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A publication of the AFL-CIO stated, “There is accumulating evidence that unionized workers are more productive than nonunion workers and that unionization raises productivity in an establishment. This suggests that employers and American society generally should take a much more positive approach to unionism and collective bargaining.” Comment on this quotation.

A certain country has very centralized collective bargaining, under which wage bargains are applied nationally. This country is thinking about adopting a bargaining structure that is more decentralized so that wage bargains will be made at the individual plant or firm level. How would you expect decentralization to affect wages and employment? Explain your answer.


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