The political economy of trade unions under capitalism

This chapter introduces and reviews contrasting heterodox understandings of trade unions and collective bargaining, summarizing their theoretical relevance and real-world political and economic impact. The chapter includes the following themes: (1) the economic rationale for trade unions (comparing heterodox analysis of to wage determination and bargaining power to conventional neoclassical theories, and highlighting differences between various heterodox schools); (2) a brief review of the history of trade unions under capitalism; (3) review of the assault on collective bargaining under neoliberalism, and the current state of union power in various regions of the world; (4) considering prospects for trade union renewal in the wake of neoliberalism. The chapter concludes that the viability of trade unions under conditions of increasingly illiberal capitalism will be a critical factor in the capacity of working classes to defend and rebuild their economic and political influence.