The Decline of Worker’s Incomes, the Weakening of Labor’s Position

Notwithstanding the vigorous economic up-swing that began early in 1983 and continues at this writing, if at a slower pace, the American labor movement remains on the defensive. Its wage settlements have shrunk—in 1984, major collective bargaining contracts provided the lowest average wage adjustments in the 17 years for which the data have been reported by the Bureau of Labor Statistics.

The labor movement has yet to reattain earlier peaks in membership or to widen its share of the employed work force. Because it is unable to realign its industrial and occupational makeup with that of employment generally, it cannot overcome a major hindrance to its growth. It has failed to recapture most of the concessions that have marked its...