What's needed is a situation more akin to what hollywood has. A union sets the floor on treatment and wages and individual agents advocate for their clients. Also, I think the situation with large German corporations is better too, since it gives the union a literal seat at the board which puts the people running the corporation onto the same team as the people running the union.
0. Yes I know there are the odd exceptions, but these are so rare they almost prove the point.
There are a lot of confounding factors in why different types of companies are founded. Saying that less employee owned companies are started is evidence of failure is at best a very shaky understanding of how to look at the business landscape.
Meanwhile, in some European countries (maybe Germany?) the unions were responding to the recession by cutting back on hours for everybody, to maintain broader employment. I remember thinking about 4 day work weeks.
The impression I formed was that the American unions were serving their narrow purpose of protecting members, especially senior members, but failing to serve as a "labor movement" with broader social goals, while taking credit for social gains of the past. It created a situation where many members of the working class believed that they were competing with the unions.
"Tendency to protect the worst employees" as opposed to a tendency to protect the best, or as a logical consequence of protecting the set of all current employees?
Negotiating working conditions with a union-enforced contract gets rid of mickey mouse management, and establishes a process for workers to review working condition changes. I honestly believe that's the best feature of unions.
(The worst feature of unions is their tendency to protect the worst employees -- the "interently lazy" types. As long as "protecting the worst employees" is a key concept, unions won't make it back.)