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The North British Review, Vol. 48 (Classic Reprint)




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Excerpt from The North British Review, Vol. 48 This article begins with the assertion that unions are not economically beneficial to their members; that they do not, and cannot, raise wages permanently. It is not denied that wages have risen since the establishment of unions, but this rise may have been due to large profits made in trade - not to the unions at all. When profits are large the demand for labour will be great, and wages must rise. When profits are small in a given trade, capital will be driven from that trade, and wages will fall. The action of trade-unions cannot, it is said, increase the wages-fund or capital out of which the workmen are to be paid, nor do they diminish the number of the recipients, though they may prevent the increase of that number by arbitrarily limiting the number of apprentices. Now, wages depend simply on the ratio between the capital employed as wages and the number of persons to be paid; and unless by augmenting the capital or by diminishing the number, in other words, by augmenting the demand or diminishing the supply, no permanent alteration in wages can be effected. The question for those who wish to raise the wages of labour is, not how to divide the existing wages fund in a manner more favourable to the working man, but how to increase competition for his labour among employers; in other words, how to increase the wages fund. Trade-unions, far from even aiming at this end, drive capital away from trade by harassing employers, diminishing profits, and increasing risks. Therefore, in the long-run they tend to diminish wages, and though for a little while they may obtain an increase from an employer working, for instance, under a penalty, the increase is only temporary, and is little, if at all, short of a theft from that employer. But while they fail to increase wages, they do increase the cost of production; they do therefore injure all consumers, themselves as well as others. By excluding competition, they may raise their own wages, but this exclusion constitutes a tyrannous monopoly which cannot be permitted for a day; and even this monopoly can never raise the wages of working as a whole. The main aim and object of trade-unions being to raise wages, the above arguments lead to the conclusion that this object is a delusion based on an obvious fallacy, so that unions are, so far even as concerns the interest of their members, an enormous blunder. But worse than this, they are injurious to the country at large, and their existence is irreconcilable with public policy. They injure the quality of all articles produced, by diminishing competition among artisans; they are hostile to excellence among workmen, discouraging piece-work and over-time, by which the skilful man may hope to better his condition; they oppose machinery, and foster dissension between employers and employed; they limit the quantity of wealth produced, by limiting the number of producers; - by all these means, without benefit to themselves, they banish trade, and increase the cost of produce to consumers. Worse still, they are not even honest, nor do they represent the true feelings and wishes of workmen; they are governed by glib democrats, who resort to force and outrage to establish their power; they are secret societies, and therefore odious; they have been established by fraud, on the pretence of being benefit societies, for which purpose they are even now bankrupt; the savings which should have been invested to provide for the benefits have been squandered in futile strikes, and even had every sixpence been profitably invested, the subscriptions are inadequate to provide for the payments promised. It is really a comfort to think that such monstrous organizations are even by the present law illegal, and we must readily grant that the only remedy practicable is total abolition. Here and there we have reinforced the Quarterly argument by extracts from the evidence of Mr. Mault and others; and a


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