Chapter 11 Benefits of union membership: –1. Bargaining power: –2. Pay structure: –3. Job/income security: –4. Unions provide single voice to express concerns (safety, harassment). –5. Protection from arbitrary treatment: exit-voice trade-off.

Costs to Workers from Union Membership 1. Wage loss during strike. 2. Loss of jobs as unions pushes total benefits upward. 3. Possible management retribution. 4. Loss social status if union membership associated with blue collar occupations. 5. Cost of dues.

Trends in Union Membership See Figure Key: % workers in union. – 1935: – 1945: – 2001: Other countries in 1987: –Canada: 36% –UK: 50% –US: 17%

More on Unions Legal History: National labor Relations Act (NLRA) 1935:  power of unions. Taft-Hartley Act: 1947:  power of unions. Review these two on your own.

Why the Decline in Unionization in US? 1. Shift from goods-producing to service economy (better working conditions; less history). 2. Increase in foreign competition. 3. Shift of employment to south (right-to-work laws: worker can’t be required to join union). 4.  employer resistance. 5. Severe recessions of ’81-’82; ’90- ’ Deregulation of “union” industries. 7.  worker satisfaction/  ing attitudes 8.  women in workforce.

Chapter 12 Economic Impact of Unions: Union wage differential: for two similar workers/similar jobs: one in union, one not in union: compare wages. Hard to figure this out: 5 to 15% differential. Benefits: unions also have better nonwage benefits.

Union Benefits to Nonunion Workers 1. Tend to push up overall wage and benefits levels. 2. Focus on worker safety has pushed government to pass safety legislation like OSHA. 3. Political activity of unions tends to support all workers’ rights, education, minimum wage laws, etc.