Сonsumer rights movements

The labor unions have formed coalitions with consumer rights movements. The unions engage their members and other consumers in adherence of boycotts to purchase products that are made by unions in America. Workers in America are accumulators of capital and the members of the unions are no different. Social insurance in America is garnered in place of work in America as a form of benefit to the employees (Dinardo and Lee, 2001).

American workers who are unionized are paid large amounts of money in deferred compensation unlike similar workers who are non-unionized. Lately, unions in America have realized their role as investors and savers through the assertion of rights of property over assets in the pension funds. They thus have the rights as share holders and control investment in the pension funds. The role of the unions as collective bargainers of workers has made it possible for their members to earn more though their productivity is at par with those other workers.

The unions raise wages for their workers to stop putting the issue of wages on the spot in the market. However, they create institutions through which costly investments are done by workers and employers as they make contracts which are long-term inclusive of the training while on job. When workers are dissatisfied with wages, conditions at work and hours, they make use of the union instead of looking for employment elsewhere (Dinardo and Lee, 2001). The raising of wages by unions can be achieved by reducing profits.

This effect is seen as very beneficial when the derivation of profits is done from conditions that are not competitively perfect e. g. If the employers are monopolists (Ghilarducci, 2003). Unions have an effect on the economy as no one can compete with them in the issue of wages and have also eliminated the enjoyment of whipsaw advantages by firms. They have also helped the workers who are non-unionized to get better conditions while working and boosted their pay as employers fear they could easily mobilize these employees.

Conclusion Labor unions control one of the major factors used in production and thus they should be taken seriously by employers. Unions can act as detractors or correctors in any economic model. They act as saviors since they redistribute income acquired in form of profits. Conversely, they can be problematic as higher prices are paid by consumers and workers who are non-unionized receive low wages for not belonging to them.


Dinardo, J. & Lee, D. (2001). Economic impacts of new unionization. Retrieved from http://74. 125. 113. 132/search? q=cache:GP-V2RJ0y2wJ:www. princeton. edu/~davidlee/wp/newunion. pdf+*the+economic+impact+of+labor+unions+today&cd=50&hl=en&ct=clnk Ghilarducci, T. (2003). American labor movement economic impact. Retrieved from http://74. 125. 47. 132/search? q=cache:yjRmC-nDYDQJ:www. nd. edu/~tghilard/documents/American%2520Labor%2520Mvmt2. doc+%25seconomic+effect+of+trade+unions+and+the+history+of+union+pension+activism. &cd=5&hl=en&ct=clnk