Beneficiary Features of American Trade Unions — John Shaqi
Beneficiary Features of American Trade UnionsKennedy, James Boyd
History
Beneficiary Features of American Trade Unions
Kennedy, James Boyd
Fraternal insurance -- United States; Labor unions -- United States
It is maintained that the establishment of beneficiary features is a
direct aid to a union in carrying through its trade policies. In the
first place, successful systems of benefits, whether they attract
members or not, undoubtedly retain them. Sharp and sudden declinations
in membership during industrial disturbances are thus prevented. The
effect of the panic of 1893-1897 was peculiarly instructive in this
respect. Many labor unions suffered a considerable decline in members.
The Typographical Union lost about ten per cent. of its membership, the
Brotherhood of Carpenters about fifty per cent., while the Cigar Makers
with a highly developed system of benefits lost only one and one half
per cent. The trade unionists naturally regard it as peculiarly
desirable that the members should not abandon the organization when the
difficulty of maintaining wages and conditions is greatest. To hold in
hard times what has been gained in good times is a vital point in
trade-union policy. The trade unionists realize that the chief work of
the unions is not so much in advancing wages in good times as in
preventing recessions when employment is scarce. President Strasser of
the Cigar Makers has pointed out that the Cigar Makers came through the
depression of 1893-1897 with very slight reductions in wages. This
result he attributed to the beneficiary system which held the membership
in good standing.[5]
[Footnote 5: Cigar Makers' Journal, Vol. 26, September, 1901.]
It is, of course, impossible to estimate with any degree of precision
the effect of trade-union benefits in retaining members. Certain unions,
such as the Cigar Makers and the Typographia, having compact
organizations with highly developed systems of benefits lose almost none
of their membership in periods of depression. The experience of the
Cigar Makers is peculiarly instructive since we are here able to note
the effect due to the introduction of a system of benefits. In 1869 the
membership of the union was 5800. No benefits were paid except the
strike benefit. In 1873 the membership had fallen to 3771, in 1874 to
2167, in 1875 to 1604, and in 1877 to 1016. A noticeable increase set in
about 1879 and by 1883 the number of members was 13,214.[6] In the
depression extending from 1893 to 1897 the membership of the Cigar
Makers remained almost stationary. The following table shows the number
of members for each year from 1890 to 1900:
1890..24,624 1984..27,828 1898..26,460
1891..24,221 1895..27,760 1899..28,994
1892..26,678 1896..27,318 1900..33,955
1893..26,788 1897..26,347
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