Featherbedding

Featherbedding refers to work rules that require payment to employees for work that is not actually performed or that is unnecessary.

Definition

Featherbedding refers to practices and agreements within employment or labor contracts that require the employer to pay workers for unperformed or unnecessary work. This term is often used in the context of unions which may enact policies to preserve jobs by limiting the use of new technologies or maintaining work schedules that do not reflect actual business needs.

Examples

  1. Railroad Industry: A classic example involves railway unions requiring railroads to maintain employment levels for firemen on diesel engines even when the job became obsolete following the transition from steam to diesel engines.
  2. Newspapers: Another example involved newspaper distribution where modern equipment could handle the job efficiently, but union agreements mandated that additional, outdated manual labor still be used.
  3. Construction: In construction, featherbedding might involve retaining additional crew members even when a project can be completed by a smaller team with the help of new machinery.

Frequently Asked Questions (FAQs)

Q1: Why do unions engage in featherbedding?
Unions may engage in featherbedding practices to protect their members’ jobs and ensure job security, especially during technological advancements or organizational changes that could lead to layoffs.

Q2: Is featherbedding legal?
Featherbedding is a complex legal issue that varies by jurisdiction. It can be seen as anti-competitive and wasteful, and sometimes it is subject to legal disputes and regulations.

Q3: Who benefits from featherbedding?
Union members benefit from job security, while employers and consumers may suffer from inefficiencies and increased costs.

Q4: How can companies combat featherbedding?
Companies often negotiate with unions, implement technological advancements despite resistance, and, in some cases, seek legal recourse to challenge featherbedding practices.

Q5: What impact does featherbedding have on an industry?
Featherbedding can lead to higher operational costs and reduce the economic competitiveness of an industry by making it difficult to adopt new efficiencies and technologies.

  • Union Shop: A place of work where employers may only hire union members or where employees must become union members within a certain period of being hired.
  • Collective Bargaining: The process by which unions and employers negotiate the terms and conditions of employment.
  • Technological Unemployment: Job loss directly associated with technological advancement and automation of functions traditionally performed by workers.
  • Job Security: Assurance that an individual will keep their job without the risk of becoming unemployed.
  • Work Rule: Regulations and policies established in a workplace, often stipulated by collective bargaining agreements.

Online References

Suggested Books

  1. “Labor Guide to Labor Law” by Bruce S. Feldacker and Michael J. Hayes
    A comprehensive guide to labor law and collective bargaining agreements, including a discussion on issues like featherbedding.

  2. “The Subterranean Railway: How the London Underground Was Built and How It Changed the City Forever” by Christian Wolmar
    Presents historical examples of featherbedding in the context of the expansion of transportation technology.


Fundamentals of Featherbedding: Labor Economics Basics Quiz

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