Chapter 29, Problem 29.1LO

To determine

History of labor union movement and current status of labor unions.

Explanation of Solution

A labor union is an organization of workers who come together to achieve common goals. These unions bargain with the employer on behalf of the union members and negotiate deals such as wages, work rules, benefits, workplace safety etc. When the cost of living increased, there was a need for higher income to satisfy the basic needs of workers. There was an increase in the number of large organizations, however these corporations decreased wages to be paid to workers. If the workers would protest the working conditions or wages, corporations would blacklist them and replace them with workers who would be ready to work at low wages and without any benefits. This eventually led to industrial laborers to form unions to protect the workers. Labor unions came into picture in the mid-19^th century. Labors feared that as the markets became larger in size, organizations would implement longer working hours, sudden wage cuts and unsafe working conditions. Workers thus came to believe that they would have to organize wider unions to protect the political, social and economic rights. Most unions in the United States are aligned with The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) created in 1955. However, there was a decline in the power of labor unions in late 90’s. The opening up of overseas markets increased competition in many highly organized industries. Outsourcing emerged as a popular practice among employers. Common practices included threatening union sympathizers with dismissal, holding mandatory meetings with workers warning of the dire consequences. Unions have not been abolished completely. Today, unions serve the same purpose for which they were originally founded. Collective bargaining is an important force in reducing inequality and ensuring that low- and middle-wage workers are given a fair return on their work. As productivity has risen over the last several decades, wages have remained flat for the majority of working people. In the modern society too, unions play a pivotal role both in securing labor protections and rights such as; safety and health, overtime, medical leave and in enforcing those rights on the job. Because unionized workers are more informed, they are more likely to benefit from programs such as unemployment insurance and workers compensation. Unions thus provide a necessary complement to benefits and protections.

Economics Concept Introduction

Introduction:

Labor unions are a group of people who represent workers in different occupations and work to protect the rights of the workers such as; working condition and wages.