From: Ben Bachrach
Sent: Friday, February 21, 2020 7:00 AM
To: [email protected]
Subject: Unions effect on productivity
Thank you for participating on the Tom Woods show this week.
https://tomwoods.com/ep-1595-suing-the-new-york-times-for-libel/;
https://tomwoods.com/ep-1594-in-defense-of-corporate-raiders-organ-merchants-and-more/;
https://tomwoods.com/ep-1593-defending-the-undefendable-a-libertarian-defense-of-despised-people/;
https://tomwoods.com/ep-1592-walter-block-i-lost-a-debate-to-ayn-rand/
https://www.youtube.com/watch?v=d1Lo6ZHTU9I&t=50s
Your discussion on unions prompts me to as the following:
My first job after graduate school was working in Manufacturing Engineering Research for Ford Motor Co.
We would have several capital equipment projects ready for implementation that would reduce direct labor necessary to some manufacture parts. The projects, however, were not approved because the projected cost savings did not meet return on investment objectives.
After each union contract negotiation, we would revisit the projects, and some would get approved because the savings based on the new labor rates justified the capital investment.
Implementing the projects would reduce direct labor hours to make the same output.
Later the union would claim that productivity increased because wages increased.
Where the unions right – they caused productivity improvements?
Regards,
Ben Bachrach
From: Walter Block <[email protected]>
Sent: Thursday, February 27, 2020 10:00 PM
To: Ben Bachrach
Subject: RE: Unions effect on productivity
Dear Ben:
It is an empirical issue. It is not a logical contradiction to say that unions increase productivity. But as a matter of prudential judgement, I don’t think this claim has merit. There are work stoppages, sympathy strikes, tools downed, bargaining, all of which reduces worker productivity, and, hence, wages.
Here is a bibliography for you on this issue:
Baird, 1990, 2000, 2013; Block, 1984, 1991, 1996A, 1996B, 2008, 2010; Evans and Block, 2002; Heldman, 1977; Heldman, Bennett and Johnson, 1981; Hutt, 1973, 1989; Petro, 1957; Reynolds, 1984, 1987, 2009; Rothbard, 1993, n.d.; Schmidt, 1973; Shea, 2010;
Baird, Charles. 2000. “Unions and Antitrust,” The Journal of Labor Research, Fall, pp. 585-600.
Baird, Charles. 1990. “American Union Law: Sources of Conflict,” Journal of Labor Research, Summer, pp. 269-292
Baird, Charles. 2013. “American Unionism and Freedom of Association.” The Journal of Private Enterprise 28(2) Spring: 1-21; http://journal.apee.org/index.php/Category:Spring_2013
Block, Walter E. 1991. “Labor Relations, Unions and Collective Bargaining: A Political Economic Analysis,” Journal of Social Political and Economic Studies, Vol. 16, No. 4, Winter, pp. 477-507.
Block, Walter E. 1984. Book review of John Anderson and Morley Gunderson, Union-Management Relations in Canada, Don Mills, Ontario: Addison-Wesley Publishers, 1982; in The Journal of Labor Research, Vol. V, No. 1, Winter, pp. 103-105.
Block, Walter E. 1996A. “Labor Market Disputes: A Comment on Albert Rees’ ‘Fairness in Wage Distribution,'” Journal of Interdisciplinary Economics, Vol. 7, No. 3, pp. 217-230
Block, Walter E. 1996B. “Comment on Richard B. Freeman’s ‘Labor markets and institutions in economic development,'” International Journal of Social Economics, Vol. 23, No. 1, pp. 6-16
Block, Walter E. 2008. Labor Economics from a Free Market Perspective: Employing the Unemployable. London, UK: World Scientific Publishing
Toh Tuck Link, Singapore: World Scientific Publishing; http://www.mises.org/store/Labor-Economics-From-A-Free-Market-Perspective-P516.aspx
http://www.worldscibooks.com/economics/6388.html; isbn: 978-981-270-568-6; 981-270-568-6;
Block, Walter E. 2010. “Are unions criminal gangs?” Global Virtue Ethics Review, Vol. 6. No. 1, pp. 28-49; http://www.spaef.com/article.php?id=1176; http://www.spaef.com/file.php?id=1176
Evans, Jason and Walter E. Block. 2002. “Labor Union Policies: Gains or Pains?” Cross Cultural Management, Vol. 9, No. 1, pp. 71-79
Heldman, Daniel C. 1977. American Labor Unions: Political Values and Financial Structure, Council on American Affairs, Washington D.C.
Heldman, Daniel C., James T. Bennett, and Manuel Johnson. 1981. Deregulating Labor Relations, Fisher Institute, Dallas.
Hutt, W. H. 1973. The Strike Threat System: The Economic Consequences of Collective Bargaining, New Rochelle, N.Y.: Arlington House;
http://www.amazon.com/exec/obidos/tg/detail/-/0870001868/lewrockwell/104-7552446-8407165.
Hutt, W. H. 1989. “Trade Unions: The Private Use of Coercive Power,” The Review of Austrian Economics, Vol. III, pp. 109–120; http://www.mises.org/journals/rae/pdf/rae3_1_7.pdf.
Petro, Sylvester. 1957. The Labor Policy of the Free Society, New York: Ronald Press; http://www.amazon.com/exec/obidos/tg/detail/-/0471072133/lewrockwell/104-7552446-8407165.
Reynolds, Morgan O. 1984. Power and Privilege: Labor Unions in America, New York: Manhattan Institute for Policy Research; http://mises.org/document/4962/Power-and-Privilege-Labor-Unions-in-America
Reynolds, Morgan O. 1987, Making America Poorer: The Cost of Labor Law, Washington D.C.: Cato Institute
Reynolds, Morgan. 2009. “A History of Labor Unions from Colonial Times to 2009,” July 17: http://mises.org/daily/3553
Rothbard, Murray N. 1993. Man, Economy and State, Auburn AL: Mises Institute; http://www.amazon.com/exec/obidos/tg/detail/-/0945466323/lewrockwell/104-7552446-8407165; http://www.mises.org/rothbard/mes.asp
Rothbard, Murray N. 1991. “The Union Problem.” The Free Market. December 1;
http://murrayrothbard.com/The_Union_Problem.html
Schmidt, Emerson P. 1973. Union Power and the Public Interest, Los Angeles, Nash
Shea, Brian. 2010. “Solidarity Forever: The power invested in worker collectives under United States law.” Journal of Libertarian Studies Vol. 22; pp. 219-246;
http://mises.org/journals/jls/22_1/22_1_11.pdf
Block, Walter E. 2008. Labor Economics from a Free Market Perspective: Employing the Unemployable. London, UK: World Scientific Publishing; http://www.amazon.ca/Labor-Economics-Free-Market Perspective/dp/9812705686/ref=sr_1_7?s=books&ie=UTF8&qid=1336603241&sr=1-7
Block, Walter E. 2012. “Right To Work Laws: A Libertarian Analysis.” December 21; http://archive.lewrockwell.com/block/block214.html; http://moralanarchism.tumblr.com/post/38493951854/right-to-work-laws-a-libertarian-analysis-by-walter
Block, Walter E. 2011. “Tapeworm versus tapeworm: Public Sector Unions in Wisconsin.” March 1; http://archive.lewrockwell.com/block/block173.html
Block, Walter E. 2011. “The Battle of Wisconsin.” March 9; http://archive.lewrockwell.com/block/block174.html
Block, Walter E. 2010. “Are unions criminal gangs?” Global Virtue Ethics Review, Vol. 6. No. 1, pp. 28-49; http://www.spaef.com/article.php?id=1176; http://www.spaef.com/file.php?id=1176; http://www.academia.edu/1497243/Are_Unions_Criminal_Gangs
Block, Walter E. vs Boyd Blundell. 2006. “Unions: Social Benefactors or Gangs of Thugs?” November 10; http://archive.lewrockwell.com/block/block64.html; http://mises.org/multimedia/block/Block-Blundell-Debate-2007.wmv debate
Block, Walter E. 2006. “Unions Don’t Guarantee Fair Employee Wages.” The Maroon. September 8.
Block, Walter E. 9/14/05 “The Evil of Unions: In the public as well as the private sector.”
http://archive.lewrockwell.com/block/block54.html
Block, Walter E. 2005. “The Yellow Dog Contract: Bring It Back!” September 5.
http://archive.lewrockwell.com/block/block52.html
http://www.liberalismo.org/articulo/334/; http://www.liberalismo.org/autor/block/
http://acao-humana.blogspot.com/2007/08/liberdade-para-contratar-e-ser.html
Block, Walter E. 1/1/04. “Is there a right to unionize?” http://archive.lewrockwell.com/block/block35.html
Block, Walter E. 1/5/04 “Unionism II.” http://archive.lewrockwell.com/block/block36.html; http://blog.mises.org/18102/unionism-ii/
Evans, Jason and Walter E. Block. 2002. “Labor Union Policies: Gains or Pains?” Cross Cultural Management, Vol. 9, No. 1, pp. 71-79; http://www.walterblock.com/publications/union_policies.pdf
Block, Walter E. 1996. “Labor Market Disputes: A Comment on Albert Rees’ ‘Fairness in Wage Distribution,'” Journal of Interdisciplinary Economics, Vol. 7, No. 3, pp. 217-230; http://141.164.133.3/faculty/Block/Blockarticles/labormarketdisputes.htm
Block, Walter E. 1991. “Labor Relations, Unions and Collective Bargaining: A Political Economic Analysis,” Journal of Social Political and Economic Studies, Vol. 16, No. 4, Winter, pp. 477-507; http://www.walterblock.com/publications/labor_relations_unions.pdf
Block, Walter E. 9/19/89. “Solidarity has little in common with our unions,” Nanaimo Times; http://141.164.133.3/exchange/walterblock/Inbox/Fwd:%20[POSSIBLE%20SPAM%20-%20PMX]%20%20Block%20Articles-2.EML/1_multipart_xF8FF_2_Nanaimo%20Times%20-%20Solidarity%20has%20Little%20in%20Common%20with%20or%20unions%20%20-%20SEP%2019%201989.rtf/C58EA28C-18C0-4a97-9AF2-036E93DDAFB3/Nanaimo%20Times%20-%20Solidarity%20has%20Little%20in%20Common%20with%20or%20unions%20%20-%20SEP%2019%201989.rtf?attach=1
Block, Walter E. 1989. “The Polish Union, Solidarity,” Fraser Forum, October, pp. 37-38; http://141.164.133.3/exchange/walterblock/Inbox/Fwd:%20[POSSIBLE%20SPAM%20-%20PMX]%20%20Block%20Articles-2.EML/1_multipart_xF8FF_3_The%20Polish%20Union%20%20-%20Solidarity%20%20-%20OCT%2089.rtf/C58EA28C-18C0-4a97-9AF2-036E93DDAFB3/The%20Polish%20Union%20%20-%20Solidarity%20%20-%20OCT%2089.rtf?attach=1
Block, Walter E. 9/29/86. “Unionism,” Grainnews, p. 51
Block, Walter E. 1985. “Union-Free Zones Good.” The John Galt. March. Vol. 1, No. 2. p. 5.
Block, Walter E. 3/17/84. “Winds of change blowing for unions,” The Financial Post; http://141.164.133.3/exchange/walterblock/Inbox/Fwd:%20[POSSIBLE%20SPAM%20-%20PMX]%20%20Block%20Articles.EML/1_multipart_xF8FF_3_FIN%20POST%20-%20Winds%20of%20Change%20-%20March%2017,%201984[1].rtf/C58EA28C-18C0-4a97-9AF2-036E93DDAFB3/FIN%20POST%20-%20Winds%20of%20Change%20-%20March%2017,%201984[1].rtf?attach=1
Block, Walter E. 9/29/84. “Union-free zones could relieve unemployment,” The Financial Post.
Block, Walter E. 1984. Book review of John Anderson and Morley Gunderson, Union-Management Relations in Canada, Don Mills, Ontario: Addison-Wesley Publishers, 1982; in The Journal of Labor Research, Vol. V, No. 1, Winter, pp. 103-105.
Block, Walter E. 11/14/83. Dollars and Sense: “Solidarity.” http://141.164.133.3/exchange/walterblock/Inbox/Fwd:%20Cleaned%20up%20Block%20Articles%20%231.EML/1_multipart_xF8FF_4_Dollars%20and%20Sense%20-%20Solidarity%20-%20Daily%20Townsman%20-NOV.%2014%201983.rtf/C58EA28C-18C0-4a97-9AF2-036E93DDAFB3/Dollars%20and%20Sense%20-%20Solidarity%20-%20Daily%20Townsman%20-NOV.%2014%201983.rtf?attach=1
Block, Walter E. 12/3/83. “Labor laws unfairly restrict employers’ rights” The Financial Post; http://141.164.133.3/exchange/walterblock/Inbox/Fwd:%20[POSSIBLE%20SPAM%20-%20PMX]%20%20Block%20Articles.EML/1_multipart_xF8FF_2_FIN%20POST%20-%20Labor%20Laws%20-%20DEC[1].%203,%201983.rtf/C58EA28C-18C0-4a97-9AF2-036E93DDAFB3/FIN%20POST%20-%20Labor%20Laws%20-%20DEC[1].%203,%201983.rtf?attach=1
Block, Walter E. 1/11/86. “Disparity of rights in strikes,” The Financial Post; http://141.164.133.3/exchange/walterblock/Inbox/Fwd:%20Block%20Articles-2.EML/1_multipart_xF8FF_4_FIN%20POST%20-%20Disparity%20of%20Rights%20-%20JAN.%2011%201986.rtf/C58EA28C-18C0-4a97-9AF2-036E93DDAFB3/FIN%20POST%20-%20Disparity%20of%20Rights%20-%20JAN.%2011%201986.rtf?attach=1
Block, Walter E. 4/2/84. “B.C. construction picketers prove harassment is the key,” The Whig Standard; http://141.164.133.3/exchange/walterblock/Inbox/Fwd:%20[POSSIBLE%20SPAM%20-%20PMX]%20%20Block%20Articles.EML/1_multipart_xF8FF_4_The%20Whig%20Standard%20-%20B[1].C.%20Construction%20Picketers%20-%20APR.%202,%201984.rtf/C58EA28C-18C0-4a97-9AF2-036E93DDAFB3/The%20Whig%20Standard%20-%20B[1].C.%20Construction%20Picketers%20-%20APR.%202,%201984.rtf?attach=1
Best regards,
Walter
3:07 am on May 10, 2020
