Final answer:
The decline in trade union membership and collective bargaining contributes to inequality and poverty by reducing workers' bargaining power, leading to lower wages and standards. This is attributed to shifts in industry, globalization, and perceptions that regulations can substitute for union advocacy. The United States has a lower proportion of unionized workers, which influences the wage determination and overall working conditions.
Step-by-step explanation:
The decline in trade union membership and collective bargaining is considered a contributor to growing inequality and poverty due to several reasons. Trade unions have historically played a significant role in negotiating higher wages, better working conditions, and employment rights for workers. As union density declines, the bargaining power of workers diminishes, which can lead to a stagnation or decrease in wages and a widening of the income gap. Furthermore, collective bargaining has been crucial in setting industry-wide standards that benefit both union and non-union workers.
Several factors contribute to the decline of trade unions, such as the shift from manufacturing to service industries, the impacts of globalization and international competition, and the perception that government workplace regulations reduce the need for union protection. This situation is exacerbated in countries with cultural differences that may affect the acceptance of unions within the workforce. For example, despite similar global economic and political trends, the proportion of unionized workers remains higher in some countries compared to others, such as the United States, France, and Spain.