Economics of Trade Unionism.
Simply put, the demand curve of the union and the demand curve of the employer never meet.
I sort of view unionism as having a place, but for quite a while they have had too much power and the businesses who capitulated to union demands have lost the flexibility to react to market conditions.
Do unions have a purpose? I think so.
Have they strayed from what I think their purpose should be? I think so.
Unions have the right to strike for higher wages. I have no issues with that, it is simply a group using their bargaining power. As people on CP say, don't buy paper 'X' as long as writer 'X' is working there. That is also working as a collective, axcept that unions organize to try and prevent the "free rider" principle. Where I think Unions have fubar'ed is an area many of the anti-union people in this thread have mentioned. Unions protect bad workers. They kind of have no choice - both bad and good workers pay their dues (which I see as another level of taxes), so unions must support those who pay their bills. But by protecting bad workers, this is a dis-incentive to the good workers. Which is bad for the business, etc.
And yes, everyone's wages and job conditions are bumped up by unions. As evidenced by:
Quote:
Originally Posted by Sample00
and from one small business owner to another, I wish you nothing but success. Just be careful if your employees try to unionize. Pay them a fair wage, treat them with respect and you wont ever have to deal with a union.
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So while I personally think unions such as the UAW/CAW are killing themselves as well as the Big 3, I'm not sure I blame them for thinking that GM is "crying wolf" about being poor when you see headlines like this one today:
Quote:
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GM and Chrysler LLC are seeking 14 billion U.S. dollars in emergency aid from the U.S. government to keep operating through the first quarter. However, Kevin Wale, president and managing director of GM China, expressed his confidence in GM's future development in China. "GM will not slow down its development in China despite the tough times", Wale said.
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http://news.xinhuanet.com/english/20...t_10520950.htm
So is the bailout simply helping GM move jobs to China? Not that the UAW is helping themselves by pricing themselves out of the market, but perhaps they are correct in smelling a rat.