June 15, 2007

A Question About Unions

I was just reading about how prison guards in Papua New Guinnea walked of the job for a few hours in protest over low pay. And everyone has heard about people walking off the job or going on strike over pay, but this is very confusing to me.

If you're willing to strike or walk off, why not just quit and go get a new job?

If you feel like you aren't being paid enough, ask for a raise. If they say 'no' just go somewhere else.

There are few things as economically devastating to a business as not being able to acquire supplies, be it labor or materials.

I guess maybe people don't understand that they do not get to set market prices.

Hmmm... I wonder: has anyone ever filed an anti-trust suit against a labor union for price fixing, collusion or some other unfair business practices?

Posted by Flibbertigibbet at June 15, 2007 09:32 AM | TrackBack
Comments

To answer your final question, Generally, not successfully since before the Federal Government enacted the National Labor Relations Act and associated legislation basically empowering unions to do all sorts of nasty things, and requiring management to go along. Unions were empowered to solicit for members, unionize workers if a majority vote was acquired, and force, with government might, employers to negotiate "in good faith" with the union. Basically that means that no employer was allowed to refuse the Union's terms on the grounds that he did not want a unionized work force. Like all civil anti-discrimination laws, the end result is that employers have to accept union terms nearly unconditionally. And the unions had the power to strike, legally granted by Federal law.

The situation improved with the Taft-Hartley amendments, passed some 11 years after the NLRA. The amendments outlawed "closed shops," (unionized workplaces where the union demanded that no non-union workers may be hired so long as the union contract is in place) and allowed the states to pass their own "right to work" laws, which undercut much of the unions' powers.

With a bit more research on RICO and on the anti-trust laws (blech), I might be able to tell you more, and perhaps find some cases where unions have been sued for the kinds of reasons you suggest.

-Q

Posted by: Qwertz at August 19, 2007 03:28 AM

Wow! Great info!

I had suspected as much. My labor relations segment in B school was really brief, so I'm not very surprised.

Thanks for the comment!

Posted by: Flibbert at August 20, 2007 12:44 AM
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