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I think any discussion of the good and bad side of unions needs to distinguish between public and private sector ones. In the private sector, union negotiation
by bjt 10y ago
I think any discussion of the good and bad side of unions needs to distinguish between public and private sector ones.
In the private sector, union negotiations are naturally constrained by the knowledge that if the company isn't profitable, everybody loses. I think there are cases in the private sector where unions make a lot of sense (e.g. mining towns where there's one dominant employer).
In the public sector that doesn't apply. The union's incentive is to demand all that it can. You're not going to put the government out of business.
- johnm1019 10y agoUnless it's Detroit. Or Puerto Rico.... or....?
- emp_zealoth 10y agoI suggest you watch John Oliver piece on Puerto Rico.
- bjt 10y agoDetroit is still there. And so are unions.
- briandear 10y agoThat's exactly correct. Public unions aren't as easily accountable to the market. The incentives are disaligned. While private union incentives are generally aligned with business except in more extreme cases such as subsidized industries.