Question

Which of the following poses the greatest problem for unions in their attempts to gain higher wages and better benefits for their members?

Answer 1

As a rule, unless business is really booming, the distrust inherent between organized unions and management is such that the union won't believe management when management says they have no more money. The usual result is that the union ultimately destroys the company by demanding more wages and benefits than the company can provide through sales. Recent examples:

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The other major historical example is the UAW and American car makers, which had wage and benefit costs so much higher than Asian or even European comptetors that they were slaughtered in the marketplace in the 70s and 80s, and are but a shadow for their former selves.

There are probably unions somewhere that don't drive the company out of business and hence ultimately destroy their own members, but I'm having a hard time thinking of any.