The experience of the U.S. auto industry illustrates how non-union workers can threaten the employment levels and wage structures of union workers.

Question

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Non-union workers often accept lower wages and benefits compared to their unionized counterparts, which can lead employers to prefer hiring non-union labor. This dynamic can pressure unions to accept lower wages or make concessions to remain competitive, potentially threatening the employment levels and wage structures of union workers.

The Experience of the U