Automation Is Making Unions Irrelevant
dcblogs writes "Michigan lawmakers just approved a right-to-work law in an effort to dismantle union power, but unions are already becoming irrelevant. The problem with unions is they can't protect jobs. They can't stop a company from moving jobs overseas, closing offices, or replacing workers with machines. Indeed, improvements in automation is making the nation attractive again for manufacturing, according to U.S. intelligence Global Trends 2030 report. The trends are clear. Amazon spent $775 million this year to acquire a company, Kiva Systems that makes robots used in warehouses. Automation will replace warehouse workers, assembly-line and even retail workers. In time, Google's driverless cars will replace drivers in the trucking industry. Unions sometimes get blamed for creating uncompetitive environments and pushing jobs overseas. But the tech industry, which isn't unionized, is a counterpoint. Tech has been steadily moving jobs overseas to lower costs."
Automation is making human labor irrelevant, regardless of union participation.
The fact that unions think they are there to protect jobs, rather than do them, is the root of their problems.
The U.S. is an odd place in many ways, on all sides: how the unions operate, how employers operate, and how labor law operates (which in turn influences those things).
In Germany's export-manufacturing sector, automation hasn't really made unions irrelevant. Nor has it in Denmark's. But unions there are a bit different, as is the overall political climate. In particular, large employer confederations and large union confederations negotiate more frequently, and on a more consensus-oriented basis.
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Right-to-work is the law in many European nations with strong labor unions.
The widespread use of closed shop and union security agreements is a US aberration and has nothing to do with union power in general, it has to do with protecting the power of a few powerful and politically connected organizations.
Repeat with me: Automation is good. It makes we, human kind, more productive. With the same human work, we can get more benefits for ourselves, so on average our wealth improves. The people that do not need to do manual and repetitive jobs can move to a more creative work which produces more benefit for mankind. Gutenberg's printing was good. e-mail was good, despite removing works in the Post office. Hydraulic excavators are good. And all of them reduce the number of jobs, and unions cannot and shouldn't try to prevent this. Fortunately, we are no longer relying on picks and shovels to dig tunnels.
The problem is not with automation, which is good for mankind as a whole; the problem is with the distribution of wealth. We are facing a serious problem, in which those who have the machines (capital) become much richer by producing the same as before, and those that lose their employments become poorer. I certainly believe that this problem will aggravate with time, as more jobs are out-dated by technology, and "the system" cannot provide an alternative way to earn a living.
One option might be to move to a system in which everyone has a basic "social earning", enough for a living, while those with a work would earn more money. However, this imposes serious trouble, such as obvious abuse and unfairness. I see the problem, but I don't foresee a clear solution.