1---
 2meta: 
 3  date: false
 4  reading_time: false
 5title: "Organized Labour"
 6date: 2023-10-05
 7description: "A comprehensive examination of organized labour, its role, function, historical context, and impact on economic systems and policies."
 8tags: ["organized labour", "trade unions", "labour force", "economics"]
 9---
10
11## Background
12
13Organized labour refers to a segment of the workforce that is united in trade unions. These organizations seek to improve and protect workers' wages, hours, and working conditions through collective bargaining and negotiation with employers. 
14
15## Historical Context
16
17The origins of organized labour date back to the early stages of the Industrial Revolution in the 18th century, when employees began to see the need for collective representation to secure better working conditions and fair wages. Early trade unions faced significant resistance and legal challenges, but they gradually gained acceptance and strength, shaping labour relations and policies worldwide.
18
19## Definitions and Concepts
20
21Organized labour typically consists of employees who are members of trade unions or labour unions. These unions play a critical role in negotiating pay, working hours, and conditions on behalf of their members. Additionally, they may represent members in disputes relating to disciplinary issues, sick leave, or layoffs.
22
23## Major Analytical Frameworks
24
25### Classical Economics
26
27Classical economics views labour as a fundamental element of production. Early classical economists like Adam Smith and David Ricardo recognized labour unions but took a cautious stance, worried about potential distortions in free-market mechanisms.
28
29### Neoclassical Economics
30
31Neoclassical economists often scrutinize the role of trade unions and their influence on the labor market, especially focused on wage-setting mechanisms. According to these economists, labor markets should ideally operate freely to ensure efficient allocation of resources.
32
33### Keynesian Economics
34
35Keynesian economics supports the formation and role of trade unions, emphasizing their importance in achieving higher wages and more stable employment. This school of thought sees organized labour as a stabilizing force in demand-driven economies.
36
37### Marxian Economics
38
39Marxian economics fundamentally aligns with organized labour, viewing trade unions as essential tools in the fight against capitalist exploitation. Karl Marx himself saw unions as a means to unite the working class and resist capitalist interests.
40
41### Institutional Economics
42
43Institutional economists consider trade unions as fundamental institutions that contribute to more equitable economic outcomes. They analyze the formal and informal rules governing organized labour and its impact on overall economic performance.
44
45### Behavioral Economics
46
47From a behavioral perspective, organized labour addresses issues of collective action and worker psychology. Behavioural economists study how union membership affects worker motivation, satisfaction, and productivity.
48
49### Post-Keynesian Economics
50
51Post-Keynesian economics builds on Keynesian principles, further examining the macroeconomic roles of trade unions, such as their impact on wage-led growth and income distribution.
52
53### Austrian Economics
54
55Austrian economists are generally skeptical of organized labour and trade unions, viewing them as distorting forces in labour markets that can lead to unemployment and wage rigidity.
56
57### Development Economics
58
59In developing economies, trade unions often play a significant role in shaping labor standards and improving working conditions, thus contributing to broader social and economic development.
60
61### Monetarism
62
63Monetarists like Milton Friedman would regard organised labour with caution, primarily viewing the intervention of trade unions in market mechanisms as potential sources of inflation and unemployment.
64
65## Comparative Analysis
66
67When analyzing the role and impact of organized labour, comparisons can be made between different economic systems and policies in nations with varying approaches to labour organization and trade union regulations. Countries with robust trade union presence often correlate with higher living standards and more inclusive social policies.
68
69## Case Studies
70
71- The formation and impact of the American Federation of Labor (AFL) in the United States.
72- The role of the British Trade Union Congress (TUC) in shaping labor laws in the United Kingdom.
73- Labour movements and trade unions in social democratic countries like Sweden and their broader economic effects.
74
75## Suggested Books for Further Studies
76
771. "Labor of Love, Love of Labor: How Trade Unions Shape Relations of Mutual Aid" by Robert Michels
782. "Trade Unions and Democracy: Strategies and Perspectives" by Mark Harcourt and Geoffrey Wood
793. "The Economics of Trade Unions: A Study of a Research Field and Its Findings" by Hristos Doucouliagos, Richard B. Freeman, and Patrice Laroche
80
81## Related Terms with Definitions
82
83- **Collective Bargaining**: The process of negotiation between employees (often represented by a union) and their employer aimed at agreeing on working conditions and terms of employment.
84- **Labour Market**: The supply of and demand for labour, where employees provide the supply and employers the demand.
85- **Industrial Relations**: The multidisciplinary field that studies the employment relationship, including aspects of trade unionism, collective bargaining, and labor legislation.
86- **Wage Negotiation**: The process by which representatives of labor and management agree upon the rates of pay and other attributes of compensation.