Is the Decline in the Number of Union
Is the Decline in the Number of Union Workers Due to Public Policy?The existence of labor unions has played a large role in the economy of the United States and in the way in which businesses structure the wages and benefits of their employees. Labor unions began back in the late eighteenth century with industries such as shoemaking and carpentry. However, in the twentieth and the beginning of the twenty-first century, the United States has seen a dramatic growth and then decline in the number or workers who chose to be members of labor unions. Government legislation has played a role during this period, especially in the expansion of unions in the 1930's through the 1950's. However, the decline in the number of union workers, which began in the mid-70's, can be attributed to much more than public policy such as; the attitude of workers toward unions, the movement of industry to the South, the state of the national economy, and increased domestic and foreign competition. The level of union membership that occurs can be analyzed through a demand and supply analysis. The demand curve shows how many union services people wish to have at a given price, while the supply side displays the price of membership versus the amount o
If an individual's income increases, he may have the money to pay the fees and therefore join a union. Ratings of Labor Unions, 1936-1985 (percent)In general, do you approve or disapprove of labor unions?±Year Approve Disapprove1936 72 20 1940 64 221947 64 251949 62 221953 75 181957 (Sept) 64 181962 64 241967 66 231973 59 261978 59 311981 55 351985 58 27 Even though the United States workforce has seen a large decline in the number of union workers and in attitudes toward the favorability of unions, many statistics argue that union workers still enjoy higher salaries than those employed in nonunionized plants. The United States began to see a large shift of business to the South, where these managers would not have to fight unions. Furthermore, states were allowed to pass right-to-work laws, which weaken the power of unions to organize. The National Labor Relations Act, known as the Wagner Act, gave unions more power as well. This would shift the demand curve to the left, causing the equilibrium price and quantity of unions to decrease. Also, the economic recession in the 1980's encouraged firms to cut labor costs even more as unemployment decreased the bargaining power of unions due to the threat of strikebreakers. Managers are generally though of as opposed to unions. Overall, the decline had much more to do with other factors than public policy. If this were the only factor, then everyone would chose to unionize. Some benefits may include higher wages and better working conditions. This Act provided no specific legislation the outlawed the right of union workers to strike, but allowed for the president to place a temporary injunction on a strike as President Bush exercised recently with the longshoremen who are necessary to the U. This was a major step for unions because, for the first time in history, the government was perceived as having a favorable view toward labor unions, as opposed to the negative or even neutral view of the Norris-LaGuardia Act only three years prior. However, other public policies, such as the deregulation of the airline industry, had an effect of the decline that began in the mid-70's. Each of these effects the slope of the supply curve, which is ultimately determined by a mixture of these goals.
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