It seems that trade unions are mostly seen in history books. Why and when exactly did they decline?
In: 8
Unions require the ability to restrict the labor pool in order to function.
In a ‘company town’, they can accomplish this by social means – the town itself is so centered around the business that it’s impossible to function socially without the union’s tacit approval.
In certain skilled labor positions, the union can accomplish this by seizing control of the certification pathways.
With government services, the union can accomplish this by financing politicians who favor restrictive labor practices.
However, in the absence of the ability to restrict the labor pool, unions have no power to compel employers to negotiate with them since it’s normally easier for the employers to just hire from the general labor pool.
Most of the decline in unions owes to the first factor I mentioned above: the decline of company towns. A combination of automation, outsourcing and a broadening of the economy as a whole meant that the sort of concentrated mass unskilled labor that drove the union movement in the early years no longer existed.
Latest Answers