Pro/Con and Essential Questions
Are labor unions necessary?
Labor unions are an anticompetitive force in the markets. unions have not adapted to the modern workplace. Collective bargaining means one contract covers everyone. Such contracts do not reflect individual contributions. Instead unionized companies typically base promotions and raises on seniority, not merit. Unions designed this system for the industrial economy of the 1930s. Present day knowledge economy looks different. Machines and computers automated many of the rote tasks of the industrial age. Most employers today value employees for their skills and abilities; "human resources" instead of seeing them as interchangeable cogs on the assembly line. Employees also expect to be rewarded for what they bring to the table. Collective contracts make that challenging, especially when unions fight against individual recognition. In 2011 Giant Eagle grocery stores gave several employees in Edinboro, Pa., raises. United Food and Commercial Workers Local 23 promptly sued, arguing their contract prevented the company from awarding individual pay increases. The courts agreed and ordered Giant Eagle to rescind the raises. Local 23 wanted everyone to make the same amount, no matter how good they were at their job. Many unions share this attitude. Sen. Marco Rubio, R-Fla., introduced legislation to allow unionized employers to give performance-based raises. These pay increases would come on top of union wages. Unions nonetheless denounced the proposal. SEIU President Mary Kay Henry objected that the bill would allow "arbitrary" wage increases. The Teamsters derided it as a "bosses' pet" bill. This attitude alienates many potential union members. Overall, businesses can negotiate with workers without the aid of labor union organizations in terms of wages, safety, healthcare, benefits, and more.
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