Question

Why did union membership decline?

Answer 1

Collective bargaining means one contract covers everyone. Such contracts do not reflect individual contributions. Instead unionized companies typically base promotions and raises on seniority, not merit. Unions designed this system for the industrial economy of the 1930s.

Today's knowledge economy looks quite different. Machines and computers automated many of the rote tasks of the industrial age. Most employers today value employees for their skills and abilities - "human resources" - instead of seeing them as interchangeable cogs on the assembly line. Employees also expect to be rewarded for what they bring to the table.

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