Contract Bargaining
When a union becomes the representative for a group of workers, the union begins meeting with management to bargain a contract that sets the pay, benefits and other conditions of employment for those workers.
Unions have a lot to say about contract bargaining. For example, this is from the International Association of Machinists union (IAM) web site:
IAM organizers also handed out this
leaflet at SunCoke’s Middletown facility:
There are two things union want you to believe about contract bargaining:
1. You can't lose in contract bargaining - you start with what you have and go up from there.
2. You'll be the one who decides what the union accepts or rejects at the bargaining table - you'll be in charge.
Neither of these statements is true.
1. You DO NOT start with what you already have and go up from there in contract bargaining.
Contract bargaining does not always end with increases in pay and benefits – no matter what the union promises. Workers can, and often do, get less than they had before as a result of contract bargaining.
In fact, the courts have ruled that:
"The United States Government and the N.L.R.B. do not guarantee workers that the collective bargaining process starts from where you presently are in wages, insurance, pensions . . . and all other conditions of employment . . . nor did the government guarantee that you will lose no benefits . . ." (Automation and Measurement Div., Bendix Corp., 69 LRRM 2157)
“Collective Bargaining is potentially hazardous for employees and as a result of such negotiations, employees could wind up with less benefits after unionization than before.” COACH & EQUIPMENT SALES CORP., 228 NLRB No. 51
Do unions know this? Of course they do – they’ve bargained plenty of contracts that have cut workers’ pay or benefits. Here are two examples:
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Even after going on strike at Caterpillar, the International Association of Machinists approved a six-year contract that lowered workers’ benefits and froze the hourly pay for many. Click here to learn more.
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After striking for 181 days at FairPoint (the longest strike in the country during 2014), the International Brotherhood of Electrical Workers approved a contract that called for cuts in retirement and medical benefits. Click here to learn more.
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The IAM approved an eight-year contract extension at Boeing that called for a pension freeze and increased health insurance costs for workers. Click here to learn more.
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The United Steelworkers approved a seven-year contract with Harley-Davidson that froze wages and required workers to pay more for health care expenses. Click here to learn more.
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The Teamsters union agreed to a contract with ABF Freight System that called for an immediate 7% wage cut and allows the company to use non-union drivers. Click here to learn more.
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The United Steelworkers approved a contract with the Carlyle Group covering a refinery in Philadelphia that reduced pension benefits and cut payments for overtime. Click here to learn more.
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At New Process Steel, members of the IAM voted against the proposed contract because it contained numerous take-aways. But the contract was approved anyway, much to the surprise of those members. Several even contacted company management to complain about the contract voting process. Click here to learn more.
The contract voting ("ratification") process used by the IAM at New Process Steel is the same process most unions use.
It's important to understand how most unions hold votes on proposed contracts.
They do not ask their members, "Do you want to accept the contract, yes or no?" Instead, they force members to choose: accept the contract (whether you like it or not), or go on strike.
For example, the IAM uses the two ballots shown on the right - - - - - - - - - -
The "Contract Vote" ballot asks members whether they
accept or reject the proposed contract.
If a majority of the members who actually vote REJECT
the contract, the "Strike Vote" ballot is distributed.
If 2/3 of those who actually vote say "Yes," there's a strike.
But as the fine print at the bottom says, if less than 2/3 say
"Yes," proposed contract is automatically accepted -
even though the majority voted against it!
Other unions use a ballot that looks like the one below:
Why do unions force members to vote this way. Here's what the IAM says:
In other words, it's the members' fault that the union can't get them a good contract. Because the members aren't willing to give up their pay and benefits by walking off the job, the union says "our negotiators have no strength."
2. Workers do not control the union’s side of the bargaining table.
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The United Steelworkers Constitution says:
The International Union shall be the contracting party in all collective bargaining agreements and all such agreements shall be signed by the international officers. Article XVII, Sec 1, p. 70.
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The International Brotherhood of Electrical Workers Constitition says:
All bylaws, amendments and rules, all agreements, jurisdiction, etc., of any kind or nature, shall be submitted to the International President for approval. No Local Union shall put into effect any bylaw, amendment, rule or agreement of any kind without first securing such approval. All these shall be null and void without International President approval. The International President has the right to correct any bylaws, amendments, rules or agreements to conform to this Constitution and the policies of the I.B.E.W.
Article 15, Section 6, p. 45.
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The Utility Workers Union of America Constitution says:
All contracts entered into by local unions shall be between the employer and the National Union on behalf of the local union involved, and shall be signed by local officers and a designated representative of the National Union.
Article VII, Section 4, pp. 24-25.
Here's an example that shows who's REALLY in control of the union's side of the bargaining table:
The request: in 2013, Boeing went to the Machinists because the company wanted to renegotiate the contract that covered 30,000 union workers, even though there were three years left on the existing contract. Boeing was very honest about their reasons: they wanted to reduce their labor costs; that is, cut wages and/or benefits for thousands of workers represented by the IAM.
The promise: the IAM could have refused (and 30,000 workers probably wanted them to). But they didn’t. Why? Because Boeing said they would build their new airplane and hire thousands of new workers in Seattle if the IAM renegotiated, but go somewhere else if they didn’t. Millions of potential dues dollars for the IAM were at stake.
The contract: Boeing and the IAM negotiated a new contract that called for major reductions in worker pensions, 300% increases in employee payments for health insurance, 100% increases in employee co-pays, and major cuts in wage increases.
The vote: IAM members didn’t care whether the IAM got millions more dollars in dues; they wanted to protect what they already had. When the vote was held, 67% voted against the contract.
But that wasn’t the end: the International Union ordered another vote. This time it was in December, when nearly 25% of the members were away on vacation. In order to vote, members needed an eligibility card – and the IAM neglected to mail cards to thousands of members. Members who didn’t get cards had to go to the front desk of the union hall to ask for one. Since there were only 3 people working to check the membership rosters, thousands of members spent two hours or more waiting in line -- out in the cold.
The final vote: it was no surprise that far fewer members voted in the second election. The contract was just barely approved, 51% to 49%. Many members were angry: IAM District 751 spokesperson Connie Kelliher said: “Members are very upset…our international president forced this vote…”
To learn more, click here.
In contract bargaining, nothing is guaranteed. You could get more than you already have (unions say or imply that you will), or stay the same, or end up with less than you had before the union was voted in.
And it's the International Union, not the local union and certainly not the members, that controls the union's bargaining.