C OPINION Page 4 Tuesday, March 15, 1983 The Michigan Daily'. Unions keep unemployment rates high By Mark Gindin it has always struck me as odd that the United Auto Workers, or any other labor union for that matter, has never been prosecuted un- der the same anti-trust regulations that govern the rest of the country. Labor unions meet all the qualifications for prosecution. They are well-versed in the arts of price-fixing, collusion, wage discrimination, and monopolistic tendencies in what would otherwise be free competition. WHAT IS even more disconcerting is that they are the single most important reason for the current high unemployment especially among young people. The country has been lagging behind in productivity, yet there are apparently armies of willing workers out there who would like nothing more than the oppor- tunity to contribute. Labor unions have stopped them cold. Unions have found that the best way to im- prove the lot of their members is to restrict competition, which means anyone who will work for a lower wage. The trick to obtaining a well-paying job is to join a union. And if you don't join, you don't get a job. Now that it is obvious it is in the labor union community's best interest to restrict com- petition in the marketplace, the actions of organized labor over the past years become clear. Closed shops, unemployment strike benefits, and the minimum wage are only three of their weapons. WHETHER it is the UAW, the carpenter's union, or the American Medical Association, the less people working in the field, the less competition union members have to fight. So in the name of public security, legislation has -been passed forcing various companies to hire only members of organized labor - not because they do a better job, but because they are members of a union. One of the restrictions enforced by the National Labor Relations Board - the gover- nment umbrella for organized labor - removes any hiring freedoms from the em- SELL HER'E the world economy, those demands are mutually exclusive. As the price of labor rises, the economy turns to more capital-intensive activities. This basic law of economics tells us that as labor unions demand and get more exorbitant pay raises, there is added incentive for companies to resort to automation and layoffs. Although ac- tually caused by union demands, labor leaders decry the shift as "un-American." Ann Arbor's own Wordprocessors copy store was forced out of business by the union that struck the store. The state prohibited it from hiring less expensive workers and the striking workers received almost 90 percent of their pay in compensation benefits. The business failed. Society was denied its services permanently and the workers were added to the unem- ployment rolls. When it seemed over, the owners attempted to set up a similar service from their home and the union attempted to stop them on the grounds that it was actually the same company. THERE HAS been recent uproar about various proposals that would in some fashion reduce or eliminate the national minimum wage. Chief among the opponents of a repeal are the labor unions. Although they say the reason behind their actions is an interest in those who would be forced to work for less pay, they actually have their labor monopoly to worry about. If more people were hired, some may take the jobs currently occupied by a union member. If it is currently worth hiring someone at their current pay, the only way another would take the employee's place if his skills were the same but he offered to work for less. Under this system, an employee would be paid what the job is worth, no more and no less. Skilled workers would be paid more than unskilled workers, and more people would be employed. The employment of teenagers and other workers who do want to work but cannot would increase. Those of us who tried, but couldn't get any sort of job during our formative years, will, only be relics in a society that can get anybody a job who is willing to work. BUT LABOR unions wouldn't like such a society. And according to reactions to the proposals, neither would the rest of the coun- try. They would prefer the curious situation' where it is better to have many unemployed and a few overpaid workers than many em- ployed at less than high wages. Of course, nobody would be forced to work. '< As in any free market transaction, the arrangement would have to satisfy both par- ties. If you don't like the job, don't take it,% someone else will. If nobody else takes it, the, pay will rise until someone will take it. So even- tually, job quality will equal pay. The advantages of labor unions are many, including acting as voice of the workers and as a sort of caretaker and supporter of its mem- bers during hard times. But workers should join only voluntarily. As it turns out, they will probably be better off without one, as will the .rest of the economy. If the United States is ever to regain its reputation as one of the most efficient producers. the world has ever known, unions will have to give up their monopolistic tenden- cies. And the government must stay out of the market. Anytime there is a monopoly, efficiency and productivity are lost. As things stand today, labor is much more of a threat to the free fun- ctioning of the market than any of the multi- national corporations consumer advocates are screaming about. A loss of the labor monopolies will result in higher productivity, higher wages, more national income, a better trade balance, and higher employment. For all those labor ad- vocates out there, there's the chance to do something really meaningful. Gindin, a former Daily editor, is a senior economics major. Douglas Fraser and the UAW: Thwarting free competition ployer. Under this rule, it is illegal for a com- pany to threaten a shut down or selective hiring if the employees plan to form a union. Even if a union will mean higher wages the company cannot afford, the business is forced into bankruptcy as the union watches. The market is no longer free, and efficiency is thrown out the window. Atari, in a wise move, has decided that it will bypass United States law and move out of the country this summer. Citing high and rising labor costs, the electronics company will lay off 1,700 workers in California and move to the more competitive countries of Hong Kong and Taiwan. In this case, U.S. labor cut its own throat. IF IT ENDED here, the situation might be only sad. As it stands, the current labor struc- ture of this country is tragic. Amid cries of "Buy American" and "Employ Americans," labor unions simultaneously call for higher wages and more jobs. Under current criteria in 4 Edited and managed by students at The University of Michigan Stewart -I I 4 Vol. XCIII, No. 128 420 Maynard St. Ann Arbor, MI 48109 Editorials represent a majority opinion of the Daily's Editorial Board Taking the initiative I T HE WAYNE STATE University Board of Governors should be commended for divesting their univer- sity's holdings in apartheid South 4frica. Through their action last week, the Wayne State board finally recognized that divestment represents a moral issue that must be addressed strongly. Wayne State's governors say they did not decide to sell off $1.9 million in- vested in 11 companies that operate in South Africa because of the new state law requiring public universities to divest. They did it because they recognized the basic human rights principle involved. Blacks in South Africa deserve the same basic rights all people deserve. Yet the white minority apartheid government there denies them these rights. American industry operating in South Africa supports that gover- nment's policy through its em- ployment practices. So action against American companies - though it will not have much impact on them - is the most practical way for universities to show they deplore the deeply ingrained racist policies of South Africa. This is what Wayne State's new governors have recognized and the majority of University of Michigan regents have not. Divestment may not force immediate change in South Africa, but it will force change if it becomes so widespread that it threatens the stability of some com- panies operating in the racist nation. And there are companies out there that are just as profitable for universities' investment portfolios that don't have holdings in South Africa. Wayne State University has added its name to the growing list of in- stitutions opposing racism in South Africa. University of Michigan Regent Gerald, Dunn, who has said he now favors divestment, could lead the move here when the Regents take ac- tion on divestment next month. Let's hope Dunn and Wayne State's gover- nors are starting a trend. I 4 LETTERS TO THE DAILY: Frieder wins fans for saying 'thanks' . --t (4' F'1 E To the Daily: Bill Frieder has done a lot for the Michigan basketball program. For the third straight year, Coach Frieder has lined up the state's best high school talent to play for the Wolverines. His teams have provided great memories of Big Ten basketball games from that first overtime win against Indiana in 1981, last years at-the-buzzer victory over Ohio State, to the triple overtime heart stopping, gut-wrencher against Purdue just a few weeks ago. But last night, Bill Frieder put on a show that made me a fan of his for life. After a sloppy but satisfying win over the Iowa Hawkeyes, Coach Frieder made his way from the Michigan bench to the south end of Crisler Arena, the student section. Coach Frieder was going to see the students. As he got closer, Frieder began waving and shouting as only he can to the students, thanking us for the sup- port of Michigan's basketball team, for the support of his basketball team, for the support of our basketball team. Bill was showing his ap- preciation for the student's sup- port the best way he knew how and in response he was mobbed by a mass of hand shaking, back slapping, screaming Michigan students - students who could barely believe what was hap- pening and who could barely believe that someone connected with the University knew they were alive and that someone would make such an effort to ap- proach the students and thank them for something other than money. I was there and I couldn't believe it and I loved it and I really appreciated it. - Michael Hoffman March 11 4 o f Trees aren't bike racks To the Daily: In the March 9 issue of the Daily, a photo by Tod Woolf showed a suspended bicycle locked to the branch of a tree by a student. While the purpose of the photo was to amuse Daily substantially to the loss of many beautiful specimens. We would encourage students to use available bike racks and not trees for securing bikes. We. would like to hear from students regarding suggestions for Catch Law Quad arsonists To the Daily: I am writing in response to the recent tragedy which nearly caused the death of a University and swiftly bought to justice via prosecution to the fullest extent of the laws. The University has a responsibility to its students, fiti "a Ad