Tuesday, August 18, 2015

PUZZLE: why do unions want the flexibility to opt out of minimum wage laws?

The answer comes straight out of strategy:
...unions could advise companies that if they agree to labor representation, they can avoid paying the minimum wage, spending less on wages overall. The strategy could let unions bolster their ranks at a time when union membership is falling, ...

This flexibility gives unions an advantage over non-unionized competitors, who must be hired at the minimum wage.

MAXIM:  Make the rules or your rivals will.

1 comment:

  1. What is the incentive for a worker to join a union if they (1) have to pay fees to join the union and (2) can't expect to earn as much money? Would there be enough workers to sustain the unions? Are there enough unemployed individuals who would be willing to join the union for the opportunity to make less than minimum wage?