Company union 5348271 220918724 2008-06-22T05:51:05Z SmackBot 433328 Date the maintenance tags or general fixes {{labor}} A '''company union''', '''business union''' or, pejoratively, a '''yellow union''' is a [[union]] which is located within and run by a [[company]], and is not affiliated with an independent [[trade union]] (known as a "red union" in this context). Company unions were outlawed in the United States by the 1935 [[National Labor Relations Act]], due to their use as agents for interference with independent unions, but company unions were and are common in many other countries. Some labor organizations are accused by rival unions of behaving like "company unions" if they are seen as to have too close and cordial a relationship with the employer, even though they may be recognized in their respective jurisdictions as [[bona fide]] trade unions<ref>[http://www.afl.org/campaigns-issues/Phony_Unions/default.cfm Phony Unions<!-- Bot generated title -->]</ref>. Some business theorists suggest that a legitimate place exists for company unions in the modern world. ==Definition and theory== As with labor concepts like the [[works council]], the definition of a company union is not ironclad. Economist Leo Wolman wrote in 1924: "[T]he distinction&nbsp;... between trade unions and other workmen's associations is frequently a vague and changing one. What is today a company union may tomorrow have all of the characteristics of a trade union."<ref>Wolman, 21.</ref> The [[International Labor Organization]] defines a company union as "A union limited to a single company which dominates or strongly influences it, thereby limiting its influence."<ref>ILO.</ref> Supporters of company unions claim they are more efficient in responding to worker grievances than independent trade unions. Proponents also note that trade unions do not necessarily have the company's best interests at heart; company unions are designed to resolve disputes within the framework of maximum organizational profitability.<ref>Patmore, 10.</ref> Opponents use this same logic to argue ''against'' company unions. The independent nature of trade unions, they argue, provides them with an outsider's perspective necessary for just resolution of conflict. Furthermore, independent unions are able to propose large-scale changes to work agreements – such as overtime rules and salary schedules – whereas company unions usually address concerns on a smaller scale.<ref>Patmore, 11.</ref> Some opponents also claim that company unions are used as fraudulent institutions, purporting to represent workers while actually ignoring (or working against) the best interests of employees. However, at least one economist advances the idea that in the first part of the 20th century, many companies were hesitant to adopt the company union model, for fear that it might lead to support for an independent trade union.<ref>Reid, 151.</ref> A 2002 [[World Bank]] publication cites research from [[Malaysia]] and [[India]] which produced conflicting results as to the [[wage]] differential provided by trade unions compared to company unions. (Malaysia saw improved wages through independent unions, India did not.) The authors indicate the latter "may reflect the specific circumstances that prevailed in Bombay at the time of the study.")<ref>Aidt and Tzannatos, 58-59.</ref> == France == The first company union in France (Fédération nationale des Jaunes de France) was created by [[Yellow socialism|Pierre Biétry]] in [[1902]]. The yellow color was chosen in opposition to the red color associated with [[socialism]]. Company unions rejected [[class struggle]] and favored the collaboration of [[capital]] and [[labor]], and were opposed to [[strikes]].<ref>George L. Mosse [http://www.jstor.org/pss/259911 The French Right and the Working Classes: Les Jaunes] Journal of Contemporary History, Vol. 7, No. 3/4 (Jul. - Oct., 1972), pp. 185-208.</ref> According to [[Zeev Sternhell]], the company union of Biétry had a membership of about a third of that of the [[Confédération Générale du Travail]], and was funded by corporate interests.<ref> Zeev Sternhell ''a Droite révolutionnaire: Les Origines françaises du fascisme, 1885-1914'' (Paris, 1978)</ref> Moreover, also according to Sternell, there were close relationships between Pierre Biétry and [[Maurice Barrès]] and the [[Action Française]]. Thus, the company union of Biétry appears as an ancestor of the [[fascist]] [[corporatism]]. During the Nazi occupation of France, unions were banned and replaced by corporations organized along the fascist model by the [[Vichy Regime]]. The labor secretary of [[Philippe Pétain]]'s administration from 1940 to 1942 was [[neosocialism|René Belin]]. After the war, René Belin was involved in 1947 with the creation of the ''Confédération du Travail indépendant'' (CTI), renamed ''Confédération Générale des Syndicats Indépendants'' (CGSI) in 1949 as the original acronym was already used by ''Confédération des Travailleurs'' intellectuels. The movement was joined by former members of the ''Confédération des syndicats professionnels français'', a union created by [[François de La Rocque]] in [[1936]]. The CGSI declared that it was formed by ''des hommes d’origine et de formation différentes [qui] se sont trouvés d’accord pour dénoncer la malfaisance de la CGT communisée'' (men of different origins who agreed to denounce the malfeasance of the communist CGT).<ref>''Le syndicaliste indépendant'', special issue, march 1956</ref> CGSI developped mostly in the automobile industry, for instance in the [[Simca]] factory of Poissy.<ref> Jean-Louis Loubet et Nicolas Hatzfeld POISSY: DE LA CGT À LA CFT HISTOIRE D’UNE USINE ATYPIQUE ''Vingtième Siècle. Revue d’histoire'', '''73''', p. 67-81 (2002)</ref> In 1959, the CGSI became the ''Confédération Française du Travail''(CFT), led by Jacques Simakis. It was declared a representative union on [[January 7]], [[1959]], but the decision was overturned by the [[State Council]] on [[April 11]], [[1962]] following a lawsuit by the [[CFTC]] based on the funding of CFT by companies. In [[1968]], it organized demonstrations for the "[[right to work|freedom to work]]" to oppose the strikes organized by the CGT. In September 1975, Simakis resigned and denounced the links of CFT with the [[Service d'Action Civique]]. On [[June 4]], [[1977]] a commando formed by members of the CFT-[[Citroën]] opened fire on strikers at the ''Verreries mécaniques champenoises'' in [[Reims]] (then directed by [[Maurice Papon]]) in a drive-by shooting, killing Pierre Maître, a member of the CGT. Two other members of the CGT were injured. Following this incident, the CFT changed its name into ''Confédération des Syndicats Libres'' (CSL). In the continuity of the company union of Biétry, the CSL is in favor of the association of capital and labor, is opposed to [[marxism]] and [[collectivism]], and denounces the [[French Communist Party]] as a civil war machine. The number of adherents of CSL was never published, but in professional elections, it obtained from 2% to 4% of the votes.<ref>Results from professional elections [http://www.ladocumentationfrancaise.fr/dossiers/elections-prudhomales/elections1997.shtml 1987-1997] La Documentation Française</ref> In October 2002, the CSL disappeared as a national union as a result of lack of funds. It called its supporters to join the [[Force Ouvrière]] union in the professional elections.<ref>Elyane Bressol [http://www.ihs.cgt.fr/IMG/pdf/syndicats_libres.pdf Confédération des Syndicats Libres] [[Institut d'histoire sociale CGT]]</ref><ref>[http://istravail.com/article100.html La fin de la Confédération des Syndicats libres (CSL)] Institut Supérieur du Travail</ref> In the automobile industry, the CSL remains as the ''Syndicat Indépendant de l'Automobile'' (Independent Automobile Workers' Union). ==United States== Company unions were popular in the United States during the early 20th century, but were outlawed under the 1935 [[National Labor Relations Act]]. Recently, some politicians, economists, and management theorists have advocated for a reversal of this policy{{Fact|date=June 2008}}. ===Ludlow massacre and Rockefeller Plan=== In 1914, 16 miners and family members (and one national guardsman) were killed when the [[Colorado Army National Guard|Colorado National Guard]] attacked a tent colony of striking [[Coal mining|coal miners]] in [[Ludlow]], [[Colorado]]. This event, known as the [[Ludlow massacre]], was a major public relations debacle for mine owners, and one of them&mdash;[[John D. Rockefeller, Jr.]]&mdash;hired labor-relations expert [[William Lyon Mackenzie King]] to suggest ways to improve the tarnished image of his company, [[Colorado Fuel and Iron]]. One of the elements of the Rockefeller Plan was to form a union, known as the Employee Representation Plan (ERP), based inside the company itself. The ERP allowed workers to elect representatives, who would then meet with company officials to discuss grievances.<ref>Patmore, 9.</ref> The ERP was accepted by the miners, and its success in providing an alternative to negotiations with the [[United Mine Workers]] led other business owners around the country (and even overseas) to consider replicating it.<ref>Patmore, 10.</ref> In 1933 the miners voted to be represented by the UMW, ending the ERP at Colorado Fuel and Iron. Company unions, however, continued to operate at other mines in [[Pueblo, Colorado]] and [[Wyoming]],<ref>Bessemer Historical Society.</ref> and the ERP model was being used by numerous other companies.<ref>"Colorado".</ref> (The [[Brotherhood of Sleeping Car Porters]] was organized in part to combat the company union at the [[Pullman Company]].)<ref>Berman.</ref> ===Labor Relations Act and aftermath === {{main|National Labor Relations Act}} In 1935, the National Labor Relations Act (also known as the Wagner Act) was passed, dramatically changing [[United States labor law|labor law in the United States]]. Section 8(a)(2) of the NLRA makes it illegal for an employer "to dominate or interfere with the formation or administration of any labor organization or contribute financial or other support to it."<ref>National Labor Relations Act. [http://www.ourdocuments.gov/doc.php?flash=true&doc=67&page=transcript].</ref> Company unions were considered illegal under this code, despite the efforts of some businesses to carry on under the guise of an "Employee Representation Organization" (ERO).<ref>Bessemer Historical Society.</ref> In the mid-20th century, managers of high-tech industry like [[Robert Noyce]] (who co-founded [[Fairchild Semiconductor]] in [[1957]] and [[Intel Corporation|Intel]] in [[1968]]) worked to their organizations of union interference. "Remaining non-union is an essential for survival for most of our companies," Noyce once said. "If we had the work rules that unionized companies have, we'd all go out of business."<ref>CAFOD.</ref> One way of forestalling unions while obeying the Wagner Act was the introduction of "employee involvement (EI) programs" and other in-house job-cooperation groups. One company included them in their "Intel values," cited by employees as reasons why they didn't need a union. With workers integrated (at least on a project level) into the decision-making structure, the independent union is seen by some as an anachronism. Pat Hill-Hubbard, senior vice-president of the [[American Electronics Association]], said in 1994: "Unions as they have existed in the past are no longer relevant. Labor law of 40 years ago is not appropriate to 20th century economics." Author David Bacon calls EI programs "the modern company union."<ref>Bacon.</ref> In 1997, pursuant to a report from the Commission on the Future of Worker-Management Relations, Republicans in the U.S. Congress passed the "Teamwork for Employees and Managers" (TEAM) Act. The bill would have weakened federal regulations against employer establishment and control of employee involvement programs.<ref>DLC.</ref> Although the bill indicated that EI plans should not be used specifically to discredit or prevent union organization, trade unions in the United States vehemently opposed the bill. Jim Wood, an [[AFL-CIO]] leader in Los Angeles, said the "Team Act actually would take us backward to the days of company unions."<ref>Smith.</ref> [[President of the United States|President]] [[Bill Clinton]] [[veto]]ed the bill. ==Communist and former Communist nations== Trade unions in the [[People's Republic of China]] are often identified as ''government unions'', by virtue of their frequent close relationship with national [[Planned economy|planning bodies]]. Although [[Economic reform in the People's Republic of China|market reforms]] are changing the relationship between workers and the [[All-China Federation of Trade Unions]] (China's sole national trade federation), such as U.S. social critic [[Ralph Nader]] still say they are "government-controlled with the Chinese communist party turning them into what would be called 'company unions' in the U.S."<ref>Nader.</ref> In many [[Post-Soviet states]], including the [[Russia|Russian Federation]], the economic collapse of the early 1990s brought a sharp decline in labor activity. As a result, official union structures often function as ''de facto'' company unions.<ref>Riddell.</ref> ==Japan== {{main|Labor unions in Japan}} Company unions are a mainstay of labor organization in [[Japan]], viewed with much less animosity than in [[Europe]] or the [[United States]]. Unaffiliated with [[RENGO]] (the largest Japanese trade union federation), company unions appeal to both the lack of [[class consciousness]] in Japanese society and the drive for social status, which is often characterized by loyalty to one's employer.<ref>Hatsuoka.</ref> ==Mexico== {{main|Labor unions in Mexico}} In the 1930s, unions in [[Mexico]] organized the [[Confederation of Mexican Workers]] (''Confederación de Trabajadores de México'', CTM). The [[Political divisions of Mexico|state]] of [[Nuevo Leon]], however, coordinated its workers into ''sindicatos blancos'' ("white unions"), company unions controlled by corporations in the industrialized region.<ref>La Botz.</ref> ==Guatemala== {{main|Labor unions in Guatemala}} In 1997, the [[government of Guatemala]] received a loan for 13 million [[United States dollar|USD]] [[loan]] from the [[World Bank]] to privatize its [[seaport]], [[electrical grid]], and telephone and postal services. Canada Post International Limited (CPIL), a [[subsidiary]] of [[Canada Post]], and its partner International Postal Services (IPS), was contracted to manage the privatization process. In anticipation of union resistance, CPIL-IPS agents reportedly used company unions, along with [[bribery]] and [[death threat]]s, to ensure a smooth transition.<ref>Skinner.</ref> Company unions are also prevalent among the ''[[maquiladora]]s'' in Guatemala.<ref>Coats.</ref> ==Notes== {{reflist|3}} ==Bibliography== *Aidt, Toke and Tzannatos, Zafiris. ''Unions and Collective Bargaining: Economic Effects in a Global Environment''. Washington, D. C.: The [[World Bank]]. ISBN 0821350803. Online at [http://publications.worldbank.org/ecommerce/ World Bank Publications]. Retrieved on [[29 August]] [[2007]]. *Bacon, David (n.d.). [http://dbacon.igc.org/Unions/02ubust1.htm "The New Face of Unionbusting"]. Online at [http://dbacon.igc.org/index.htm David Bacon Photographs & Stories]. Retrieved on [[29 August]] [[2007]]. *Berman, Edward (1935). [http://newdeal.feri.org/nation/na35217.htm "The Pullman Porters Win"]. ''[[The Nation]]''. Vol. 141, No. 3659, p. 217. Online at the [http://newdeal.feri.org/index.htm New Deal Network]. Retrieved on [[29 August]] [[2007]]. *Bessemer Historical Society (n.d.). [http://www.cfisteel.org/index.php?pr=CFI_History_Overview "Colorado Fuel and Iron - Historical Outline"]. Online at the [http://www.cfisteel.org/ Bessemer Historical Society]. Retrieved on [[29 August]] [[2007]]. *[[CAFOD|Catholic Agency for Overseas Development]] (2005). [http://www.envio.org.ni/articulo/2784 "Clean Up Your Computer"]. Online at [http://www.envio.org.ni/index.en Envio Digital]. [[Universidad Centroamericana]]. Retrieved on [[29 August]] [[2007]]. *Coats, Stephen (1991). [http://multinationalmonitor.org/hyper/issues/1991/11/coats.html "Made In Guatemala: Union Busting in the Maquiladoras"]. [[Multinational Monitor]]. Volume 12, Number 11. Retrieved on [[29 August]] [[2007]]. *[http://quincy.hbs.edu:8080/lehman/company_histories/c/companyHistory.html?companyName=Colorado%20Fuel%20and%20Iron%20Corp. "Colorado Fuel and Iron Corp. — Company History"] (n.d.). Baker Library Historical Collections. Online at the [[Harvard Business School]]. Retrieved on [[29 August]] [[2007]]. *[[Democratic Leadership Council]] (1997). [http://www.dlc.org/ndol_ci.cfm?kaid=107&subid=297&contentid=626 "The TEAM Act"]. ''Talking Points'', [[July 24]], [[1997]]. Online at the [http://www.dlc.org/ Democratic Leadership Council]. Retrieved on [[29 August]] [[2007]]. *Hatsuoka, Shoichiro (1982). [http://www.global-labour.org/large.htm "Review Article: Organised Workers & Socialist Politics in Interwar Japan"]. ''Japan Quarterly'', No. 1, January-March 1982. Online at the [http://www.global-labour.org/index.htm Global Labor Institute]. Retrieved on [[29 August]] [[2007]]. *[[International Labor Organization]] (2005). [http://www.ilo.org/public/libdoc/ILO-Thesaurus/english/tr1971.htm "Company union"]. ''ILO Thesaurus 2005''. Online at the [http://www.ilo.org/public/libdoc/ILO-Thesaurus/english/index.htm International Labor Organization]. Retrieved on [[29 August]] [[2007]]. *La Botz, Dan (2007). [http://www.ueinternational.org/Mexico_info/mlna_articles.php?id=116 "Santiago Rafael Cruz, Labor Organizer For U.S. Union, Killed In Mexico"]. ''Mexican Labor News & Analysis''. Vol. 12, No. 4. Online at [[United Electrical, Radio and Machine Workers of America]]. Retrieved on [[29 August]] [[2007]]. *Nader, Ralph (2004). [http://www.commondreams.org/views04/1128-26.htm "Wal-Mart Ways"]. [[November 28]], [[2004]]. ''[[CommonDreams]]''. Retrieved on [[29 August]] [[2007]]. *Patmore, Greg (2001). "An Employer Response to Workplace Democracy: The Rockefeller Plan and the Fate of Employee Representation Plans, 1915-1935". ''Research Reports''. [http://archive.rockefeller.edu/publications/resrep/rr2001.pdf 2001 issue]. Online at the [http://archive.rockefeller.edu/publications/resrep/ Rockefeller Archive Center]. Retrieved on [[29 August]] [[2007]]. *Reid, Joseph D. Jr. (1982). [http://www.h-net.org/~business/bhcweb/publications/BEHprint/v011/p0150-p0158.pdf "Labor Unions and Labor Management: 1900-1930"]. Online at [http://www.h-net.org/~business/bhcweb/publications/BEHprint/toc111982.html Business and Economic History Online]. Retrieved on [[29 August]] [[2007]]. *Riddell, John (2005). [http://www.internationalviewpoint.org/spip.php?article575= "Review: David Mandel’s ‘Labour After Communism’: Auto Workers and their Unions in Russia, Ukraine, and Belarus"]. ''[[International Viewpoint]]'', IV365. Retrieved on [[29 August]] [[2007]]. *Skinner, Michael (2006). [http://www.dominionpaper.ca/foreign_policy/2006/10/06/postcoloni.html "Post-Colonial? Canada Post and the privatization of Guatemala"]. [[October 6]], [[2006]]. Online at ''[[The Dominion (newspaper)|The Dominion]]''. Retrieved on [[29 August]] [[2007]]. *Smith, Jim. [http://www.lalabor.org/Team_Act.html "TEAM Act threatens labor"]. Online at ''[http://www.lalabor.org/ L. A. Labor News]''. Retrieved on [[29 August]] [[2007]]. *United States Congress (1935). ''[http://www.nlrb.gov/about_us/overview/national_labor_relations_act.aspx National Labor Relations Act]''. [[United States Code]], [[Title 29 of the United States Code|Title 29]], Chapter 7, Subchapter II. Online at the [http://www.nlrb.gov/index.aspx National Labor Relations Board]. Retrieved on [[29 August]] [[2007]]. *Wolman, Leo (1924). ''[http://books.google.com/books?id=li64S60enn0C&printsec=frontcover The Growth of American Trade Unions, 1880-1923]''. J. J. Little & Ives Company. Online at [[Google Book Search]]. Retrieved on [[29 August]] [[2007]]. [[Category:Trade unions]] [[fr:Syndicalisme jaune]]