Chapter 12, Problem 26AA

To determine

To describe the condition of the non-existence of the unions.

Explanation of Solution

Labor unions are formed so as to get the increased wages and the benefits regarding the job in the industry along with the healthy environment to work in with job security.

If there were no labor unions, the workers would have been treated as sheep. There would not have been any leverage and no bargaining power. Workers would have worked all day and night for whatever they are receiving either sufficient or not.

There would have the issues such as:

·         There would not be any weekend benefit.

·         There would be the problem of child labor.

·         Wages would be very low.

·         Workers won’t have health insurance as the employers would not let them with such benefits.

·         There would not be any benefits for social security or unemployment insurance.

The existence of unions is important for the workers as they help in removing wage inequality. They set a standard pay and benefits for the workers which the employers need to fulfill so as to get the desired work done with efficiency.