Tuesday, March 1, 2011

Collective bargaining vs. individual bargaining

As I said here, I have no problem with collective bargaining. The problem is when it excludes individual bargaining.

Dave Henderson makes a similar point in responding to a WSJ column by Bob Barro, who explains collective bargaining this way:
An analogy for business would be for all providers of airline transportation to assemble to fix ticket prices, capacity and so on. From this perspective, collective bargaining on a broad scale is more similar to an antitrust violation than to a civil liberty.
Henderson makes a correction:
An analogy for business would be for providers of airline transportation to vote to force all airlines, even those that don't want to join, to comply with ticket prices that the business association sets. In other words, the key ingredient that Bob Barro misses is the element of coercion. ... The power to be the sole bargaining agent is a power, not a right. There's no such thing as the right to make peaceful people join something they don't want to join.

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