Part of the problem is, that the higher you force the wage, the fewer employees a company can employ. So, when unions push wages (and pensions) too high, it pre

Part of the problem is, that the higher you force the wage, the fewer employees a company can employ. So, when unions push wages (and pensions) too high, it prevents the companies from hiring as many employees. In the case of UAW and GM, it went so far that GM was forced to close down factories and many UAW workers lost their jobs as a result. A better way to improve wages and income for workers is to improve their productivity, that is, their subjective worth in relation to the employer, as wages tend to naturally approach this value. Tis is best done by increasing the quantity and quality available to the workers. Effectively this means increasing innovation, which GM and Ford have not been able to provide for years. UAW is part of the problem here as well. Not that unions are all bad, workers should have a negotiating body in order to prevent abuse by employers, but I think that in this case they are part of the problem.