labor market. We sometimes call negotiations between unions and firms collective bargaining.

The subject of labor unions can be controversial. Supporters of labor unions view them as the workers’

primary line of defense against efforts by profit-seeking firms to hold down wages and benefits. Critics of labor

unions view them as having a tendency to grab as much as they can in the short term, even if it means injuring

workers in the long run by driving firms into bankruptcy or by blocking the new technologies and production

methods that lead to economic growth. We will start with some facts about union membership in the United

States.

Facts about Union Membership and Pay

According to the U.S. Bureau of Labor and Statistics, about 10.3% of all U.S. workers belong to unions. This

represents nearly a 50% reduction since 1983 (the earliest year for which comparable data are available),
336 14 • Labor Markets and Income
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