Introduction to “Union Mergers; Some Questions Raised by a “Disorderly Breakup””

Excerpt

One characteristic of the US economy is the proliferation of the merger of companies. Often referred to as merger and acquisitions, the first wave occurred from 1897 to 1904 in industries such as railroads and electricity which were largely monopolies. The fifth wave took place in 1999 to 2000 and was primarily driven by globalization, deregulation and the dramatic rise in the stock market. As industrial capital became larger throughout the twentieth century, labor unions adopted a similar strategy to defend their members. A union merger occurs when two or more labor organizations join into one body for the purpose of taking advantage of the efficiencies of scale in recruiting members as well as negotiating and administering labor contracts. While it is hoped that union mergers will be successful in promoting the members’ interests, this is, unfortunately, not always the case as with the 2004 UNITE-HERE merger. …