Question

What is an inclusive labor union and how does this kind of organization affect wages for its members?

Answer 1

An inclusive labor union is a type of labor union which includes all the members of the industry in its union membership, including all unskilled and semi skilled workers.

This type of union is inclusive of the entire industry workers and thus holds are greater command as compared to other unions which do not include semi and unskilled labour.

This kind of inclusive union has a greater bargaining power over its employers, as it threatens to strike and stop the entire industry workers from working if their demands of higher wages are not met or if substitute non union semi skilled workers are hired.

This makes wages higher in inclusive labor unions due to their greater command over the industry workers.