Earlier quoted context omitted.
In Germany, there are very well paid mostly manual labor jobs in unionized industries, especially at the big car manufacturers. In non-unionized industries, wages can be much lower, down to about 30% of what workers in the car industry earn. That is before taxes, though. After taxes, the difference is about 2:1. There is also data showing that unionized workers get about 1% more of a scheduled raise each year .
I think it is well understood in economic theory that when you can prevent competition in the marketplace, you can charge significantly more for for your product/service. After all, if the people making 1/3 the amount the union workers were making were allowed to take the jobs in the auto industry, they would. Who wouldn't want to triple their income by simply changing employers? However, I'm not sure that is the sam…
Well yes, that's how unions work. What kind of bargaining power would they have otherwise?
> After all, if the people making 1/3 the amount the union workers were making were allowed to take the jobs in the auto industry, they would. Who wouldn't want to triple their income by simply changing employers?
What keeps them from joining the union and then taking the jobs?