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Source link: http://blog.mises.org/2315/walmart-unions-another-one-bites-the-dust/

Walmart & Unions: Another One Bites The Dust

August 3, 2004 by

Quebec OKs Union for Wal-Mart Workers:

In a decision dated Aug. 2, the Quebec labor relations board said it accredited Local 503 of the United Food and Commercial Workers Union to represent the roughly 170 workers at the Wal-Mart store in Jonquiere, a city about 220 kilometers (137 miles) north of Quebec City.

The diabolical slavemasters at Wal-mart had it coming, greedy capitalists.

Via Always Low Prices.

{ 11 comments }

Paul D August 3, 2004 at 6:03 pm

First off, I don’t have a problem with the idea of unions. A union or guild is really just a supply-side company in the wage market. If wage purchases can pool resources and harmonize purchasing, why not wage sellers? The problem is when the state gets involved with unions.

Secondly, this Wal-Mart article might be of interest:
http://www.reuters.com/newsArticle.jhtml?type=domesticNews&storyID=5862518
“Study: Low Wal-Mart Wages Cost Calif. $86 Million”

It is interesting that the state of California, by subsidizing Wal-Mart employees, is essentially subsidizing Wal-Mart with $86 million of taxpayers’ money. It seems that these low wages are not entirely the result of a free market, but a result of the fact that the state will pick up food, health and housing expenses.

Paul S August 3, 2004 at 6:58 pm

Walmart’s use of eminent domain to steal property from its rightful owners make me greet any downturn in fortune for them with the smallest record in the world of my heart bleeds for you.

http://www.freewestminster.com/TIF.htm

Companies like Walmart give capitalism a bad name.

Brad August 3, 2004 at 8:52 pm

More news on Wal-mart. A Cal-Berkeley study finds that Wal-mart costs the state $86 million a year in additional benefit. Apparently, it’s now the duty of businesses to provide higher wages to lower the government’s burden.

http://story.news.yahoo.com/news?tmpl=story&cid=1896&ncid=1896&e=9&u=/nm/20040803/us_nm/retail_walmart_wages_dc_2

Jindra August 4, 2004 at 7:12 am

Brad, you turn things upside down, don’t you?

It is not “Wal-Mart’s low wages” that costs California taxpayers 86 mio, it’s their state government benefit program. Wal-Mart workers would probably not had agreed to low wages, had the program not been in place. Then, nobody could complain neither about low wages (Wal-Mart would have to offer more), nor about wasting taxpayers’ money.

Plain and simple. ;)

Jindra

Charles Sterling August 4, 2004 at 9:23 am

Only if high ranking officers at Wal-Mart read Austrian books then for sure Wal-Mart will exercise more mucles against the governments and unions by appealing to Austrian arguments in order to convince the governments to kiss Wal-Mart’s shoes instead of trying to chop the shoes off from Wal-mart’s legs.

I do not have anything against the union but I know this: In today, when there is a union, there is a government trying to manipulate the labour market. So I have a reason to fear when the government is demanding unions to be formed in Wal-Mart.

tz August 4, 2004 at 9:55 am

Austrian economic books won’t stop bullets nor put out fires whether you are in Chicago under Capone, where you had a government protected racket, or today where you have a government protection racket.

Unions used to have great moral authority when they had little legal authority. When they went violent and got government permission and recognition they gained legal authority but lost moral authority.

Somewhere below I see people applauding the reversal of the “poletown” decisioni – Isn’t it terrible that Michigan will have far fewer Wal-Marts?

A Corporation is not a morally good entity, it is a machine which balances the desires of customers, employees, vendors, and investors. If that means cooperating with thugs, they usually do it, especially when the thugs come with Government IDs and talk about helping people even if they do the opposite.

The problem is exactly one of Greedy capitalists – Wal-Mart using emminent domain, Microsoft registering dubious software patents, Enron using the regulatatory errors in California.

When “Greedy” capitalists have to fight each other, good results. When instead they find it easier to game the system and coopt government (A senator may be less expensive than refurbishing a factory) evil results.

Ambition is (morally) good within the confines of fair competition – Avarice is that outside of the rules, just as marriage is the context where otherwise lust would occur.

Greed (the cardinal sin) is not good – it is what causes the desire to break the rules (if necessary by corrupting the referees).

Paul D August 4, 2004 at 12:51 pm

Exactly, Jindra! By subsidizing Wal-Mart’s low-wage employees, the state of California is encouraging low wages. The government is distorting the market so that workers will settle for wages they wouldn’t otherwise. Companies whose employees are not subsidized are at an artificial disadvantage.

harry valentine August 4, 2004 at 2:25 pm

Labor unions have traditionally had far more political influence in Quebec than in any other region of Canada or the USA. When a MacDonald’s franchise in Quebec was unionised a few years ago, the owners closed the outlet. Efforts to unionize workers (in Quebec) involve the active participation of people directly connected to the provincial government. In this case, the particular region is one where unemployment is relatively high (Most economic activity and wealth creation in Quebec revolves around the West Island region of Montreal, as well as that city’s downtown central business district).

During an earlier era, Quebec labor unions were both powerful (large membership) as well as politically influential. Taking on Walmart may allow them to demonstrate that they’re still a force to be recognised in Quebec.

Harry Valentine

Preston August 9, 2004 at 12:20 pm

I was always told ever since I was a young boy that I should not look upon successful groups of people or individuals with contempt, but rather try to emulate them and rise to their level. Wal-Mart is no patron saint, but they have utilized our market economy better than virtually any other group. Eminent domain is a terrible and disgusting practice, but other than that Wal-Mart operates fairly.

Corporations are simply efficient businesses on a large scale; unions are groups of usually low income employees; it is not up to them either of them to act on or dictate “morals”. In addition, people looking for guidance on morals from a corporation or the state are few and far between. Virtually all of them have long since chosen the path that is the least stressful on the part of the brain used in reasoning: religion.

Labor unions are destructive to low-wage earners and distort the free market system. Companies have to pay fewer employees higher wages. It hurts the company and the lower end of its potential employees because the business cannot afford to hire as many people. Labor unions should be free to exist and do as they please, but state involvement should be eliminated.

Ashish Hanwadikar August 10, 2004 at 12:06 am

Lower wages and lower prices: isn’t this supposed to happen in an efficient economy? The problem it is not happening in all sectors of economy, especially healthcare. Why? Because, artificial (read Govt.) constraints on the market. One good example, is immigration policy which does not allow doctors from outside the country to come here and practice. If all sectors of economy show lower prices and lower wages, there won’t be any problem at all and no increase in reliance on govt. program. See my blog for a detailed take.

buff September 3, 2004 at 2:09 pm

Touche, Scum-mart has another setback.
When will we learn. Here in the states, twenty years ago, their was a family department store chain, Gimbels. It was a nice store with great prices. Middle class families could stretch a dollar and have some respect. I still have some clothes I bought there which I love as well as furniture and housewares.
Americans seem to take two steps back everytime the next new thing in the market place is introduced. Were we better off 25 years ago? probably yes. We shopped at cool discount department stores like Gimbels and Korvettes where employees had health plans and were respected. Can’t say that about scum-mart, can we.

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