Homework Assignment Unit V-Wages

MHR6751 Homework Assignment Unit V- Wages The very creation of labor unions in the United States built itself on the foundation of economy; increased wages for labor and increased profits for organizations, the latter at the expense of worker pay. During the industrial revolution of the 1850s and 1860s, employers recognized early that competitive gains came from producing goods at lower wages. Conversely, labor wanted wages excluded from competition (Holley, Jennings & Wolter, 2012). Post industrial revolution through the advent of the modern labor union, English common law prevented workers from organizing together to “pressuring their employer to improve wages” (Holley, et.al, pg.40, 2012). Fortunately, modern labor law put in place in the early to mid-1900s …show more content…
Regardless of profits, market share, and cost of living, all advantages in the past 30 years have shifted to the employer, the exception being those companies who have a monopolistic advantage. According to Bureau of Labor Statistics data, real wages in the United States fell through the 1980s and into the early 1990s, not recovering the average value in 1980 until the year 2000 (DOL, 1999). Since 1980, technology and globalization have given companies structure that is more horizontal. This is allowing for the subcontracting and outsourcing of production to geographies not affected by American labor laws, thus allowing companies to manufacture goods for low wages. Globalization and technology have now brought wage contention for the American worker full circle, mirroring those of the industrial revolution (Dau-Schmidt & Ellis, 2010). To further illustrate this, even the United States Department of Labor (1999) admits the American family is working harder all while membership in labor unions is down to 11.8 percent of the workforce, without any signs of improving (Meyerson,