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Giving labor better bargaining means higher pay for employees and so they need to work less, which leaves room for more employees. Better working conditions als

Giving labor better bargaining means higher pay for employees and so they need to work less, which leaves room for more employees. Better working conditions also leads to a better and bigger pool of candidates who are interested in your work and industry. Giving labor more power also makes it far harder to offshore their work and the higher pay for everyone improves local economies and induces more local demand. Having wealthier owners doesn't help the local economy nearly as much as more prosperous labor, especially if they end up spending a bunch of that capital in investing in a foreign assets with lower labor costs, essentially throwing what could have been local economic investment into desperate foreign labor markets.

whimsicalism 2y ago
that is just not how microecon works. raising the marginal cost of labor lessens the amount of labor hired. there is no scenario in which it leads to more people working the job. unionized labor did not make it harder to offshore - in fact it accelerated offshoring, automation, and a shift to manufacturing in the South of the country. having lower costs of goods usually benefits the economy more than more prosperous labor (not necessarily the local economy), although the net welfare increasing thing is context dependent. in competitive markets, vast majority of labor cost decreases are captured by the consumer.