Labor Unions and Collective Bargaining

The video discusses labor unions, their history, and their role in collective bargaining to improve worker conditions. It highlights the decline in unionization in the private sector and the rise in the public sector, along with issues like unfunded liabilities. The video compares unions to minimum wage policies, explaining their impact on wages and employment. It also touches on the monopoly-like power unions hold in the labor market.

What was one of the main reasons for the formation of labor unions during the 1800s?

• To promote international trade

• To improve working conditions and wages

• To increase industrial production

• To support government policies

What is one of the primary goals of collective bargaining?

• To reduce the number of working hours

• To increase company profits

• To promote competition among workers

• To secure higher wages and better working conditions

As of the current data, what is the approximate unionization rate in the U.S. workforce?

• 5%

• 10%

• 30%

• 50%

What is the unionization rate in the public sector compared to the private sector?

• Higher in the public sector

• Non-existent in both sectors

• Equal in both sectors

• Higher in the private sector

What term is used to describe the financial obligations that are not currently funded in public sector pensions?

• Deferred liabilities

• Unfunded liabilities

• Overfunded liabilities

• Secured liabilities

What is a potential consequence of unfunded liabilities in public sector pensions?

• Increased pension benefits

• Higher taxes for future taxpayers

• Lower taxes for citizens

• Decreased government spending

What is a common argument against the existence of public sector unions?

• They lead to lower wages for public workers

• They create unnecessary competition

• They result in generous pensions and unfunded liabilities

• They decrease the quality of public services

How do labor unions resemble monopolies in the labor market?

• By lowering wages for all workers

• By promoting free market competition

• By reducing the supply of labor to increase wages

• By increasing the number of workers

What is the role of government in relation to labor unions?

• To ensure equal wages for all workers

• To provide monopoly power to labor groups

• To promote competition among unions

• To ban all forms of unionization

What is one way unions maintain their monopoly position in the labor market?

• By lowering wages for union members

• By encouraging strike breakers

• By increasing the number of union members

• By discouraging non-union workers from entering