But, the evidence is there, courtesy of an MIT economics professor, Brigham R. Frandsen whose 2014 study found that employees of companies that unionize see their wages drop anywhere from 2% to 4% compared to employees whose companies did not unionize.
Frandsen compared companies whose employees barely won a vote to unionize to those who narrowly lost a vote to unionize. In those companies that became unionized, some workers—often the most productive and most highly paid of the company’s workforce—subsequently left those companies to work for non-union firms. The overall effect of losing the best workers was that average wages declined.
The simple fact is that union contracts oftentimes set ceilings on pay based upon worker seniority rather than rewarding the most productive and successful workers. Knowing that unionization won’t allow them to earn above the wage cap, those employees are better off leaving for greener pastures.
In contrast, unionized companies that have merit-pay increases for union members and don’t require permission from union bosses to award those increases, worker pay rises up to 10%.
Yesiree…those union bosses really are interested in the workers they represent, aren’t they? What would those bosses have if there weren’t dues?
Let the discussion begin…
To read Professor Frandsen’s study, click on the following link: