Final answer:
The employees who benefit from union negotiations without paying dues are known as free riders. Free riding can undermine a union's effectiveness despite its significant role in securing better wages and working conditions for workers.
Step-by-step explanation:
The employees who receive the benefits from the union but pay no dues are called free riders. In the context of labor unions, the phenomenon of free riding occurs when non-union members benefit from the union's efforts in collective bargaining for better wages, benefits, and working conditions without contributing to the cost. Collective action problems such as free riding can discourage union membership, as individuals may choose not to incur the expense of dues if they will receive the salary increases and protections secured by the union anyway.
Unions play a crucial role in protecting employees from efforts by firms to minimize costs at the expense of workers. Collective bargaining rights allow unions to negotiate on behalf of both their members and nonmembers, leading to broad-based improvements in pay and safety conditions. However, the presence of free riders can undermine the financial viability and bargaining power of unions. Despite this, collective action by unions has historically resulted in substantial gains for workers in unionized industries. As union membership has declined over the past decades, the impact of free riding has become more pronounced, and debates continue over the role and effectiveness of unions in today's labor market.