Sometimes unions can raise wages above what productivity increases would permit. When this happens, we can be sure that

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When unions raise wages above what productivity increases would permit, it creates an increase in labor costs for employers. This can lead to some union workers losing their jobs as employers may be unwilling or unable to pay the wages demanded by the union. This is because higher wages than what is justified by productivity levels can lead to reduced profitability for businesses, and may make them less competitive in the marketplace.

Sometimes Unions Can Raise Wages Above What Productivity Increases Would