| I'm not from the USA - so I don't know about that specific case. But let's take your premise and reword it. What happens if shareholders have an agenda of extracting maximum benefits out of the company while actively encouraging its demise? We see that all the time with private equity groups loading up on debt so they can make a huge profit and then letting the company go bust. What happens if senior managers have an agenda of extracting maximum benefits for minimum effort? Again, how many CEOs get golden parachutes after wrecking a company? Who protects the workers in those situations? You'll find (in some cases) unions do take a long term view. They want to secure long term benefits rather than a short term bump. That's because they're working for people who need a regular pay cheque. So you'll see compromises being made in order to secure longer term employment. |
Okay! in that case, I rest my case that unions can actually be very harmful due to it being a power structure and particularly if they are not subjected to any check and balances.