Unions
Favorite targets of business owners and conservatives alike, unions get a lot of bad press. They promote inefficient work rules and “feather bedding”, so say the critics; ignoring the fact that most, if not all, of those cases were in industries where the owners have made truly obscene amounts of money, for example railroads in the early 20th century. As for inefficient work rules, according to some business owners, anything that costs more is bad, even if it is safer. Some unions have had corruption and ties to organized crime, but that shouldn’t taint all unions anymore than the corruption of some CEOs and their companies.
Because of their long association with manual laborers, it has been easy to sell these myths to an emerging, well educated middle class. It even subtly reinforces a classism/racism to office workers who might otherwise have wanted representation in their dealings with management.
American manufacturers have long promoted the idea that unions raise wages and therefore increase the cost of goods and services. There is obviously some truth to that BUT what good does it do to have cheap goods if people can’t afford them on the wages they’re paid? And what of the enormous salaries and bonuses of top management, and their desire to continually increase profit margins? Profit margins, which influence the price of stock and therefore the value of their stock options, more than an improvement in quality of goods and services.
While there is a whole other discussion to be had about the true value of C-Level positions and how much they truly contribute to the running of the business, it should be obvious that the ratio of their pay to the average worker is unjustifiably large, and based on too many factors having little to do with actual operational success of the business.
The answer has always been “get a more skilled job, this is how free markets work, supply and demand” i.e. find a better paying job. As far as it goes,this is good, reasonable and fair advice. But it does ignore some economic facts. Supply and demand work best in what economists call “pure and perfect” competition. This is when all consumers know the price, all providers (current or wannabe) can freely enter the competition and most of all price is the ONLY determiner of purchase decisions.
Clearly this isn’t the case, especially in wages. A single current or prospective employee is in the worst possible negotiating position. Add to that most employers want to know your current or previous salary, so they can make you an offer just enough above it to be enticing. But if you are underpaid relative to your market skills, say by starting out in a low position with your current or last company, your promotions will probably never equal the going market rate for the job. Climbing out of that deficit is next to impossible. There’s lots of talk about paying for performance but most employers assume that your pay reflects that when you apply., as if everyone had effective performance ratings and a perfectly working pay for performance systems. Even if you know the market for your skill, your employer will try to get you for less if they can; and they have the resources to out wait you. Furthermore, some of the most ridiculous and bizarre biases about what makes a successful employee get factored into the decision. It isn’t even illegal as long as it isn’t obviously based on race, gender, national or ethnic origin, or to a lesser extend on age or disability.
White collar workers (and those incorrectly identified as ‘contractors’) have as much need for protection in their dealings with corporations as the blue collar workers of the past. A range of issues from health care benefits to work schedules (businesses paying part timers minimum wage and constantly changing their schedule making a second employment, let alone finding another job extremely difficult), are among the legitimate issues to discuss. In the past automation created new jobs at a greater rate than the ones it replaced. Even if that is still true with the coming AI revolution, it will be important to give workers a voice that is at least as powerful as the employers in sorting out these changes.
It’s time for employees, and unions alike to realize there is a new opportunity on the horizon.








