Re:German Union Steps Up Fight for ‘Modern’ 28-Hour Workweek
by Thlom on Monday January 22, 2018 @05:28PM
(#16208615)
Unions in Europe doesn't work as in the US. There isn't anything like a union job. Everyone can become a member of the union and the tariff is negotiated centrally between unions and employer organisations. Germany have had formal unions since 1850 and strong unions for 100 years.
The same story can be told about the Scandinavian countries. Decades of unions strong enough to force employer organisations to establish central frameworks for wages, working conditions across entire sectors of the economy.
Re:German Union Steps Up Fight for ‘Modern’ 28-Hour Workweek
by Daishiman on Monday January 22, 2018 @05:47PM
(#16208810)
But German unions are actually quite rational agents who have agreed in the past to not press for raises or increased benefits because it affects their companies' competitiveness.
Re:German Union Steps Up Fight for ‘Modern’ 28-Hour Workweek
by pishpash on Monday January 22, 2018 @06:03PM
(#16208963)
Funny nobody ever asks how rational employers are, in squeezing the wages of their consumers.
Re:German Union Steps Up Fight for ‘Modern’ 28-Hour Workweek
by carlmr on Tuesday January 23, 2018 @04:58AM
(#16212261)
German unions always start with big first offers. This is just anchoring. Then they settle for less. Last year they also asked for 5 or 6%, we got 2%. In an industry with more than 10% year-on-year growth for the last 5 years that's paltry, especially because there were no raises during the downturn.
The problem with unions isn't the raises. It's rather that it makes people lazy. You need to hire more people not because there's more to do, but because most people are very comfortable in not getting fired. They just wait for retirement.
Which is the problem with all-powerful unions. Works great when you have a booming industrial city like Detroit. But accelerates a downturn in bad times or decelerates potential boom times, negatively affecting the wider economy outside of the union.
In downturns those lucky enough to have a union job cling on to them and continue to push for more power, creating a secondary class system within the working class benefiting a portion of the populace while simultaneously making their company far less competitive (far more relevant today in our global economy), makes industry far less flexible to change, significantly disincentivizes hiring new workers, etc.
It's like Keynesian policy but with QE on all the time regardless of cyclical changes. Or how price controls on food markets have caused food shortages in almost every country in history who has attempted it (including notably in Venezuela repeatedly in the past decade). It's always done with good intentions and typically works well initially but it's rarely designed to be dynamic and flexible enough to reflect changing realities or appreciate the changes the union itself is having on the company/industry which far too often ultimately harm the union workers themselves rather than helps.