Aug 3 2008
Exclusive or Craft Union Model
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One way in which unions can boost wage rate is to reduce the supply of labor. Labor unions have supported legislation that has 1. restricted immigration, 2. reduced child labor, 3. encouraged compulsory retirement. 4. enforced a shorter workweek. Craft unions have frequently forced employers to agree to hire only union members, thereby gaining virtually complete control of the labor supply. Such practices result in higher wage rates and constitute what is called exclusive unionism.