undefined | Better HN

0 pointsahartmetz8y ago0 comments

In Germany, there are very well paid mostly manual labor jobs in unionized industries, especially at the big car manufacturers. In non-unionized industries, wages can be much lower, down to about 30% of what workers in the car industry earn. That is before taxes, though. After taxes, the difference is about 2:1.

There is also data showing that unionized workers get about 1% more of a scheduled raise each year.

0 comments

randomdata8y ago

I think it is well understood in economic theory that when you can prevent competition in the marketplace, you can charge significantly more for for your product/service. After all, if the people making 1/3 the amount the union workers were making were allowed to take the jobs in the auto industry, they would. Who wouldn't want to triple their income by simply changing employers?

However, I'm not sure that is the same as the "rising tide lifting all boats" that we're discussing here. The results seen in your example are limited to the lucky handful who have gained market protectionism from the rest of the people in the industry.

xg158y ago

> I think it is well understood in economic theory that when you can prevent competition in the marketplace, you can charge significantly more for for your product/service.

Well yes, that's how unions work. What kind of bargaining power would they have otherwise?

> After all, if the people making 1/3 the amount the union workers were making were allowed to take the jobs in the auto industry, they would. Who wouldn't want to triple their income by simply changing employers?

What keeps them from joining the union and then taking the jobs?

j / k navigate · click thread line to collapse