Tuesday, January 3, 2012

"John Sampson, president of the Northeast Indiana Regional Partnership, an economic development group,said companies were attracted to right-to-work states not because of lower wages but because the weakened role of unions means that companies get greater operating flexibility, which lowers their costs. "

'operating flexibility' now there's a label on a pandora's bottle ...eh ???

but are union shops bound to collide with corporate management here

when might a dues max union leadership "play ball "

if one entertains the ways of flex open to corporate  management
at least those that  relate to the actions in production of the organized  job force
then flex mean less hours*  per output unit ...period

how might flex be win win ...management and union leadership wise ???


fewer but better paid hours  per output unit ...or lower wages and more paid hours

what about pass thru

the core  here really is  the specifics of  intra sectoral firm v firm hours per unit cost cutting races
if they continue forget the long run...

if they can be controled by a fully organized sector ... ie 
if contracts at each firm are identical ....

alas that's only a start
the two class win win is still not assure
yes you can  always push higher sector wide costs  thru to consumers ..err
but then maybe you get   sector shrink
ie
if the labor hours (h)  per unit are held constant
and wage rates (w )  rise

and if  all this additional cost per unit is  completely  passed thru  to buyers
 then total demand for sector products shrink **

   and total hours (H) demanded fall
total wages (wH) may rise or fall
depending on the magnitude of the  two opposite direction changes
w up / H down

now if wages fall and reduced costs are passed thru as lower selling prices
  the total demand for sector products expand
total hours demanded rise 
now we have w down / H up
these two outcomes can be weighed for  their  respective wH's

if dues are held constant per head
or if they rise proprtionately with per capita member  total wages
or ....

you get it  right ??

the dues max hounds face various outcomes
and may take various strategies

hours max  job wages max wage rate max  job hours min etc etc
but if the leadership cuts to the chase and guides itself by dues max ...





* less our more hours is an aggregate notion
various job types wage rates are multiplied by their hours per unit
and summed

** unless demand is non price responsive