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Labour unions

The worst solution except for all the others?

Feb 23rd 2011, 20:30 by R.A. | WASHINGTON

HAVING said my piece for labour unions, let me now offer a different perspective. I have a difficult time seeing how labour unions play a role that's beneficial, on net, for society. The idealised conception of the labour union is as an institution that fights to protect workers. Reality is somewhat different. As Adam Ozimek puts it:

Kevin Drum responded that a single incidence of union political malfeasance doesn’t make them bad overall. Well that would indeed be a silly argument to make, and were this the only example of unions being on the wrong side of educational reform then that clearly would be the argument I was making. But do I really have to run down the litany of bad policies unions have fought to keep, and good policies they’ve fought against in education reform? A clear indicator of how bad they’ve been is that the most anyone will say in their defense on education reform is that “well, some unions are embracing reform now in some places!”. That’s some defense. As Megan McArdle sarcastically pointed out on twitter “to be fair, it DID only take thirty years”.

He goes on to cite the ways in which unions undermined worthy portions of the health reform legislation that passed last year. They've also been on the wrong side of regulatory battles, trade initiatives, and on the list goes. Labour unions aren't altruistic entities. They exist to generate benefits for their members and they don't care, as a matter of course, whether those benefits are generated by increasing the size of the economic pie or taking a share from someone else. Unions cartelise the labour force to sell labour to employers at a dearer price. When private firms do the same thing, people get really upset and use what legal tools they can to stop it.

But insider-outside games aside, is there a bigger, nobler role that unions play? The Galbraiths, father and son, believe there is:

Jamie Galbraith: "The concept of countervailing power" is the subtitle of my father’s first major book, “American Capitalism.” For him, the American economy was made up of large organizations, and to function properly, there had to be a system of checks and balances, of which unions were a critical element. But not the only element. Corporations were acting as countervailing forces on one another. Producers countervailed against retailers and retailers against distributors. There was a whole ecosystem of checks and balances. But the government is not, by any means, a pure representative of the working population. It's a mediator of all the voices that impinge on it. And if the workers have no organized voice in it, well, we get the government we have now.

The problem with this is that unions don't represent "the workers". As Mr Ozimek's post illustrates, unions often take positions that directly harm groups within society with even less power than the average wage labourer. And a magnanimous union that managed to represent the whole of working American society would often take positions that would harm even poorer and more disenfranchised workers elsewhere in the world. So far as institutions standing up for working men go, unions are just about the worst available option.

And yet, it's not as though America is on the brink of socialism (sorry, Mr Beck, but it's true). Glance at data on income inequality and economic immobility and you'd be forgiven for concluding that America is closer to oligarchy than workers' paradise. Is now really the time to go union bashing?

I wonder if part of the frustration with unions, among people who might otherwise consider themselves working class, is the sense that the labour movement has been utterly ineffective in generating gains for the broad mass of American workers in recent decades. Labour figures will quickly respond that they've been hamstrung by the Reagan-era assault on organised labour and the (not unrelated) decline of American manufacturing employment. Regardless, it's sure to be difficult to convince people of the need for your existence after a period of decades in which your existence has accomplished very little of broad benefit.

But let me ask the same question posed by my colleague: if not unions, then what? I can't claim to have an answer. One might have thought that the Democratic party would fill that role. Unions are costly and appear to be on the wane. If Democrats can't conceive of themselves as the vehicle through which society maintains its progressivity in the absence of a substantial labour union constituency, then what are they good for?

And if there is brewing class resentment out there, and if it doesn't find its way into unionisation or Democratic enthusiasm, then where will it bubble up?

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1-13 of 13
Feb 23rd 2011 8:36 GMT

"it's not as though America is on the brink of socialism..."

Exactly! We've been there since FDR!

The argument for unions has always been that they raise wages. But decades of research has shown that they raise the wages of their members at the expense of other workers. On the bright side, the high cost of union labor forces companies to employ new labor-saving technology earlier than they otherwise would and outsource more.

rarcher20 wrote:
Feb 23rd 2011 8:48 GMT

I dont agree with the arguement that public sector unions are protecting workers from the government and that there needs to be anything remotely similiar to a union for public sector workers. If a government tried to provide sub-standard wages for government employees they would never get re-elected even without public sector unions. In this day and age of constant public criticism it would be easy for the opposing candidate to publicly humiliate his/her rival by highlighting the failure to protect workers. An easy arguement could go like "If he cant even provide good wages for public employees how do you expect him to improve the private sector!"

Additionally, I personally support a minimal role for the government so lower benefits may result in less people wanting to work for the government which could help reduce size.

Chestertonian wrote:
Feb 23rd 2011 9:05 GMT

Perhaps we need to adopt the collaborative union models of Scandinavia, Germany, or Japan.

They work well elsewhere; just not here. I'm inclined to blame our union adversarial model which provides absolutely no benefit to anyone other than its own members.

White Lies wrote:
Feb 23rd 2011 9:14 GMT

Make unions obsolete by making the benefits they fight for as labor groups available to the general public. Nationwide single payer healthcare, for example. Insurance is a blackjack game. The American system lets the private companies bet and make profits on all of the winning hands while passing all of the ones that go bust over to their pal, the taxpayer via Medicare, Medicaid, and publicly funded emergency care. The insurance companies then blame the taxpayer for being a horrible blackjack player. Taiwan has a single payer system funded by payroll taxes and doctor's fees that runs for about 15$ US a month premium. They did it by examining the US medicare system and just extending it to everyone. Strangely enough, when the pool of the government insured is extended to the entire working population, it's a lot more solvent. But most Americans would argue that Taiwan did this not because it was cost effective, helpful to labor mobility, or right but because they are notorious communists.

The public sector unions wouldn't fight so hard nor would they have the support of so many members if the benefits they wanted were widely available elsewhere in the economy.

FlownOver wrote:
Feb 23rd 2011 9:21 GMT

I really like the question, "if not unions, then what?" Unions do foster resistence to change, rather like conservatives who want things to go back to the good old days. However, wouldn't negotiating individual contracts for thousands of employees be time consuming?

Milby wrote:
Feb 23rd 2011 9:24 GMT

Replace the word "unions" in this article with any other political institution of any kind and it would still be equally valid. With all of their faults, I still prefer a society with unions over one without.

Faedrus wrote:
Feb 23rd 2011 11:57 GMT

"Labour unions aren't altruistic entities. They exist to generate benefits for their members and they don't care, as a matter of course, whether those benefits are generated by increasing the size of the economic pie or taking a share from someone else."

Gosh. Sounds like Republicans, and the Koch brothers, and Fox, and business lobbyists, and Medicare recipients, and...

LaContra wrote:
Feb 24th 2011 12:16 GMT

Fundy

As if I've written elsewhere in reply to your posts:

The US is not a socialist state nor does it operate on socialist principles

If you had ever actually seen or experienced an actual socialist state you would drop your constant nonsensical refrain about the US being one too.

I know you're a self proclaimed 'fundamentalist' but you don't have to be an ignorant one. :)

pun.gent wrote:
Feb 24th 2011 12:34 GMT

The concept of the union (like democracy) as the worst system in the world except for all the others is right on the money.

When the employer is competing for employees, this is less of an issue. But when the employer has monopoly (or near-monopoly) power, the workers need that too. Unless they hang together, they can be abused individually for teaching unpopular truths like evolution, investigating a prominent political donor, or simply for speaking out.

Feb 24th 2011 12:44 GMT

"Is now really the time to go union bashing?"

Yes, because unions operate in the exact same way those other, "oligarchic", special interest groups operate. They are all different sides of the same coin: groups of people that abuse their common interest in order to extract rents from the rest of us. And they all need to be stopped.

bampbs wrote:
Feb 24th 2011 2:35 GMT

It will bubble up combined with nativism into an ugly Populism. All it will take is the right voice to fire the resentments.

migmigmigmig wrote:
Feb 24th 2011 3:03 GMT

"When private firms do the same thing, people get really upset and use what legal tools they can to stop it."

Uh...

Ya, I'll go with the rest of the commenters. Private firms are often on the "wrong side" of regulatory reform, trade initiatives, undermining healthcare legislation, yadda yadda yadda (yatta!)

While I'll agree that the righties want to take the legal tools to the unions, the lefties also want to take the legal tools to the corporations, and really they're both equally culpable players in the political arena.

LaContra wrote:
Feb 24th 2011 3:52 GMT

More and more it becomes obvious that all roads do indeed lead to Rome and the metaphorical 'Rome' is campaign finance reform.

Does anyone believe that this debate would be taking place if Public Sector unions were not a primary source of funding for the Democratic Party?
Does anyone not believe that what public support for the unions exists, in this particular case anyway, stems from the perception that the obscene amounts of corporate money in American politics need to be balanced by an opposing reservoir of money, namely labour's?

If public sector unions are too powerful its only because of the political clout which flows from their political contributions, same for big business.

Remove the political contributions, remove the associated power, remove the problem...

Root and branch Campaign Finance Reform....neither side will take the initiative, both parties avoid it...so you know it must be right.

1-13 of 13

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