Unlike their counterparts in other Western democracies, the American labor movement has never embraced revolutionary ideologies calling for the ultimate transformation of the economic order.
(A) Unlike
their counterparts in other Western democracies, the
American labor movement has never --> "American labor movement" is singular, so "their" is wrong
(B) Unlike that of
their counterparts in other Western democracies, the American labor movement has never --> same as A
(C) Unlike its counterpart in other Western democracies, the American labor movement never
have --> --> "American labor movement" is singular, so "have" is wrong
(D) Unlike
that of its counterparts in other Western democracies, the American labor movement never has --> replace the noun: that of its counterparts <=> "American labor movement" of "American labor movement"'s counterparts => sounds weird
(E) Unlike its counterparts in other Western democracies, the American labor movement has never -->
correct