12 Oct 2022

183

The Need for an Increase in US Labor Market Unionization

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The stagnation of the USA middle class earning is one of the major indicators of the dire need for an increase in unionization. From the 1960s, the rate of workers joining labor unions has dropped drastically. The drop is recorded to be of more than 11% as of 2017. Political support, the behavior of the employers, and the running of the labor unions have also been key in shaping the labor unions of the USA. The labor unions seek to fight for the improved working standards of the employees. As such majority of the unions' members are the employed low and middle class whereas the self-employed are the least unionized. The increasing need for workers to unionize draws a mixed reaction from the employers (Klikauer, 2017) . Thus, the decreasing labor market and stagnant wages are the major reason for the need to unionize, although the unions face challenges mainly opposition from employers and lack of political goodwill. 

The continued weakening of the labor movement decreases the labor market and stagnates the wages of employees. For instance, wall mart shut down 5 of its stores in 2015 as a result of labor activities. The closure cost 2,200 employees their jobs (Picchi, 2015) . The reaction by Wal-Mart is no different from previous reactions from investors who opted to relocate to the southern American nations or to the east to avert the labor activities that were taking place. Some of the notable shifts include most of the US manufacturers such as HP, Dell, Apple that relocated most of its production to China (Reed, 2019 & "Labor Unions in the United States - How They Work, Pros & Cons," 2019)

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The two main challenges Labour unions face are opposition from employers, and lack of political goodwill. Most employers are against the formation of labor unions. As such, they go to the extent of sucking unionized employees, closing business, and relocating. Examples include the closure of five Wal-Mart stores in 2015 and the massive relocation of the business to China and South America. Over time, the political goodwill on labor unions has also diminished. For instance in President Ronald Reagan undermined a strike of the air traffic controllers union (PATCO) in 1981, yet he was once a union president (Picchi, 2015 & "Labor Unions in the United States - How They Work, Pros & Cons," 2019)

In conclusion, the increasing interest of labor unions emanates from the challenges the employees are facing. The middle class has had a stagnated pay while the labor market is shrinking. On the contrary, labor unions minimize income inequality, increase wages, and improve the working standards of its members. The employers, however, oppose unionization. Thus they discourage activities related to labor unions by sucking members and relocating business. The labor unions also face a lack of political goodwill. If all the employees were unionized, there would be fewer working hours, higher pay, and less income inequality. On the contrary, the economy is hurt by an increased cost of living, decreased job market, and reduced incentive to investors. 

Reference 

Klikauer, T. (2017). Workers and Trade Unions in the USA.  Journal Of Labor And Society 20 (1), 129-135. doi: 10.1111/wusa.12269 

Labor Unions in the United States - How They Work, Pros & Cons. (2019). Retrieved 10 October 2019, from https://www.moneycrashers.com/labor-unions-united-states/ 

Picchi, A. (2015). Union: Walmart shut five stores over labor activism. CBS News . Retrieved from https://www.cbsnews.com/news/union-walmart-shut-5-stores-over-labor-activism/ 

Reed, J. (2019). President Trump ordered US firms to ditch China, but many already have, and more are on the way. CNBC . Retrieved from https://www.cnbc.com/2019/09/01/trump-ordered-us-firms-to-ditch-china-but-many-already-have.html 

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StudyBounty. (2023, September 16). The Need for an Increase in US Labor Market Unionization .
https://studybounty.com/the-need-for-an-increase-in-us-labor-market-unionization-essay

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