Labor Econ Chapter 10 reasons for decline in Unionism

Structural Change Hypothesis

Employment growth has shifted toward white-collar jobs, services, women, small firms, part-time, and southern states. Import competition in U.S. industrial sectors has increased. Success of union workers have incentived firms to relocate to non-union areas and substitute capital for labor.

Relative Importance

Evidence suggests that the total decline in unionization is due to: Structural changes (40%) Increased managerial-opposition (40%) Substitution hypothesis and other factors (20%)

Substitution Hypothesis part 2

Firms counter potential unionization by providing job amenities historically negotiated by unions: Two-way communication channel Addressing worker grievances Seniority protection Fringe benefits

Managerial Opposition Hypothesis

Firms use various mechanisms to counter unionization: Suggest unionization creates an adversarial relationship detrimental to the worker. Hire strikebreakers to replace striking workers. Delay NLRB union certification to reduce union enthusiasm among workers. Hire labor-management consultants to mount anti-union drives. Dismiss pro-union workers (illegal via the Wagner Act of 1935).

Substitution Hypothesis

Government has come to provide the services, benefits, and employment conditions historically only available via unions: Social security Health and safety laws (OSHA) Unemployment insurance Workers compensation

Union Responses

Increased mergers among unions. Increased organizing efforts and targeting of white-collar workers. Avoiding strikes and using work slowdowns instead.

Other Factors

Relaxed union organization efforts. Individualistic vs. collectivist culture.