The Economics Book

(Barry) #1

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.
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