I saw the chairman of their board speak not long ago, and it turns out the biggest problem is that USPS can't fire any of their union employees, who consistently get awarded UPS salaries + 15-20% in arbitration.
This is a huge problem, and we need to shift the power balance away from unions. The original purpose of unions was to compensate for the imbalance of power. I don't have a problem to the extent that they merely divert executive pay down to the workers, but where they significantly increase the cost of doing business, unions are economically inefficient.
In Canada, we have a huge union called CUPE. They support an incredible variety of workers (including health care, university staff, airlines, public utilities, non-profit organizations, etc.). Each division contributes to a "national strike fund."
In my mind, this allows unions to act as a cartel. It doesn't make sense for workers in one company to be able to offset the cost of a strike in a completely different one. Of course the workers will always be able to afford a strike as long as they do it one company at a time, and wages will slowly be pushed to unsustainably high levels.
If I'm wrong on this, please correct me, because although it seems completely unintuitive, it is my understanding of the situation (Article XIV of the CUPE constitution outlines revenue collection).
They also discourage innovation to the extent that they limit businesses' ability to fire unneeded workers. There is little doubt in my mind that the transit system in Toronto uses human fare collectors because they are not allowed to replace them with machines. These folks can cost up to $40/hour. We wouldn't have had the industrial revolution if we couldn't fire the people who were no longer needed.
There is very little difference between union strikes (especially in "closed shop" states/countries) and the mafia extorting protection money from businesses.
I'm not sure I'm really disagreeing with you, but I feel fairly confident that without unions, postal workers would not make enough money to live in many communities they serve, at least here in the sf bay area. Same goes for school teachers and peace officers. How valuable it is that these worker actually live in the same cities where they work is open for debate, of course.
It's even better - when they literally have no work for employees they are asked to find work elsewhere but the USPS will pay them any difference in pay/benefits essentially forever.
The extension of this idea is that we'll eventually have a company of 600,000 employees who only do their actual job - delivering mail - one day a week.
In Canada, we have a huge union called CUPE. They support an incredible variety of workers (including health care, university staff, airlines, public utilities, non-profit organizations, etc.). Each division contributes to a "national strike fund."
In my mind, this allows unions to act as a cartel. It doesn't make sense for workers in one company to be able to offset the cost of a strike in a completely different one. Of course the workers will always be able to afford a strike as long as they do it one company at a time, and wages will slowly be pushed to unsustainably high levels.
If I'm wrong on this, please correct me, because although it seems completely unintuitive, it is my understanding of the situation (Article XIV of the CUPE constitution outlines revenue collection).
They also discourage innovation to the extent that they limit businesses' ability to fire unneeded workers. There is little doubt in my mind that the transit system in Toronto uses human fare collectors because they are not allowed to replace them with machines. These folks can cost up to $40/hour. We wouldn't have had the industrial revolution if we couldn't fire the people who were no longer needed.