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Negative Effects Of Labor Unions

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Summary Since 1881 labor unions have been a part of the US employment infrastructure; influencing the change of working conditions, pay, hours, and the economy. But the usefulness of these unions is widely debated. Are unions helping drive the US economy or are they holding us back? According to the US Department of Labor in 2016 40.8% of workers belong to a union both in the public and private sectors. “Union workers average 10-30% higher pay than non-union in the United States after controlling for individual, job, and labor market characteristics.” (Mayer 2004). A recent study compared companies whose workers voted to unionize with those who voted against unionizing; finding the unionized firms were 10% more likely to go out …show more content…

Even today, union workers earn significantly more on average than their non-union counterparts, and union employers are more likely to provide benefits. And non-union workers—particularly in highly unionized industries—receive financial benefits from employers who increase wages to match what unions would win in order to avoid unionization.” (Madland & Walter, 2009). But what about the the company's perspective? What about the laws passed that protect workers while on the job? One of the authors I came across made a great point: “Unions are no longer beneficial in our society because today we have so many laws protecting the rights of workers. In the 19th and early 20th century the workers of America had virtually no rights and were unable to improve their work conditions, salary, etc. With the arrival of unions, the state of the common laborer greatly improved. But today, with so many laws ensuring the rights of employees, unions are doing more harm than good. For example, many analysts believe that union's demand for so many raises and benefits for the auto industry workers has driven it into the ground, so they are no longer able to compete with other countries.” (Nett, 2014). Based on my findings, if it were not for the egregious demands of labor unions, the United States would still be a competitor against other countries in automotive manufacturing jobs despite all the move toward automation on the assembly line. Just look in the last 5 years how many

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