Pros And Cons Of The United Steelworkers Of America

Organized labor began to rise as the business tycoons and big business owners, "…took advantage of this lawless environment to build fortunes, destroy reputations, exploit both workers and the environment, and gouge consumers" (Shi &Tindall 620). Such acts by the business tycoons prompted many workers to demand higher wages, better working hours, and safer working conditions. As the turn of the 20th Century approached, factories started emerging, and technological innovations since, "The U.S. patents office, which had recorded only 276 inventions during the 1790's, registered almost 250,000 new patents in the 1890's" (Shi &Tindall 622). The inventions led to the advancement of machines in factories as they reduced labor costs, lowered the production costs of certain goods, and essentially creating a widespread mass production of goods. As most individuals began to notice, unfairness among their workplace, they included themselves in certain labor unions including the Knights of Labor (KOL), Industrial Workers of the World (IWW), and the American Federation of Labor (AFL). All three groups had different beliefs: the Knights of Labor included all members whether skilled or unskilled in their group; the AFL rejected Capitalism and focused on working conditions—as they were successful in organized labor; and lastly, the IWW strived for strong industrial unions or Unionism.

In this chapter, it is mentioned that the United Auto Workers (UAW) was one of the largest unions in the United States, but it seems like it has been declining in the last couple of years. The traumas experienced by the auto industries in 2008-2009 required the UAW to make major concessions to help Ford, DaimlerChrysler, and GM survive. I think that the UAW hasn’t been successful in its attempts to unionize U.S. workers employed at Toyota, Nissan, and Honda plants because these employees are convinced that the benefits they are receiving are pretty good and that the union wouldn’t do any better. For example, Toyota, Nissan, and Honda plant employees feel like they are earning satisfactory wages, have adequate benefits, have satisfactory

The prospects for future profitability of the U.S. steel makers are very unattractive. Unless America can successfully combat China’s enormously, inexpensive, production ability, I do not see any American steel company surviving. China just has too big of a production ability and has the workforce to do it cheaply. Nucor will have to expand in this industry in the United States to survive. If the WTO

As mentioned in the case the main problem is the excess of steel in the steel market. Right now foreign steel is being dumped in the US. This results that supply exceeds demand which results off course in decreases of profit for many steel companies. This gives a lot of pressure to the companies and most of them are not able to survive the pressure and

Protectionism by way of the price mechanisms such as tariffs, subsides, quotas, export licences and import duties (Rugman, 2009) are just some of the measures which can seriously impact on a foreign company. For example the American steel industry was afforded protection under the Bush administration when large tariffs were imposed on foreign steel imports in order to safeguard the jobs of the national steel workers (Mankiw and Taylor, 2008).

The document outlines the pros and cons of labor unions in America. The analysis takes into consideration how unions have improved the working environments for workers, and may continue to do so. The paper considers the power of unions for net social benefit, including the role they play in lobbying lawmakers, using collective bargaining to advocate for employees, and the prevention of abuse and discrimination. The cons of labor unions are also addressed. These drawbacks to labor unions include but are not limited to: decline in competitive advantage for American companies, corruption, potential decrease in productivity, possible reduction in employee motivation, and increased inefficiencies.

Unions in America today have grown smaller and smaller in the past 30 years. There are many reasons for this. The major one is that industries in other countries that are non-union have much cheaper labor costs, and therefore can offer products and materials at a much lower price than our US union-run, high wage cost factories. “During the 1970s and 1980s, a fifth of large unionized companies in the United States went bankrupt, unable to compete against companies with lower wage costs.” (Rachman, 308)

The Industrial Revolution that took place after the Civil War made for a more economically sound country. American workers, however, were becoming more and more dependent upon their wages; a fear of unemployment also stemmed from this. Workers didn’t share in the benefits that their employers reaped. In a chart representing the hours and wages of industrial workers, from 1875 to 1891, it shows that even though their wages were subtly increasing,

The driving forces that are at work in the steel industry are foreign steel producers, new opportunities for the uses of steel, and growth in worldwide demand for steel. Although, the U.S. steel industry experienced some relief from the dumping of foreign steel producers, the dumping was still remained a force that was problematic in the steel industry. As seen above, the steel market is primarily controlled by the foreign steel producers. The anti-dumping and countervailing duty orders and suspension agreement, covering imports of hot-rolled steel in, was extended for 5 years to alleviate some of the harm resulting from the influx of steel in the U.S. market. This extension was initiated to help keep the surplus of steel products in the U.S. at bay. This particular driving force can and has adversely affected the steel industry.

While organized labor’s storied history demonstrates remarkable achievements, there has been a downside for the American economy. By way of example, the formerly dominant U.S. steel industry serves to remind of an time when poor management, global competition, and union excess were necessary causes of a dramatic and rapid industry decline.

Labor Unions began in the United States in the mid-late 1800’s. The first founding labor union was the National Labor Union, started in 1866. This labor union was not set on a particular type of worker and even though it did not succeed in making a difference in workers’ rights, it set an important precedent in our country. Being a part of a labor union has lots of pros and cons, as well as, because of them, the right to work movement was created.

Although tariffs usually cause domestic prices to increase they can have a positive effect on our economy and specifically our domestic producers of steel and their employees. The US trade policy has historically been protectionist in nature, and congress, the principle body of power for import policy, heavily favored domestic firms over their foreign competitors (Irwin 146). As a result, domestic steel producers have had tariffs and quotas in place for many years. An effective tariff raises revenue for our US government and can help to subsidize domestic production at the expense of foreign producers. This is good because the American government receives money from foreign exporters that it would not have otherwise had access to. This money can then be used in domestic government policies and could

The National Labor Relations Act was enacted by congress in 1935 in order to define and defend the rights of the employment relationship. The act allows employees of a company the right to form a union and have the union organization represent them through collective bargaining. Collective bargaining is the process of negotiation between both parties; Union representatives and a corporation, with the purpose of reaching an agreement for the best interests of employees and the corporation. In the negotiation process the attempt is to establish primary factors of importance which are advantages the union fights for and ultimately provide for its stakeholders that would otherwise not have

In recent years, the US has increased tariffs on the steel industry in order to restrict

Persistent unemployment pushes many groups to call for protectionism; one of the most effective is organized labor. By limiting imports, local jobs are retained as firms and consumers are forced to purchase domestically produced goods and services. However, unless the protectionist country is relatively small, such measures usually do little to limit unemployment. On the other hand, they may result in a decline in export-related jobs because of (i) price increases for components or (ii) lower incomes abroad. Further, such measures are likely to lead to retaliation unless either the protectionist or the affected country is relatively small. Thus, governments must carefully balance the costs of higher prices with the costs of unemployment and the displaced production that would result from freer trade when enacting such measures.