he central objection in the contemporary economic environment is the rigidity of the union structure that often makes it difficult for firms to react in a timely manner to rapidly changing international economic conditions. Therefore, while the impact on the process of determining wage levels remains an important factor with respect to labor union activity, it may no longer be the central factor with respect to these organizations. Further, the ability of labor unions to affect the wage determination process will not be the only factor that ultimately determines whether or not organized labor will continue to exert a formidable presence in the American economy.
In general, labor unions are organizations of employees that are established to bargain collectively with employers over matters of wages, hours, and the conditions of employment. Unions are, in theory (and most often in practice) democratic institutions whose central purpose is the improvement of the economic conditions of their members, with a secondary
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