Unionized

Economics

In the United States, the outsourcing of labour to Asia, Latin America, and Africa has been partially driven by increasing costs of union partnership, which gives other countries a comparative advantage in labour, making it more efficient to perform labour-intensive work there. Trade unions have been accused of benefiting insider workers and those with secure jobs at the cost of outsider workers, consumers of the goods or services produced, and the shareholders of the unionized business. Economist Milton Friedman sought to show that unionization produces higher wages (for the union members) at the expense of fewer jobs, and that, if some industries are unionized while others are not, wages will tend to decline in non-unionized industries.