IBCoupe wrote:smockers83 wrote:Collectives in an economy just don't work, whether within an economy or an economy as a whole.
Does that logic apply to corporations?
No because you're confusing the economic idea of a collective with a group of people.
IBCoupe wrote:While that's technically true, I can't help but remember that it take two to tango. Unions do serve to balance bargaining positions and power inequalities. From a contracting perspective, a union makes it a negotiation of two equals, versus many negotiations between a person who holds all the cards and a person who holds nearly none.
Unions don't serve to balance anything. They make the labor market for a company a communistic institution in which there is a bunch of central planning. Unions may have been a good idea up until maybe 30 years ago.
Corporations have hiring and payroll policies and corporations know how free markets work. When you have a non-unionized labor force, or a free labor market, corporations will compete with each other for labor. If they don't pay the market value of labor, they may not get any labor at all, so they have to pay what the market values. Or, if a corporation doesn't want premium talent, they won't pay premium salaries. If they want average talent, they'll pay average salaries. If they want sub-par talent, they'll pay sub-par salaries. Unions create a collective of employees who essentially all get paid the same, regardless of work ethic. Pay to a corporation is based on productivity. If you're more productive, they'll pay you more. If they want productivity out of their labor, they'll incentivize it through higher pay. Classic example, bonuses. If you reach certain productivity levels, the business will recognize that added value and pay for it. If they don't recognize that added value, they risk losing that productive worker because he/she is unhappy because he/she see's a schmuck who gets paid the same for not being as productive. If a business doesn't recognize productivity in terms of pay, they risk having a productively low workforce. It's market forces.
Unions don't create this environment. In fact, they create the contrary. They induce laziness, complacency, and reduced productivity. When everyone gets paid the same, there is no incentive to be more productive. Unions also create a poor and unsafe work environment, which is really counterproductive to why they were created in the first place. Unions don't easily allow, or don't allow period, businesses to fire unproductive or unsafe workers because they have to protect the worker from the big bad corporation. This is absurd. Unions also introduce higher costs to businesses.
If Ford and GM were non-union and a person really wanted to work at GM, but GM didn't pay as much as Ford, to him the value of working for GM over Ford is better than the increase in pay at Ford. But Ford hires top notch people since they pay more (attracting top tier talent). This gives Ford an advantage over GM, whether the higher pay is in engineering, production, what have you. But if those employees don't perform to Ford's standards, they lose their job. Their productivity and talent don't match the value of their pay. So, they go over to GM. Why? Because GM is willing to accept these people since they pay them less and doesn't have the premium talent. That's how the labor market and pay works.
Why do you think all of the Ivy League business school graduates go to Goldman Sachs and the likes instead of the local Edward Jones office with someone running it who graduated from community college? They pay them more. Edward Jones doesn't need Ivy League grads running their local offices, they can pay less to have someone with a lessor skill set do that.
A good size of business runs union-free and you don't hear those people complain, it's always the union shops that are complaining about pay. Why is that? Because unions don't allow market forces to take hold. Unions also create a sense of entitlement.
I'll stop there for now.