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Don't forget the pivotal role that unions have to play not only in how much money the workers get, but also in influence the terms under which workers get that money.  Hours, overtime, safety, vacation, minimum staffing levels, etc.

Well paid workers who are bled to the bone on the job aren't necessarily happier than poorly paid workers with more reasonable hours.  They may be a better off, in many cases, but it's arguable.

by Zwackus on Fri Jan 9th, 2009 at 04:40:48 AM EST
[ Parent ]
I would argue that it's better if work standards, not limited to minimum wage, are legislated rather than a result of collective bargain which can be limited in it scope, applying to a single plant, company, or union. But that's just me.

Most economists teach a theoretical framework that has been shown to be fundamentally useless. -- James K. Galbraith
by Migeru (migeru at eurotrib dot com) on Fri Jan 9th, 2009 at 04:57:06 AM EST
[ Parent ]
That's a tactical question, IMO. In some countries, the social democrats in parliament can achieve more than the syndicalists in the unions. In other countries it's the other way around. And in some countries it's hard to tell where the state stops and the labour market begins, which kinda renders the discussion moot.

- Jake

If you only spend 20 minutes of the rest of your life on economics, go spend them here.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Fri Jan 9th, 2009 at 05:09:24 AM EST
[ Parent ]
I beg to disagree. Sure, general work standards (like maximum working time) can be legislated, but working conditions, work and working-time organisation, skills and safety are highly specific to a given industry and sometimes to a given company or site.

Wanting to legislate all the situations leads to heavy bureaucracy and in fine is socially inefficient. One example: the application document for the working-time reduction was 180 pages long and it didn't cover (by far) all the situations (I could provide many examples).

Legislation is necessary to provide the framework within which the collective bargaining must take place. It should fix the limits (minimum wage, maximum working time, minimum amount for training expenses...), the governance system (role and power of employees' representatives) and the methods (scope and frequency of compulsory negotiations...), but it should aim at empowering the social partners, especially the employees' representatives.

"Dieu se rit des hommes qui se plaignent des conséquences alors qu'ils en chérissent les causes" Jacques-Bénigne Bossuet

by Melanchthon on Fri Jan 9th, 2009 at 05:30:17 AM EST
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