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Research into the effects of unionization and its influence on wages is presented. There is evidence to show that employers take into account the threat of interindustry unionization by setting higher wages for their non-unionized workers and that skilled workers benefit from downstream unionization, but not union density. Furthermore, those in more senoir positions benefit from upstream production flows because thes workers play an important social control function in assuring continuous and uninterrupted production by non-skilled workers.