Modernized trade unions could help to better protect workers
Today is Labor Day, and questions are being raised around the globe over how to create sustainable jobs and protect workers.
Post-recession, the poor state of labor markets is taking its toll on employee confidence and engagement. Recent studies by the United Kingdom’s Smith Institute estimate that 12m British workers are unhappy with some aspect of their employment, such as fear of job loss and losing job status.
Meanwhile in the United States (US), poor wage recovery is a principle concern. The Bureau of Labor Statistics (BLS) showed that real compensation per hour has increased by just 0.5% since the crash, and new data from the Federal Reserve Bank of Chicago estimated that real wages should rise by at least 3.6 percentage points to balance current labor market conditions.
Some are concerned that this has been caused by over-regulation and too much government-dependency.
Roy Rickhuss of the Policy Network suggests that trade unions need to be modernized in order to appeal to a wider proportion of workers, and help a greater number of businesses become more productive.
He commented: “Not only must we moderate our language, but we also need to promote the work we do in partnership with employers.”
We have a range of articles on the effects of trade unions on labor. Alex Bryson discusses evidence which shows that effective trade unions can improve workers’ terms and conditions; affect wage rises; and reduce wage inequality.
Meanwhile, John T. Addison talks about how trade unions can stimulate worker voice, thereby improving overall engagement.
Nevertheless, it is crucial that policymakers properly analyze labor markets after recessions in order to shape employment-boosting measures. Edward P. Lazear notes the difference between structural and cyclic recessions, and the different tools required to combat them.
Read more here.
Related articles:
Union wage effects, by Alex Bryson
The consequences of trade union power erosion, by John T. Addison
Structural or cyclic? Labor markets in recessions, by Edward P. Lazear