Economics, need help please?

Question

What are some benefits and costs associated with unions? What role do you think unions will play in future labor markets? Why?

Answer 1

Unions were good to help ensure safe working environments, comfortable employment conditions and decent wages. The cost comes by their main way of doing this is by limiting supply of labour, and it comes at a cost to businesses which are eventually passed onto the consumer. The power available to them with limiting supply can got too far or be corrupt. (But no different than business itself going to far or be corrupt.)

Unions in a globalization future hopefully will be progressive thinking working with business to share valuable grassroots information workers may have that employers don't. They can become part of the decision making process instead of an us verses them mentality of the past.

Answer 2

A Trade Union (Labor union) ... is a continuous association of wage-earners for the purpose of maintaining or improving the conditions of their employment."
Over the last three hundred years, trade unions have developed into a number of forms, influenced by differing political and economic regimes. The immediate objectives and activities of trade unions vary, but may include:
Provision of benefits to members: Early trade unions, like Friendly Societies, often provided a range of benefits to insure members against unemployment, ill health, old age and funeral expenses. In many developed countries, these functions have been assumed by the state; however, the provision of professional training, legal advice, and representation for members is still an important benefit of trade union membership.
Collective bargaining: Where trade unions are able to operate openly and are recognised by employers, they may negotiate with employers over wages and working conditions.
Industrial action: Trade unions may organize strikes or resistance to lockouts in furtherance of particular goals.
Political activity: Trade unions may promote legislation favorable to the interests of their members or workers as a whole. To this end they may pursue campaigns, undertake lobbying, or financially support individual candidates or parties (such as the Labour Party in Britain) for public office.
Union supporters often state that the labour movement brought an end to child labor practices, improved worker safety, increased wages for both union and non-union workers, raised the entire society's standard of living, reduced the hours in a work week, fought for and won public education for children, and brought a host of other benefits to working class families[citation needed]. However according to David E. Kelly at the Cato Institute, work safety standards and wages were already increasing while child labor and work hours were already decreasing before union and government intervention.

This is considered particularly important for groups who are more likely to suffer "labour-market discrimination." On average, women in Britain earn 20% less than men for the same work but women who are union members earn 24% more than those who are not . In the People's Republic of China, the pay gap between men and women has actually increased in recent years despite the booming economy

In future markets the role of unions is likely to increase many fold, mainly due to political scenarios, environmental degradation and its responsibility, increasing population, increased economic effects on labors and globalisation etc. The unions will have to cope up with these scenarios to be able to play an effective role.