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But, labor unions lost political power after 1930-40s New Deal, as
federal institutions (e.g., the 1947 Taft-Hartley Act) restricted union
control over employees and rights to negotiate collective bargaining
contracts. Many other factors responsible, especially:
35
30
25
PERCENT
20
15
10
5
1 90 0
19 03
1 90 6
19 09
1 91 2
19 15
1 91 8
19 21
1 92 4
1 9 27
1 93 0
1 9 33
19 3 6
1 93 9
19 4 2
1 94 5
19 48
1 95 1
19 54
1 95 7
19 60
1 96 3
19 66
1 96 9
19 72
1 97 5
1 9 78
19 8 1
1 9 84
19 8 7
1 99 0
19 93
1 99 6
19 99
2 00 2
20 05
YEAR
Labor Unions as Institutions
Labor unions are peculiar institutions – voluntary associations
with democratically elected leaders, yet exercising coercive
economic power over private firms and their employees.
Corruption and mob ties damage many unions’ public images.
Until mid-20th century, most Americans viewed
unions as illegitimate & illegal weapons that
undermined efficiency in the labor market.
The 1930s sit-down strikes in auto and steel
industries won rights to collective bargaining
and check-off of union dues (“closed shop”).