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By the end of this section, you will be able to:

  • Explain the concept of labor unions, including membership levels and wages
  • Evaluate arguments for and against labor unions
  • Analyze reasons for the decline in U.S. union membership

A labor union    is an organization of workers that negotiates with employers over wages and working conditions. A labor union seeks to change the balance of power between employers and workers by requiring employers to deal with workers collectively, rather than as individuals. Thus, negotiations between unions and firms are sometimes called collective bargaining    .

The subject of labor unions can be controversial. Supporters of labor unions view them as the workers’ primary line of defense against efforts by profit-seeking firms to hold down wages and benefits. Critics of labor unions view them as having a tendency to grab as much as they can in the short term, even if it means injuring workers in the long run by driving firms into bankruptcy or by blocking the new technologies and production methods that lead to economic growth. We will start with some facts about union membership in the United States.

Facts about union membership and pay

According to the U.S. Bureau of Labor and Statistics, about 11.1% of all U.S. workers belong to unions. Following are some of the facts provided by the bureau for 2014:

  • 12.0% of U.S. male workers belong to unions; 10.5% of female workers do
  • 11.1% of white workers, 13.4 % of black workers, and 9.8 % of Hispanic workers belong to unions
  • 12.5% of full-time workers and 6.0% of part-time workers are union members
  • 4.2% of workers ages 16–24 belong to unions, as do 14% of workers ages 45-54
  • Occupations in which relatively high percentages of workers belong to unions are the federal government (26.9% belong to a union), state government (31.3%), local government (41.7%); transportation and utilities (20.6%); natural resources, construction, and maintenance (16.3%); and production, transportation, and material moving (14.7%)
  • Occupations that have relatively low percentages of unionized workers are agricultural workers (1.4%), financial services (1.1%), professional and business services (2.4%), leisure and hospitality (2.7%), and wholesale and retail trade (4.7%)

In summary, the percentage of workers belonging to a union is higher for men than women; higher for blacks than for whites or Hispanics; higher for the 45–64 age range; and higher among workers in government and manufacturing than workers in agriculture or service-oriented jobs. [link] lists the largest U.S. labor unions and their membership.

(Source: U.S. Department of Labor, Bureau of Labor Statistics)
The largest american unions in 2013
Union Membership
National Education Association (NEA) 3.2 million
Service Employees International Union (SEIU) 2.1 million
American Federation of Teachers (AFT) 1.5 million
International Brotherhood of Teamsters (IBT) 1.4 million
The American Federation of State, County, and Municipal Workers (AFSCME) 1.3 million
United Food and Commercial Workers International Union 1.3 million
United Steelworkers 1.2 million
International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) 990,000
International Association of Machinists and Aerospace Workers 720,000
International Brotherhood of Electrical Workers (IBEW) 675,000

Questions & Answers

Ayele, K., 2003. Introductory Economics, 3rd ed., Addis Ababa.
Widad Reply
can you send the book attached ?
Ariel
?
Ariel
What is economics
Widad Reply
the study of how humans make choices under conditions of scarcity
AI-Robot
U(x,y) = (x×y)1/2 find mu of x for y
Desalegn Reply
U(x,y) = (x×y)1/2 find mu of x for y
Desalegn
what is ecnomics
Jan Reply
this is the study of how the society manages it's scarce resources
Belonwu
what is macroeconomic
John Reply
macroeconomic is the branch of economics which studies actions, scale, activities and behaviour of the aggregate economy as a whole.
husaini
etc
husaini
difference between firm and industry
husaini Reply
what's the difference between a firm and an industry
Abdul
firm is the unit which transform inputs to output where as industry contain combination of firms with similar production 😅😅
Abdulraufu
Suppose the demand function that a firm faces shifted from Qd  120 3P to Qd  90  3P and the supply function has shifted from QS  20  2P to QS 10  2P . a) Find the effect of this change on price and quantity. b) Which of the changes in demand and supply is higher?
Toofiq Reply
explain standard reason why economic is a science
innocent Reply
factors influencing supply
Petrus Reply
what is economic.
Milan Reply
scares means__________________ends resources. unlimited
Jan
economics is a science that studies human behaviour as a relationship b/w ends and scares means which have alternative uses
Jan
calculate the profit maximizing for demand and supply
Zarshad Reply
Why qualify 28 supplies
Milan
what are explicit costs
Nomsa Reply
out-of-pocket costs for a firm, for example, payments for wages and salaries, rent, or materials
AI-Robot
concepts of supply in microeconomics
David Reply
economic overview notes
Amahle Reply
identify a demand and a supply curve
Salome Reply
i don't know
Parul
there's a difference
Aryan
Demand curve shows that how supply and others conditions affect on demand of a particular thing and what percent demand increase whith increase of supply of goods
Israr
Hi Sir please how do u calculate Cross elastic demand and income elastic demand?
Abari
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Source:  OpenStax, Principles of economics. OpenStax CNX. Sep 19, 2014 Download for free at http://legacy.cnx.org/content/col11613/1.11
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