Scholar disapproves collective bargaining legislation

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A Hong Kong economist voiced stern opposition to collective bargaining right legislation for the city, saying that this would lead to overexpansion of trade union power, and eventually devastate the entire economy.

Vigorous industrial actions are rare in Hong Kong. Many strikers and participants blame the government for not initiating legislation for collective bargaining right, which is seen as a fundamental and powerful shield for the protection of labor right in many developed countries.

However, Francis Lui, professor ofEconomicsat the Hong Kong University of Science and Technology, said that laws of collective bargaining will help inflate the power of trade union, availing them to endlessly ask for more. As a result, the entire economy will collapse.

Lui said that there are many academic studies indicating the high correlation between strong unionism, decrease in productivity and failure of economy.

One typical example he raised came from the late British prime minister Margaret Thatcher.

Back in the "winter of discontent" in 1979, before Thatcher stepped up as the prime minister, union members were so powerful that they could not even be sued for public damages caused by their industrial actions.

"There were even dead bodies lying all around, because the striking morgue staffers didn't bury them," said Lui.

According to British media's reports, after Thatcher's took over Downing Street No. 10, her trade union reform led to dramatic improvements in industrial relations. The UK economy now boasts the most efficient labour markets in Europe. Britain has prospered as the number of days lost due to strikes fell - plummeting a hundredfold, from 29.5 million in 1979 to just 278,000 five years later, for example. By 1997, the figure had sunk to 235,000; and although after four years of Tony Blair's New Labour it had doubled again to 510,000, still a long way short of the 1970s levels.

Luicontrasted this example with the cases of other Western nations.

The size and density of trade union membership have been plunging in recent years. For example, the number of trade union members in the U.S. is about 11 percent, way below Hong Kong's 24-25 percent. Nonetheless, labor strikes still happen almost all day everyday in the West.

According to local media's reports, hundreds of fast-food and retail workers in Chicago went on strike in late Aprilto call for a living wage of $15 an hour and the right to form unions without interference. Organizers, including the activist groups Arise Chicago and Action Now, say the strikes are part of a quickly growing national movement. The minimum wage in Illinois is $8.25 an hour.

The strikes come after last fall'snationwide Black Friday strike by Wal-Mart Stores Inc. workers.

More recently, 400 fast-food workers in New York walked off their jobs, demanding their own raises to $15 an hour and recognition for their independent union,the Fast Food Workers Committee.

In mid April, hundreds of workers, mainly letter carriers, participated in a strike In 17 cities and regions across Germany, which was organized by the ver.di union.Walk-outs were planned in Berlin, Hamburg and Cologne.The union demands at least a 6 percent increase in wages this year for its 132,000 members.In the North Rhine-Westphalia, the addressees failed to get over 1.5 million letters and some 120,000 parcels.

"Why is the European economy waning?"Lui asked."Because the governments are paying too much for people's fringe benefits. Why are the governments paying that much benefit? Thanks to the collective bargaining laws and strong trade union power in those countries."

"For the time being, the size of the EU's economyin the share of global GDP is approximately the same as the U.S.. But if the EU keeps splashing on fringe benefits without any improvement in productivity, very soon its economy will shrink to a level that accounts for less than 5 percent of world's total GDP."

Lui said these vivid examples prove that legislationfor collective bargaining power will pave the way of the overpower of workers, and drag productivity behind in the long haul. "It is not a witty way to put too many bargaining chips in the hands of trade unions," Lui said.

He suggested that the ultimate solution is that the government should increase investment into the industry, and upgrade people's education and skills. But he sees only a slim chance for the dock workers to win the battle.