Why Unions Still Exist?

The benefits of unions to the labor side is clear: good income, good lifestyles, and job security. Extra costs to business translate to higher prices. But if the business is a near monopoly, its customers have no choice. The customers, faced with higher prices, need more income and demand that from their employers or customers. This process continues and essentially becomes a general inflation. Everyone ends up the same at the end, but the cycle can take a long time. Before that, someone could enjoy a temporary advantage over others, that could be years and just fine for most people.

What if the business is not a monopoly and cannot pass the costs to the customers? Like Hostess, it becomes less profitable and eventually must close down. The labor side then suffers a catastrophic blow: everyone loses their jobs. Note that “everyone” means those who were still employed at the end. Those who left before the end did just fine.

After Hostess, port workers in Los Angeles and Long Beach went on strike. The nearby Ensenada port enjoyed a windfall of business. It is just 3 hours of driving from Long Beach. Those who shipped cargo across the pacific ocean would not mind, particularly when the alternative is waiting for the labor dispute to settle.

The workers in Los Angeles or Long Beach ports won, for now. They also have weakened the their employers and, at the same time, strengthened Ensenada. That’s just fine with them. The catastrophic end is not tomorrow. There is no need to worry.

Therefore, unions are workers of the present cheating the workers of the future. Those who favor unions should ask their offspring to work somewhere else.

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