Labor Unions

Labor Unions



Labor Unions

I. What is the history of labor unions?

A.The history of labor unions dates back to the guild system in Europe. Members of a guild (a certain profession) tried to protect their guilt by controlling membership, requiring apprenticeships, setting prices for finished goods, and ruling advancement within the guild. A guild was the first attempt of workers to organize according to their own rules rather than the rules of the employer. Guilds were craft unions, made up of people that made or did only one thing. The first trade union in the US was the National Labor Union, founded in 1866. It failed and was soon replaced by the Knights of Labor, 1869. (Katz, 2004)

II. Why are labor unions necessary?

A.The Knights of Labor and the successful American Federation of Labor (AFL), 1886, concentrated on the key issues of child labor opposition, demand for an eight hour day, and protection of the worker from unsafe working conditions, and ensuring a decent wage rate.

III. Are there any drawbacks of unions?

A.By restricting the number of eligible workers in industry, unions essentially decrease the labor supply. As a result, the existence of unions increases the average wage in an industry above the level that would naturally occur in the market. Due to the decrease in available workers and the increased wage required to pay individual, businesses are forced to hire fewer people at an elevated rate in order to maintain their labor operating costs.

IV. Why do the labor unions use collective bargaining?

A.An argument currently being made against collective bargaining rights is that public interests are not being represented at the bargaining table. The consequences of this may be that agreed upon increases in salaries, health care benefits and pensions may add financial burdens to the people by increasing their tax rates.

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