Question

explain how or in what sense union bargaining causes involuntary unemployment?

is there any parallel between efficiency wages and union bargaining?

Answer 1

First of all let's understand briefly union bargaining and involuntary unemployment.

A union bargaining: in labor relations, is a group of employees with a clear and identifiable community of interests who are under U.S. law represented by a single labor union in collective bargaining and other dealings with management.Or Union bargaining is a process of negotiation between employers and a group of employees aimed at agreements to regulate working salaries, working conditions, benefits, and other aspects of workers compensation and rights for workers.AndInvoluntary unemployment occurs when a person is willing to work at the prevailing wage yet is unemployed. Involuntary employment is distinguished from voluntary unemployment, where workers choose not to work because their reservation wage is higher than the prevailing wage.

Union bargaining plays a vital role in involuntary unemployment ,it fixes the salries ,rules and regulations and so on for the employees. The employees are given the salery or wages according to their ability and efficiency and according to their time spending on work. In contrast to voluntary unemployment there employees demad for their salries. All the intrested candidates come to work and earn their wages according to the aggrement. Bargining union bargains for the salries of employees, for example a man goes to a company and damands salry of 1000 dalars but company gives him/her 700 dalars if he she agree for 700 hundred dollars he can work there. Bargining union plays important role for decreasing unemployment. If the union does not paid much wages but it gives opportunity for other unemployed.

As we know bargaining union does not pay as much as the employees demand . The union provide employment opportunities to all in order to decrease unemployment rate. If the union would give efficiency wages then the union can not appoint or adjust other unemployed persons. In this way we can say that bargaining union does not pay efficiency wages as much the candidates demad or deserve, but we can say the bargaining union is the best union for unemplyees.