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For example, in the late 1940s, General Motors and the United Auto Workers negotiated a wage formula linking wage hikes to increases in productivity and the cost of living. Unionized businesses had to follow suit or risk a strike. Even companies without unions had to do the same if they wanted to avoid their workers getting organized. Recent research shows that the decline in union bargaining power observed in the 1980s has persisted and has now taken a big toll on union and nonunion workers alike. A just-released report from liberal-leaning think tank the Economic Policy Institute, for example, estimates that the decline in unions from 23 percent in 1979 to 11 percent in 2013 and their collective bargaining power has caused men in the private sector to earn US$109 billion less every year and women to earn $24 billion less. Other recent research shows that the decline in wages has now spread to the public sector. Teachers have been especially hard hit . In 1979, teachers earned just 2 percent less than comparable college graduates. In 2015, the earnings gap had widened to 17 percent. More than empty rhetoric? The old manufacturing jobs wont come back.
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