Labor Unions
Labor unions have played a signficant role in the U.S. work force during the last century. However, unions have lost much of their clout since the economy began shifting away from manufacturing industries, typical union strongholds, and for other reasons, as well.
The banking industry clearly does not represent a union stronghold. According to the U.S. Department of Labor's Bureau of Labor Statistics, only 2% of the workers in the banking industry are members of unions. Compared to the national figure of 13.5%, as described in Gary Dessler's "A Framework for Human Resource Management," unions have little presence in the banking industry. However, that does not mean that they do not have an impact. For instance, according to the Federal Deposit Insurance Corporation's Banking Review, "the manner and amount of executive compensation is a growing public concern," and labor unions "have become very active in maintaining public interest in this issue." The outrageous salaries paid to executives are easily identified by the public and, therefore, make an easier target for change. The FDIC notes the success that a coalition of labor unions had "in getting a resolution included on the proxies of 40 large companies this year-a resolution that, if adopted, would limit CEO pay to $1 million in salary, $1 million in bonuses, and $1 million in stock and stock options." Clearly, even with gradual decline in union membership over the latter half of the last century, unions are still able to influence and work on behalf of their members.
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