Originally posted by ruhudsonfan:
Originally posted by TonyLieske:
C'mon man you aren't even trying now.
Originally posted by ruhudsonfan:
The individual restaurant, which has no bargaining power with the union--in fact, the union is forced on them--is making no such mutual agreement. It goes like this. You want to operate the restaurant inside this Westin hotel? Your kitchen staff is unionized. In fact, they are holdovers from the last restaurant that operated here and the fry cook has been here 12 years and makes $19.50 an hour plus benefits.
And it's inefficient to pay the guy dunking fries $19.50 an hour because it distorts the cost of the product. Use your fancy Temple MBA. If the variable costs of the firm are artificially higher due to organized labor, what does it do to the competitiveness of the firm? You better make damn good fries if your labor costs associated with making them are 80% higher than mine. And the fact of the matter is, I can make just as good fries with a $12 labor input as you can with a $19 labor input. Is that not the definition of inefficient?
And you suggest that my argument is devoid of reality?
Unions are forced on new entrants into unionized markets. In cases where firms have decided to buck the unions, grocery industry as an example, employees are considerably more satisfied with their work experience.
I'm sorry, no union can force a restaurant to use union labor.
The restaurant has a choice where they want to operate. If they decide that want to operate in the Westin Hotal and the Westin Hotel also has an agreement with a labor union that only union laborers can work within its operations, then THAT IS THEIR CHOICE. But it is all done via contracts between private individuals. There is nothing ARTIFICIAL about it.
As I said though, my opinion with regards to how unions work in the public sector are a different ball of wax.
Its also weird you are getting so personal about it (questioning whether I went to RU, then making the "fancy" comment about where I got my MBA).
Personally I am happy I am not in a union. I would be perfectly happy if none of the plants in our division were union. I recognize that some unions make really stupid deals that are bad for themselves and the companies they work for. I just recognize that they have the right to exist and negotiate, and that when bad deals are made that management/owners have just as much culpability as unions. As a manager myself, it is MY responsibility to make sure that I don't agree to bad deals (on behalf of the owners).
You dropped your academic credentials, not me.
I didn't question whether you went to Rutgers. I made a flippant comment, in regards to your flippant comment that I was "regurgitating theories" I learned in school, suggesting that there aren't many, if any, anti-union professors at RBS. So any theories I may be regurgitating, are my own.
And my capital is just as mobile as your labor (and of course you will disagree with that). So I can move to the next vacant land down the street and not operate in the Westin. However, somebody will operate in the Westin. And that somebody does so accepting that there is no negotiation to be had. The workers in the hotel are in the union. Period. Their inflated wages are passed along to SOMEONE. Period. Either the firm or the customer or both. To pretend they are paying that wage willingly and as a result of a negotiation is dumb. And you know it.
You are arguing, presumably with a straight face, that the labor market is not disjointed when you and I can have the exact same skill set, do the exact same job, but you be paid anywhere from 75-300% more than me, based on where you physically stand while doing your job. If you believe that is "good" God Bless. I think it's horribly inefficient.
And Der, if you argue they are easily replaceable, you have no idea what you are talking about. You know how many times your average kitchen turns over this time a year? When the landscaping trucks start rolling? There are nuances to this market that you have no idea about. I don't exert downward pressure on wages because it is against my best interest to constantly look for, hire, train and retain new employees. Just like Google--but far less zeros. Sure, any one back of the house employee is relatively easy to replace. However, that could never hope to explain mistreating a staff of 25-40--which is what we're talking about. I'm gonna constantly be on the hunt for new employees over .50-1.00 an hour? Why on earth would I do that?
And you know I could list about 250 other companies, without really trying, who treat their employees just like the tech companies i listed do. I could move to big pharma, financial services, bio-tech, engineering, big consulting, professional services so on and so forth.
Maybe Apple's contract employees would like to organize. And maybe you would like to pay $1,300 for an IPhone. What happens in other countries wasn't really the focus of the conversation.