The purpose of this report is to determine if labor unions benefit todays economy as they did in past economies.
Many economists believe that labor unions are in fact hurtful to the economy. There have been several studies to prove this belief is true. This report will compare worker rights to labor unions to help determine whether unions are necessary. Additionally a comparison will be made between wages and economic growth.
Against Labor Unions
Many economists have believe unions act as labor cartels. A labor cartel is an organized group of workers that control the amount of workers in a company to increase the remaining workers’ wages (Sherk, 2009). Companies spend their budgeted labor on a few amount of workers. Unions make it next to impossible to lay off under-preforming workers; therefore, unionized companies are painstakingly trying to hire productive and knowledge workers to start. The job market becomes more competitive. Naturally, a union worker will earn more than a non-worker because they are better with or without representation. The high wages that unions demand is a primary driver that forces companies to flee overseas. Outsourcing involves firm’s producing components of their goods and services in other countries ...
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...ed to be open for everyone.
2. Labor unions can only move ahead by uniting in fields of work that are growing in the global economy.
3. Labor unions must look at its internal structure and use resources more successfully.
4. Global cooperation is important to unite union members across the world.
5. The union movement also cannot grow if they do not reach out to younger workers
The president of the AFL-CIO Richard Trumka said it nicely: “When we restore worker representation, we can restore the American Dream, the dream that each and every one of us, if we work hard and play by the rules, if we do our part, can have a piece of the good life, that we can earn fair pay and raise a family if we want one, have quality affordable health care and look forward to a dignified retirement, and that we can pass along a better life to our kids and grandkids (Tortora, 2013).”
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