Job outsourcing is another challenge that AF of L is faced with that has contributed to reduced labor union membership. As a result of job outsourcing most of the American workers are also forced to accept low wages instead of risking losing their jobs through strikes.
Employment stratification which has created a rift between low wage workers and high paid professional is another challenge that AF of L is faced with. The federation is unable to know how to deal with challenges that arise due to poor wages and those arise due to unfriendly work conditions.
The split of AFL-CIO in 2005 is one of the latest greatest challenges that AFL-CIO has been faced with. In September 2005, AFL-CIO seven unions and hundreds of workers split from the federation forming the Change to win federation (Gary, 302). The split undermined some of the efforts that the federation had been making in the past years especially towards enhancing corporation between unions and employers to increase the number of union membership which has been on a decline in the past decades (Gary, 302). However some of the challenges such as the split of some of the powerful unions from the federation have resulted to strengthening of labor unions affiliated to AFL_CIO from below. Solidarity of AFL-CIO seems to be growing from grassroots (Gary, 304). This new developments can play an important role in ensuring that union lines which are being threatened are kept alive.