Use the concepts of the capitalist-worker

If management responds to union demand for higher wages by investing more in machinery, then unions worker can be more productive because they are working with more or better physical capital equipment than the typical non-union worker. However, the firm will need to hire few workers.

Trade Unions desire to raise the wages and improve working conditions of their members. The accomplish this by using their market power. Unions gain market power by obtaining a legal monopoly.

In a capitalist economy, capital assets, like mines, railroads, and factories can be privately owned and controlled. The basic feature of a capitalist is to make a profit. Profit is the main motive of capitalist's.

Unions have opposed sometimes new technology out of a fear of losing jobs, but in other cases unions have helped to facilitate the introduction of new technology. Union members work together to negotiate and enforce a contract with management.