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by CryptoPunk
2985 days ago
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You're deeply mistaken. Unions would be immediately fired if they were operating in a free market. Their power depends entirely on laws that restrict the contracting freedom of the employer. 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. |
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As regards your followup, you are only looking at 1/2 of the picture.
Yes, there are restrictions on what an employer can do, eg, prohibitions against firing a worker for unionizing.
On the other hand, since the Taft-Hartley Act, unions are prohibited from "jurisdictional strikes, wildcat strikes, solidarity or political strikes, secondary boycotts, secondary and mass picketing, closed shops, and monetary donations by unions to federal political campaigns." (Quoting Wikipedia.)
The idea is to remove so-called "unfair labor practices" from both the employer and the union. So you can't just point to the restrictions on employers and stop there.
Your statement "Unions would be immediately fired if they were operating in a free market." is contrary to the historical evidence.
We know that unions exist in a free market and with no laws to support them because history gives clear examples. It wasn't until Commonwealth v. Hunt in 1842 that unions in the US were determined to be legal in the first place. Previously people who tried to use their collective bargaining power were sometimes prosecuted for criminal conspiracy.
Under your free market hypothesis, how did these early unions exist without laws to back them up?
It's because collective bargaining can be effective even without legal enforcement. Quoting from the Wikipedia page on Commonwealth v. Hunt: '"Wait, Horne’s master, testified that "he did not feel at liberty to employ any but society men," because he "would not wish to lose five or six good workmen for the sake of one."' No law force him to accept the union.
Your last line is "It is due to these laws that union members get above market wages."
That's neither here nor there. We are far from a free market, in regards to employment, and we don't know what the free market rate would be if both employers and unions were unconstrained in what they could do.
Moreover, people in unions may accept lower rates than those not in a union. Some people would rather have the stability of a long-term job that is not affected by one's ability to kiss up to the boss, and accept the trade-off of having a lower salary for that stability.
We also know that companies engage in collusion to lower salaries. See the settlement a few years ago where Apple, Google and several other Silicon Valley companies allegedly "illegally conspired to prevent their workers from getting better job offers." (Quoting https://phys.org/news/2015-09-415m-settlement-apple-google-w... )
If you really believe in a free market, then it seems you think that group of employers should be able to work together collectively to lower employee wages, yes? If employers can act collectively, then why shouldn't employees act collectively?