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Management, feeling the heat of foreign and domestic competition, is today less willing to accede to union demands for higher wages and benefits than in earlier decades. It also is much more aggressive about fighting unions' attempts to organize workers. Strikes were infrequent in the 1980s and 1990s, as employers became more willing to hire strikebreakers when unions walk out and to keep them on the job when the strike was over. (They were emboldened in that stance when President Ronald Reagan in 1981 fired illegally striking air traffic controllers employed by the Federal Aviation Administration.) Automation is a continuing challenge for union members. Many older factories have introduced labor-saving automated machinery to perform tasks previously handled by workers. Unions have sought, with limited success, a variety of measures to protect jobs and incomes: free retraining, shorter workweeks to share the available work among employees, and guaranteed annual incomes. The shift to service industry employment, where unions traditionally have been weaker, also has been a serious problem for labor unions. Women, young people, temporary and part-time workers -- all less receptive to union membership -- hold a large proportion of the new jobs created in recent years. And much American industry has migrated to the southern and western parts of the United States, regions that have a weaker union tradition than do the 105

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Friedrich August von Hayek, 1974 Nobel Prize Winner

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