Question

Impact of labour unions government on business organization

Answer 1

Through collective bargaining, unions negotiate the wages that employers will pay. This decreases the gap between the wage rate of low-skilled and high-skilled workers; high-skilled workers are more likely to be represented by a union. Increase the marginal productivity of its workers.

Answer 2

The power of labor unions rests in their two main tools of influence: restricting labor supply and increasing labor demand. Some economists compare them to cartels. Through collective bargaining, unions negotiate the wages that employers will pay. ... Push for minimum wage increases.