Wages and Unions
Unions have improved the lives of blue collar and white collar workers. They have also increased the work environment of the worker.
The reason unions came about is that some corporations would abuse their workers. The hours would be unreasonably long and the pay would be too low. Children were made to do unsafe jobs and would work so many hours that their life expectancy would be greatly declined. In the very early times, a child in a factory might live to be 17 years old while a person of the wealthy class would live to be around 55 years old. Some of these deep discrepancies in human life were seen as atrocious. Over time, labor organized and many of the corporate practices have greatly improved.
Unions are synonymous with labor. In the most union favorable states, there are only about 25% of the labor force in a union. In states with low labor participation, the rate may be less than 5%. However, unions make a large difference in worker rights. For one reason, they spend a great deal of time in the political arena trying to influence policies that are beneficial to labor. Many of the union dues and contributions are sent to political candidates and to lobbyists. Many people think their money is going to collective bargaining, but that isn't really what the money is used for.
Unions and Criminals
The type of people that wanted to take charge of the early unions were fearless. They were often the types that just wanted to be in charge for the power. What came with that type of personality were often people of criminal intent like Jimmy Hoffa (Teamsters Union Leader).
In spite of all this, unions have made many improvements for the workers. The workday has been reduced to 40 hours per week and overtime is required for people working over 40 hours per week. Unions have also been able to get higher rates of pay than workers in comparable jobs that aren't unionized.
Part of the reason for wage increases is that unions do not want to be part of a losing company that isn't profitable. In fact, some unions have helped to force out competitors that weren't profitable because they were ruining it for everyone else.
Supply and Demand and Wages
The real law that can't be avoided is that of supply and demand. A high supply of workers will make the wages go down. A low supply of workers will make wages go up. So, jobs that are technically difficult to do will often have a low supply because of the intensive training required to get the job. Workers of commodity type jobs that can be done in little training will have an oversupply of workers. The result is that highly skilled jobs have better working conditions and will pay a lot more.
What union members may often forget is that they can't expect their pay to be as high or as low as someone in a different field. Union members can reasonably expect that they will get paid a little more than the average for the field that they have chosen to work in. Do keep in mind that there are union dues to go along with the increased salary.
Can Anyone Join a Union?
By law, anyone can join a union or start a union. The hard part is that the employer will fire you as soon as they find out you are starting a union. Sure it is illegal, but they will do it anyway. Most employers know that you won't have the funding or resources to mount a real legal fight with them. Once you are out of a job, what will you do next.
One man that helped start a union at Chrysler said that management watched him like a hawk. They gave him rules and obligations that were nearly impossible to meet. He knew that if he was ever late or made a real mistake he would be fired. What happened is that this employee worked really hard and watched himself really well. He wasn't fired from Chrysler. Once he started the union, he quit Chrysler for that was his main reason for working there. Today, he is an economics professor that focuses on labor issues.
Wal-Mart
Part of the company training at Wal-Mart is that unions are bad. A lot of regular workers are afraid to try and start any union there. Wal-Mart has been successful at keeping unions out for many years. Most organizations of this size are unionized. If you think about it, the wages at many local grocery stores are much higher than the wages at Wal-Mart. And, Wal-Mart will typically get the lionshare of the market. If a union was started at Wal-Mart, then prices there may increase. If prices increased enough, that would allow small companies to come in and compete with Wal-Mart. There may be an increase in the number of mom and pop stores. Maybe all the small mom and pop stores wouldn't have to close down because of Wal-Mart.
The losers would be the consumers that get the lower prices. These are the consumers that don't lose their job because of Wal-Mart. That is why Wal-Mart is so successful. The low prices are good for consumers – not workers. There is increasingly a tax burden that Wal-Mart creates because of its contribution to the welfare state. What that means is that a lot of their workers can't afford to live and must get government assistance.
Normative Rising Wages versus Real Wages
It used to be that a man could get a job with a high school diploma that would support a family with a home, a car, and food on the table.
In todays world, about 25% of families have a stay at home mother. The reason is that during World War 2 there was a labor shortage. Women were pulled into the workforce and it was seen as a patriotic thing to do. When the men returned from the war, the jobs were not as abundant and now there were a lot more workers to deal with. What happened is that real wages fell. In fact, the wages fell to the point that it would take two income earners to make most households stay afloat.
You might argue that we have so many more luxury items than they had back then. Of course that is true, but the majority of peoples monies, of today, go into the home, health care, cars, and food. It is amazing how cheap luxury items have become. The real items that matter education, cars, homes, and food have all risen much faster than incomes. If you get a 4% cost of living raise and pay 6% more for goods and services that means you got a pay decrease. That is exactly what has been going on since World War 2.
The normative wage has been steadily rising while the real wage has been decreasing.
Mothers Leave the Home
Since mothers have left the home, it has created a lot of social problems. Children are raised without a strong bond with a father or a mother. Many of these children feel detached and angry at society because they feel abandoned. Gangs and other hostile groups have come in and fill that void in the child's life. What we have now are areas of large cities that people are afraid to walk down or even drive down. There are more people on welfare than ever before.
It is a general consensus amongst all conservative groups that the family is the cornerstone of society and that the mother should be given the opportunity to get back into the home. Legislators do not always agree on this. In fact, some politicians think that the individual should first be responsible to the state and second to the family. Some liberals fear that supporting the family will alienate gays and others that do not fit the mold. To some, the choice is to eliminate the very definition of what a family is so that everyone is on a level playing field.
Conservatives think that a family should consist of a mother and a father. They believe that the woman should primarily take care of the children and that the man should support the family. However, conservatives do not take a hard stance on this. It is only seen as an ideal. They realize that many families can not meet this stringent definition.
The Final Straw
One thing is for sure. People think that politicians are corrupt and that there is something wrong with the system. People are working harder than ever and most people can barely make it from paycheck to paycheck. There is a general feeling amongst people that something should be changed – people should be a little kinder, corporations should care a little more, and government should put people first.
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