Taylorism, trade union density, and macroeconomic stability

Abstract Scholars who have deliberated on trade union density decline have paid scant attention to the diminished importance of organised labour’s capacity to stabilise markets by harmonising wage growth and total factor productivity. We underscore the significance of this omission by documenting how interwar US scientific management theorists and practitioners enhanced unions’ ability to stabilise markets in an era of high productivity growth, and in so doing helped build union numbers and influence. We argue, moreover, that once the productivity wave ended, employers and the US state came to view unions as a source of stagflation, conflict, and inefficiency. This development was particularly pronounced in nations with adversarial pluralist industrial relations regimes rather than the democratic corporatist agenda advocated by Frederick Taylor and his acolytes. We conclude that in an era characterised by revitalised support for knowledge-intensive reindustrialisation, revisiting the scientific managers’ agenda might assist trade union renewal.