Unionization of Farm Workers

Case Study 1: Unionization of Farm Workers
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Case Study 1: Unionization of Farm Workers
A unionized group of farm workers with full collective bargaining rights could affect the supply chain for food in various ways. First, collective bargaining would remove barriers to economic participation downstream of the global supply chain, hence allowing farmers to agree with specific companies to sell produce to that firm for a particular price (Naseer et al., 2019). It would also be possible for such farm workers to decline selling to the stores that are investing in business models supporting foreign competition. Such economic power would lead to higher prices on the side of the end consumer in the long run. For big grocery stores like Walmart, it would be impossible to exploit farmers’ ignorance of the market prices, and the inability to extract rent from the growers means a high price for