Question

TITLE; Labor Unions

If you are not a union member, find an article addressing role of unions in the economy, their impact on wages, prices, and economic policies. Include name of the article in the title of your post. Provide working link and summary of the article. In your summary, answer general question in relation to the information you found.

General question: Do you think unions make economy more or less efficient? Why?

Answer 1

Most of the labour movements give preference to major things regarding the working environment of the workers. The unions amplify the voices of the working people who having work, the workers are come from different sectors of the economy, unions thriving in diverse industries, democracy strengthen with increasing working people to union, union tries to reduce the inequality among the middle and low income working people, unions will help to reduce the wage gaps and also tried to increase the wages of women, ensuring the safety in work places etc. The sustainability of the unions shows the structure of the developing countries. In patronage and obstructionist regimes the unions are highly politicised. The article “The Role of Labour Unions in Fostering Economic Development” by John Pencavel argues that improvement of the workers standard of living requires growth in productivity. The redistribution of income will raise the earnings of the workers. The unions raise the productivity in workplace through participating with management in search for better ways of organising production. Government responsibility relating to this is setting up of labour relations which underpin the labour market interpretation. The collective bargaining nature of the workers also showed the importance of the unions among working people.
Most of the unions make benefit for their workers but it hurts the consumers generally, mainly the workers who denied their job opportunities. Most of the unions decrease the number of jobs which available in the economy. The work loss occurred in the manufacturing jobs have been among the union members. There is conflicts occurred between different ideologies within the unions. But the unions reduce the wage inequality and also help to raise the working condition of the people who are not the part of any unions. The unionized workers get high benefit in terms of health then the non unionized workers. The union workers were also ensure the pension plans after their retirement. This will helps the economy to reduce their transfer payment to the old age people.