What are worker unions, and why is there opposition?

Question

What are worker unions, and why is there opposition?

In: Economics

Answer 1

Others have covered what a union is. Why opposition? Several reasons

1) Initial opposition from the employer is obvious. Will reduce profits and cause tons of non-business related head-aches. Another cook in the kitchen type thing.

2) Some employees don’t want to be bound by union rules and union dues. Some high performing employees don’t want to be restricted and miss out on bonuses, promotions, and raises.

3) Over time, unions tend to become bloated, political, and corrupt bureaucracies that fight for prosperity of the union organization, not necessarily the union members. Instead of just a few of the workers running the union in their spare time, eventually the union will hire full-time workers to run the union, essentially becoming a business in and of itself.

4) Entrenched unions need a cause at all times. If there aren’t any, then union members start to question why they are paying the union bosses. Union employees will sometimes purposefully create friction between management and the workers to justify the continued existence of the union and increasing union dues. This allows the union bosses increase their revenue and pay. For instance, the CEO of Teamsters made $2.5 million in 2021.

5) Unions can encourage lack of productivity in the work force. If you tell workers that pay raises are no longer tied to performance and that you basically can’t be fired for poor performance, then why work hard? Why bust ass if it won’t get you a raise or promotion?

6) Unions can kill businesses or force offshoring. Increased costs, lower margins, decreased productivity. Doesn’t take a genius to work this one out. Famously John Lewis was the leader of the United Mine Workers Union in the early 20th century. He called so many strikes that entire industry segments converted their businesses from coal powered to oil powered because the flow of coal was so inconsistent. He became known as “the greatest oil salesman” and almost single handedly killed the coal industry.