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FREE MARKET TRIUMPH
Thursday, February 10, 2005


FREE MARKET TRIUMPH

Making the call that it can not be bullied, Wal-Mart has decided to shut down its first unionized outlet in North America. This is a victory of free markets over stifling and outdated labor legislation (think of pre-Thatcher Britain) which has been a drain on economic activity in Canada:

The world's largest retailer, Wal-Mart has been union-averse. It has said it would shut a store only for economic -- not union-related -- reasons, but in October it warned it might have to close the Jonquière outlet unless it could reach a contract with the 190 or so employees.
Well, union-related reasons are economic reasons. Workers these days enjoy more than adequate protection through various labor related laws and statutes and from that perspective unions have achieved what they set out to do when they first emerged in the late 19th century. Their excessive demands, their protected status through certification processes and their hold on employees (even those that refuse to join have to pay union dues) have now ironically resulted in some 190 employees losing their job and a community losing a retail outlet that with its very competitive prices served lower income families. It’s unfortunate that many smaller entities do not have the muscle to thwart unions, but Wal-Mart’s stand can only send the right signal that unions have outstayed their welcome.


Posted by Pieter Dorsman at 06:42 AM | DIGG This | del.icio.us | TrackBack (3)