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Greg Worden

Entrepreneur and Adjunct Professor of Sustainable Business, Worden Associates

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Are unions in the US still relevant?

Hostess is closing eliminating 18.500 jobs due, in part, to 5,000 bakery union members striking while the Teamsters had already accepted a deal. True, the company had been mismanaged but this appears to be an example of a union cutting off its nose despite its face. The US has some of the best worker-protection laws in the world. Is this an example of good union leadership or is it an example of unions acting as though it was still 1905? Are unions still relevant in the US today?

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    edward long 100+

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    Nov 18 2012: In your text you ask if this is an example of good union leadership. I think it is based on the purpose of a union being to empower employees in matters of disagreement with employers. This is a perfect example of that purpose being fulfilled. There was a disagreement between employees and employers; the union enabled the employees to put pressure on the employer; the employer chose to yield to the pressure and 18,500 families are facing life-changing events along with many more associated jobs and families. The union bosses collected the dues and did what they were paid to do. The final effect of the union's actions will be played-out in the coming hardship for tens-of-thousands of people. But, yes, the union did its job. What a job!
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      Greg Worden

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      Nov 20 2012: That's a good, balanced reply. You make a good point. The union leadership did exactly what it was paid to do. From an internal perspective that's great. From an external, societal perspective it's right to question whether the job should have been done at all.
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        edward long 100+

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        Nov 20 2012: Absolutely your question is right to ask about the relevance , or value, of unions today. Personally I say they do far more harm than good. I was speaking specifically to your sub-question about the Hostess debacle being "an example of good union leadership". Thank you!

    • John Smith 30+

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      Nov 20 2012: "The final effect of the union's actions will be played-out in the coming hardship for tens-of-thousands of people."

      The unions have to make an example: what happens in one factory can affect an entire industry, sometimes that means letting a mismanaged business go bust. See, if the unions had promised Hostess to cut everyone's wages to minimum wage then the next day every foodstuff factory in America would suddenly announce that it was in so much trouble that the only way to survive would be to cut everyone's wages to minimum wage (well, except for the management of course) and then other industries would follow and eventually they'd lobby congress to lower the minimum wage or just not raise it for many years (so inflation eats up people's wages). Union leaders have to think of the big picture. What good is having a job when you can't pay rent with your wage?

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