The Economics Book

134

WORKERS MUST

IMPROVE THEIR

LOT TOGETHER

COLLECTIVE BARGAINING

T

he term “collective

bargaining” was coined

by British socialist reformer

Beatrice Webb in 1891 to describe

the process by which workers

organize into unions, which

negotiate pay and conditions with

employers on the workers’ behalf.

Webb and her husband, Sidney,

campaigned against poverty, and

their books brought about change

at government level. In 1894, they

published History of Trade

Unionism, documenting the rise

of the unions during the Industrial

Revolution in Britain, when large

numbers of workers were thrown

together in the new factories.

Conditions were harsh, job security

almost non-existent, and wages

IN CONTEXT

FOCUS

Society and the economy

KEY THINKER

Beatrice Webb (1858–1943)

BEFORE

1793 Friendly societies, an

early kind of union, are given

legal recognition in the UK.

1834 Workers in the US

and Europe begin to unite in

national organizations.

1870s Union power in France

and Germany becomes firmly

allied to socialist movements.

AFTER

1920s and 30s Trade unions

fight for workers’ rights during

the Great Depression.

1955 US unions unite under a

single umbrella: the AFL–CIO.

1980s Union membership and

collective bargaining begins to

decline in the face of privatized

public services and measures

by right-wing governments to

curb union power.

Workers must

improve their

lot together.

Workers depend on

employers for

their livelihood.

So employers dictate the

terms to workers.

There are many workers and

few employers, so employers

hold the balance of power.

An individual worker has

little power, because he

or she is easily replaced.

But by acting together,

workers shift the

balance of power.