The whole truth about labor unions

“What in the world are labor unions? What do they want, why, for whom, from whom?” asks every reasonable citizen and entrepreneur from himself. The answers are simpler than you could imagine. The roots of labor unions lay in 19th century England, where as result of accumulation of capital effectiveness of machines raised and therefore […]

“What in the world are labor unions? What do they want, why, for whom, from whom?” asks every reasonable citizen and entrepreneur from himself. The answers are simpler than you could imagine.

The roots of labor unions lay in 19th century England, where as result of accumulation of capital effectiveness of machines raised and therefore less inferior labor was hired. Some group of people came up with an idea that it were machines guilty in their unemployment. The so-called Machine breakers movement appeared, which is also the very basis of modern unions. Generally even the mentality is the same. They hate competition, free choice, investments, market economy, technique, electricity and welfare. Their ideal is grimly proletariat, who loyally visits meetings and strikes without questions.

All the time labor unionist and other socialists talk about “social justice”, “social equality” and “social dialogue”. Of course that is just empty Marxist allegory. They imagine themselves as representatives of all workers, proletariat and the government is in their terminology the “social judge”. In Estonia such a fiction is especially perverse for labour unions’ membership is marginal and its real issue lays in being of one party’s tag. But the imagination is impressive indeed.

And again labor unions have new ultimatums to the state and entrepreneurs. Even higher minimum wage, even more unemployment financing, even more and trickier regulations. Allegedly to stop unemployment, secure “just” income and “social dialogue”.

In fact, naturally the reverse is true. Minimum wage has been one of the favorite topics af labour unions on the very reason that it creates unemployment. Exactly, unemployment among working people not belonging to labour unions and “defending” unions members from people eager to take lower price. Therefore minimum wage secures higher wages for union members ,which is the very goal of all of this.

Scientific empirical evidence all over the world shows tragically that minimum wage attacks most cruelly exactly young and women, who have anyway trouble finding job. How minimum wage creates unemployment? Lets imagine a blacksmith where 10 men work with different productivity. Lets assume that the youngest of them, John produces 10 rakes i.e. $100 per day or $12 per hour. Now, the government raised under the pressure of labour unions the minimum wage to $15 per working hour. What should the blacksmith do now? Of course he sees that the productivity of John is below the wage he can lawfully pay. What happens is that John is unemployed and the blacksmith has 10 rakes per day to sell. All: John, blacksmith and consumers are losers.

Do labor unions really believe that minimum wage forces entrepreneurs to hire people even if their productivity is below minimum wage? That is what I call extreme stupidity. Of course, every entrepreneur, serving his kings, the consumers best interests is forced to fire worker whom he can’t pay more than he has produced.

Labor unions are the strongest in public sector. Simple solution is to create truly just wage, market wage by introducing performance payment and to privatize those public sector services. Only then people will get just wage. Wage depending on how they serve other people, their fellow men.

Labor unions threat to strike. They want to racketeer money from the buyers of labor services. Imagine yourself walking into a store and the grocer would say: “From today pay 15% more or else no food.” With government violence it is forbidden to buy food from any other place. This is crime and so have labor unions been after mafia been the most organized form of criminality.

But why not to rebel. Lets say, we will not buy your services. We, the free people buy wherever we want to. Why not to give labor unions a cold shower. Lets do work suspension for couple of days. What face shall the comrades have then? A warm advice to you all dear entrepreneurs, try it out!

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