The notion of “Union Advantage” is simply economic magical thinking!

So, the union movements in both Canada and the U.S. think fast food workers should get increases from minimum wage to $15.00 an hour. In principle, that is not a bad idea given more and more people find themselves working full-time for such employers.

However, where is the extra money going to come from? Private companies are not non-profit. They are in business to make money and profit and there is nothing wrong with that.

That is what stimulates the economy and allows corporations to expand, allowing even more people to be employed.

Look, I am neither an economist or a union hater. I am just an ordinary citizen and taxpayer who has real concerns that unions, be they public or private sector, have lost touch with reality and what their mandate is supposed to be.

Originally, they represented voices of reason because workers needed protection from exploitive and abusive employers and unsafe working conditions. Yet, now, both in Canada and the U.S., they are trying to tell fast food owners and other employers that higher wages will grow the economy.

Talk about magical thinking!

As a retired educator, who belonged to several unions over my career, I was always thankful and appreciative of what union officials did for their members. In fact, for many years I was the union rep for my school.

But, let’s face it, during the 70s, 80s and 90s, union demands and bargaining was reasonable, not over the top as they are now. In fact, I would go so far as to say, the ideology of entitlement and the unwillingness to compromise, has become so out of touch with reality, that it will likely result in the decline of unions — as noted with right to work legislation in the U.S.

I mean, how many companies have gone out of business simply because unions wouldn’t compromise? In fact, I have heard comments from union workers, that they would rather be unemployed than take pay cuts.

Yet, it seems that union officials and union hard liners are in minority given that more and more union members are dropping their memberships when given the chance?

Terence Corcoran hits the nail on the head today with his excellent column in the Financial Post. He is right. When union officials and union economists start making claims that higher wages will bring about social and economic growth, you have to know they are out of touch with reality. They can call it the “union advantage” all they want, as Corcoran says, such an idea is simply a perversion of economic theory.

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