Thursday, April 7, 2011

Imagine a Unionized McDonalds

You pull into McDonald's at lunch time. Since the parking lot is nearly empty you decide to go inside, rather than using the drive-thru. You contemplate ordering single items off the $5 menu, but instead decide to go with a Big Mac Extra Value Meal that includes the sandwich, fries and drink, for only $19.95.

Up at the counter the cashier, Cheryl, takes your order. She makes 17.95/hour plus benefits. Cheryl informs you that you are going to have to wait about 15 minutes. Apparently there aren't any fries in the bin, and a new batch has to be made.

You: Why does it take 15 minutes to make more fries? Isn't this supposed to be fast food?

Cheryl: Our fry guy, Bob, just went on break. Don't worry, he'll get right on it as soon as he gets back.

You: I see like six people back there. Why can't one of them drop a new batch of fries?

Cheryl: Because making fries isn't their job. That's Bob's job.

You: Uh, ok. Since I have some time to kill, can I ask you a couple of questions?

Cheryl: Sure.

You: How does this place stay in business? The prices seem really high for what I'm getting. It's fast food that isn't fast, and it's lunch time with hardly any one here. How do you manage it?

Cheryl: Don't you pay attention to the news? We just got a $60 billion bailout from the government. Don't worry, our jobs are safe here.

You: Thanks for the explanation.

2 comments:

  1. Nice straw man you defeated there.

    In an ideal world, the free market would work for all.

    In the real world, there is a lopsided social dynamic that favors employers; unions still serve as a useful (though imperfect) check against egregious owners and managers. Or do you want most of us workers return to sweatshops of the late 1800’s (which caused the union movement in the first place)?

    ReplyDelete
  2. "Nice straw man you defeated there."

    It's kind of silly to call a completely hypothetical, over-the-top humor piece a strawman.

    "In the real world, there is a lopsided social dynamic that favors employers"

    Really? I love assertions without evidence, especially when the actual evidence shows a different picture that depends entirely on what occupations we are talking about. And what does "favors employers" even mean? Favors how? When hospitals have to pay an average of almost $400,000/year (according to Forbes), to employ a cardiologist or radiologist, how are they favored as an employer?

    Yes, if you are an employee without unique or high-valued skills that is relatively easy to replace, then your leverage with your employer is low. So what? That's called economic reality. But the reverse is also true. Why do the LA Lakers pay Kobe Bryant 24.8 million dollars a year? Are they paying him that massive amount out of the goodness of their hearts? No, they pay him because of the value he brings to the franchise. And because if they didn't pay him according to his market value, there are numerous other teams who would be willing to pay him that or more. Although that's an extreme case, the same dynamic applies to other jobs where employees have highly-marketable in-demand skills.

    "unions still serve as a useful (though imperfect) check against egregious owners and managers. "

    I disagree. I think unions have far outlived their usefulness and now produce more bad effects than good.

    "Or do you want most of us workers return to sweatshops of the late 1800’s"

    That wouldn't happen if every union disappeared tomorrow. This isn't the late 1800s.

    ReplyDelete