Over the previous years, the increase in globalization has had its fair share of challenges. A majority of labor union officials have come out to critic trade liberalizations, despite the economic evidence that the participation of labor unions compromises on the global competitiveness of the American companies (Allgaier, 1990). Since its emergence, the labor union has had a significant voice in the political systems of the United States. As such, the unions play an influential role in determining the political decisions. However, concerns are increasing on the implications that the unions are having on the nation’s global competitiveness, with a majority making clear statements that labor unions are only good for the workers and not for United States’ global competitiveness. Indeed, unionization has had negative implications on the international competitiveness of the United States.
The question of whether unionization hurts the global competitiveness of the U.S. companies has been in public for a period now. Arguments have had it that unions have the potential of dragging on a country’s competitiveness, despite the fact that there is no accepted measure of such competitiveness and a determination of its implication. For the Americans, there has been a mixed expression of the views associated with the impact that labor unions have on the international competitiveness (Fossum, 2014). Whereas majorities are of the opinion that unionization has indeed had a negative impact on the U.S. global competitiveness, others believe such a view is of little significance considering the international perspective (Allgaier, 1990). Globalization of different U.S. manufacturing companies and business has contributed significantly to advanced growth and profitability for many organizations. Furthermore, globalization also provides foreign countries with increased cash flow from the wages that the workers earn (Fossum, 2014). Such an occurrence contributes towards enhanced global business growth and further competitiveness.
Delegate your assignment to our experts and they will do the rest.
Despite such a positive attributed to the implication of unionization on the U.S. global competitiveness, it is evident that adverse impacts of unionization by far beat the positive consequences associated. For the last three decades that the labor unions have been in existence in the United States, the unions have pushed for the formation of higher trade barriers (domestic content), an aspect that would contribute towards the imposition of sanctions on the imports from other nations running bilateral trade with the United States (Allgaier, 1990). Besides, the recent occurrences of the unions lobbying for the establishments of higher tariffs and quotas for certain imported products. Based on such considerations, it is evident that the unions, though not directly, are working towards undermining international trade between the United States and other global nations. Such undermining prospects vitally influence a negative implication on the United States’ global competitiveness.
The United States labor leaders have in the recent past expressed fears of a majority of their members that globalization, as well as free trade, has contributed immensely towards the reduction of the union’s power and scope (Fossum, 2014). The increased import competition and relocation of United States production companies to abroad nations is an aspect that directly threatens the bargaining leverage of the workers as well as the reduction of their living standards (Dallago & Guglielmetti, 2010). Ideally, the labor union has previously been the greatest supporter of global trade, considering that they have always championed for the signing of various bilateral trade agreements. However, with the increased competition in the U.S. industry, especially from Western Europe send Japan. The opposition established by unions currently is a clear indication that indeed international trade hurts the unions.
Analysis of the impact that international trade has on unions reveals that in the short run, increments in both imports and exports negatively influence unions as it reduced their wages significantly (Dallago & Guglielmetti, 2010). Such an aspect has an aversion risk both on the unions and their management. In the long term considering, trade has a significantly little impact on the union average wage. As such, it is arguably true that the major concern for unions as attributed to their opposition to the open U.S. trade policies is mainly on the short-term implications rather than the long-term prospects (Dallago & Guglielmetti, 2010). The implication of global competitiveness on U.S. unionization is, therefore, an aspect of vital importance and significance and thus requires an appropriate address. Despite the increased globalization experienced across the globe, especially in business prospects, the average union worker in the United States believes such developments have contributed little benefits. From the previous century, the private sector unionization has made great achievements; however, that was in an era in which the domestic and global markets were less open and competitive (Fossum, 2014). With the little opposition that the U.S. producers faced, unions had the opportunity of extracting higher wages, with the employers equally extracting higher from the captive consumer base.
The U.S. industries have continuously embraced the increased competitive environment; however, for the unions and their leadership, the highly competitive environments possess much challenge than benefit. Regardless of the opposition, the unions establish against competitiveness; it is evident that bilateral trade still exists and continues expanding into other global markets. Thus, despite the fact that the implications of global competitiveness on U.S. unionization have been from the negative perspective, the unions have little effect on the U.S. global competitiveness.
References
Allgaier, C. (1990). Global competitiveness: Competitive intelligence implications. Competitive Intelligence Review , 1 (2), 45-45.
Dallago, B., & Guglielmetti, C. (2010). Introduction: Local Economies and Global Competitiveness. Local Economies and Global Competitiveness, 1-14.
Fossum, J. A., (2014). Labor Relations: Development, Structure, Process 12th Edition
