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Friedman Fundamentals Discussion

Unions And Free Market Labor
Where do unions help? Where do they hurt?

Responses

In theory, unions offer workers a way to increase their clout to a level more equal with management. However, the incentives under which unions operate are completely adversarial to business and ultimately hurt the union members as those companies and industries stagnate under union forced malaise. I’m not sure that there is a way to successfully align union incentives with management. Perhaps in today’s world of mass information sharing, a policy of transparency could serve to protect workers in place of unions. Employers will be unlikely to impose draconian work conditions if they fear substantial public backlash. Similarly, workers will have more power to change jobs if they are more aware of the various opportunities available that offer better conditions than their current job. In this way, unions are outsourced to the engaged citizenry at large.

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