Call it the afterglow from a hot labor summer, but a key indicator of U.S. public support for unions recently notched a record high, with six in 10 Americans saying unions are good for the U.S. economy. Nearly the same number agreed a unionized workforce is helpful — not harmful — to their company’s success.
With renewed activism among workers and support for unions in both the public and private sectors, businesses have an opportunity to align their interests with that of their employees by taking a neutral stance on worker efforts to unionize. Doing so would not only mutually benefit employers and workers; it would also yield far-reaching gains for the broader economy.One primary way that unions improve workplaces is by making them more productive.
And given mounting concern over lack of competition in the economy, there has been increasing evidence how this leads to suboptimal wage and employment levels across the labor market.
Along with higher productivity and decreased turnover, these broad economic impacts such as reducing income inequality and fostering consumer demand also ultimately benefit businesses, which can share in the gains of greater productivity and higher economic growth.
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