Labor conflicts in the USA have long history. This paper is devoted to the research of three studies related labor divisions and the ways of resolving labor conflicts. The particular role is assigned to labor unions and their ability to advance the interests of the working class. Americans belong to one of the most developed societies of the world. However, the problem of inequality does not resolved despite of high level of democracy and observance of human rights. Several authors addressed the issues of labor divisions in the American society whose works will be analysed, namely: Zweig, Albelda and Cowie.
Division of labor emerged long ago. Traditionally, women were assigned to cook and to do easy work, like sewing, while men used to perform heavy labor in the fields or at plants. This labor division emerged from traditional divisions of the roles in the families. The same situation occurred to black, Hispanic and Asian immigrants which commonly make a significant part of working class. Albelda, Drago and Shulman (2004) explained labor division by context which contains from customary beliefs and social roles inherent in members of a certain society. Thus, people used to believe that women, black people and workers must receive lower wages in comparison to men, white people and top-management. It is a matter of context when “capitalists exploit workers in the firm, whites exclude black in communities, men dominate women in the home” (Albelda et al. p. 122).
Zweig (2001) stated that despite of the rejection of the fact, there are classes in American society. Zweig research is supported by statistics. Thus, labor division can be clearly traced by examining the percentage of women and colored individuals among chief executives. The number of women occupying top-management positions equals 25.5%, black people made up 2.8%, Asians 3.2%, Hispanic 4.8% while the number of men in this segment is 74.5%, white people made up 89.2%. The rest of the US citizens belong to the middle and working class (Zweig, 2001). Thus, the statistics shows that the current tendencies are in line with the previous ones albeit with little improvement because changes require time and effort.
Similar statistics can be traced in a historical book of Cowie (2001) Capital moves: RCA's 70-Year quest for cheap labor where he described the policy of one of the electronic giant (RCA) operating on the territory of the USA which took benefit from cheap labor and absence of trade unions in the community. The policy of RCA consisted in hiring labor force which would supposedly low-paid (women, people of color, unqualified, young people, etc.). The majority of workers hired were young people between 16 and 28 years old, the percentage of women workers was up to 80%.
Taking into account the principles of economic theory, if the individuals complete the same work, they must be equally paid disregard of their gender or the color of their skin (Albelda et al. 2004).
The nature of the conflict inside of American society is unequal power and uneven access to resources. Zweig (2001), stated that in 2007 1% of households owned 49.7% of income-producing assets while only 12.2% of assets were owned by the bottom 90%. In accordance to Zweig (2001) less than 2% of poor people are able to move to middle or upper class if they were born in a plain family. Albelda et al. (2004) also pointed that the conflict of interests is always a drive for changes. This idea is supported by Cowie (2001) evidence: unfair wages and long unpaid working hours stimulated the creation of trade unions in the community.
In accordance with Albelda et al. (2004), labor divisions in the USA are centered over class, race and gender differences. Albelda et al. (2004) pointed out the same observations: in 2007 the top of 20 received 266.2 billion. Getting there must be good but the chances of getting on the top of 20 are very small because there are 153 million of Americans and only 6 million of US corporations. As well as Zweig, Albelda et al. (2004) addressed the issues of conflict of interests emphasizing unequal power relations between social groups.
Inequality can be traced in the income of black and white people. Despite of the development of democracy and high social standards, black people still get only 56% of the median salary of white people as of 1982 (Zweig, 2001).
Under statistics given by Zweig (2001), approximately 35% of Americans lived below the official federal poverty level as of 2009 while in 1995 this figure was 14%. There are 15.5% of young people living in poverty. Interestingly, 57% of them were adult people of working age (Zweig, 2001). Interestingly, workers who joined unions receive 20% higher wages than those who did not. Obviously, the activity of unions favors poverty reduction. However, observed remission of unions’ activity caused poverty increase that recently occurred.
Another interesting fact is that poverty mostly occurs among working class. However, it is not evenly distributed: the highest concentration is observed among colored people (blacks, Hispanic) and women. According to statistics, the percentage of poor blacks was 25.8, Hispanic – 25.3%, married women – 29.9%, single woman – 24% while the share of poor whites was only 9.4% in 2009 (Zweig, 2001).
Albelda et al. (2004) noticed the same tendency: to succeed you have to be a white male. The same statement was supported by Cowie (2001): those who differ from the dominating class are considered worse. Contrary to main economic principles, they consider that minorities should be paid less because they are different.
Although competitive markets lean towards equilibrium, it can be hardly achieved. Free market system is efficient but sometimes they need to be regulated by the government (Albelda et al. 2004). As neoclassical economic theory emphasize individualistic approach and striving for selfish interests, achieving equilibrium is impossible.
He described the logic of capitalism that is based on neoclassical approach follows the scheme: “making decisions based on opportunity costs and preferences, individuals maximize their personal utility” (Albelda et al. p.121). This approach is also described by Cowie (2001) when RCA constantly relocated production inside of the USA and then switched to Mexico when globalization discovered more opportunities to save on labor costs.
The problem of labor unions is that they cannot properly defend the interests of working class anymore. Many sources marked out a significant decline of their activity. They designate three main reason of weak activity of labor unions: poor financing, split inside labor unions and traitorous concealed coalition with corporations.
Cowie (2001) described the split inside of the trade unions. The problem was that there were two unions organized: the first union was organized by radio and electrical workers; another one was sponsored by the company. It was difficult to expect efficiency from the labor union which was sponsored by the company. The story repeats once again nowadays.
Zweig (2001) stated on the point that “Class warfare has a long and violent history in the United States” (p.191). He pointed out several reasons that hamper trade unions activity, among them the restrictions of federal and state labor legislation, unfair court judgments, administrative constraints regarding organizing of unions, complication of the procedures of collective bargaining, intervention of corporate ruling into the activity of unions.
Also, he outlined several perspectives regarding further development of political processes. He suggested increasing power of corporate giants, more opportunities for middle class and fewer perspectives for working people (Zweig, 2001). Thus, those who have money and power dictate their rules. Large corporations lobby their interests in the Congress, striving for significant tax brakes and relief of regulation of business regulation. Such a policy favors rich and powerful when they become richer and more powerful while working people remain at the same level as the best (Zweig, 2001).
Albelda et al. (2004) argued that collective behavior can be helpful in defending group interests. Labor unions are the power which is able to oppose unfair payments, discrimination and unfair legislation of labor relations. This is the reason why unions are constantly attacked by business structures. Cowie (2001) described the process when unionization began to develop in the territory of the US. RCA tended to hire women and other socially vulnerable populations for two reasons: to save on labor costs and to avoid resistance from their side. The strategy of hiring malleable workers justified itself since the company succeed to do so for seventy years. However, the process of forming labor unions was inevitable and the company had to relocate its production to another place exploring the same strategy easily once again (Cowie, 2001).
Today unions are affected by the government as well. Politicians engaged with corporative bosses lobbying the corporative interests in the Congress cut unions budget justifying their actions by the necessity to cover government deficit. Indeed, this was an attempt to weaken unions so they could not hamper corporation to get benefits from socially vulnerable populations (Zweig, 2001).
Cowie (2001) evidenced that unions succeeded to achieve many privileges for working class in the past. Union in Camden attained significant changes in 1936 shortly after labor unions first emerged: increase in wages and shortening of working hours. However, the company relocated its production to another region without any resistance form the government side (Cowie, 2001).
Recently wealthy corporations coalesced with powerful government in confrontation to the unions. It is difficult to fight for workers rights in this situation. The unions cannot lessen labor divisions without government support. Unfortunately, politicians prefer to defend the rights of the corporations while being elected representatives of American citizens they should rather fight for human rights. Zweig (2001) stated that it was the Republican Party that initiated financials cut of unions. Ironically, the Republican Party becomes more popular among young and poor people on the eve of elections 2012.
The situation that occurred in a public sector in 2010 is a good example of the policy called “divide and conquer” when public sector wages were cut for thirty-five years because public sector unions lost power. Attacks on public sector unions extended on all unions and led to imposing regulation aiming at weakening their activity (Zweig, 2001).
There were three studies examined in this paper to reveal whether there is a labor division in American society and whether this labor division can be eliminated with the help of labor unions. The evidence provided by Zweig, Albelda and Cowie revealed the truth regarding the current order of things: still, there are labor and class divisions in the USA society. Labor divisions in American society traditionally address class, gender and race. Unfortunately, trade unions cannot lessen the divisions of labor because of several reasons, namely: split inside the initial trade unions, coalition with corporations and weak financial support due to the world crisis.
Taking into account all said above, the problem of government support of labor unions should be addressed rather than the issue whether labor unions could lessen labor divisions in the US. Certainly, unions had significantly improved the rates of unemployment and contributed into fight against racial, gender and class discrimination at work, but now their activity is seriously constrained with rich and powerful. If the government cannot contribute into the development of labor unions, it has to stop hampering their activity at least.
This research showed that despite of multiple achievements made by trade unions they have to further proceed with their activity in order to reduce inequality in American society which experience the crisis of middle class. At the present high rate of unemployment, stagnation of wages dropped and growing inequality still take place.
References
Albelda, R., Drago, R.W., & Shulman, S. (2004). Unlevel playing fields: understanding wage inequality and discrimination. (2nd ed.). Cambridge: Economic Affairs Bureau, Inc.
Cowie, J. R. (2001). Capital moves: RCA's 70-Year quest for cheap labor. New York: New Press.
Zwieg, M. (2001). Working Class Majority: America’s Best Kept Secret. New York: Cornell University Press.
