The modern use of the term in the labor relations setting began in the United States railroad industry, which used feathered mattresses in sleeping cars.
[5] In a 1965 bulletin the United States Department of Labor referred to "featherbedding" as: a derogatory term applied to a practice, working rule, or agreement provision which limits output or requires employment of excess workers and thereby creates or preserves soft or unnecessary jobs; or to a charge or fee levied by a union upon a company for services which are not performed or not to be performed[6]Since the mid-19th century, "featherbedding" has been most commonly used in the labor relations field.
Therefore, work rules requiring minimum crew sizes, the assignment of duties to craft workers, and other "make-work" agreements do not constitute featherbedding.
"[9] Labor economists often argue that featherbedding can be construed as the most economically optimal position from both an employer's and employee's perspective, since it can be seen as distributing the costs of technological change.
As the politico-socio-economic strength of each party changes over time, collective bargaining outcomes will as well, enlarging or reducing the number and impact of featherbedding rules on the employer.
Featherbedding, it is argued, arises and becomes a significant problem if the job property right is not part of the legal regime and remains unprotected (such as the United States).
[2][14] Seizing on economists' emphasis on power in the workplace, other social theorists conclude that featherbedding is a result of weak labor unions and unenforced and unprotected worker rights.
Frequently one finds that these rules originate in serious problems of employment insecurity or grave deficiencies in the security or recognition of trade unions.
[19] While some argue that this is an exercise in the professional judgment of such workers,[20] others call that featherbedding and point to the low level of evidence that such rules improve outcomes.
Some analysts argue that featherbedding is a reaction to economic insecurity, and helps stabilize the national economy by spreading wealth.
[22] In France, featherbedding was encouraged by the nationalized rail transportation system after World War II with a view of reducing the unemployment rate.
A heavy government emphasis on full employment and a strong social safety net helped reinforce this consensus.