The labor unions in America are recognized legally and their main function is to represent numerous workers from various industries. Their main activities include, bargaining collectively on wages, conditions of work, benefits and full representation of members in case management is attempting a contract violation. Most unions have a lion share of membership within the public sector (Ghilarducci, 2003). They are also very vital in American politics especially among the democrats as they can mobilize their members and form coalitions with people with similar political inclinations
The Economic Impact of Labor Unions Today Traditionally, labor Unions are viewed as monopolies by economists. Capital is challenged by unions as they can control labor which is a major input in production. The unions continue posing a challenge as they can withhold labor in a bid to achieve their stipulated goals. The labor unions have put strategies in place on the roles of consumers and citizens through using boycotts by consumers and political actions (Dinardo and Lee, 2001). These unions have successfully challenged the authority in companies by giving an encouragement on deferment of consumption by workers.
They instead encourage workers to own the capital via the pension funds. Leverage is achieved by the workers via activism in pension funds as decisions made by the corporation are challenged by it (Ghilarducci, 2003). The decisions in a company were not affected by the bargaining, organization or political actions that the unions engaged in. Unions are monopolies that can cause distortion in a market that normally functions well. Lately, exchanges are made economically between employers and unionized workers within the community and power context.
Labor which is an input that is vital in production is a major tactic and strategy used by the unions (Ghilarducci, 2003). They collectively bargain labor and can easily slow down or impede production through it. They also enforce the rules at work and can take actions at work via melodramatic strikes. The role of workers as voters is also very politically important for the union as they make donations for campaigns, and seek for work during campaigns. They also lobby for programs of income security in the government, the standards of labor eg rights of employees and minimum wages for the employees (Ghilarducci, 2003).