MGMT 360

Time for a Change

During modern American history unions have served a great purpose. They have given workers better working conditions, higher wages, better work schedules, and many other benefits. Even though many enjoy these benefits today there is a question in today’s society on whether or not unions in this country are still needed. There are compelling reasons why Corporate America would be better served without unions. Unions have gained higher wages for their members in the past but in accomplishing this they have reduced the number of jobs. It is a simple case of the economic law of supply and demand: if unions raise the price of labor, companies will be forced to purchase less of it. Morgan Reynolds, a chief economist at the U.S. Department of Labor, states that “unions are the major anti- competitive force in labor markets. Their gains come at the expense of consumers, nonunion workers, the jobless, and owners of corporations.” (1) According to Harvard economists Richard Freeman and James Medoff, who have been pro union in the past, state that, “Most, if not all, unions have monopoly power, which they can use to raise wages above competitive levels. The power that unions have to fix high prices for their labor rests on legal privileges and immunities that they get from the government, both by statute and by non enforcement of other laws.” (1) These powers are being used for the wrong reasons. The unions were given these powers to protect those people who were receiving unfair wages. In many corporations today people are getting paid more and more and the work that they are performing keeps getting less and less. It is important that employers are able to pay their employees based on job performance, experience, and value to that particular company in order to stay competitive. Few companies can afford to pay people high wages if they