Trade Union - Criticisms

Criticisms

Trades unions have been accused of benefiting insider workers, those having secure jobs, at the cost of outsider workers, consumers of the goods or services produced, and the shareholders of the unionized business.

In the United States, the outsourcing of labour to Asia, Latin America, and Africa has been partially driven by increasing costs of union partnership, which gives other countries a comparative advantage in labour, making it more efficient to perform labour-intensive work there. Milton Friedman, economist and advocate of laissez-faire capitalism, sought to show that unionisation produces higher wages (for the union members) at the expense of fewer jobs, and that, if some industries are unionized while others are not, wages will tend to decline in non-unionized industries.

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