are labor unions a threat to capitalism?

Answer 1

Not at all - they help to increase information at the worker's level relating to the cost of labor.

Answer 2

In general no, they shouldn't be. Unions should be an effective tool whereby workers band together to enforce their rights. In many situations, they have and will continue to protect workers' rights when local authorities fail to enforce our country's laws.

But in America today, they frequently are a minor threat to capitalism. Why? Because capitalism assumes that people and businesses go where the opportunities are the best. Labor unions today often have the support of local and national politicians, who give them more power than just the sum of their individuals.

The best example I can give is that when Ford's workers strike, so-called "scabs" (replacement workers willing to work for less than union pay) are prevented from working because of threats from the union, uncrossable picket lines, and even in some cases regulations and court orders. In a perfect capitalist democracy, the scabs would be allowed to work and the wages would return to their proper level.

Instead, laws against coersion are ignored and the union "have's" prevent the scab "have-not's" from getting their fair share. Of course, this also hurts the shareholders of the company, and union rules often also prevent workers from moving more freely between different jobs in a company, and often tie pay and promotions to things like seniority instead of effectiveness.

This prevents willing workers from getting a job they would prefer to whatever they were doing before and unnaturally raises the pay of the union workers. It's what is called in economics a market inefficiency. Not a big deal nationally, but a very big deal for the individual workers and companies impacted by those unions.

Answer 3

No, they are part of the free enterprize system. It depends on what the labor union does. It it supplies a work force that shows up to work, dressed for work and trained for work they are quite valuable.

However, if they just reduce productivity with stupid work rules, use threats of violence to intimidate co-workers, they will destroy the company that does business with them and the free market will eliminate the company and the union. So I don't see the threat.

Answer 4

I agree with Whathappenedamber. I don't think that unions are a threat to capitalism in general.

I do think however, that they are a threat to any company(or industry) that uses unionized labor.

Case in point: American auto makers, airline industry, etc.

Answer 5

No, because some companies keep unions out. Unions can be a threat to the company in which they are active.

Answer 6

Labor Unions are a MAJOR component into the pricing of goods and services to determine the “free market” fair price.

“Capitalism generally refers to an economic system in which the means of production are mostly privately or corporately owned and operated for profit and in which distribution, production and pricing of goods and services are determined in a largely free market.” (Wikipedia).

Even though Labor Unions determine the price, they are a handy-cap to USA citizens in “World Globalization”. As companies seek to minimize their cost of production they are finding people to labor without giving their labor forces the same benefits that are given to USA labor’s (dental, health, retirement). In fact, with slavery, child labor, and other socially disapproved of tactics … companies are seeing “Free” labor for the lowest price to the consumer.

Reality in Corporate Globalization is that the companies can operate without the laws and regulations in the USA including labor laws, environmental laws, and accounting laws. In fact, environmental and accounting are a major reason so many companies are leaving the USA … labor however, is a humanity issue that makes many of us cringe.

So, you’re question should be: Should Global Companies have the same labor, environment regulations in the USA as abroad?

To this I answer, to maintain the values of good laws, preservation of the planet, and true disclosure (SEC statements), yes, Global Companies should have international laws maintaining equal practice around the world.

Answer 7

If you a fat rich capitalist.