Briefly discuss the two conflicting views of the role of unions in economics and society

Question

What will be an ideal response?

Answer 1

The two conflicting views of the role of unions in economics and society hold that the unions have a collective face and a monopoly face.
People with the view that unions have a collective face believe that unions primarily provide a collective voice through which workers can express their job-related concerns. Unions increase efficiency because unionized firms have lower employee turnover rates, so the employer spends less money and time training new employees. Because unions usually negotiate contracts that base wage increases primarily on seniority, older workers are more likely to help newer ones and a more cooperative workplace will exist, thereby increasing efficiency. Unions decrease inequality of wage distribution within the firm because they will try to raise the wages of the below-average workers up to those of the average; for solidarity purposes, they have to try to make the wages of those in the bargaining unit more equal. Unions are democratic institutions, representing the interests of workers in general in the political process.
People with the view that unions have a monopoly face believe that unions are institutions that primarily serve to raise wages above competitive levels. Unions decrease efficiency by securing unmerited wage increases for their workers, thereby causing a misallocation of resources.
Unions decrease efficiency by causing strikes that result in lost production and obtaining special contract provisions that reduce productivity. Unions increase the existing inequality of wage distribution by providing higher wages for unionized workers at the expense of nonunionized workers. Unions gain their power through coercion and the threat of physical violence, and use that power to lobby for legislation to restrict competition in their respective industries.