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Witnesses to the AFL-CIO’s Decline

Labor Movement’s Woes Can’t Be Fixed, Say Experts

By Patrick J. Reilly & John Tuason
Capital Research Center

 

Summary: The AFL-CIO is faced with serious problems: declining membership, failed political efforts, internal disputes over dues payments and funds for organizing, unions threatening to withdraw from the federation, and a potential challenge to John Sweeney’s presidency. None of this surprises observers of the waning labor movement.

 

Dime-store novelists claim that gloom around the AFL-CIO is palpable—it hangs so thick in the air you just might choke on it.

Maybe that’s hyperbole, but anyone listening to labor union officials in recent weeks can imagine the fog that has wrapped itself around obviously distraught and desperate men. Gathered last month in Las Vegas, the kingpins of the labor movement seemed more like bitter losers out on the Vegas sidewalks, trying to come to grips with how their fortunes have slipped away.

“These are the darkest days that I have ever seen for American workers across the United States,” Gerald McEntee, president of the American Federation of State, County and Municipal Employees (AFSCME), told The Washington Post .

John Wilhelm, leader of the hotel employee division of the recently merged (July 2004) Unite Here union, admitted, “The collapse of the labor movement is happening on our watch.”

Both were referring to ongoing developments that union officials are unable to affect: a steady decades- long decline in private-sector union membership, a Republican-controlled Congress and White House determined to protect workers rights and curtail union abuses, and the failure last November of the AFL-CIO’s well-funded political machine to unseat President George W. Bush.

Observers of unions’ impact on the American economy and politics agree with that analysis. Experts interviewed by Labor Watch argue that union leaders’ soul-searching is a symptom of the labor movement’s growing awareness of its irrelevance to most workers.

They say it may even hasten the AFL-CIO’s decline as gloom turns to anger and infighting.

“All the soul-searching in the world won’t change the fact that organized labor is in deep trouble,” says David Denholm, president of the Public Service Research Foundation and an observer of public employee unions. “There are forces at work beyond its control which will make the trouble deeper.”

And he doesn’t shed a tear.

Wrestling With Change

“The choice between politics and organizing is a lose-lose one for the unions. They have come to realize that present laws protecting employee rights to decide on whether or not to organize are working against them because American workers are increasingly rejecting unionism. They must then choose political activity in the hope of changing those laws.”

Bitter divisions were evident as the AFL-CIO executive council met last month in Nevada. The National Journal’s James Barnes noted that “by the time the union presidents left town, their differences were more exposed than a Las Vegas showgirl.”

A territorial dispute between the leaders of two of the largest unions “turned into a curse-filled shouting match that could be heard in the hall” from the casino conference room where they were meeting, according to The Philadelphia Inquirer. Andrew Stern of the Service Employees International Union (SEIU) and AFSCME’s McEntee were fighting over which union should represent 50,000 child care workers in Illinois, but it was their opposing views of AFL-CIO president John Sweeney that had them at wit’s end. Stern was so fed up that his SEIU is prepared to break ranks with the labor federation “I think there’s a high degree of tension,” Unite Here’s Wilhelm told the Inquirer, with the kind of obvious understatement one might expect from a labor boss-turned-politician who hopes to unseat Sweeney at the AFL-CIO convention in July. “We’re in deep trouble. We need to have a debate, but also a fight about how to turn this around.”

A fight is clearly in the making. Harold Meyerson, a columnist at The Washington Post, reports that AFSCME official Paul Booth attended the Las Vegas meeting with a t-shirt from Sweeney’s 1995 campaign for the AFL-CIO presidency.

Booth asked Anna Burger, who managed the campaign but now works with Sweeney’s most vocal critics, if she had any more of the old t-shirts. “Yeah,” Burger reportedly replied. “We use them for dishrags.”

These may be just the first salvos in an internal battle likely to escalate before the AFL-CIO national convention in Chicago this summer. It is then that the 70-year-old Sweeney is up for reelection, with Wilhelm his prospective challenger. Before the convention opens at least three member unions will demand significant changes to the federation’s budget, policies and structure—or threaten to bolt the AFL-CIO.

Creating the most division in the labor movement are proposals put forward by the New Unity Partnership (NUP), a coalition of union leaders representing about 40 percent of the nation’s union members.

NUP is committed to dramatically expanding efforts to organize workplaces and increase union membership. (See Labor Watch, February 2004.) The group is led by the SEIU’s Stern, who commands the largest AFL-CIO member union and is the most likely to quit the federation if NUP’s proposals are rejected.

Others making similar threats are Unite Here, which held a leadership meeting in March to consider disaffiliation, and the Teamsters. Some unions do not appear inclined to leave the AFL-CIO, but have supported NUP’s efforts, including the Laborers International Union and the United Food and Commercial Workers.

One of NUP’s more radical proposals is to force a merger of AFL-CIO member unions to create a few large unions organized by industry sector. Aside from a few voluntary mergers, this proposal has gained little traction.

NUP has found more interest in its proposal to rebate as much as fifty percent of member union dues to the AFL-CIO, allowing the unions to use more of their own funds for organizing. The proposed dues rebate would favor unions that already devote significant funds for organizing to boost their membership.

The status quo, which suits many of the AFL-CIO’s smaller unions just fine, is NUP’s greatest obstacle. Under the NUP plan, smaller unions would be expected to abandon their traditions and history of independence, merging into larger unions by industry sector (even though some small unions like the Firefighters are particularly successful). The smaller unions are also unlikely to benefit from any dues refund for significant spending on organizing.

Sweeney recognizes NUP’s clout and has supported minor AFL-CIO reforms to appease his critics. But his main focus has been to complete the federation’s transformation into little more than a political lobby. This strategy enabled Sweeney to prevail last month in the first major test of his challengers’ strength. The federation’s executive council rejected Teamsters president James Hoffa’s proposal for a 50 percent dues rebate, which would have required layoffs of nearly half the AFL-CIO headquarters staff. The council instead endorsed Sweeney’s plan to rebate about $15 million in dues for union organizing, while approving an additional $45 million for year-round political action—a dramatic one-third increase in political spending.

The news media reported Sweeney’s victory as a “show of power” and evidence that NUP’s crusade could not succeed. While clearly a setback, NUP vows to overturn the executive council’s decisions at the July convention, where the larger unions have more influence. Sweeney won approval for his counter-proposal with a 14-8 vote of the executive council. (Because even tiny unions get one vote per council representative, the larger NUP unions have no advantage in the executive council.) But at the July convention, SEIU will enjoy voting power proportionate to its 1.8 million members. With NUP member unions already representing about 40 percent of the AFL-CIO’s 13 million union members, it is not implausible that their lobbying could secure a majority by July.

Even without a clear win, NUP has set the terms of debate. The New York Times noted that during the executive council meeting, Sweeney made more new proposals significantly affecting the AFL-CIO’s future than at any other time in his presidency. Some of the proposals—such as the dues rebates for member unions’ organizing and proposals that mildly encourage unions to merge—were reluctant attempts to satisfy the NUP. Sweeney’s other proposals to beef up the AFL-CIO’s political machinery with more funding and tightened control over state federations and central labor committees seemed a defensive reaction—some might argue an expensive over-reaction—to Stern’s criticisms and the NUP demand for more organizing.

What the March executive council meeting reveals is how deeply the AFL-CIO is split. Public displays of disunity are rare; the movement is usually well-disciplined. But following the council vote, five union presidents scolded the council before a gathering of reporters.

Politics or Organizing?

At the root of the divide between NUP and Sweeney is a fundamental disagreement about how to rescue the labor movement: Should unions concentrate on aggressive politics and lobbying or aggressive organizing for new members? Both camps agree that unions have insufficient resources to do both well, so each has drawn a line in the sand and hoisted its banner. One flag proclaims “Organize or Die,” the other “Seize Washington or Die.”

“A long-term plan for greater political and legislative mobilization is essential to strengthen and build the labor movement,” says a Sweeney statement. The federation president argues that despite the need for increased union membership, the future of the labor movement depends on electing a union-friendly president and legislators. Many union leaders are distraught by Republican gains in Congress and the Bush Administration’s effort to rein in union abuses, including its attempt to improve union financial disclosure requirements and the National Labor Relations Board’s willingness to reconsider Clinton-era rulings. (See Labor Watch, February 2005.)

Sweeney goes so far as to suggest that costly organizing campaigns will mean little unless unions have friends in government. Sweeney backer Larry Cohen, executive vice president of the Communications Workers of America, observes that even NUP’s proposed 50 percent dues rebate will not add much to the total organizing budget of large unions like SEIU and the Teamsters.

“Unless we change the anti-worker policies that are destroying good jobs and stop the forces—from the National Labor Relations Board to state governments— that are rolling back workers’ rights, we can’t win gains for workers,” Sweeney told reporters.

If the AFL-CIO executive council’s recommendations are approved at the July convention, Sweeney will have succeeded in transforming the federation’s already expensive interventions in political campaigns into a year-round operation. That will allow the AFL-CIO to push for more grassroots mobilization and increase its impact on policy debates like Social Security reform.

Sweeney’s critics turn his argument on its head: the labor movement’s success in politics depends on mobilizing the grassroots, they say, and the AFL-CIO’s political clout will only weaken until its membership expands. Hoffa argues that “a massive shift in resources and focus on organizing and growth is the only path to rebuilding worker power in the workplace and the political process.” Relying primarily on politics “simply ensures further decline.”

Stern sees no point to the executive council’s proposed “massive boost in political spending” when the AFL-CIO’s clout is waning—even, according to Stern, within the Democratic Party.

“I do not put much faith in elected officials of either party,” Stern told the Washington Post.

Conservative critics of the AFL-CIO see little merit in either strategy.

“The choice between politics and organizing is a lose-lose one for the unions,” Denholm says. “They have come to realize that present laws protecting employee rights to decide on whether or not to organize are working against them because American workers are increasingly rejecting unionism. They must then choose political activity in the hope of changing those laws.”

Stan Greer, an official of the National Right to Work Committee, points out that despite enormous membership losses, Sweeney has not been AWOL on union organizing. Likewise, the AFL-CIO’s electoral losses doesn’t mean it hasn’t made a huge commitment to politics.

“The fact is, the investment of union funds into organizing has already increased substantially under John Sweeney’s presidency,” Greer says.

“Most top officials at AFL-CIO affiliates believe massive additional investments would be subject to the law of diminishing returns.” That’s a reasonable assumption, and the same can be said about increasing union political spending.

But Ryan Ellis, executive director of the Alliance for Worker Freedom and federal affairs manager at Americans for Tax Reform (ATR), believes NUP’s call for increased organizing is the labor movement’s “only hope to stem the tide of declining membership”—an opportunity that has been lost with the AFL-CIO executive council’s embrace of politics.

“This will lead to a continual and even accelerated vicious cycle of more money spent on politics, losing in elections (as they have done every year Sweeney has been at the helm), alienating and losing members, and trying to change the subject of declining influence by spending yet more on politics,” Ellis predicts.

Value of Politics

The AFL-CIO claims it is responsible for a significant increase in voter turnout—a claim that is key to Sweeney’s argument for expanding the federation’s political and lobbying program. The portion of the total U.S. electorate attributed to union households increased from 14 percent in 1994 to 26 percent in 2000, and probably a similar portion in 2004. Without union support, Democrats would fare much worse, an argument that explains Howard Dean’s aggressive courting of union leaders as soon as he took the helm of the Democratic National Committee.

But what if the voter turnout numbers are wrong? John Judis of the liberal New Republic —who argues that the debate over organizing and politics is less important than finding a replacement for John Sweeney—cites research that suggests union voter turnout has remained substantially unchanged. The AFL-CIO relies on Voter News Service polls, but post- 1994 numbers are based on a survey method that may overestimate turnout.

In any event there is no doubt that union political support is key to almost any Democrat’s chance for national office. However, union eagerness to award members’ dues almost exclusively to liberal Democrats is part of the problem. It’s what led the Wall Street Journal last month to declare politics “the root of Big Labor’s larger membership crisis.” Polls show union members are much more conservative than the politicians they help elect, especially on cultural issues.

Harold Schaitberger, president of the International Association of Fire Fighters, has advocated a less partisan approach to union politics: “We shouldn’t be taken for granted by any party, and we shouldn’t be owned by any party.” Echoing statements made by Stern and Wilhelm, Schaitberger told the New York Sun that the Democrats “have often been less loyal to labor than labor has been” to them. Unfortunately, instead of provoking discussion, Schaitberger has been marked a traitor by many in labor for even suggesting openness to more liberal Republicans.

“The AFL-CIO political program has devolved to the point where we are only an appendage, or a wing, of the Democratic Party,” argues Wilhelm, who needs rank-and-file support to contest Sweeney in July.

Unions like AFSCME, the American Federation of Teachers and the Communications Workers of America already rely heavily on politics and lobbying to reach their legislative goals. Ironically, the success of conservative politicians has increased their determination to endorse Sweeney’s strategy of increasing union political power. NLRB rulings and state restrictions on public employee bargaining rights are “politically driven decisions by right-wingers,” AFSCME’s Booth told reporters, and they increase union leaders’ resolve “that we must be effective in the political sphere just to save the amount of rights that workers have today.”

So what do conservative observers of union activity say about Sweeney’s heavy emphasis on politics? Steven Miller, policy director of the Nevada Policy Research Institute in Las Vegas, watched the AFL-CIO dispute play out in his backyard. He recalled the aphorism, “What you are shouts so loudly that I can’t hear what you’re saying.”

“In other words, no matter how much money the AFL-CIO puts into political organizing, the essential rancor at the heart of the organization always tends to surface in various ways and turns people off, while stimulating active opposition,” Miller says. “This has always been Big Labor’s effect, and I would tend to think that in the new media environment we’re entering, it will be so even more.”

ATR’s Ryan Ellis notes that union ties to the Democrats are stronger than ever: More than 98 percent of union contributions have gone to Democrats since 1988. But he points to the results of all this political spending: “Uninterrupted Republican control of the House—the only interlude happening not because of an election, but because of the Jeffords defection—with more Republicans than ever; eight years of George W. Bush and [Secretary] Elaine Chao at Labor; and before that a NAFTA/GATT/WTO-signing Bill Clinton.”

“Does the AFL-CIO really think this political money was used wisely” Ellis asks, “and could it have slowed the slide from 16.5 percent union membership in 1994 down to 12.5 percent today?”

Stan Greer and Paul Kersey, a labor policy analyst who has worked at both The Heritage Foundation and Michigan’s Mackinac Center for Public Policy, disagree about whether the AFL-CIO’s emphasis on politics will increase its clout within the Democratic Party.

Greer thinks so. “The Bill Clinton wing of the party that was willing to buck the union bosses on trade and a handful of other issues is in decline,” Greer says. “Therefore, I think union officials will have a bigger say than ever before in picking who the Democratic nominees are in the 2006 and 2008 congressional races and the 2008 presidential campaign.”

The success of these union-picked Democratic candidates is another question, says Greer, “and that depends in large part on how the White House and GOP congressional leaders respond to unprecedentedly monolithic Big Labor opposition.”

Kersey, however, sees a possibility that Democrats will loosen their ties to labor.

“Stern is a bit more enlightened than Sweeney, but neither of them is likely to break the links to the Democratic Left, meaning that both the AFL-CIO and the SEIU group remain wedded to the Left and have little room to maneuver,” Kersey says. “Division in the house of labor will make union leaders even less credible in the counsels of the Democratic Party.”

The AFL-CIO could still secure political victory despite itself, Denholm suggests.

“Much of how the unions fare politically in 2006 and 2008 will depend on the economy,” Denhom predicts. “If there is a strong economic downturn, some incumbents will lose elections, and it is very likely that organized labor will have supported their opponents. Then, like a barnyard rooster convinced the sun rose because of its crowing, they will claim to have been responsible—but it is unlikely that knowledgeable observers will give this much credence.”

Choosing a Leader

Upon taking office in 1995 John Sweeney promised that he would not stay more than ten years. Now he says he is still the best man for the job. He claims to have all the support he needs to win reelection, including backing from AFSCME, the Communications Workers, the Machinists and Aerospace Workers, and several small unions.

Nevertheless, Wilhelm reportedly has told associates that he expects to challenge Sweeney if he thinks he can win. Wilhelm has the backing of Unite Here, SEIU, the Laborers and the Teamsters. Other potential supporters include the United Auto Workers and the United Food and Commercial Workers. Altogether, these unions still do not constitute the majority of votes Wilhelm needs, but they put him in striking distance.

“I always run as if I’m in the toughest battle of my life,” Sweeney said in Las Vegas, after Wilhelm declined to announce his candidacy. “Nobody has told me they are going to run for any of the offices in the AFL-CIO, but we’ll look forward to any challengers we have.”

Denholm thinks Sweeney has nothing to worry about, and the news media covering the AFL-CIO seems to agree.

“It is unlikely that there will be a dramatic change in leadership in the labor federation this year or for the next four years,” Denholm says. “The personal interests of some leaders are very entrenched and are threatened more by the idea of a radical change in leadership than they are by a continued gradual decline in membership.”

Going Nowhere Fast

“My best guess regarding the likeliest outcome of the current furor in the labor federation is more of the same—more decline in membership, more backbiting and infighting, and more turmoil in the leadership for years to come,” predicts Nevada’s Miller.

Other union critics agree. None sees a rosy picture for the AFL-CIO regardless of what it decides to do.

“Neither ‘side’ in the current leadership wars wants to really address the fundamental problem afflicting organized labor,” Miller observes. The real problem is increasing numbers of “better informed workers out in the marketplace who do not, fundamentally, want to fit into the traditional role into which the union bosses insist on shoving them: ignorant stooges who toe the line, shout the right slogans on demand and muscle-up individuals who prefer to go their own, unorganized way.”

Denholm also thinks union leaders “are caught in a time warp going back to at least the 1930s.”

“They refuse to acknowledge that the world of employment has changed, in most cases for the better,” Denholm says. “Unions are built on conflict, not cooperation. Both employers and employees have discovered that they are better off with cooperation than with conflict. That is not to say that there are not still differences of interests, only that there are better ways to deal with those differences than labor unionism.”

Mike Antonucci, whose Education Intelligence Agency challenges the exaggerated claims of teachers unions, notes that the declining size of the 13 million-member AFL-CIO unions will soon match the growing number of self-employed Americans, now more than 10 million.

“Soon there will be more people signing their own paychecks than paying dues to a union,” Antonucci predicts. “Is there a place in that world for the AFL-CIO?” Miller says there is certainly room for “thoroughly professional representation agencies that truly work for the best interests of their clients.” But that is not American organized labor, he says.

Instead, it appears the AFL-CIO is intent on using its waning influence acting as a political interest group. Ellis predicts more electoral losses, but perhaps some influence on legislation in coming years.

“The unions will continue to throw money away, lose, and throw more money away to cover their prior losses,” Ellis says. “In the meantime, they will use their declining influence—but still most powerful among the Left—to try to stop Social Security reform, tax reform, judges, and moving to defined-contribution public sector pensions.”

Will the current disputes lead to the threatened union defections from the AFL-CIO? “Those unions interested in stopping or reversing membership declines would have to give it strong thought,” says Ellis.

Kersey’s “educated guess” on what happens next: “SEIU and a handful of unions walk out of the AFL-CIO. You may see some attempts at raiding as SEIU and allies liberate themselves from the AFL-CIO’s jurisdictional limits. The results may include an up-tick in union membership as Stern puts more effort into organizing, but the effect will be disappointing over the longer run because Stern only grasps half of the problem: the union movement’s policies— political and economic—are not as attractive to workers as they once were.”

Denholm also raises the prospects of union raiding.

“As the union movement consolidates through mergers, there will be less and less reason for a labor federation,” Denholm argues. “The AFL-CIO’s rules against raiding make it very difficult for member unions to fight over the pieces of an increasingly smaller pie of potential members. Ambitious unions that want to play the ‘king of the hill’ game of ‘last man standing’ unionism will find it necessary to leave the federation.”

Predicting exactly what will happen at the July convention is next to impossible. The AFL-CIO’s next president, its budget and its membership are all uncertain—and there could be surprises. But the AFL-CIO’s future is relatively clear and simple: it will experience continued turmoil and decline.

“The economy would have taken care of the unions within two generations,” Ellis concludes. “Their stupidity and the economy together should do it in just one.”

Patrick J. Reilly is editor of Labor Watch and a senior fellow at Capital Research Center. John Tuason is a freelance writer in Virginia.