This restrictive policy was a major flaw of the AFL and kept them from gaining the numbers and strength that it may have attained. These policies came directly from the ideas of the AFL’s longtime leader Samuel Gompers. Gompers believed that labor should accept the existing capitalist economy but try and get a larger share for labor by way of higher wages, shorter hours and better conditions of work. He believed that the idealistic goal of a fundamental economic reform was an illusion (Cashman,221.) His conservative approach included negotiation and conciliation in labor disputes and in resort to strikes only after other methods had failed.
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Cartels break up occasionally because of cheating or lack of effective monitoring, but their biggest challenges are entry and adjustment of the collusive agreement in response to changing economic conditions (Levenstein & Suslow, 2006). Throughout history, markets have risen and fallen as well as cartels have come and gone. There are a variety of factors that can contribute to the instability and failure of cartels. The frequent causes of cartel failure are entry and bargaining problems. Bargaining problems occasionally decline over time as the cartel develops as an organization.
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The strength of any organization depends on how solid of a foundation it is built on. Education is that foundation. In the 1980’s unions encountered a major setback when globalization hit. This caused a change in the economy accounting for major losses of jobs affecting blue-collar workers. Unions were not prepared for the hardship it created for its members.
Available at: http://ejscontent.ebsco.com/ContentServer.aspx?target=http%3A%2F%2Fonlinelibrary.wiley.com%2Fresolve%2Fdoi%2Fpdf%3FDOI%3D10.1111%2Fj.1467-8551.2005.00453.x Raff, D. M. G. and Summers L. H. 1987. Did Henry Ford Pay Efficiency Wages? Journal of Labor Economics [online], 5 (4), 57-86. Available at: http://www.jstor.org/stable/2534911 Williams, C. 2011. Management.