COMPANY UNIONISM---IS IT A CHALLENGE TO LABOR?
Dunn, Robert W.
Company Unionsm - - - Is it a Challenge to Labor? Robert Dunn Condemns Them as a Great menace; Ordaway Tead Finds They Have Virtues By Robert W.Dunn ||l£Us} wide range of welfare expedi¦Jm:...
...Ordaway Tead Finds They Have Virtues By Robert W.Dunn ||l£Us} wide range of welfare expedi¦Jm: Odts now employed by -American P^'^ja«ployera conailtutee '» definite IphMkAge to the trade iTutou inureuiesAy pBafJHWations, large and sfnanV bavy^njr to reseat years adopted a most extra^h>g variety of devices which,—taken at jtfiimr$u» value—are designed to make Volet of the worker in Industry rootfe tosnune, comfortable, and sgriiijaMg Pto make the worker himself <£s and obedient to the corporfil|pr K .Asacng the activities, usually set up lad supervised by a labor manager, a Stojwlu* or personnel director, are such §|t the following: Employees' mutual Shnett associations, with atokneee and rpher benefit features...
...8. in spite of all 'no-discrimination' clauses, agitation for real trade unionism almost invariably results in the discharge of the 'agitator.' >. rieclsion of the committees apply only to one plant...
...In this way they • heps to bring in what they term the •hew era In Industry...
...The other tactic is the now quite popular one of boring from within...
...This is true and it constitutes, for the present at least, a real limitation upon their power and influence...
...abep committees...
...in other words, bigger profits, 3a*Jre and cheaper production...
...The Employers' Objects m establishing the various' 'plans Jkf services for the workers, employWife not moved to any great extent humanitarian or altruistic considAatlons...
...Z might well take considerably, more time than is possible to set forth the educational values for the workers which their sharing in the determining of production standards have brought about...
...eorts of onions are eligiMvnnncr the A. F, of 1L, to organise, the p^itkern...
...and Indus'trial assemsatea...
...The answer to this question seems to me to be clearly 'yes.' But we are confronted with a condition and a tendency which seems as irresistible as the tides...
...Instead of permitting the shop committees to remain merely passive and advisory hiidlan called together at the whim of th* labor manager to discuss Inconsequential matters uuad to find out "what** on the worker's mind," th* boism withm it should strive to make it serve the workers in adjusting their mal grievances concerning wages, hours, and other vital matters...
...From-my point of flew it is as idle to disparage employee representation plans in comparison with trade unions as ft would be idle to say that we do not need state government because we have city government...
...This activity does represent an effective protection from anxiety and destitution for thousands and thousands of manual workers who could never have afforded to purchase the quantity of Insurance and free ' attendant service that the group basis allows...
...But it does seem to me that where no union has ever entered or tried to enter and where employees have never had sufficient...
...r '« "V - Taetiee fef feit% f^mpfey IMse) This raise*Tth*cVhoIe qfcstlon ef shp'tacues U&*\L pjnrmtee syrsasah unions ag t»1»4mLsm 4« «»A to challenge the away of the company organization.' There seem te be open at least tare clear-cut method* of' fighting tie company aAichwd ay sndtsnT on the strength of Oka...
...I suspect, however, that* It will be found as experience develops that intelligent organization and a reasonable degree of democratic organization in industry will come to much .the same thing, and be two different ways of saying the same thing...
...The "golden rest" and "the corporation with n sen...
...The employer may also have fit sxiad the acquirement ot a reputsfsm la the community as a "progresewe" employer, one who emphasizes ess "service" ideal and who may perhaps gain considerable advertising advantage from the proper capitalisation .ef this idea, fitness" the excellent copy prepared for tho Standard Oil Company of Indiana which appears regularly in the advertising section of th* American Federationist...
...V. Provisions Against Unemployment...
...thrift schemes...
...4.- , No eepirnxe mess aisstlngs of th...
...OtJber* ashrat that th* company aseo«t*Jtfen does gfre the worker at least ^•>sppjaanee of self-expression in mat...
...Persons who hire had occasion to look into the .JgjLentalled .by specific corporations jbnprrying what is known as a "wellJMeAed welfare program" have found Ai| ft comes to but a fraction of the iisjsjiiI that would be necessary to grant the workers a 10 percent inesssM in wages...
...rank and file...
...f sweeny naton and the condition* existing in th* chaV longing trade union, as wen-as fn the plant or corporation In vol MA' One heopen struggle and exposure, ssjch mm attacks in the trade union ^prea*,.aneT the .circulation, <** **1»P PPpera snch es have recently heejr edited by trade anion elements in company unton strongholds like the Westmghoess Electric A Manufacturing Co...
...I make no extravagant claims, for this development...
...Then we have a considerable number of companies that hare been "only sporadically harassed by labor organisers and whoso workers h>ve never: been successfully organized Into trade union...
...No organization in any one plant can have any effect upon them...
...Are the Trade Unions at Fault...
...aad even ni theee tn* eosnmfttee* haarp Benapy otfty...
...Workers in company unions have no collective political power, nor can they fight for labor legislation...
...Stock Ownership' » TH...
...The critics and opponents of employee representation offer it as an objection that these organizations have been almost 100 percent initiated by employers...
...safety and sanita* Ostt >»|Miilll...
...First, wo may 1 mention the benevolent car htrmanltsrlnm type of employers Just 'referred to...
...A Defense of Company Unionism ¦ ¦ * ¦ * O'KB'weald be wholly lacking in realism who did not realize that a certain amount -of deliberate intention and organised activity ot a repressive sort has been behind certain of the employer efforts mentioned above...
...trpeoj anst, strsawth ad akej works connutfts new .-^fupeCleciaeT 1st-' such great ptanta as thnengshthe Beth* lehem Stael ^rpafatlpn...
...T am not claiming In short, that a millennium Is soon coming out ot tho new tactics of employers...
...In the management of industry today there are specially designated managers giving full time and attention to the eonduct of all the numerous affairs which relate to the effective application of labor by the workers.' Several hundred of the largest companies have extensive budgets devoted to the conduct of this work, and• the-personnel executives are definitely charged with the responsibility of keeping in the forefront of all managerial thinking the problems of the workers' attitudes and conditions...
...Everyone who has watched the growth of the company union has attributed the ease of some of its advances to the pathetic divisions- existing among the workers as a result of tho ancient craft unions existing among them...
...Mr, William Green and Mr...
...Employer Objectives What are the employer's objectives in introducing the company union as admittedly-,-these schemes are outlined, prepared, and introduced through the initiative and force of the company management, and not through the...
...To this weakness should also be added the general hesitation of the eligible trade unions and their lack of militancyiwhen faced with the problem ot organising the unorganised, particuranch th* e^rs^soA" The rAi it llaf g* J^T: ohtetotsv berve)AaeA eicedl thai snililispj -berths ^ vnhma w^^m^» nnsaber...
...If all the present activities which assure the sipsisnt Anpaunt -of prosperity Abe the current heightening of the material comforts of people dull their interest In self-determination in industry, will a wholesome state of...
...And there is no doubt hut that Its...
...UnJMlsit does so it is sooner or later jsjtognized as a liability-and abanJMMd, often in connection with a ^page in management, as, for exdsspie, in the case of the American JtfcOieu Company two years ago, and Jg the -case of Morris & Company's £spelidation with Armour- dp Comssny...
...company-devised program for giving the workers some legislative function concerning even the most insignificant matters or snievanoes arising in the shop, plant, or works is now given this- nam...
...The employers' unions and aatoctotiona, on th* other hand, cover the industry...
...The Standard Oil interests and the Rockefeller steel mill are of this type, as are the Pacific Mills, tho Pullman Company, the Goodyear Tire and Itubber Co., and the International Harvester, ' Labor's Argument . When the trade unions have awakened to the real menace of the company unions and denounced it at succeeding conventions of the A. F. of L. they have argued correctly that the company union is a weak and ineffective instrument for workers...
...When anything hut 1 old-fashioned piece work' is done, payment for production can only be undertaken satisfactorily when Production methods, bare been studied and measured...
...Group Insurance...
...They have a genuine concern tor the souls of their workers, and are oon« vtneed that experimentation with the 1 "freedom and responsibility* permitted under employe...
...Kutual benefit associations, [safety committees and a few other types of associations are usually excluded from the category, but any plan that offers tho workers any slight'participation in conference, even of tho moat advisory character, on shop problems Is now referred to in the labor movement as a company union...
...standpoint that It was sound structure to have a conference group at each level beginning with the shop, going next to the local district, then to the state, and then to the national organization...
...Personnel Departments ^ The activities are as follows: I. Personnel Departments...
...Employee Representation.' One special .phase of personnel management has been . the encouragement of organised group activity under which conference and negotiation could take place with employees in an organized' way...
...And they are...
...f*jrn ipatparntiig his imtaedlats worhlnf rife, and'that the employers* eiogna «f *One Big Family* makes a more Srnmediete sentimental appeal^ at least in timer ef' relative prosperity and Job ¦*f?ui H'r, than do the conflicting hot** «jr tae enf*W business type of trade enasxp wrangfing over Juriedlction and per capita...
...Functionally viewed, the shop committee has its area of Jurisdiction, and the labor union has Its area of Jurisdiction...
...affairs be brought about...
...The result in what the League for Industrial Right* cell* 'factory solidarity* aa opposed to -'class solidarity.' Ceenpney Uniene •One of the rdkjor devices now employed sp achieve company loyalty and eliminate labor agitation is the company union, a term applied by the trade anion movement to systems of 'employe rweccscntatlonT through works eouncUs...
...And the result has been that the use of scientific management methods Is now going forward with much more satisfactory results to all concerned...
...This whole drive to get work on to a regular basis which minimises seasonal slumps and assures^ steady employment Is one of the most encouraging evidences of what can be done by persistent education work among industrial managers...
...Why the worker In any, plant will submit to the company union is a problem puzzling the minds of many a tonste sasken ese^wdser Same oontsnd that the wnrher without any trade union beekgrmmd or with only a very ahe'low nejMrtfane trade union experience, seen some advantage in getting a~ anion '•without does,' and that ato Taakee npst for n bmrnein bands btos %Bgh» Ps*T* fundamental dangers In an employer - controlled organization...
...peV, sePsat purposes usually justifies itself ^gf »yquite profitable Investment...
...7. The works cpnamjttbs# covers only, on* plan or company...
...Certainly, thto weond* en th* surface hotter than .the old crsjb-conscion*, and hesitant inrvhAtiens of the trade tsnfona, Is the OAneral saectffil Company, fa* example, a, dozen...
...complimentary and not opposed...
...The failure of these craft bodies to fuse into a solid front in order to attract all the workers in a given plant, rather .than Just a few of the higher skilled or better paid, is one of the important explanations of the rise ot company unions...
...t , ». it' concerns itself *eetely with non-rttnl ntnturn and *e*Uyari«vanees...
...All the workers in one company anion, -no- dlsielsaiasllsii Aeeansje...
...It may be concluded 4pm this that a carefully conceived end scientific program of service activities is usually a paying proposition if it keeps down agitation and tends to hamunize the workers against the temptations offered to them, -by trade nnfcm organizers to seek higher wages, nborter hours, and ether substantial benefits to be won through union activity...
...Employee Representation Tf...
...Then ere have the more hard-boiled types of employers and corporation* which, while perhaps varnishing their motives hi much the same verbiage as the really humanitarian employee, are chiefly interested in the company unions to dispose of the existing trade unions...
...representation, t* nothI lag more than their Christian duty Some of these employers also have n certain scientific interest in seeing th* capitalist industrial machine progress with the- fewest possible hltohe...
...On the other hand, they may often be used to serve the political and legislative purposes of the employers...
...The conflicts between the various unions competing tor the same Jurisdiction either in or out of the fold of the A. F. of L., has had tho same effect upon the growth of company unionism as has the persistence of the antiquated craft unions mentioned...
...jjjSfJBilk'1* of the above counts ¦s^eapsndUure for welfare'and...
...Most people would agree that there is no issue here, that we...
...As against this narrow craft solidarity the management offers the "factory solidarity" alternative...
...yjsl to hoped to the Anngstjsitohjg ¦ JisjBhiJ npdoan that threeten^^wy^tb^^ont *He» t»^r*tel!uen*a...
...They expect from these acisWtles concrete benefits to the busf:'sess...
...This has been true in the printing trades and the garment trades ¦/here it was recognized from an organisations...
...This of course raises the whole question of industrial unionism as against craft sectionalism and the part tp* latter'plays in exposing the workers p> the-appeals of company unionism...
...They contend that': 1. It ha* absolutely no bargaining ******* enhTsdC-:'h*} If, «*SMsdh*t' nafn upon the abStty toejtofke, a. it b*n n» tiesafary or no Tprwnwbd strength...
...It would be a bold man who would suggest that it would be better for this country to have a succession of Passalcs rather than a succession of Intelligently run plants like Dennison's or Filenes, or many others which might be named...
...But a truly realistic analysis must admit that there have been mafiy industries and literally many millions ot employees who have not been organised and who...
...eftorts ot the workers...
...Another weakness in the present trade union situation 4s, of course, the persistence of dual unionism particularly in such Industrie* aa textiles...
...May I ask that you try...
...The Changing Uses'of Scientific Manegsment: The idea that wages should be paid not merely' for the time spent at work, but In more definite, relation to production seems simple enough, but it has .gained' headi way very slowly...
...or jsaore...
...Wimaaa Z. Foster both approve of it 00 there ought to he no questioning its value as an effective trade union answer te the company anion art rite Mow, The idea, of course, is to hare ail loyal nienihern of the trade union work aa energetically as possible within the works council in order to bring real demands before the Joint conference and sheer up the inability of management hp grant these demands...
...enrhAtons of the welfare theme, sueh eh ssrvtee pin associations, veterans' JMa\ Athletic teams, payroll propsfj^isidtes, and even country clubs...
...Practically all the htg ceenpaaiea present.' the'.sen^e'sttnatien, the antomobile, the rubber, the ^ectrical and other such Industries .lilustrattng^ the1'weakness' of the oWfnahleneet craft unions .in the face of npjnern- hW»«-*csJe...
...and~a hundred tnaaa...
...profit* shoring and boypseesj^ company, insurance and pen'snssfcsciiipany magazines...
...Whether or not as...
...use was abused at the startIn the last few' years, however, there has been a notable development of onporJsaent* arbore the whole deterthey are called has been under a Joint supervision of either trade unions and employers, or shop committees and employers...
...May I make it quite clear that I appreciate fully that employee representation cannot bring about equality of bargaining power...
...An address before the League torn Industrial Democracy...
...there is today characterizing its operation, is not a question Car u* tn'Anseier...
...adrlaory Mactloa...
...Put another way, may prosperity be the enemy of democracy...
...10...
...And I further point out that under any scheme of industrial ownership and control this type of executive consideration and functional organization would have to obtain...
...is rather a problem ot the' spiritual integrity ot the next generation...
...As a ^Un* they hope to realise such benefits the form of reduced labor tumtver, long service records, enhanced tayalty, contentment and morale, as wen as freedom from labor troubles, Isereased productivity, lessened labor east, aad*ample labor supply at all eases...
...However, they have been far- | sighted enough to prepare against the advancing tide of unionism...
...Under scientific management it was first applied...
...eVorhern are* psrmttlsa hnder the company untoo...
...Prosperity and Democracy There is one big question which this whole discussion raises which should be frankly faced...
...I merely say that to an unprecedented degree factories and stores- in this country are being run by people who are mindful of the rights, interests, desires and aspirations of the...
...buildlid siltluan plans...
...baffled employers...
...are other terms used by en•^¦stoetic supporters of tats approach "man problem" in Industry...
...Group Insurance IV...
...meat packers...
...These plana represent also an implicit recognition.on the part of employers .that employees have a right to something besides their weekly wages oat of the income from industry...
...Apt contptny brass bands...
...company may...
...have never had the benefit accruing from collective bargaining...
...it can only arrive if it operates through the efforts of an informed and understanding electorate—an electorate brought to understanding by the kind of participation in affairs which the matters here under review have brought irijp existence...
...W ho lnuklng Crohn th*^'jspn> oral "world of enter...
...this studying and measurement of production took "place under exclusively employer control...
...9esja> , corporations develop this «ro*)jani •fcsry' extensively in the attaovpV- toksaake tho plant the source "ahd «e*ttr of all good things in tho - wortort dbclgi life...
...And the fact that it happens to he good business in no way detracts from the equally Important fact that it is < a splendid thing for the employees involved...
...In a certain few labor unions which have for some time conducted collective dealing with employees the' use of some form of shop committee las been recognised as a sound part it the plan...
...Stock Ownership and" Profit Sharing...
...For the experience with these plans is conclusive that their educational value is tremendous for both managers and men and that they facilitate the negotiation of terms of employment and the prompt adjustment of grievances...
...stock subStrsybMp plans...
...have to go on acting as intelligently and as humanely aa we can with .the processes of industrial reorganization...
...wage aTroaauhig, orarX skin, or sea...
...r .S...
...Indeed, in government employment much of this work ha* already been taken over and copied from industrial management procedure...
...initiative to organize and affiliate with a trade union there is a substantial educational gain in the institution of a Joint conference plan even If the employer Initiates it...
...tndu*try--bi the { face of the company organise Hon with its many inducements to the workers to be loyal to the company rather than to some petty guild of skilled draftsmen to which only & fraction of the workers are* eligible in any event...
...Thin tact ¦ in Itself ntelten Jt~ tsstoi for the company to ofpeja,tha deer to all wnrher* And to tnelta, then* to enter ecjually ¦ tntir- such ''freedom, fraternity...
...I am contending, however, that these tactics represent the setting at work of a number of educational forces the like of which have literally never been seen before.' "And' I am quite clear that whatever industrial democracy may turn out to be if aad when it comes...
...By thto tactic, If properly carried oat, the whole company anion farce may be shown up and the workers made to lose confidence in it and tp Join th* trad* union instead...
...Jms the final veto- fn ail matters...
...cere te> grant them...
...NO experts, etattsflcisna, ssnryers and other- ad rlssre -see' permitted to resreeent the workere in conference arid bsrgalntng "*i*r*'f*f «. Control in Joint • eocamittees to ueuelly nefd ny empsoyera, and in meet oases the managsainiil...
...to view these activities, fors the moment at least, not as a conspiracy, but as the experiments or frankly puzzled and groping Individuals who have found themselves charged with large executive responsibilities...
...Broader factors affecting the whole Industry determine wages, hours and basic conditions...
...spat what' not.' as the...
...work* connc 11a plop committees or employee rapresap-jbkase plans—these three being known '*> tisr^rade -union movement as comahuy^teions...
...But to explain the amount of activity which all this change in the last 15 years represents as due to cool calculation, selfish motives, cunning foresight on the part "of a little group of super-men, tends to give an unduly simple picture and one much'too flattering to the groping" random, puzzled and experimental activities of a great number o£*3R*tered...
...industry is more intelligently organized In another generation, there proves to be less democracy than...
...The net result of all these activities In many 'cases seems to be what the employer expects—an increased loyalty to the firm, a greater dependence upon ltd welfare features, and an acceptance oT fheecTeetures as a part of the payment for' the Job, - Tfck* fination of loyalty upon thc^emphSrer ba just so far alienates tst* v WWpyj faPin his fellow workers in the rtcSsaVV «t large, and leads him' to idenftfy his 1 individual Interests with'those of .the company rather than With those of hi* class...
...Also I agree fully that equality of»bargaining power is a fundamental condition of sound relations...
Vol. 3 • July 1926 • No. 27
