The alleged insider-outsider theory studies this problem.
Usually, the trivial benefit of an additional worker decreases as the number of workers raise. This entails that the lower the minimum wage, the more workers a company can gainfully employ. Consequently, while an augment in the minimum wage benefits the insiders, consequently fewer new workers are employed and fewer retiring workers reinstated. This effect is more marked in a work-intensive service company (Baker, (2002).
The economic examination of a cartel applies totally to most unions, to those that struggle to fix the price of work, to limit supply or to limit rivalry. Conversely, unions often have also other jobs than those of a cartel: they may counsel the workers, warn concerning detrimental contracts or terms of employment etc. These latter purposes are typically considered as valuable for both the workers and for the society all together, whereas the opposite applies to cartel-type minimum terms.
Frequently the union on a pa...
the question whether the welfare of a trade union are for or in opposition to the interests of the companies, unemployed, workers, tax-payers or the society all together.
Small unions have grown to enormous size; a huge new federation has developed; and now the old American Federation of Labor and its late rival, the Congress of Industrial Organizations, are merged. There have been thousands of strikes, both large and comparatively small--some of them of great importance. There have been political campaigns, both local and national, in which labor has played a role, with great effect on local and national politics.
Yet the most significant development in the labor movement does not lie in its organizational growth, its conduct of strikes, or its participation in political campaigns. The most significant development during the past twenty years has been a radical transformation of labor's basic goal. The leaders of the movement have always proclaimed, and still do, that their primary objective is the acquisition of sufficient economic power to protect the legitimate interests of the workers. Actually, their primary objective has become the acquisition of political power.
The beginnings of this shift in emphasis go back to World War I and the years immediately following. The early years of the twentieth century were for labor organizations largely a period of employer repression, legal restraint, and economic discouragement, with political power used more often against labor than for its benefit. Practically the only federal legislation sought and successfully won by labor was a provision in the Clayton Anti-trust Act of 1914 specifically declaring labor unions were not to be held conspiracies in restraint of trade. It is noteworthy that labor in this provision did not