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Question

An important effect of the increase of open shops and "company unions" in the 1920s was _____________.

A
a weakening of the agricultural sector of the economy
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B
an increase in the purchasing power of workers
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C
a strengthening of the Democratic Party
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D
a weakening of the labor movement
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E
improved working conditions.
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Solution

The correct option is D a weakening of the labor movement
An important effect of the increase of open shops and "company unions" in the 1920s was a weakening of the labor movement.

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The Taft-Hartley Act, passed by the United States Congress in 1947, gave states the power to enact “right-to-work” legislation that prohibits union shop agreements. According to such an agreement, a labour union negotiates wages and working conditions for all workers in a business, and all workers are required to belong to the union. Since 1947, 20 states have adopted right-to-work laws. Much of the literature concerning right-to-work laws implies that such legislation has not actually had a significant impact. This point of view, however, has not gone uncriticized. Thomas V. Carroll has proposed that the conclusions drawn by previous researchers are attributable to their myopic focus on the premise that, unless right-to-work laws significantly reduce union membership within a state, they have no effect. Carroll argues that the right-to-work laws “do matter” in that such laws generate differences in real wages across states. Specifically, Carroll indicates that while right-to-work laws may not “destroy” unions by reducing the absolute number of unionized workers, they do impede the spread of unions and thereby reduce wages within right-to-work states. Because the countervailing power of unions is weakened in right-to-work states, manufacturers and their suppliers can act cohesively in competitive labour markers, thus lowering wages in the affected industries.

Such a finding has important implications regarding the demographics of employment and wages in right-to-work states. Specifically, if right-to-work laws lower wages by weakening union power, minority workers can be expected to suffer a relatively greater economic disadvantage in right-to-work states than in union shop states. This is so because, contrary to what was once thought, unions tend to have a significant positive impact on the economic position of minority workers, especially Black workers, relative to White workers. Most studies concerned with the impact of unionism on the Black worker’s economic position relative to the White workers have concentrated on the changes in Black wages due to union membership. That is, they have concentrated on union versus non-union groups. In a pioneering study, however, Ashenfelter finds that these studies overlook an important fact: although craft unionism increase the differential between the wages of White workers and Black workers due to the traditional exclusion of minority workers from unions in the craft sectors of the labour market, strong positive wage gains are made by Black workers within industrial unions. In fact, Ashenfelter estimates that industrial unionism decreases the differential between the wages of Black workers and White workers by about 3 percent. If state right-to-work laws weaken the economic power of unions to raise wages, Black workers will experience a disproportionate decline in their relative wage positions. Black workers in right-to-work states would therefore experience a decline in their relative economic positions unless there is strong economic growth in right-to-work states, creating labor shortages and thereby driving up wages.

Which one of the following best describes the passage as a whole?


Q.

Read the following passage & answer the following questions:

When A. Philip Randolph assumed the leadership of the Brotherhood of Sleeping Car Porters, he began a ten-year battle to win recognition from the Pullman Company, the largest private employer of Black people in the United States and the company that controlled the railroad industry’s sleeping car and parlor service. (*)In 1935 the Brotherhood became the first Black union recognized by a major corporation. Randolph’s efforts in the battle helped transform the attitude of Black workers towards unions and towards themselves as an identifiable group; eventually, Randolph helped to weaken organized labor’s antagonism towards Black workers.

In the Pullman contest, Randolph faced formidable obstacles. (**)The first was Black workers’ understandable skepticism toward unions, which had historically barred Black workers from membership. An additional obstacle was the union that Pullman itself had formed, which weakened support among Black workers for an independent entity.

The Brotherhood possessed a number of advantages, however, including Randolph’s own tactical abilities. In 1928 he took the bold step of threatening a strike against Pullman. Such a threat, on a national scale, under Black leadership, helped replace the stereotype of the Black worker as a servant with the image of the Black worker as a wage earner. In addition, the porters’ very isolation aided the Brotherhood. Porters were scattered throughout the country, sleeping in dormitories in Black communities; their segregated life protected the union’s internal communications from interception. That the porters were a homogeneous group working for a single employer with single labor policy, thus sharing the same grievances from city to city, also strengthened the Brotherhood and encouraged racial identity and solidarity as well. But it was only in the early 1930’s that federal legislation prohibiting a company from maintaining its own unions with company money eventually allowed the Brotherhood to become recognized as the porters’ representative.

Not content with this triumph, Randolph brought the Brotherhood into the American Federation of Labor, where it became the equal of the Federation’s 105 other unions. He reasoned that as a member union, the Brotherhood would be in a better position to exert pressure on member unions that practiced race restrictions. Such restrictions were eventually found unconstitutional in 1944.

The passage suggests that in the 1920’s a company in the United States was able to:


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