AMERICAN UNIONS AND THE ECONOMY — THE UNHEARD VOICE OF A SHRINKING SECTOR

Abstract

Prior to the 1970s, unions in America represented nearly a third of the non-agricultural labor force with a significantly higher percentage in major manufacturing industries. Since then, union membership in the private sector has mirrored the steep decline in manufacturing jobs. Reduced numbers means greatly reduced political clout, such that unions today exercise almost no influence on national economic policy, even at a time of deep recession. From the 1980s onward, there has been a marked shift from a Keynesian macroeconomic framework toward a monetarist and liberal market model of economic policy, such that unions are viewed by many as anti-competitive in nature and as a constraint on a free market. This has further weakened their voice on policies relating to globalization. The minimal influence of unions and the lack of other mechanisms for collective employee voice have led to a weakening of policies designed to promote employment, even at a time of high unemployment. For over a decade, there have been no formal, or even regular informal tripartite discussions on employment policy matters. Moreover, even during a Democratic administration, unions have not been given a seat at the policy table.