Q:
Briefly summarize the impact of unions on general wages levels.Do unions raise wages? Are unionized employees better off than they would be if they were nonunion? Several measurement problems are difficult to overcome. The ideal situation would compare numerous organizations that were identical except for the presence or absence of a union. Any wage differences among these organizations could then be attributed to unionization. Few such situations exist. One alternative strategy that has been adopted is to identify organizations within the same industry that differ in level of unionization. For example, consider company A, which is unionized, and company B, which is not. Although they are in the same industry, it is still difficult to argue with assurance that wage differences between the two firms are attributable to the presence or absence of a union. First, the fact that the union has not organized the entire industry weakens its power base. Consequently, any union impact might underestimate the role of unions in an industry where the percentage of unionization is greater. A second problem in measuring union impact is apparent. What if company B grants concessions to employees as a strategy to avoid unionization?
