Wednesday, March 21, 2012

Which is better?


Before the airline industry was deregulated the Airline Pilots Association (ALPA) was generally regarded as one of the most successful unions in raising the wages of its members. The International Ladies Garment Worker’s Union (ILGWU) on the other hand has had only limited success in raising wages. After deregulation of the airline industry over 40 new airlines began business - was this good for the Airline Pilot Association (ALPA)?
If human beings could be bought and sold like commodities such as wheat how would it change the operation of the labor market? Would the supply of labor become more or less sensitive to the work rules or working conditions? Would employers be able to automatically police themselves? Hint: a major US electronic company that has its overseas factory workers work under harsh working conditions, where conditions are so bad, it’s not uncommon for workers to permanently lose the use of their hands for the rest of their lives. This condition could be easily prevented if the workers were rotated through different positions in the factory, but they are not. Why - because there are no labor laws in that country to protect labor.
Those above two theories lead to one conclusion which is that even when there are laws that are supposed to protect the labor and the capital, politicians find a loop hole to wither that protection just as overseas. However in the overseas case their approach is more naked.

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