Why Unions exist

Wisconsin's recent vote to remove collective bargaining rights from State workers presents a classic example of ideologically driven politics moving society backwards instead of forwards.  Unions were a response to basic, undesirable characteristics of large enterprises.  Unions are an imperfect solution to the problems of large enterprises, but instead of trying to perfect the existing solution, or proposing an alternative solution, Wisconsin, full of righteous ideological indignation simply turned back time so they can now experience the tedious process of learning why we need to control big enterprises all over again.


Here is a simple truth.  In terms of efficiency in any enterprise, if the enterprise goal is the only purpose we consider, slavery (using the labor and efforts of powerless people) produces the greatest achievement at the lowest cost.  


In business slaves (or very low wage workers) can produce the cheapest goods.  Slavery existed in the South for so many years because in a totally unfettered free market it was a highly profitable way to produce and export cotton.


In Government, the more tasks can be done by slaves, the more benefits the government can provide to the Governor's at the lowest cost.  Think Libya or any other African dictatorship.  


Here is a second simple truth.  In any enterprise the managers, at any level of  management, are going to look out for themselves first.  


They will protect their compensation.  Top level management, when difficult financial times hit, are going to protect their own position, and seek to save money at the expense of the people with the least power and influence.   The Governor of Wisconsin makes about $137,000 a year plus I suspect very generous benefits.  He asked for State employees to take a cut in pay, and pay more for benefits, which they have agreed to.  Yet I never heard anything to suggest the Governor thinks he and other bigwigs in the state should also tighten their belts in these hard times. 


Management will seek to protect and enhance their power.  Ambitious managers at all levels of an enterprise are often going to seek to consolidate their power, eliminate rivals, and get as much work out of their subordinates as possible in their quest for advancement with little regard to long term productivity or employee morale.  The statement "Power corrupts, absolute power corrupts absolutely" is so often quoted because history has demonstrated it's truth.  Unions provide a reality check on managements exercise of power. 


If all people were capable getting beyond their own selfish interests, we wouldn't need unions.  Management would balance their personal goals and the goals of the enterprise against the legitimate goals and needs of the less powerful people in the enterprise.  But that is not reality.   Selfish people thrive in big complex organizations, in business or in Government.  Unions were created because people without power need to band together to protect themselves in a situation where management is under few constraints on their conduct. .


Unions are far from a perfect solution, particularly with Government enterprises.  In private enterprise the owners have a direct stake in negotiations with unions as they battle over splitting the profits, so bottom line profitability provides a yardstick for measuring success.  In government no such yardstick exists.  The government negotiators are paid employees whose wages are unaffected by the outcome of the negotiation, and whose job security may be enhanced more by taking good care of the unions than by protecting taxpayers.   Providing some kind of yardstick to measure public salaries against private salaries would be a big improvement over the current system that gives the least power to the taxpayers who support public enterprises.


But the Governor of Wisconsin doesn't seem interested in a system that balances power.  He wants to deprive the Unions of power.  Certainly that will protect the taxpayers, but at the expense of empowering the selfish and petty tyrants that sometimes people big enterprises and history suggests in the long term Wisconsin will have a less efficient and productive government and a poorer state.