Leveling Up

One long-run alternative to UAW workers accepting lower-and-lower wages and benefits in order to stay competitive with non-union factories would be for the workers to start earning higher wages and more generous benefits. Heck, we could even shift to a labor law regime that makes it feasible to organize workers at those non-union factories. And yet you don’t seem to see this discussed at all in the “liberal media.” Strange.

Meanwhile, one thing to note about the leveling down strategy is that collective bargaining in Detroit’s factories has an impact on the wages in non-union factories in Dixie. Driving wages down at the unionized firms, or breaking the union and then driving down wages, will probably drive down wages at the non-union shops too.