Question: 1 Given the necessity of worldwide economic reform due to the recession, what are the advantages and disadvantages of unionised activity for employees and employers?

1 Given the necessity of worldwide economic reform due to the recession, what are the advantages and disadvantages of unionised activity for employees and employers? In the US, labour unions are engaged in lobbying activities and collective bargaining over wages, benefits and working conditions. There are private and public sector unions, the former tightly regulated by an independent federal agency and the latter largely dependent on state law. Considerable debate surrounding the role of labour unions arose in the wake of the economic crisis after two of the largest automobile companies received $85 billion in loans to avoid bankruptcy. Many argue that the unions and the expensive labour agreements exacerbated the economic problems faced by US carmakers. By contrast, many argue that the labour unions have made extensive concessions to the car companies in order to help the companies remain competitive, and that carmakers’ recent troubles are due to other factors.

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