Collective bargaining, competitiveness and employment in the United States

Abstract

This paper discusses collective bargaining in the United States over matters of job security, employment creation, and firm competitiveness. It first points out that US policy on economic issues is oriented toward facilitating the operation of markets; therefore, there is almost no public policy toward job security, employment creation, and competitiveness on which collective bargaining can build. Within the collective bargaining system, government policy merely enables unions and employers bargain over job security, employment creation, and firm competitiveness; it neither requires it nor even encourages it. Incidence of such use of collective bargaining thus varies by industry, with occasional use for competitiveness, but rare use for job creation. An exception is the automobile assembly industry, which is highlighted.