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The Pros and Cons of Labor Unions Essay

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The rise of capitalism as the dominant economic system in the United States made the rise of unions inevitable; given the natural division between those with capital that control the means of production, and labor, who is treated simply as another factor of production (Hodson & Sullivan, 2008). While labor unions have made significant improvements to the working environment, with the regulation of safety, environment, labor and wage; labor unions have also contributed to the decline of U.S. dominance in industries like steel, automotive, education and airlines. In today’s global economy, can labor unions continue to be a force for good in the United States, or have they become harmful institutions? Since the birth of the country, labor …show more content…

Two years after the infamous Triangle fire, 20,000 workers in Lawrence, Massachusetts; angered over wage cuts and deplorable conditions went on strike, prompting the twin reactions of police brutality and press coverage (Hodson & Sullivan, 2008). “As a result of the strike, not only were wages raised and conditions improved in the textile industry as a whole, but important legislation was also enacted that restricted the exploitation of child and female labor” (Hodson & Sullivan, 2008, p. 132). It is doubtful that working conditions would have evolved to the level of equity we find today, without the sacrifice and activism of unions and their members. 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. U.S. Steel and other steel companies for decades, relied on the tried and true strategies of vertical integration and price control (Hoerr, 1988). In the 1960’s, foreign competition from developing countries like South Korea, Taiwan and Brazil entered the market "with low material and labor costs, modern equipment, and the support of government policies" (Hoerr, 1988, p. 99). Because of lower costs and concern over supply created by constant threat of strike, many

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