Aug 28, 2008 10:32
5, Unions should have no legal status.
Currently in Britain recognised unions have a right to mass negotiate pay for all members of the union (and in some cases for non unionised workers as well). They can force employers to go to a binding arbitration service or in the final case call strike action. Employers may not take disciplinary action against workers who take part in a properly ballotted and sanctioned strike.
It is my opinion that the above rights should stop. Unions should be allowed to exist but employers have no obligation to enter negotiations with them and any unauthorised absence would be treated as exactly that.
Unions are a form of protectionism. Protective practices harm free trade economies. Labour is a commodity. The cost of a commodity is determined by the market.
If a company has to pay a person £x even though there are unemployed, similarly qualified people who would do the job for £y where x>y then lasting unemployment will result.
There is an argument that says that union intervention causes inflation. The idea is that if a company has to pay its employees more then it will charge more for its goods. Resulting in inflation for all.
I'm not sure if this happens or all that society pays unionised employees more and non unionised employees corrispondingly less. However either situation is far from ideal.
It is my opinion that some jobs are currently paid much more than the market fair value due to union intervention. My specific example are tube drivers who are in the top 10% of salaried workers being paid over £40k. I would blame the power of the RMT for the fact that London public transport is so expensive.
Please note these salaries are inflated due to union pressure above fair market value rather than inflated banking or executive pay which are definitely not caused by union pressure.