https://www.thenation.com/article/politics/silicon-sectoral-bargaining-unions/

Silicon Valley’s Offer of Sectoral Bargaining Is a Trick
If national union leaders acquiesce to the creation of a third category of 
worker in exchange for sectoral bargaining, collective begging will replace 
collective bargaining.

By Jane McAlevey Today 5:30 am

Drivers demand job security and livable incomes at a protest at Uber and Lyft’s 
New York City headquarters in May 2019.  (Johannes Eisele / AFP via Getty 
Images)
Any objective power structure analysis of the United States today reveals that 
we are teetering closer to the 1920s than during any decade since. In the 1920s 
and early ’30s, extreme racism was firmly entrenched thanks to Jim Crow laws, 
Southern plantation economies, and nonfunctioning voting “rights”; the US 
Supreme Court was wildly pro-big business; and the biggest employers of the 
era—auto, steel, coal, and their associated production industries—tolerated few 
to no unions. These companies were effectively killing workers without worry 
and terrorizing those who were attempting to unionize. Everyday occupational 
hazards frequently led to death and dismemberment, and regular employment for 
many was hard to find.

There is abundant academic literature detailing just how bad things were before 
the autoworkers launched massive sit-down strikes—occupying their workplaces, 
determined to forge unions until they won. One such academic report on 
conditions in the automobile industry states that “in the early years of the 
Depression, autoworkers were fortunate to work irregularly; and when they were 
employed, they were coerced into operating at increasingly fast rates for 
declining rates of pay. The alternative, suffered by an enormous number of 
workers, was unemployment with little to no public assistance.”

Sound familiar?

Before workers managed to build power though collective action and form the 
United Auto Workers in 1935, abysmal conditions in auto plants weren’t much 
different from the ones in today’s Amazon warehouses. Workers who fought to 
build strong unions turned auto-factory jobs into the kind of employment that 
became the backbone of the American dream. Today, situations that 
policy-makers, pundits, and the media give fancy labels to—such as precarity, 
or the gigification of work—have long been a core feature of American 
capitalism. It’s only if and when workers decide to harness their only real 
power—coming together in a union—that their lives will improve. But there’s a 
catch: If they are to be allowed to do so, the law first has to consider them 
to be “real” workers. (In order to be covered by the National Labor Relations 
Act and Fair Labor Standards Act, a worker has to be an “employee,” as opposed 
to an “independent contractor.”)

Exactly what constitutes work, what defines a worker, and whether workers have 
any real rights to collective self-determination is the subject of an open 
letter released on Monday that calls attention to deliberations taking place in 
state capitols and inside the new administration in D.C. Although it is easy to 
miss alongside the day’s screaming headlines—about a scandal involving a 
prominent state governor, federal charges against insurrectionists, and the 
sudden removal of a proposed $15-per-hour national minimum wage—these 
lesser-noticed discussions about “who is a worker” have as much to do with the 
future of democracy as the attempts in Georgia, and elsewhere, to roll back 
voter-access essentials such as mail-in ballots and early voting.

As a signatory to this letter, which has the somewhat bookish title “Sectoral 
Bargaining: Principles for Reform,” I want to boil it down to its urgent 
message: There is a massive power play taking place right now, being led by 
some of the biggest titans of industry—particularly in Silicon Valley—who seek 
to avoid having to contribute to society at all by rewriting the legal status 
of their workers. The current debate about who is a worker, who is an 
independent contractor, and who is legally eligible for things like Social 
Security and unemployment insurance centers around the question of whether 
state and federal policy makers accept or reject what is referred to as a 
“third category” of worker. The tech-industry proposals unfortunately picked up 
steam on the heels of Proposition 22 in California, which made a mockery of 
democracy when Uber and Lyft spent upwards of $220 million dollarsto convince 
voters, against their interest, that the ride hail drivers and food-delivery 
workers toiling under their platforms are somehow not real workers.

Although the technicalities of the debates are different today, the dynamics 
and implications of the discussion are similar to ones that took place back in 
1930s, when the National Labor Relations Act was passed. To achieve the act’s 
passage, racist employers created a legal fiction that domestic and 
agricultural workers were not deserving of protections. The result is that 
farmworkers and nannies 87 years later are toiling under much the same 
conditions as their counteparts did before 1935. Today’s debate about whether 
to create a third category will result in the relegation of millions of 
workers, overwhelmingly people of color and immigrants, to the status of 
farmworkers and nannies. In exchange for establishing this third category, the 
gig-economy employers are dangling a carrot called sectoral bargaining. 
Sectoral bargaining can be summed up as unions sitting down with employers 
across an economic sector—such as hotels, hospitals, fast food, and retail—and 
creating standards for wages and benefits (but in this case, with no minimum 
protections).

While sectoral bargaining sounds enticing, its theoretical advantages disappear 
when workers aren’t regularly organized to such a degree that they walk off the 
job and regularly strike. Its proponents point to nations such as Germany and 
Sweden, where workers have sectoral bargaining, implying that this 
single-policy formula is why workers there have the standard of living they 
enjoy today, with universal health care, robust paid sick leave, amazing paid 
parental leave, and salary maintenance at full or close to full pay while 
sheltering-in-place during the pandemic. Such comparison are either 
disingenuous or ignorant—either way, accepting third-category status in 
exchange for sectoral bargaining would be a disaster for US workers.

As a signatory to the letter, which demands adherence to core principles of 
worker participation and democracy in any sectoral bargaining regime, I can 
attest to a simple fact: In Germany or Sweden, or anywhere else in the world, 
workers didn’t achieve their decent living standard because of sectoral 
bargaining. They achieved it because they fought like mad, including with 
revolutions in the earlier half of the past century, to achieve an overall 
détente with capital. It took worker power to win the standards workers enjoy 
in every country that currently has sectoral bargaining. And today, while those 
gains in living standards and working conditions may look great to any worker 
in the United States, those same standards, in those countries, are under 
attack—and being eroded with sectoral bargaining. Whether you are a worker in 
Germany or in Alabama, the only way you win a decent life is by building enough 
power to create a crisis for the capitalist class. That means the power to 
forge supermajority unity, striking, and causing profits to nosedive until the 
bosses remember that workers—whatever we call them—make the profits the 1 
percent thrive on today, while everyone else suffers.

While the issues can seem complex and technical—which renders the debates about 
them byzantine and hard to follow—it all comes down to power. If national union 
leaders acquiesce to the creation of a third category of worker in exchange for 
sectoral bargaining, we can kiss collective bargaining good-bye and surrender 
to collective begging. Read the letter and get into the debate before it is too 
late.

[Jane McAlevey is The Nation’s strikes correspondent and the author of A 
Collective Bargain: Unions, Organizing, and the Fight for Democracy. She is a 
senior policy fellow at the University of California’s Institute for Research 
on Labor and Employment.]


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