The Closed Shop

Abstract

Trade union power, which usually goes hand in hand with coercion, does not develop in a vacuum. It is derived from changes in the law and in custom and practice which transfer responsibility from the individual employee to the collective body. The emphasis on trade union ‘solidarity’ produces a conviction that members of a trade union always have common interests and think and speak with one mind But the members themselves know differently. Even when their interests are under attack, perhaps because of actual or threatened pay cuts and redundancies, there are substantial differences in opinion. The period 1980-83 saw severe redundancies in British manufacturing industry. Often the immediate reaction of trade union officials to the announcement of proposed redundancies was complete opposition. But quite quickly they had to back down as many employees came forward to accept redundancy, especially where it was accompanied by a silver handshake. This meant that frequently most redundancies were voluntary and only a minority of redundant employees were laid off against their will.

It cannot be stressed enough that the coercion which unions have been permitted to exercise contrary to all principles of freedom under the law is primarily the coercion of fellow workers. F. A. Hayek, The Constitution of Liberty 1960