The CIO's defeat in Operation Dixie was a contributing factor in the decision of the traditionally more radical trade union federation to merge with the conservative American Federation of Labor and form the AFL–CIO in 1955 — a move that signified a long-term trend away from radical social unionism towards the more conservative business unionism strategy long favored by the AFL. In the long-term, the failure of Operation Dixie to end the South's status as a low-wage, non-union haven impeded the ability of the union movement to maintain its strength in North and was a contributing factor in the decline of the American union movement in the second half of the 20th century as unions were unable to prevent businesses from holding back wage increases by either moving to the South or threatening to do so.