds

 Chicago Electricians,

Local 134  Walgreens

 Chicago Pipefitters, Local

597  Dick’s Sporting Goods

• Interviews

Interview several labor unions and management groups in both the private and public sectors.

MethodologyThe questions for Public/Private Union Leadership:• How would you describe the rapport between the local union you represent, and management? Why?

• How would you describe the morale your union’s membership? Why?

• What recent (within the last 10 years) breakthroughs have you set forth affecting your union’s membership?

• What recent (within the last 10 years) set-backs have occurred affecting your union’s membership?

• Do you see your union’s membership growing, declining, or stagnant within the next ten years? Why?

Questions for Management Groups:

• How would you describe the rapport between the company/municipality you represent, and local unions? Why?

• How would you describe the morale of your employees?

• What recent (within the last 10 years) breakthroughs have you set forth affecting your employees?

• What recent (within the last 10 years) set-backs have occurred affecting your employees?

• Do you see your employee population growing, declining, or stagnant within the next ten years? Why?

Methodology

SurveysThe survey portion of my research will be

done electronically. The method I will devise will be an internet based survey sent via email and social media outlets. The survey will be open to union members and non-union members. It is my goal to have the survey completed by more than one thousand workers within a ten week period.

The survey will be short in order to get the highest completed return.

MethodologySurvey Questions:

• To Chicago Workers:• How would you want to negotiate your salary and benefits with your

employer? • Individually? One on one negotiation with your employer, why?• Collectively? Through a Union or Association, Why?• Unsure? Explain.

• To Business Owners:• How would you want to negotiate your salary and benefits with your

employees?• Individually? One on one negotiation with your employee, why?• Collectively? Through a Union or Association (One negotiation for all

employees), why?• Unsure? Explain.

• To Union Members Only:• Please describe your morale toward your local union and explain why.• What changes would you make about your benefits negotiated by your

local union? Why?

Dissemination of Information• Trade Journals

Upon completion of the aforementioned research, it is my intention to have the findings published in trade journals specified to organized labor, public services, and economics. The information can be valuable to both sides of the negotiation table.

• ConsultingWith the research data

compiled, I would like to consult with labor unions and politicians in order to expedite union negotiations between union members and local governments in the hopes to reduce long negotiations and strikes.

GATHER THE RESEARCH

Now…

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