Question

In: Economics

in microeconomics, what are the pros and cons of 'right to work' laws. Explain with examples.

in microeconomics, what are the pros and cons of 'right to work' laws. Explain with examples.

Solutions

Expert Solution

Right-to-Work Law

The right-to-work law is a fundamental law that allows workers the freedom to choose whether or not to join a union in the workplace. Right-to-work is also known as workplace freedom or workplace choice.

There are alos pros and cons of the right to work law that affects unions. Here are three pros and cons to the right to work law.

Pros.

  1. Right to work laws expand worker's rights

The Right-to-work law expands worker's rights by giving them the right to decide whether or they want to join a  union.

2. Right to work laws hold unions Accountable

Right to work laws hold unions accountablefor the advantages membership has to offer.

  3. Right to work laws give worker's more Finacial freedom

Unions dues add up- sometimes to a few hundred dollars to a person per year. For example, the United Automobile, Aerospace and Agricultural Implement workers of America(UAW)'s Monthly dues reportedly cost about equivalent to two hours worth of pay. Right to work laws give worker's the right to choose whether or not they want to  pay dues for the union.

Cons

  1. Right to work laws may make business less competitive on the global scale

some business groups argue that right to work laws make American buisness less competitive on the global scale because they are forced to compete with low-wage countries.

2. Right to work laws starve unions of Funds

Because workers in Right to work states have a choice as to whether or not they want to pay union dues, unions lose valuable funds they need to support themselves and put forward campaigns.

3. Right to work Laws may Diminish union's power

Unions gain support by their members who fund them and engage with them. Right to work law give members a choice of how they want to participate both personally and financially. This can diminish union power, which they need inorder to protect worker's rights and organize as a collective with a shared agenda


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