Private Sector Union Is Good for Us

Topics: Trade union, Collective bargaining, Employment Pages: 8 (2725 words) Published: May 9, 2013
Private Sector Union is good for U.S
Labor unions in U.S are legally recognized as representatives for labors of industries in U.S. The trends private-sector labor unionism in U.S has steady fallen since 1920s and continues to 2010. Unions allege that employer-incited opposition has contributed to this decline in membership. Especially, the private-sector labor unions accounted for the majority of the declination from 18.5 percent to 9 percent among the entire industry. (Slaughter, 2007, Fig.1) Globalization seems contributed to the ongoing decline of U.S union coverage. The decline of private sector has been relentless in manufacturing while the integration of U.S companies into the world market has been rising. The questions about whether the private-sector labor union trend falling good or not good for U.S have attracted a lot considerable attention because there has wide relationship between private-sector labor unionization and U.S government and labor law; it impacts a lot on industrial and economics, as well as policymaking and business like on productivity, and employment rate.( Kaufman) Private sector labor union should be good in U.S because labor unions increase the productivity of industry, the effective adoption of high performance work practices, and given higher hourly wage. First and most important reason that private-sector unions are good for U.S is that unions associated with lower employee turnover and effective workplace communication, which helped improve the productivity of industries and the economy growth in U.S. During 1945-1973, the high percentage of workers union with the effect of wages kept the productivity rising and prosperity was widely shared, which made economic growth strongly. Since 1973, union density declined, and real wage were caused to stagnate despite rising productivity, which may contributed to the current financial crisis and severe recession. According to a recent survey by Doucouliagos, Christos and Laroche, Patrice, authors of “What Do Unions Do to Productivity: A Meta-analysis” of book “ Industrial Relations”, in 73 independent studies on unions and productivity shows that there’s a positive and statistically significant association around 10 and 7 percent between unions and productivity in the U.S manufacturing and education sectors. According to Freeman (1976) and Medoff (1978), the author of “Individual Mobility and Union Voice in the Labor Market” and “Trade Unions in the Production Process”, unions can enhance productivity by improving communication between workers and management. The opening of communications channels between management and workers can result in integrative rather than distributive bargaining (Dworkin and Ahlburg 1985). Unions may provide additional information to a firm about the preferences of employees, thus permitting the firm to choose a better mix among working conditions, workplace rules, and wage levels. These can result in a more satisfied, cooperative, and productive workforce. (Doucouliagos & Laroche) However, there’re some arguments that private sector unions may be bad for U.S. Conceptually, unionisms can booster or hamper labor productivity because of the ambiguity over the net effect of unions. This conceptual framework has the so-called two-face view of unionism (Freeman and Medoff ): the monopoly face and the collective voice/institutional response face. The dimension of monopoly face of union which is unfavorable effects is on R&D spending and tangible and intangible investments. Union rent-seeking acts as a tax on the return on investment and limits innovative and investment activities (Connolly 1987 and Hirschman 1970). These acts can have a detrimental impact on the dynamic path of productivity. (Doucouliagos & Laroche) Additionally, in some traditional economic analysis, unions are said to distort labor market outcomes through, for example, legal and custom-driven restrictions on relative wages,...
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