Employers Take United Stand in Insisting on Labor Concessions

The situation of American workers in several large corporations is a striking illustration of the negative effects of globalization and a more integrated world economy. In large part because of low-cost foreign labor, American corporations are gaining the upper hand in negotiations with worker unions. Even in industries that are thriving, management claims that the pressure to compete requires cost-cutting. "They figure that this is the time to take money out of our pockets and put it back in theirs," says one striking worker at a Tyson factory in Wisconsin. "The fact that they're making record profits doesn't seem to matter." Nonetheless, his and other large employers are seeking to cut workers' salaries, freeze pensions, and reduce health care coverage. According to some scholars, industrial relations depend on the state of the economy and the extent to which the government supports workers' interests. In today's economy, much like in the 1980s, American unions are finding little support from the government when they sit down to negotiate contracts with their employers. – YaleGlobal