Matthew Lau argues that conservatives should oppose labour unions for three key reasons: unions harm the most disadvantaged workers, raise prices for consumers, and engage in radical politics that worsen conditions for everyone.
Unions Oppress the Weakest Workers
According to Lau, unions reduce both the demand for and supply of labour. By protecting underperforming workers and prioritizing tenure over productivity, they lower overall labour demand. To raise wages for their members, unions must further reduce labour supply by excluding other workers, particularly the most vulnerable. He cites Friedrich Hayek, who noted that unions primarily coerce fellow workers, not employers. In Canada, examples include taxi unions and Unifor opposing Uber, lobbying for bans on replacement workers during strikes, pushing for higher minimum wages that price out low-skilled workers, and supporting municipal policies that limit procurement to unionized shops.
Impact on Consumers
Lau contends that unions disadvantage consumers, especially low-income households. By raising wages above market levels, unions increase production costs, which are passed on as higher prices. This disproportionately affects the poor, who spend a larger share of their income on goods and services.
Radical Politics
Unions also engage in political activism that Lau describes as radical, supporting policies that harm economic growth and individual freedom. He argues that union political contributions and lobbying efforts often back left-wing causes that conflict with conservative principles, making everyone worse off.
Lau concludes that conservatives should recognize these harms and oppose union power, advocating for policies that protect the most vulnerable workers and consumers.
