General Discussion
In reply to the discussion: If your business model is built on virtual slave labor - your biz deserves to fail [View all]zipplewrath
(16,698 posts)When the industrial revolution started, the people flowed into the cities and factories. Life on the farm was VERY hard, especially subsistence farming. Failures were VERY common.
The prospect of getting a "days pay for a days work" was very enticing. The problem was basically once there were enough workers, they began to "compete" with each other for work. In a subsitence farming model, there is no competition. In the industrialized society, it is structured to foster competition, and demand failures.
Labor unions were designed to create a "barganing power" to compete with that of the employers. They employers were in a superior barganing position for wages and working conditions and so you had the predictable result. Unions could and did give the workers a commensurate barganing position with the employer and were able to get wages appropriate to the labor produced.