The importance and influence of labor Unions has been demonstrated throughout the past but in more recent years their significance has started to fluctuate and, in many areas, decline. The article demonstrates how in the largest developed economies of the world (the richer nations part of the OECD) such as the United States, Britain, Japan, Germany, and France have seen a considerable decrease in Union membership over the past years. Since 1980, the unions' share of workforce has dropped steadily to half its level. It is definitely no coincidence that the countries most exposed to globalisation are the ones seeing this decline in the significance of Unions as more work is being outsourced. The article demonstrates how data from the 1980s and 1990s, and more recent research in Germany, show a correlation between foreign direct investment, outsourcing and lower union-wage premiums. However, there do seem to some exceptions where Unions are thriving. This is happening particularly in Scandinavian countries. The model for these Unions is said to be less confrontational and more concerned with the competitiveness of the industry. The article does an excellent job of analyzing the different international trade patterns associated with labor Unions in todays extremely globalized economies.
Personally I feel like unions are pretty outdated now. Back in the early 20th century, they fought for real problems like overtime pay, benefits, and things of that nature. However, today all of these have been settled and made into law. I feel like unions today are just political tools for lobbying and not necessarily striving for the well-being of the worker.
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