10 Ways Unions Hurt the Economy
7. They Hurt Employers
As we have covered, unions restrict job numbers, and use collective bargaining to drive up wages. This adds cost to the employer. In fact, studies have shown that unionization business cost and investment as a 33% increase in the corporate income tax rate would. And what do workers get for this huge additional cost to operating expenses and loss in investment revenue? Anywhere from 0-10% increase in wages. Obviously the slight benefit to the workforce is negated by the massive harm the union does the company as a whole. Whereas if the company were free to grow and profit and deal with its workers as individuals, the company would be more profitable and in better position to reward those who did perform well at their jobs.
