- Dec 18, 2011
- 12,919
- 4,824
- 350
Union sued a company and forced them to rescind the pay raise given to some outstanding employees. Unions don't believe in merit-based raises. They believe in seniority, not quality of work. This explains a lot. They'd rather see substandard work rewarded. It's the way they operate. The reason given is lame. It punishes those who put forth the effort and rewards those who are loyal to the union. This is a familiar concept.
Why Did This Union Oppose Higher Pay for Its Members?
Unions currently function as labor cartelsthey try to control the supply of labor in an industry to drive up its price. This model does not work in todays competitive global economy. And the union focus on collective contracts with particular firms provides little benefit to workers with individual preferences (or who switch jobs).
Unions need to reinvent themselves and provide services that help workers navigate the modern economy. Instead of cartelizing labor, they should focus on helping workers become more productive and competitive.
Why Did This Union Oppose Higher Pay for Its Members?