The Taft-Hartley Act, passed by the United States Congress in 1947

Question

The Taft-Hartley Act, passed by the United States Congress in 1947, gave states the power to enact “right-to-work” legislation that prohibits union shop agreements. According to such an agreement, a labor union negotiates wages and working conditions for all workers in a business, and all workers are required to belong to the union. Since 1947, 20 states have adopted right-to-work laws. Much of the  literature  concerning right-to-work laws implies that such legislation has not actually had a significant impact. This point of view, however, has not gone uncriticized. Thomas V Carroll has proposed that the conclusions drawn by previous researchers are attributable to their myopic focus on the premise that, unless right-to-work laws significantly reduce union membership within a state, they have no effect. Carroll argues that the right-to-work laws “do matter” in that such laws generate differences in real wages across states. Specifically, Carroll indicates that while right-to-work laws may not “destroy” unions by reducing the absolute number of unionized workers, they do impede the spread of unions and thereby reduce wages within right-to-work states. Because the countervailing power of unions is weakened in right-to-work states, manufacturers and their suppliers can act cohesively in competitive labor markers, thus lowering wages in the affected industries.

Such a finding has important implications regarding the demographics of employment and wages in right-to-work states. Specifically, if right-to-work laws lower wages by weakening union power, minority workers can be expected to suffer a relatively greater economic disadvantage in right-to-work states than in union shop states. This is so because, contrary to what was once thought, union tend to have a significant positive impact on the economic position of minority workers, especially Black workers, relative to White workers. Most studies concerned with the impact of unionism on the Black worker’s economic position relative to the White worker’s have concentrated on the changes in Black wages due to union membership. That is, they have concentrated on union versus nonunion groups. In a pioneering study, however, Ashenfelter finds that these studies overlook an important fact: although craft unionism increase the differential between the wages of White workers and Black workers due to the traditional exclusion of minority workers from unions in the craft sectors of the labor market, strong positive wage gains are made by Black workers within industrial unions. In fact, Ashenfelter estimates that industrial unionism decreases the differential between the wages of Black workers and White workers by about 3 percent. If state right-to-work laws weaken the economic power of unions to raise wages, Black workers will experience a disproportionate decline in their relative wage positions. Black workers in right-to-work states would therefore experience a decline in their relative economic positions unless there is strong economic growth in right-to-work states, creating labor shortages and thereby driving up wages.   1 
 1. The reasoning behind the “literature” ( Highlighted) , as that reasoning is presented in the passage, is most analogous to the reasoning behind which one of the following situations?

(A) A law is proposed that benefits many but disadvantages a few: those advocating passage of the law argue that the disadvantages to few are not so serious that the benefits should be denied to many.
(B) A new tax on certain categories of consumer items is proposed: those in favor of the tax argue that those affected by the tax are well able to pay it, since the items taxed are luxury items.
(C) A college sets strict course requirements that every student must complete before graduating; students already enrolled argue that it is unfair for the new requirements to apply to those enrolled before the change.
(D) The personnel office of a company designs a promotions become effective on January 1: the managers protest that such a policy means that they cannot respond fast enough to changes in staffing needs.
(E) A fare increase in a public transportation system does not significantly reduce the number of fares sold: the management of the public transportation system asserts, therefore, that the fare hike has had no negative effects.

2 
 2. According to the passage, which one of the following is true of Carroll’s study?

(A) It implies that right-to-work laws have had a negligible effect on workers in right-to-work states.
(B) It demonstrates that right-to-work laws have significantly decreased union membership from what it once was in right-to-work states.
(C) It argues that right-to-work laws have affected wages in right-to-work states.
(D) It supports the findings of most earlier researchers.
(E) It explains the mechanisms by which collusion between manufacturers and suppliers is accomplished.

3 
 3. It can be inferred from the passage that the author believes which one of following about craft unions?

(A) Craft unions have been successful in ensuring that the wages of their members remain higher than the wages of nonunion workers in the same occupational groups.
(B) The number of minority workers joining craft unions has increased sharply in states that have not adopted right-to-work legislation.
(C) Wages for workers belonging to craft unions have generally risen faster and more steadily than wages for workers belonging to industrial unions.
(D) The wages of workers belonging to craft unions have not been significantly affected by right-to-work legislation, although the wages of workers belonging to industrial unions have been negatively affected.
(E) The wages of workers belonging to craft unions are more likely to be driven up in the event of labor shortages than are the wages of workers belonging to industrial unions.

4 
 4. Which one of the following best describes the effect industrial unionism has had on the wages of Black workers relative to those of White workers, as that effect is presented in the passage?

(A) Prior to 1947, industrial unionism had little effect on the wages of Black workers relative to those of White workers: since 1947, it has had a slight positive effect.
(B) Prior to 1947, industrial unionism had a strong positive effect on the wages of Black workers relative to those of White workers: since 1947, it has had little effect.
(C) Prior to 1947, industrial unionism had a negative effect on the wages of Black workers relative to those of White workers: since 1947, it has had a significant positive effect.
(D) Industrial unionism has contributed moderately to an increase in the wage differential between Black workers and White workers.
(E) Industrial unionism has contributed strongly to a 3 percent decrease in the wage differential between Black workers and White workers.

5 
 5. According to the passage, which one of the following could counteract the effects of a decrease in unions’ economic power to raise wages in right-to-work states?

(A) a decease in the number of union shop agreements
(B) strong economic growth that creates labor shortages
(C) a decrease in membership in craft unions
(D) the merging of large industrial unions
(E) a decline in the craft sectors of the labor market

6 
 6. Which one of the following best describes the passage as a whole?

(A) an overview of a problem in research methodology and a recommended solution to that problem
(B) a comparison of two competing theories and a suggestion for reconciling them
(C) a critique of certain legislation and a proposal for modification of that legislation
(D) a review of research that challenges the conclusions of earlier researchers
(E) a presentation of a specific case that confirms the findings of an earlier study

Sajjad1994 · Answer

Q1. The reasoning behind the “literature” (Highlighted), as that reasoning is presented in the passage, is most analogous to the reasoning behind which one of the following situations?

Explanation

As if it weren’t bad enough that the section begins with a tough passage, the passage begins with one of the toughest question types, akin to Parallel Reasoning in the LR sections. On top of that, to get the answer, you have to reread a lot of context: Though the question stem’s  “literature”  ( Highlighted ), it’s not described until lines next 5 lines, by the critic of that literature, Mr. Carroll. He says that the researchers believe the right-to-work laws have minimal impact because they have simply looked at whether the laws have decreased union membership and said, “Hey, they haven’t, so there’s no impact.” In the same way,  (E)’s  transit system asserts that a fare hike has had no negative effects simply because ridership hasn’t decreased. In both cases, a look at sheer numbers prompts a hasty conclusion that may not be supported by other relevant data.

(A)’s  conclusion weighs benefits and disadvantages and states one side’s argument for why a law should be passed. That’s a recommendation, not at all similar to the value judgment regarding the impact of right-to-work laws found in lines

"Much of the literature concerning right-to-work laws implies that such legislation has not actually had a significant impact. This point of view, however, has not gone uncriticized. Thomas V Carroll has proposed that the conclusions drawn by previous researchers are attributable to their myopic focus on the premise that, unless right-to-work laws significantly reduce union membership within a state, they have no effect."

(B)  includes evidence that amounts to a value judgment ( “The well-off can afford the tax” ) but, similar to  (A) , concludes with a strongly implied recommendation suggested by the proponents: The tax should be passed. It doesn’t conclude that  “X has had no impact” — which is what we need.

(C)  The students pre- and post-curriculum change might seem to parallel the workers preand post- right-to-work laws. But nothing in lines above has a parallel to  (C)’s  charge of unfair treatment.  (C)  would work better if it went like so:  “Since there are as many students since the curriculum change as there were before, the change has had no effect on the student body.”

(D) , far from concluding that a phenomenon (the new policy) has had no effect, concludes that its effect has been major.

Hope it helps

Skywalker18 · Answer

Took almost 13 mins including 5 mins 30 seconds to read as I misread a few lines. All correct

Para 1- Taft-Hartley Act- prohibits union shop agreements; Much of literature says right-to-work laws did not have a significant impact; Thomas V Carroll says otherwise-- union power reduces 
Para 2- right-to-work laws--> decrease union power--> minority workers suffer more; Ashenfelter findings- craft vs industrial unionism

Q1. The reasoning behind the “literature” (Highlighted), as that reasoning is presented in the passage, is most analogous to the reasoning behind which one of the following situations?
(E) A fare increase in a public transportation system does not significantly reduce the number of fares sold: the management of the public transportation system asserts, therefore, that the fare hike has had no negative effects.- Correct

Thomas V Carroll has proposed that the conclusions drawn by previous researchers are attributable to their myopic focus on the premise that, unless right-to-work laws significantly reduce union membership within a state, they have no effect.

Specifically, Carroll indicates that while right-to-work laws may not “destroy” unions by reducing the absolute number of unionized workers, they do impede the spread of unions and thereby reduce wages within right-to-work states.

Q2. According to the passage, which one of the following is true of Carroll’s study?
(C) It argues that right-to-work laws have affected wages in right-to-work states.- Correct

Because the countervailing power of unions is weakened in right-to-work states, manufacturers and their suppliers can act cohesively in competitive labor markers, thus lowering wages in the affected industries.

Q3. It can be inferred from the passage that the author believes which one of following about craft unions?
(A) Craft unions have been successful in ensuring that the wages of their members remain higher than the wages of nonunion workers in the same occupational groups.

although craft unionism increase the differential between the wages of White workers and Black workers due to the traditional exclusion of minority workers from unions in the craft sectors of the labor market

Q4. Which one of the following best describes the effect industrial unionism has had on the wages of Black workers relative to those of White workers, as that effect is presented in the passage?
(E) Industrial unionism has contributed strongly to a 3 percent decrease in the wage differential between Black workers and White workers.

Ashenfelter estimates that industrial unionism decreases the differential between the wages of Black workers and White workers by about 3 percent

Q5. According to the passage, which one of the following could counteract the effects of a decrease in unions’ economic power to raise wages in right-to-work states?
(B) strong economic growth that creates labor shortages

Black workers in right-to-work states would, therefore, experience a decline in their relative economic positions unless there is strong economic growth in right-to-work states, creating labor shortages and thereby driving up wages.

Q6. Which one of the following best describes the passage as a whole?
(A) an overview of a problem in research methodology and a recommended solution to that problem- incorrect; the problem in research methodology might be the one(Thomas V Carroll has proposed that the conclusions drawn by previous researchers are attributable to their myopic focus on the premise) stated by Caroll but no solution to that problem is recommended 
(B) a comparison of two competing theories and a suggestion for reconciling them- incorrect; there are no competing theories and there is no reconciliation
(C) a critique of certain legislation and a proposal for modification of that legislation- incorrect; there is no proposal for modification 
(D) a review of research that challenges the conclusions of earlier researchers- Correct
(E) a presentation of a specific case that confirms the findings of an earlier study- incorrect

Sajjad1994 · Answer

Explanation

Q3. It can be inferred from the passage that the author believes which one of following about craft unions?

Explanation

Craft unions are mentioned once and once only: as part of the  “important fact,”  cited by Ashenfelter, that minorities have been traditionally excluded from membership in such unions and that therefore craft unionism increases the gap between Black and White wages.

(A)  paraphrases this idea that, through craft unions, more money is earned by members (largely White) than non-members (most Blacks).

(B)  Nothing is said about increased membership in craft unions. If anything, the exclusion of a large number of workers would tend to depress the total.

(C)  is a distortion of the comparison between craft and industrial unions. Yes, the latter have more minority members and tend to reduce the Black/White wage differential, but we never learn anything about the rate at which wages rise in different unions.

(D)  We are told that right-to-work laws have a negative effect on wages of industrial workers, but we can infer that they would also affect the wages of craft union members who, as Ashenfelter reports, are mostly white.

(E)  misinterprets the point made at the end of  para 2  (which is rather far removed from the craft union reference). We know that a healthy economy can create a demand for workers and raise their wages. But there’s no way to tell from the info given which group—craft or industrial—would be more likely to experience wage increases under these circumstances. For all we know, the increase in wages brought on by labor shortages applies only to the industrial sector.

Answer: A

Hope it helps

Shadyshades · Answer

AndrewN   GMATNinja   KarishmaB   yashikaaggarwal

I am confused with the below para. There is just one word "agreements" that has created a lot of mess in my mind. I thought the word "agreements" here should be replaced with "law" but I am not sure.

The Taft-Hartley Act, passed by the United States Congress in 1947, gave states the power to enact “right-to-work” legislation that prohibits union shop agreements.  According to such an agreement,  a labor union negotiates wages and working conditions for all workers in a business, and all workers are required to belong to the union.

What I understood is - Congress gave states the power to make "right to work" law, the law that prohibits union shop agreements.

In these agreements, a labor union is doing negotiations on behalf of all workers.

My Question- Are we saying here that the law ,once enact, will prohibit the labor union from making negotiations ? 
or Are we saying here that the law ,once enact, will let the labor union to make negotiations ?

AndrewN · Answer

Hello,  Shadyshades . The first interpretation is the correct one, since  prohibits  is the governing idea. It might help to replace the phrase at the beginning of the second sentence with a modifying  in which :

Another way to arrive at an accurate interpretation is to ask yourself what is prohibited, as in,  The Taft-Hartley Act... legislation that prohibits __________ , and to fill in the blank accordingly. For the sake of accuracy, I should point out that it is not the passage of the Taft-Hartley Act that  directly  prohibits the agreements in question; rather, the act gives states the power to pass their own legislation that bans such agreements.

Good luck with your studies.

- Andrew

gullyboy09 · Answer

Hi  KarishmaB , can you help me with my understanding of option D in Q3?

I rejected it based on the first passage that RTW affected all the unions, not only the one with Black people. It's just that black people were more impacted. So option D saying craft union not significantly impacted cannot be inferred.

guddo · Answer

3. It can be inferred from the passage that the author believes which one of following about craft unions?

It can be inferred from the passage that the author believes which one of following about craft unions?

The passage’s key point is that  craft unions traditionally excluded minority workers, and that exclusion helped increase the wage gap between White and Black workers . So the best inference is the one that fits the idea that craft-union members benefited in wages while excluded workers did not.

(A) Craft unions have been successful in ensuring that the wages of their members remain higher than the wages of nonunion workers in the same occupational groups.

This is the best answer. The passage says craft unionism increased the wage differential between White and Black workers because minority workers were traditionally excluded from craft unions. That makes sense only if membership in those craft unions brought wage advantages that excluded workers did not get.

(B) The number of minority workers joining craft unions has increased sharply in states that have not adopted right-to-work legislation.

The passage says nothing about a sharp increase in minority membership in craft unions.

(C) Wages for workers belonging to craft unions have generally risen faster and more steadily than wages for workers belonging to industrial unions.

The passage does not compare the general rate or steadiness of wage growth in craft unions and industrial unions.

(D) The wages of workers belonging to craft unions have not been significantly affected by right-to-work legislation, although the wages of workers belonging to industrial unions have been negatively affected.

The passage does not make that distinction. It says right-to-work laws weaken union power and reduce wages, not that only industrial-union wages are affected.

(E) The wages of workers belonging to craft unions are more likely to be driven up in the event of labor shortages than are the wages of workers belonging to industrial unions.

The passage mentions labor shortages only as a general condition that could drive up wages in right-to-work states. It does not compare craft unions and industrial unions on this point.

Answer: (A)

guddo · Answer

5. According to the passage, which one of the following could counteract the effects of a decrease in unions’ economic power to raise wages in right-to-work states?

The passage says that if right-to-work laws weaken unions’ power to raise wages, Black workers would suffer a disproportionate decline in relative wages. But the final sentence gives an exception: this decline could be avoided if there is strong economic growth that creates labor shortages and drives wages up.  So the counteracting factor is strong growth producing labor shortages .

(A) a decrease in the number of union shop agreements

This would likely strengthen the right-to-work effect, not counteract it.

(B) strong economic growth that creates labor shortages

This is correct. The passage explicitly says Black workers’ relative economic position would decline unless strong economic growth in right-to-work states created labor shortages and thereby drove up wages.

(C) a decrease in membership in craft unions

This is not the stated counteracting factor. The passage discusses craft unions only in relation to wage differentials.

(D) the merging of large industrial unions

This is not mentioned as a counteracting factor.

(E) a decline in the craft sectors of the labor market

This is not the answer. The passage says industrial unions help Black workers, but it does not say that a decline in craft sectors would counteract weakened union wage power.

Answer: (B)

The Taft-Hartley Act, passed by the United States Congress in 1947

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GMAT Reading Comprehension (RC) Questions

The Taft-Hartley Act, passed by the United States Congress in 1947

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