Labor unions are a 19th century solution to a 19th century problem. The role they fulfill, as workers representation in the company, is still very much in need. How can we modernize labor unions to support the needs of the 21st century workplace?
Today's Washington Post has editorials for and against labor unions. While making for interesting reading, they both miss the point. Labor union membership has fallen from 32% of the American workforce, to less than 7%. Articles are written lamenting this fact, but none have discussed the true problem: The business model of labor unions no longer makes sense.
Tell me, in one sentence, why I should be a member of a labor union. What benefit would I derive? Job security, pension, better working conditions, all of these have turned out to be myths. GM is laying off hundreds of thousands of union workers in favor of offshoring. The airline industry has shown that you can ignore unions just by saying the right things in court. Working conditions have mostly already been handled, either by OSHA or by the threat of lawsuits against a negligent company.
Meanwhile, companies do not see any benefits of unionization either. They view unions as being monolithic and slow-moving, preventing them from utilizing their workers in the most efficient manner. To them, it's an extra layer of bureaucracy that hampers them. It's no wonder so many companies viciously fight to prevent unionization.
Unions need to transform themselves to become relevant in a 21st century service-based American economy. But how? Answer: Provide products and services that companies and employees want, in a format that benefits them.
First: Stop unionizing companies! That's a top-down approach that isn't working. Go from the bottom up: Anyone can join a union, no matter who they work for, and receive the benefits of unionization (see below). You want the people. Once a majority of the company is union, then you can start thinking about a closed shop.
Second: Offer services to the employee. Let them instantly see the benefits of unionization. Offer to manage their 401(k), even if they change jobs. Offer union healthcare! Pooling all union employees into a single healthcare system would allow for massive discounts for the union to leverage. Become, literally, the employee's HR department. The union should send a rep to advise the employee in case of company HR action, or if the employee complains about working conditions (long hours for white-collar workers counts!). Offer relevant training classes, and even basic training classes in obtaining a GED, money management, and other services. Offer discounted childcare to union members.
Third: Benefit the company. Offer to take over the employee's 401(k) programs, reducing corporate costs. Offer to allow the company to buy into the union healthcare program. Offer to arbitrate employee problems. Maintain a skilled labor pool for employers to help find workers, including part-time or temporary workers. Make the employer want to unionize.
The current concept of labor union is obsolete. Only by transforming themselves into a services organization that both employer and employee want can unions become relevant again.