What are worker unions, and why is there opposition?
In: Economics
A Labor Union is an organization of workers who bargain collectively about the terms and conditions of their employment. Labor unions take dues from the members in order to fund the union’s activities. Some unions engage in political activities ostensibly on behalf of their workers.
There’s opposition for a number of reasons:
(1) Workers frequently don’t want to see their dues being used for political purposes that they don’t agree with.
(2) Large labor unions in the US have a history of corruption and violence
(3) Negotiated contracts typically impose regimented promotion and pay obligations that require individuals to be treated in accordance with their longevity with the company instead of their ability to contribute, which creates disincentives to performance.
(4) Large labor unions typically run their own “multiemployer” retirement plans, but those plans are frequently mismanaged (see #2 above) such that money goes to older union members at the expense of younger members.
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