Question

The National Labor Relations Act was passed in 1935. In 1944, 35% of the workforce were members of an organized union. In 2016, private-sector workers (those workers not in the government, schools, etc) only had 6.4% participation in unions. What do you think are the reasons? Has the culture changed?

Answer 1

Below are the reasons for the decrease in the unionization percentage over the years in private firms -

1. Private firms have become more inclusive and considerate in offering salaryt and benefits to employees

2. Increased scrutiny and awareness of labor laws and regulations keeping firms in check

3. Globalizaton resulted in firms establishing units across countries resulting in providing competitive salaries etc.

4. Employees becoming more responsible and educated with most of the private jobs in IT sector.

5. Employees switching jobs more frequently as per their skills and experience.