Unions are celebrating all over the United States this year because many states and cities are introducing higher minimum wages. After a year-long battle with the fast-food retail industry, unions got their wish: a $15 minimum wage, though some states and cities are implementing $13 wages.
Whatever the case, the unions, with all of their economic illiteracy, got their wish: massive job losses for unskilled and uneducated workers as part of the “Fight for $15” initiative. This is iniquitous, but don’t tell that to union proponents, who still believe it was because of them we have 35-hour work weeks, safer working conditions and higher wages.
The unions have been an enormous parasite on both the government and private sector. Unions will only support politicians who will act like Santa Claus in exchange for votes, while unions will shut down private businesses if they don’t get what they want. It’s all quite unscrupulous and disreputable.
But the unions are at their most dangerous when they advocate for a higher minimum wage.
Indeed, they may say they’re advocating for workers’ rights and attempting to raise the living standard for a lot of the impecunious: the single mother of three working at McDonald’s, the married father of one who is trying to put his kid through college and the recent immigrant from India who wants to live the American Dream.
Unfortunately, all of these people will be severely hurt by any sort of artificial increase in the minimum wage, or interference by unions. Here are two reasons why unions are threatening when it comes to the minimum wage.
Pricing the Competition Out of the Labor Market
Despite their tough bravado, unions are terrified of the free market, and economics in general.
One of the reasons why unions are always ecstatic and active in minimum wage fights is because they want to price their competition out of the labor market. Who is their competition? Unskilled laborers, the ones who may come at a cheaper price than a 25-year union veteran.
With a higher minimum wage, employers won’t want to hire an unskilled, uneducated, inexperienced worker. If they’re forced to pay for a higher wage then they will take unionized labor. Therefore, the number of employment opportunities for unskilled laborers vanish, while the number of jobs available for unionized employees grows.
Exempting Themselves to Create a Bigger Union
Unions should be pleased now that they have the $15 minimum wage. They helped their fellow “brothers and sisters,” right? The Raise the Wage campaign in Los Angeles did state: “Raise the minimum wage — and not just a little, but enough to bring the hundreds of thousands of Angelenos who power our economy into the middle class. It’s good for business, it’s good for taxpayers, and, most of all, it’s the right thing to do for workers, who have earned it.”
It’s settled. Nope. Unions are attempting to get themselves exempt from this minimum wage. Why would these organizations do such a thing, aren’t they filled with good people with the right intentions? Nope.
In the escape clause, which is found primarily in the West Coast, but also in places like Illinois and Wisconsin, unions would gain an enormous amount of strength in workplaces everywhere.
For instance, this living wage debate was targeted mostly at the service sector – fast food, hotels, etc. – but unions can negotiate with these same companies to union representation in exchange for lower wages.
Obviously the companies want to lower labor costs so they agree to this unionized workforce. This permits unions to move in and have a larger membership that can pay union dues. Each worker pays about $50 and hands over about two to four percent in union dues in every paycheck.
Of course, this in turn pays for political campaigns. It’s all rather sleazy.
Protesters are never told this during demonstrations. The heads remain surreptitious.
Workers lose out on this scheme: they have a smaller paycheck and fewer employment opportunities in the labor market as wages rise and price the unskilled out of the economy.
Final Thoughts
Unions are a drain on the national, state/province and local economies. They are parasites that hurt the vulnerable and the taxpayers. It’s an antiquated system that should be abolished immediately. They weren’t needed a century ago, and they aren’t needed now. Unions’ influence on public policy are as bad as big business. It’s time to flush them down the toilet.
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