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Labor Economics / Unions - Assignment Example

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It is evident that there has been a decline of unions in the 21 century because of the failure of adjusting the NLRA to adopt external factors that have an effect on the…
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Labor Economics / Unions
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Labor Economics / Unions

Download file to see previous pages... Introducing the national labour relations act was a strategy to create fairer labour markets. This was through formulation of statutory regulations that give employees the bargaining power. Rust explains that the rise in union membership at this period was a result of limited business mobility (Rust, 2012).
It is evident that unions in the 21st century face many external pressures because of the globalisation of businesses. Strike observes that NLRA supported the growth of unions successfully in a domestic market place. Business mobility enabled companies outsource jobs into countries with limited legal restraints. This move rendered NLRA ineffective in creating a fair labour market. It is obvious that the global market allocates labour basing on efficiency rather than fairness. Rust points out the stiff competition that unions face in the global market due to their notion to promote fairness. In order for unions to fit into the global market, union laws should discourage the notion of fairness and focus on the changes in market forces.
Rust observes that creation of unions that are able to adapt to external forces is possible if unions give in to powers such as exclusive representation, and mandatory good faith bargaining. Rust provides an example that NLRA, which has the support of many employees, can represent all employees in a bargaining unit in spite of their support of the union. This illustrates exclusive representation. On the other hand, mandatory good faith bargaining requires employees to meet and with a majority supported the union on contracting issues such as wages hours vacation time and other compulsory subjects. Such requirement restricts the bargaining power rights of both employers and employees. This new idea of unions presents unions as monopolistic (Rust, 2012).
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