Union decline has also fed inequality because, in the American context, so much is at stake at the bargaining table. In settings where union coverage is even and expansive, and where workers (and employers) can count on a decent minimum wage and universal health and retirement benefits, the stakes of collective bargaining in the private sector are relatively low. In the United States, by contrast, economic security is shackled to private job-based benefits, and uneven patterns of union coverage have always made it harder to organize bottom-feeding regions and firms. Employer and political opposition, in this respect, is fierce not because the labor movement is strong, but because it has never been strong enough to to socialize job-based benefits or to take wages out of competition.
Read More: "The Union Difference: Labor and American Inequality" at dissentmagazine.org