13th Edition
Roger A. Arnold
ISBN: 9781337617406




13th Edition
Roger A. Arnold
ISBN: 9781337617406
Textbook Problem

Contrast the traditional (or orthodox) and new views of labor unions.

To determine

Explain the traditional and new views of labor unions.


According to the traditional view of labor unions, the labor unions have a negative impact on the productivity and efficiency in an economy. The reasons are listed below:

  • Unnecessary practices and approaches: The traditional union labors always argue for unnecessary staffing requirements and usually obtain them.
  • Strike: Strike is sometimes an unnecessary practice of labor unions because it disturbs production.
  • Creation of artificial wedge between the comparable workforces: The argument for higher wage rates in the unionized sector leads to decrease the wage rate in the non-unionized sector. Finally, the labor unions create an artificial wedge between the salaries of comparable work force...

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