In: Economics
Are labor unions good for American society? Expound on your explanation using at least 400 words using logical thoughts and using actual facts supporting your position. Please and thank you
It is good for the economy and good for American democracy when workers join together in unions, despite the claims of some conservatives who are waging a campaign to block important legislation that would make it easier to join a union.Only 12 percent of American workers are currently represented by unions, and those who attempt to unionize face an uphill battle. The Employee Free Choice Act, which is likely to be one of the most important issues debated when the 111th Congress starts in January, holds the promise of restoring workplace democracy for workers attempting to organize, boosting unionization rates, and improving the economic standing and workplace conditions for millions of American workers. The bill has previously passed the House and received majority support in the Senate, though the opposition of a few conservatives in the Senate has prevented the bill’s final passage. Yet next year the bill has a very strong chance of becoming law due to the election of several progressive senators in November and President-elect Barack Obama’s promises of support.
Unions are good for all workers. They improve wages, benefits, and working conditions, and helped create the middle class.Unions raise wages for all workers. Unions paved the way to the middle class for millions of workers and pioneered benefits along the way, including paid health care and pensions. Even today, union workers earn significantly more on average than nonunion counterparts and union employers are more likely to provide benefits. Workers in low-wage industries, women, African-American, and Latino workers have higher wages in unionized workplaces. Even non-union workers—particularly in highly unionized industries—receive financial benefits from employers who increase wages to match what unions would win in order to avoid unionization.
Without unions, fewer workers get ahead. Shrinking union membership hurts all Americans. Corporations rather than workers are increasingly rewarded for growth in the economy. Long before the current financial crisis began, working families were struggling to make ends meet. American productivity has expanded by nearly 16 percent since 2001, but most of that economic boom bypassed workers, and real wages have remained flat. Corporate profits have meanwhile doubled since 2001, according to Moody economist Mark Zandi. Not since the 1920s has the link between economic growth and the well-being of the middle class been so tenuous. Labor’s decline squeezes the middle class, raises inequality, and undermines democratic values.
Higher wages are competitive. Critics argue that union wages are too high and make it hard for American employers to compete globally. Yet competitiveness is also linked to productivity, quality, and innovation—all of which can be enhanced with higher wages. Henry Ford found in 1914 that paying employees $5 per day—double the auto industry’s prevailing wage—reduced turnover, allowing him to cut the price of the Model T and increase profits significantly. Ford commented that the $5 day was one of the finest cost-cutting moves we ever made.
Unionization and high worker productivity often go hand-in-hand. Fairness on the job and wages that reflect marketplace success contribute to more motivated workers. Given the pressures of globalization and competitiveness today, unions have been responsive to increasing productivity and embracing new innovations.Unions improve communication between workers and managers. Unions give workers a voice on the job and improve communication between workers and management. Without unions, day-to-day competitive pressures leave quitting as the only option for workers to address serious problems—an expensive solution for all concerned.