rackbackpack wrote:The reality is though, all talk is cheap.
This is a priceless remark!
rackbackpack wrote:Writers strike did harm to the industry, and also made no benefits to the class of 'writers' in the long run because higher wages just means less opportunities for would-be writers in the future.
This may be true, but unions aim to
prevent strikes. Unfortunately the institute of trade unions stimulates perverse behaviour. They compete in their demands for the highest wage, and thus the radical unions attract most members. The unions are not particulary interested in the durability of their branch.
Manuel wrote:Unionization can be a healthy boost to the economy. Employees that belong to a union generally have a higher job security
Unions protect the (supposed) interests of their members. They fix the wage by means of collective bargaining, so that competition does not focus on the wage costs. The firms are forced to compete by means of technological innovation, which increases the productivity. For effective collective bargaining the unions must centralize their management. Initially, there is a second argument for centralism, namely the need to get recognition as a bargaining partner. This requires the accumulation of huge strike funds, and the execution of a few enormous strikes. In general these are lost, but they fill the employers with awe.
rackbackpack wrote:All factors involved, the company is at risk of bankrupcy due to high costs and lack of profit margins. The slowing economy leads to savings and thus less influx of aggregate demand in the economy. blah blah blah. everybody can spin these issues.
Well, not everybody, I dare say. It is controversial whether unions can really extort higher wages. For here the markets impose natural limits. However, this is only true in the long run. In the short term strong unions can indeed undermine the profitability.
rackbackpack wrote:Talk is cheap. Give examples where unions obviously benefited the economy and the company.
OK, actually unions have two missions. The first one is preventing the competition on wage costs. This task is called control. The second mission is the emancipation and integration of the workers into society. For this purpose the unions offer formation and education to their members. The emphasis is on social policies within the firm. It empowers the workers to become equal partners in consultations with their management. Especially in the past the integration was an important goal. For instance, all unions distributed magazines, and many exploited holiday resorts. Actually unions hoped for the development towards an economic order, that would make management and workers (unions) equal partners. Note that the control and integration function can contradict each other. One has to find an optimal balance.
Dr House wrote:Unions are in fact bad for the economy, being a major component of consumer price inflation.
Unions determine the wage level by means of a power struggle. Cost management is not their primary concern. In this regard they mirror the workers themselves. Nowadays the unemployment is used to restrain the power of unions. Obviously this is not ideal, since it also bridles the national product. Perhaps the rise of pension funds (and thus collective ownership) will improve the acceptance of responsibility.
Dr House wrote:Are you also opposed to government protection of unions?
No. In fact weak unions force the government to extend their labour legislation. Imhb collective bargaining is more flexible than legislation.
guzzipat wrote:Reading the contributions here, I am willing to bet that the majority of the posters have never been Union members and have never done manual work.
The idea that Unions somehow trick their members into irresponsible actions and the gullable fools follow blindly, is insulting rubbish. Unionised workers aren't the idiots some of you think they are.
Idiots, idiots ... they are human. In the beginning I was struck by the greed that has a hold on the members. Obvously manual workers are not fascinated or intrigued by the book-keeping of their firm, and neither are most white-collar workers.