The Two Faces of Unionism

Abstract

This study delineates and assesses the relative accuracy of two views of trade unions in the U.S. In the first, which we call the "monopoly" view, unions are a detrimental force in advanced capitalist systems; unions do little more than raise the wages of their members beyond what they would otherwise be, increasing the degree of economic inefficiency and inequality.In the second, which we refer to as the "collective voice/institutional response" view, unions provide workers with collective voice, which is essential in the absence of meaningful opportunities for individual exit; this voice elicits institutional responses which dramatically change the nature of the employment relationship and, in so doing, increases the levels of productivity and equality in many settings.The evidence presented indicates that those who focus on the monopoly face of unionism and ignore the collective voice/institutional response view are likely to hold erroneous beliefs about unions in this country.The facts indicate that on net unions do ~reduce efficiency or equality and are generally democratic and non-corrupt organizations.

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