The Contours of a Modern Labor System
This chapter explains why policies that encourage union membership and promote broad-based bargaining would enable labor to deliver much more for workers and the economy than they can under the current system. The chapter discusses why labor has been in decline in the United States and elsewhere but has been able to maintain strength in a few other countries with favorable policies. Policies that actively encourage union membership are needed to counteract the collective action problem unions present. The chapter also discusses why collective bargaining currently does not work very well in the United States but could be much improved by shifting toward broader-based bargaining. Compared to worksite bargaining, broad-based bargaining raises wages for more workers, reduces economic inequality as well as gender and racial pay gaps to a greater degree, and is better suited to the way firms are structured in the modern economy.