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Northwest Airlines Corp.

Labor Unions Show Signs of Renewed Aggressiveness After Years of Disasters

Strategic Insights

— 1 min read

Labor unions in the United States have shown signs of renewed aggressiveness in recent years, with a surge in major walkouts and strikes that has not been seen in decades. The strikes at Northwest Airlines, General Motors, Bell Atlantic, and U S West are just a few examples of the growing militancy of labor unions. Despite a decline in union membership and a slowing economy, unions have become more bold, driven by a tight labor market, combative leadership, and recent successes, such as the teamsters' gains in last year's U.P.S. strike.

Key Takeaways:

  • The number of strikes nationwide has risen to 394 in 1997, up from 374 in 1996 and its lowest level in 50 years.
  • The Bureau of National Affairs reported that the number of work stoppages increased to 226 in the first six months of 1997, up from 214 in the same period last year.
  • Union leadership attributes the increase in strikes to both a more confident labor movement and the hardheadedness of corporations demanding concessions.
  • Despite recent wage gains, the average worker's inflation-adjusted wages remain 3 percent below 1989 levels.
  • Union membership has declined from 35 percent in the 1950s to 14 percent, with the A.F.L.-C.I.O. aiming to increase membership by 3 percent a year.
  • Under the leadership of John J. Sweeney, the A.F.L.-C.I.O. has allocated $20 million a year for organizing and recruited nearly 400,000 new members last year.
  • However, union membership has declined by more than 200,000 since early 1996, and organizing faces challenges such as labor's negative image and lack of success in certain occupations.

Statistics:

  • 374 strikes nationwide in 1996, down from its lowest level in 50 years.
  • 226 work stoppages in the first six months of 1997, up from 214 in the same period last year.
  • 394 strikes nationwide in 1997, a significant surge in recent years.
  • Union membership declined from 35 percent in the 1950s to 14 percent.
  • $20 million a year allocated for organizing by the A.F.L.-C.I.O.
  • 400,000 new members recruited by the A.F.L.-C.I.O. in 1997.
  • 3 percent below 1989 levels, inflation-adjusted wages remain.

Sources:

  • The New York Times
  • Bureau of National Affairs
  • University of California at Berkeley
  • National Association of Manufacturers
  • Cornell University
  • A.F.L.-C.I.O.
  • Bureau of Labor Statistics
  • Economic Policy Institute

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