oldjones said:
Where is that pray tell? Details and facts please, or is this just more "Nyanh, nyanh!"?
No, not at all. Some people know far more than I about this tuff and express it so well
From 'Les Affaires', Frances version of 'The Economist'
Forced unionization harms the creations of jobs.
Even if the economy is in turmoil and even if the level of unemployment continues to shrink, Quebec still retains its title as one of the North American regions where the number without jobs stays elevated (relatively speaking).
Therefore, it'd be useful for the actual debate on the reforming of the labour code to take into account the impact that restrictions on unions have on the creation of jobs and the level of unemployment.
Canada is one of the few industrialized countries where the labour codes permit unions to impose uniformally in a business, noteably by forcing them to employ exclusively those workers who are a part of an established union (the Rand Formula obliges the employer to deduct a union membership at the source for all salaries of a unit of accreditation) or which adhere to an umbrella union (closed shop). These two formulas are the rage in Quebec.
But there's a different situaion in the US. In effect, 21 states have adopted - since the 1940s, laws called "right to work" which give employees the freedom to adhere to or not to adhere to a union representing the workers of an entity where there is a union.
Belonging to a union might engender direct benefits for the employee; nonetheless, other than the moral reserves that you can use to restrain a worker from adhering to the organization, these dispositions also have negative effects on jobs and long-term growth.
The statistics given by the US Bureau of Labour indicate in effect that the total growth rate of jobs was 73% in the US with Right-to-Work between 1977 and 1997, but that it was only 37% in the states under the closed-shop regime over the course of the same period. In the manufacturing sector only, the states with Right-to-Work benefitted from a growth in jobs of about 148%, while manufacturing jobs practically stagnated in other states.
As for the high-tech sector, from which everyone seems to try and profit, it's also in those states with right-to-work that this industry is the most developped: employment has augmented by 22% between 1989 and 1996, and comparatively, only 3% in those states which impose unions.
Of course, these facts don't prove that there's a cause-effect relationship which would definitively prove that the closed-shop method is fatal to the economy. The result of which this lets us glimpse depends in reality on the context of the global economy in these states themselves, where the work laws constitute one measure amongst many others. It would be imprudent to not take these facts into account.
The Rand Formula and the closed-shop clauses introduce an unwarranted rigidity in the labour market, in the measure where the unions which enjoy a monopoly at the bosom of business can exclude people without jobs who would be ready to work for a lesser salary than that stipulated by a collective convention. Unionized employees profit from this, but the others will increase the ranks of the unemployed.
In the same vein, the union monopoly can force salaries to new, higher levels than would be justified by real business productivity. In the context of intense competition, this signifies the higher costs in your workforce, a reduction of competitivity losses of contracts and, eventually, layoffs. On a longer term, even unionized jobs are vulnerable.
Other facts confirm that the right to work collectively profits workers. According to Professor James T. Bennett, of George Mason University in Virginia, the family purchasing power after taxes was, in 1993, $2,852 higher in states with right-to-work than in those without.
This situation does not leave American investers and entrepreneurs indifferent. These people, according to surveys, almost always prefer to establish in states where unionization is not obligatory, a criteria which passes before the fiscal burden.
It is therefore not a coincidence if Quebec conjugates its high unemployment level with one of the highest forced unionization rates on the continent. It's when the demand of the workforce is strong that workers and those who are looking for jobs win the most.
And the best fashion to achieve this is to assure the flexibility of work and to permit businesses to increase their productivity insteadof artificially protecting a single portion of the workers.
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I know it's a long, but you asked. I can cut and paste but usually like to us my own words, yet this couldn't be passed by without relaying to you.