BUSI 342 DB4.docx - As our textbook states u201cA union is...

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As our textbook states, “A union is a formal association of workers that promotes the interest of its members through collective action.” (Mathis, pg. 560) The concept of unionization came around in the late 1700’s as a way to help employee’s gain better pay and working conditions by legally forcing employers to comply with their interests. Unionization may sound like a good concept whereby employees are given higher wages and better/safer working conditions via collective negotiations between their representatives and the politicians they support. This type of behavior influences the various labor laws that our federal and state governments have passed over the years. However, many people don’t see unions as a good thing. “In their economic function, unions resemble a cartel where the goal is to set a uniform above-market price for a coalition of agents selling a common good or service (e.g., labor). Unions do this through collective bargaining. Protecting a reasonable level of wages and

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