Unions

Origins and Scope

The concept of labor unions developed in Europe at the time of the Industrial Revolution, when agricultural activities declined and employment began to move to urban and industrialized areas. An increasing number of people left farming and started to work for employers, often in hideous conditions and for very low wages. The labor movement arose as a result of the disparity between the power of employers and the powerlessness of individual employees. Predictably, employers did not welcome the appearance of unions on the labor scene. Labor unions were illegal for many years in most countries. There were severe penalties for attempting to organize labor unions, including execution and deportation. However, such an attitude proved, in the long run, to favor rather than hinder the development of labor unions. To quote just one of the most famous examples of this trend, in 1834, six British men from Tolpuddle in Dorset were arrested and deported to Australia for the founding of the Friendly Society of Agricultural Laborers. Yet, they soon became popular heroes and were released two years later with the help of Home Secretary Lord John Russell. Their fame has survived to this day and many memorials and events still celebrate the six Tolpuddle Martyrs as they have become known in labor history.

Labor unions soon developed into important political entities which eventually managed to get approved a body of labor law legalizing organizational efforts and codifying the relationship between employers and those employees who are members of labor unions. Yet, both the function of labor unions and the extent and effectiveness of labor legislation vary greatly from country to country. In Europe, unions have played a greater role in management decisions through participation in corporate boards, while in the United States this practice started later and is still limited. To many, the appointment of union officials to boards of directors is an effective countermeasure to corporate crime. Yet, not everyone believes that union board members will necessarily exhibit greater responsibility than business members. What mainly affects the roles of the unions is the structure of employment laws. In many European countries, wages and work contracts are largely negotiated through governmental action. The American approach, on the other hand, derives from theories of laissez-faire capitalism and while, setting some minimum standards, it leaves most workers' salary and benefits to collective bargaining and market forces.

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