The Principles of Economics, with Applications to Practical ProblemsFetter, Frank A. (Frank Albert)
General
The Principles of Economics, with Applications to Practical Problems
Fetter, Frank A. (Frank Albert)
Economics
2. _Its next aim is to use collective in the place of individual
bargaining, to force as much as the competitive wage, and more if
possible._ The term collective bargaining has been much used to describe
bargaining between a group of labor leaders, the delegated
representatives of the workingmen, and a group of employers or
directors. It is sometimes claimed that all the trade-union seeks is to
put the workman on an equality with the employer in bargaining, enabling
him to get all he would if competition were free on both sides. It is
said that organized labor simply prevents the employer from following
the maxim of Napoleon to "divide and conquer," from meeting his
employees one by one and forcing his own terms upon them. But the most
effective argument in organizing the trade-union is that it forces a
higher wage, more than the market would warrant. It is sometimes assumed
by labor leaders that competitive wages would be very low, almost
starvation wages, and anything above that level is credited to the work
of the union; while in other cases where the wages are already large,
the purpose frankly avowed is to limit the labor supply in the
particular trade and to force a monopoly wage by any means possible.
One's opinion of trade-unions is likely to differ according as they work
in one or the other of these ways. The impartial onlooker sympathizes
with the efforts of the trade-unions in so far as they serve merely to
put the workers on an equality with the employers in bargaining. The
public wants to see "fair play," and up to a certain point the union is
merely a device to get fair play. But if the union is a device to defeat
competition, to force artificially high wages, it will be judged
differently. The public readily sees that if the unions force more than
a fair and open market affords, it is rarely at the expense of the
employer; that in the long run it is at the expense of the purchasing
public itself, including the unprivileged workmen shut out from the
monopoly of labor.
[Sidenote: The issue of the closed shop vs. the open shop]
Public-domain text, read in full here on John Shaqi.
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