Unions, Pension Funds, and the Economy

American unions have been generally more interested in pension benefits than pension funds. The employer-pension system originated in the late 1880s as a management device to ensure worker loyalty to the firm. Most pensions weren’t portable (and still aren’t); the threat of losing pensions added to the fear of losing one’s job because of union activity. Today, however, unions negotiate strenuously for pensions. Not only do pensions supplement an inadequate Social Security sy...