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Goals of unions and trade offs with wages and employment

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Figure 6.1 is used to analyse the goals of a union (in terms of wage goals and employment goals) and figure 6.3 is used to provide an explanation union utility maximization when choosing between the goals employment and wages.

Question

I want to be able to explain why unions are likely to differ from each other in the goals that they pursue and why they might not always be faced with trading off the goals of wages and employment?

In providing an explanation, I would like to make specific reference to the following:

(a) I would like to explain, each of the goals of a union that can be addressed by 6.1 (attached).

(b) I would like to be able to outline the arguments in relation to union utility maximization by explaining the construction of figure 6.3 (attached)

(c) I would like to be able to use a modification of 6.3 to explain if unions can be expected to differ from each other in their goals.

(d) By using figure 6.4 (attached) I would like to be able to address the last part of the question â?" being careful to explain why workers under the conditions represented by this diagram are likely to be exploited.

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Question

I want to be able to explain why unions are likely to differ from each other in the goals that they pursue and why they might not always be faced with trading off the goals of wages and employment? In providing an explanation, I would like to make specific reference to the following:

(a) I would like to explain, each of the goals of a union that can be addressed by 6.1 (attached).

(b) I would like to be able to outline the arguments in relation to union utility maximization by explaining the construction of figure 6.3 (attached)

(c) I would like to be able to use a modification of 6.3 to explain if unions can be expected to differ from each other in their goals.

(d) By using figure 6.4 (attached) I would like to be able to address the last part of the question being careful to explain why workers under the conditions represented by this diagram are likely to be exploited.
Part (a)

Labor union / employer union is a formal group of labor/employees working in a company or an industry for the purpose of bargaining contract on wages, fringe benefits, and working conditions for its members with the management of the company or of a group of companies. Once a union represents all the workers who supply a particular type of labor, an element of monopoly power replaces the competitive outcome. A union may have different goals and strategies. The basic goals and strategies of labor unions are:
? Negotiate for higher wage rates for the members
? Increase the demand for union labor
? Maximize total income of members

See Fig 6.1. The ...

Solution Summary

Provides fairly non-technical/academic assistance to analyse the goals of a union (in terms of wage goals and employment goals) and explain union utility maximization when choosing between the goals employment and wages.

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