The causes for the decline in unionization have to do with multiple factors within globalization—global capital, foreign direct investment, exports, and immigration. Global capital refers to large transnational corporation (TNCs) which are also associated with Fortune 1000 firms. As stated by Vachon and Wallace, “This elite group of firms accounted for less than 0.02 percent of all U.S. corporations but 35.6 percent of corporate sales, 37.5 percent of corporate assets, and 46.8 percent of corporate profits (Vachon ...
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...ge foreign competition.
“Although unionization would be higher if business didn’t oppose so strongly, the point is that management will continue to oppose unions as long as it is economically sensible, and it usually is in a highly competitive world in which most of one's competitors are nonunion (Hirsch 496).” In the U.S., another factor for the decline of unions in the private sector is that workers today are more individualistic than in previous decades and would rather be a part of a cooperative relationship with their employers rather than the confrontational relationships unions provide.
Although unions had been beneficial in providing the foundation for today’s labor laws, its organized structure is not compatible with today’s economy. Even though workers do not oppose unions, many would rather not join if they have another way of achieving their goals.
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