Boom–Bust Cycles Today

The U.S. economy continued to experience booms and busts throughout the 1900s, as it does right through the present. However, after the downturn of the 1890s, these cycles ceased to occur in the regular 20-year patterns. Over the last hundred years, they have been much harder to predict. Still, when they occur they continue to influence labor–management relations, much as they have throughout the last 200 years.

Labor relations is important in both unionized and nonunion environments. All managers should understand labor relations and how this process impacts all working environments. Managers need to be aware that U.S. labor laws apply to both workplaces where unions currently exist (organized) and nonunion workplaces (unorganized). The study of labor relations also helps to reveal the consequences of poorly managed workforces and helps to explain historical, social, and political influences on business. Many of the tactics and practices within labor relations also apply in all working environments, including methods and tactics for resolving conflicts, understanding the goals of workers, and understanding how to negotiate agreements and resolve disputes as well as how to adopt and define organizational policies and practices.