Trade union power and jobs: theory and policy

This paper looks at the relationship between trade union power and jobs in a capitalist economy. It is argued that trade unions, as they threaten profitability, may hinder the functioning of capitalist economies. But, any adverse effects of trade unions on jobs arise because of the constraints imposed on trade union activity by the state and capitalists. In alternative forms of economic organization, trade unions are not likely to reduce the number of jobs. The implications of this argument for policy towards trade unions are also discussed.