Hard Times Spark Consolidation Labor Unions Seek Power In Numbers

Leaders of the auto, steel and machinists unions, faced with declining memberships, business mergers and an increasingly hostile political environment, chose consolidation to cope with the changing economy.

Analysts say it’s about time.

Confirming previous reports, The United Auto Workers, the Steelworkers and the International Association of Machinists and Aerospace Workers said Thursday they would merge by the year 2000, forming a 2-million-member organization.

“The real question is, how come it’s only beginning to happen now? Why has it taken so long for this?” said Ken Goldstein, an economist with The Conference Board, a business research group in New York.

A merger would eliminate the unions’ duplicate organizing and lobbying efforts. But more is at stake.

“This is hardly about trying to address today’s situation, but rather to try to position themselves to be an influence and be a force tomorrow,” Goldstein said.

Labor’s influence has declined since unionism peaked in 1954.

For years, jobs in the traditionally unionized industrial sectors have declined, while service jobs have increased. Meanwhile, businesses have worked to increase efficiency and vitality through mergers and acquisitions, and organized labor has found itself at odds with the new GOP political leadership on Capitol Hill.

“Contrary to those who believe that unions have outlived their usefulness, we share the deep conviction that in a globalized economy dominated by the mobility of capital, organized labor has a more compelling role than ever,” the unions said in a “declaration of unity” signed by their three presidents.

“We are convinced that by combining our resources, our experience and the trade union spirit that guides our leaders and our members, we can far better bring a vital and necessary balance to the scales of political, social and economic justice,” the statement said.

Neil N. Bernstein, a Washington University law professor in St. Louis specializing in labor, said labor was “trying to be innovative and trying to do some different things that would reverse the decline in membership.”

AFL-CIO Secretary-Treasurer Thomas R. Donahue said the merger was a good sign for labor.

“The world has changed, the conglomerates with which we deal continue to grow, and we have been encouraging mergers for a lot of years,” Donahue said. “There is more strength in the combined organizations.”