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Unions improve compensation by increasing the share of the profits pie given (or returned, rather) to labor, not by putting a stranglehold on new hiring.
by ahelwer 8y ago
Unions improve compensation by increasing the share of the profits pie given (or returned, rather) to labor, not by putting a stranglehold on new hiring.
- bobthepanda 8y agoYou also don’t need a union to put a stranglehold on labor supply. See: doctors
- r_smart 8y agoI guess you could say it's not a union, but it's pretty much the same thing. At least, it's pulling the same levers to get desired outcomes.
- chrisseaton 8y ago> Unions improve compensation by increasing the share of the profits pie given (or returned, rather) to labor, not by putting a stranglehold on new hiring. How do you think they magically achieve this? Surprise - it's by threatening to restrict supply (not working for the company if they don't agree to the union's terms.)
- ahelwer 8y agoThreatening to strike is much different from restricting the people who can work for the union?
- chrisseaton 8y agoIn both cases you could be happy with the offered compensation but be forced to not work for the company anyway.
- r_smart 8y agoYes, they're different things. They're also the two basic tools in the union toolkit for driving up wages.
- r_smart 8y ago|Unions improve compensation by increasing the share of the profits pie given (or returned, rather) to labor Revenue pie, not profits pie. A union will negotiate better terms for itself if the leadership thinks it's appropriate, regardless of the health of the company.