If Wal-Mart was unionized... (user search)
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  If Wal-Mart was unionized... (search mode)
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Author Topic: If Wal-Mart was unionized...  (Read 5889 times)
True Federalist (진정한 연방 주의자)
Ernest
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« on: April 01, 2005, 05:42:48 PM »

The reason I believe Wal-Mart should be unionized is not so much for higher wages (although that should be strived for as well) but mostly for health insurance.

Personally, I wish we would get away from the idea of employer provided health care.  It’s only due to a quirk of the WWII wage and price controls that employer provided health care became something considered to be expected from good employers.  With wages capped, employers who needed workers had to compete for scarce labor on the basis of fringe benefits such as health insurance.  Looked at realistically, employer provided insurance is actually a contributing factor to the weakness of unions.  Workers who have developed pre-existing consitions (or who have a dependant with one) are far less likely to risk losing insurance.  To restore balance to the labor market we need to provide alternatives to employer provided insurance, not mandate it.
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True Federalist (진정한 연방 주의자)
Ernest
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Posts: 42,144
United States


« Reply #1 on: April 02, 2005, 10:39:29 PM »

opebo, I presume that even you will agree that from the viewpoint of its stockholders,  Wal-Mart is a well-run company that maximizes its profits.  If they could do as you suppose, i.e., raise prices because of their increased costs and still get the same level of profit then they aren’t well-run.  That’s because they could raise those prices now without their costs being increased and get even more profit than they now get.
TANSTAAFL
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