Job Losses Erode Union Membership (February 23, 2004)
Created by: Administrator,Last modification on 23 Feb 2004 [06:00 UTC]
Ongoing layoffs and the anti-union posture of the Bush administration are slicing union membership. The Bureau of Labor Statistics recently released new data on union membership for 2003, documenting the ongoing decline in private sector unionization. The number of workers who are union members fell by 369,000 to 15.8 million.
The AFL-CIO reports that its unions added 142,000 new members in 2003, but the BLS data indicate that it lost substantially more in the ongoing round of layoffs. The number of initial representation elections conducted by the National Labor Relations Board also fell last year, from 2,871 in FY 2002 to 2,659 in FY 2003.
The overall percentage of wage and salary workers who are union members dropped to 12.9 percent last year, down from 13.3 percent in 2002 and 20.1 percent 20 years ago. The portion of workers represented by unions fell from 14.5 percent to 14.3 percent, with almost all of this decline occurring in the private sector.
The 2003 BLS data reveal the following trends:
Private sector. Virtually all of the decline in union membership occurred in the private sector, where membership dropped to 8.2 percent in 2003, down from 8.5 percent in 2002 and 11.2 percent ten years ago. The unionization rate for the private sector has fallen by about half over the past twenty years.
Public sector. The portion of government workers who are union members held relatively steady at 37.2 percent, down slightly from 37.3 percent in 2002. Membership declines in federal and state government were largely offset by gains in local government, where union membership rose from 42.3 percent in 2002 to 42.6 percent in 2003, the highest level of unionization in any sector of the economy. Unionization rates in the public sector have been roughly stable for the past 20 years.
Manufacturing loss. Most of the decline in private sector union membership stemmed from substantial employment losses in manufacturing, where total employment dropped by 257,000 in 2003 and the number of union members fell by 226,000. The portion of manufacturing workers who are union members fell from 14.6 percent in 2002 to 13.5 percent in 2003, with the sharpest losses in the durable goods industries.
Wholesale and retail gain. Losses in manufacturing overshadowed gains in the wholesale and retail trades, where employment rose and union membership increased from 5.9 percent in 2002 to 6.2 percent in 2003, with most of the growth in the retail sector.
Transportation and utilities. This sector, which reports the highest unionization rates in the private industries, lost jobs in 2003 but increased union membership by 11,000. In 2003, union membership in transportation and utilities rose to 26.2 percent, up from 24.7 percent in 2002, with most of the growth in utilities.
Information services. Union membership declined in all industries within this sector with the exception of broadcasting, which showed gains in both employment and unionization. Telecommunications employment rose slightly but union membership fell from 23.1 percent in 2002 to 21.0 percent in 2003.
Education and health services. Employment rose by 547,000 jobs in private educational and health services, but union membership fell from 8.5 percent in 2002 to 8.0 percent in 2003. All of the employment gains occurred in the heath care industry, but union gains did not keep pace with job growth.
Hotels and restaurants. Employment stood still in the hotel industry but union membership rose from 7.6 percent in 2002 to 8.3 percent in 2003. In the much larger food services industry, employment increased marginally but union membership declined from 1.2 percent to 1.0 percent.
Financial and business services. In these two large sectors, unionization has always been low. It declined in 2003 in the professional and business services industries, where job losses were sharp. Unionization in financial services ticked up from 2.0 percent in 2002 to 2.1 percent in 2003 in the wake of small employment gains.
State declines. Union membership rates fell in 33 states in 2003, with the largest declines in the large industrial states. Rates rose in 15 states, primarily those where employment remained stable or where job loses occurred but fell disproportionately on nonunion workers.
Wage differential. Union wages grew faster than nonunion wages in 2003, so the union wage differential rose from 25.7 percent in 2002 to 26.9 percent in 2003. If benefit costs were factored in, the total compensation differential would be much larger because unions were able to preserve benefits for their members in 2003 to a much greater extent than nonunion workers were.
Ongoing job loss in the manufacturing sector, soft labor markets in the rest of the economy, and the anti-union posture of the Bush administration will continue to slice into union membership rates in 2004. Decisive changes in the employment picture and in political leadership will be needed to reverse the decline.
The AFL-CIO reports that its unions added 142,000 new members in 2003, but the BLS data indicate that it lost substantially more in the ongoing round of layoffs. The number of initial representation elections conducted by the National Labor Relations Board also fell last year, from 2,871 in FY 2002 to 2,659 in FY 2003.
The overall percentage of wage and salary workers who are union members dropped to 12.9 percent last year, down from 13.3 percent in 2002 and 20.1 percent 20 years ago. The portion of workers represented by unions fell from 14.5 percent to 14.3 percent, with almost all of this decline occurring in the private sector.
The 2003 BLS data reveal the following trends:
Private sector. Virtually all of the decline in union membership occurred in the private sector, where membership dropped to 8.2 percent in 2003, down from 8.5 percent in 2002 and 11.2 percent ten years ago. The unionization rate for the private sector has fallen by about half over the past twenty years.
Public sector. The portion of government workers who are union members held relatively steady at 37.2 percent, down slightly from 37.3 percent in 2002. Membership declines in federal and state government were largely offset by gains in local government, where union membership rose from 42.3 percent in 2002 to 42.6 percent in 2003, the highest level of unionization in any sector of the economy. Unionization rates in the public sector have been roughly stable for the past 20 years.
Manufacturing loss. Most of the decline in private sector union membership stemmed from substantial employment losses in manufacturing, where total employment dropped by 257,000 in 2003 and the number of union members fell by 226,000. The portion of manufacturing workers who are union members fell from 14.6 percent in 2002 to 13.5 percent in 2003, with the sharpest losses in the durable goods industries.
Wholesale and retail gain. Losses in manufacturing overshadowed gains in the wholesale and retail trades, where employment rose and union membership increased from 5.9 percent in 2002 to 6.2 percent in 2003, with most of the growth in the retail sector.
Transportation and utilities. This sector, which reports the highest unionization rates in the private industries, lost jobs in 2003 but increased union membership by 11,000. In 2003, union membership in transportation and utilities rose to 26.2 percent, up from 24.7 percent in 2002, with most of the growth in utilities.
Information services. Union membership declined in all industries within this sector with the exception of broadcasting, which showed gains in both employment and unionization. Telecommunications employment rose slightly but union membership fell from 23.1 percent in 2002 to 21.0 percent in 2003.
Education and health services. Employment rose by 547,000 jobs in private educational and health services, but union membership fell from 8.5 percent in 2002 to 8.0 percent in 2003. All of the employment gains occurred in the heath care industry, but union gains did not keep pace with job growth.
Hotels and restaurants. Employment stood still in the hotel industry but union membership rose from 7.6 percent in 2002 to 8.3 percent in 2003. In the much larger food services industry, employment increased marginally but union membership declined from 1.2 percent to 1.0 percent.
Financial and business services. In these two large sectors, unionization has always been low. It declined in 2003 in the professional and business services industries, where job losses were sharp. Unionization in financial services ticked up from 2.0 percent in 2002 to 2.1 percent in 2003 in the wake of small employment gains.
State declines. Union membership rates fell in 33 states in 2003, with the largest declines in the large industrial states. Rates rose in 15 states, primarily those where employment remained stable or where job loses occurred but fell disproportionately on nonunion workers.
Wage differential. Union wages grew faster than nonunion wages in 2003, so the union wage differential rose from 25.7 percent in 2002 to 26.9 percent in 2003. If benefit costs were factored in, the total compensation differential would be much larger because unions were able to preserve benefits for their members in 2003 to a much greater extent than nonunion workers were.
Ongoing job loss in the manufacturing sector, soft labor markets in the rest of the economy, and the anti-union posture of the Bush administration will continue to slice into union membership rates in 2004. Decisive changes in the employment picture and in political leadership will be needed to reverse the decline.
© 2004 Labor Research Association
