REINA_Unions Essay

REINA_Unions Essay - Today's Unions Today's Unions Amanda...

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Today's Unions 1 Today's Unions Amanda Reina Prof. Sarah Scott Devry University June 19, 2011 Today's Unions
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Today's Unions 2 There is no escaping the despair caused by recession and economic decline. Across the world millions of workers and their families are suffering because they cannot keep their jobs and cannot get work as the deepest recession since the 1930s begins to bite. The misery of mass unemployment is felt everywhere. In the United States job losses began in the first days of 2008 and accelerated after the financial crash in October with 3.3 million jobs lost in the last six months alone. There are fears that unemployment will reach 12 per cent.1 In Europe the jobs crunch is just becoming visible. The European Commission predicts a jobless rate of 9.5 per cent next year. Many economists fear it will be higher. All the predictions are gloomy. With production falls in Japan and the emerging Asian economies included, the International Labor Organization predicts an increase in jobless figures of 50 million across the globe. Even this is thought to be an optimistic figure. Workers are facing the ordeal of a slump that has no precedent in their lifetimes. At this critical moment, trade unions are mobilizing. They have developed a vision for the world economy that goes beyond tinkering with regulation and repairing broken models of free trade. They argue that it is time to forge a new policy landscape that will create a fairer and more sustainable world economy for future generations. It is a vision that fits with the history of our time, arguing for the elimination, once and for all, of extreme capitalism and the unrestrained greed that have perverted so much of the global financial system. In this special publication, the Global Union Federations, working with the Trade Union Advisory Committee to the OECD and the International Trade Union Confederation, set out alternative strategies for the
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Today's Unions 3 global economy that are focused on getting people back in work and for a recovery plan based on humanitarian values. These arguments, agreed by Global Unions, were put before world leaders in Washington in November 2008 and were put on the table again at the meeting of the Group of 20 in London in April 2009. Put simply, unions demand a change of direction and a break with the greed, self interest and inequalities of the past. The authority of labor unions rests in their two main tools of influence: restricting labor supply and increasing labor demand. Through collective bargaining, unions negotiate the salary that employers will disburse. Unions solicit for a higher salary than the equilibrium salary, but this can decrease the hours demanded by employers. Since a higher salary rate equates to less work per dollar, unions often face problems when negotiating higher salary and instead will often focus on increasing the demand for labor. Unions can use several different techniques to increase the demand for labor, and thus, salaries. Unions can, and do, use the following
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This note was uploaded on 07/31/2011 for the course ECON 101 taught by Professor Thielman during the Spring '11 term at DeVry Arlington.

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REINA_Unions Essay - Today's Unions Today's Unions Amanda...

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