| > Labor unions depend on laws that inhibit the contract freedom of employers for the above-market wages they fetch their members. > They're rent-seeking organizations where the benefits concentrate to their members, while their costs diffuse widely across the general population. > For these reasons, I suspect being a part of a union is a significantly larger source of bias than not being part of one, and that's roughly what Public Choice Theory on special interests would predict. Imagine this: the labourers instead form a company, each holding a number of shares, taking what you call market wages for whatever they are doing. They create a new position inside this company, let's call it union ltd., to negotiate a contract between the university and union ltd. Union for the services the members provide. Any surplus the union negotiates is distributed via dividends on the shares. Is this now differen to what you describe? Or different to any outsourcing company? Unions are nothing more, nothing less than a negotiation,i.e. business tactic, just like we use outsourcing as a business tactic |
For instance, the law prohibits an employer from firing workers for unionizing, or firing unionized workers for striking.
It forces employers to engage in collective bargaining when a union forms and demands it. This mandate to collectively bargain includes a prohibition on the employer negotiating individually with employees that would prefer individual negotiations.
It is due to these laws that union members get above market wages.