Economic Phases of Unionism in the United States: Analysis

This essay delves into the two economic phases of unionism, primarily focusing on the American Federation of Labor and the Congress of Industrial Organizations. It explores the roles of unions in maintaining worker rights, negotiating wage rates, and influencing labor demand and supply. The essay highlights how unionism impacts the economic conditions by improving the structure of the economy and securing the working conditions. It discusses the effects of high wage rates and good working conditions on competition among workers, skill development, and the potential for increased unemployment due to the marginal productivity of workers. The analysis also addresses how unions can maintain the rights and demands of workers while potentially affecting the job market for less skilled workers. Overall, the essay provides an overview of the economic factors influencing labor unions and their impact on market outcomes.

Running head: THE TWO ECONOMIC PHASES OF UNIONISM
THE TWO ECONOMIC PHASES OF UNIONISM
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1THE TWO ECONOMIC PHASES OF UNIONISM
Discussion
Economic Union is considered as a trade bloc that comprises of common market and
custom union. The policies and practices that are concerned with the protection of workers by the
trade unions is known as Unionism. They help to maintain the right of workers or employees and
protect their common interest (Freeman, 2016). They bargain with the management to give a
minimum wage rate and provide the employees with ample benefits and growth opportunities.
They looks after the distribution of fair pay, flexible working hours, good work culture and
benefits. They are concerned with a high level of productivity with a low rate of employee
turnover rate (Young & Zuleta, 2018). This leads to a better work place communication and well
trained labor force.
The two phases of Unionism in the United States is formed under the American
Federation of Labor that comprise of the Change to Win Federation and the Congress of
Industrial Organizations. The bargaining structures of the Unions are highly centralized. Both of
these parties take active roles in politics and caters to the needs of the workers. They advocate
legislation and policies on behalf of workers in Canada and United States to look after the core
effective policies and outcomes (Doucouliagos & Laroche, 2016). The unions have hugely
regulated the economic conditions by improving the structure of the economy and securing the
working conditions. Unions have spread across several countries by clearly regulating the way
employees were treated. This has led to the development of an efficient industrial sector.
The aim of labor union is influenced by two economic factors, the increase the labor
demand and restrict the supply of labor. The unions maintain a high minimum wage rate with
good work environment (Lewin, 2017). High wage rate and good working condition increase
competition among workers. At high wage rate, only workers with skilled labors stay in the

2THE TWO ECONOMIC PHASES OF UNIONISM
market (Young & Zuleta, 2018). Employees work hard to gather skill and knowledge that is
effective for organizational growth. It restricts the labor supply by maintaining an equilibrium
price for the people that is effective for leading a steady lie. This enhances the performance of
the workers due to the creation of a competitive work force that effectively improves the
performance of the workers. They negotiate the wages with the employers, asking for a higher
wage rate which drives the gap between low and high skilled workers.
The marginal productivity of the workers increases as they are provided with special
training. However, this can increase the level of unemployment as firms refrain their less skilled
workers to maintain a higher wage rate (Doucouliagos & Laroche, 2016). Therefore, unionism
can maintain the rights and demand of the workers at the cost of low skilled workers. The overall
impact is a rise in the level of competition among workers and leads to a development of skilled
workers who can effectively change the market outcomes. Labor union is effective in
maintaining a steady outcome in the market, it can lead to a rise in unemployment.

3THE TWO ECONOMIC PHASES OF UNIONISM
Reference List
Doucouliagos, C., & Laroche, P. (2016). The Effect of Unions on Labor Productivity: A Meta-
Analytic Review. nd), Retrieved, January, 20.
Freeman, R. B. (2016). The road to union renaissance in the United States. The Changing Role
of Unions: New Forms of Representation: New Forms of Representation, 1.
Lewin, D. (2017). Unionism and employment conflict resolution: Rethinking collective voice
and its consequences. In What Do Unions Do? (pp. 313-345). Routledge.
Young, A. T., & Zuleta, H. (2018). Do unions increase labor shares? evidence from us industry-
level data. Eastern Economic Journal, 44(4), 558-575.