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Chapter 14: Q 39. (page 351)

Will union membership continue to decline? Why or why not?

Short Answer

Expert verified

Yes, the proportion of workers joining the union membership has been declining since the early 1950s and will continue to decline over time.

Step by step solution

01

Step 1. Unions in the labor market

Unions in the labor market signify a group of laborers that possess a significant power of demanding higher wages to the employers in their workplace.

02

Step 2. Will union membership continue to decline?

The statistical data shows that the proportion of workers forming unions or joining the unions has been declining since the early 1950s and is continuing so. The economists have found out the following factors behind the decline in the union members in the US.

1. A drastic decrease in the number of manufacturing sectors in the US and a transformation in the pattern of sectors from manufacturing to the service sectors.

2. Increase in international trade and globalization causing an increase in the competition from the foreign sectors in the US. Import competition can lead to a decrease in employment in the home country and so the bargaining power of the unions.

3. Changes in the policy frameworks, passing of laws from the part of the government in favor of the welfare of laborers and protection of laborers in their workplace. reduces the incentives of workers to form unions with the aim of gaining the power of demanding higher wages.

4. Unfavorable US laws for forming friendly and effective unions in the US compared to other countries.

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