Chapter 23: Problem 846

What are the four main methods by which a union can raise wages?

Short Answer

Expert verified

The four main methods by which a union can raise wages are: 1) Collective Bargaining, where the union negotiates on behalf of workers to establish employment conditions, including wages; 2) Strikes, where union members stop working until their wage demands are met; 3) Political Action, where unions engage in activities to influence public policy in favor of higher wages; and 4) Establishing Industry Standards, by raising the bar for wages and working conditions, thus pressuring non-union employers to match these standards.

Step by step solution

1. Collective Bargaining

Collective bargaining is the process where the union, representing a group of workers, negotiates directly with the employer to establish employment conditions, including wages. By negotiating as a collective, the union can leverage the power of its membership to demand higher wages than individual workers might be able to accomplish.

2. Strikes

A strike is a work stoppage where union members collectively refuse to work until their demands are met, which may include higher wages. Strikes can be costly to employers due to the loss of productivity and potential harm to the company's reputation. The threat of a strike or an actual strike itself can pressure employers to raise wages to meet the demands of the workers and resolve the strike.

3. Political Action

Labor unions may engage in political action, such as lobbying, endorsing candidates, or providing financial support to political campaigns, to influence public policy in favor of higher wages and better working conditions. Unions can push for legislative changes to increase the minimum wage, overtime pay, and other wage-related issues, which can lead to higher wages for workers.

4. Establishing Industry Standards

Unions can work to establish industry standards for wages and working conditions, which can put pressure on non-union employers to match these standards to compete for skilled workers. By raising the bar for the industry as a whole, unions can indirectly contribute to raising wages even for non-union workers. This can be achieved, for example, by making agreements with multiple employers, publishing information on agreed wage rates, or partnering with professional associations to promote fair wage practices.

Unlock Step-by-Step Solutions & Ace Your Exams!

Full Textbook Solutions
Get detailed explanations and key concepts
Unlimited Al creation
Al flashcards, explanations, exams and more...
Ads-free access
To over 500 millions flashcards
Money-back guarantee
We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!