Unions=Plant Closures

Do firms go to relatively extreme lengths to avoid having unionized plants? We have argued that they do. Here is real evidence in this Wall Street Journal article. It itemizes five different unionized plants being closed by three different major U.S. manufacturers with production being moved to the south or in one case to Mexico.

You'd think workers would learn how it works out and dump their unions. They don't. It isn't as though union members punish the company by hanging tough, it doesn't work that way. Apparently they'd rather be unemployed than take a lower wage or experience more flexible working arrangements. Companies respond "okay" and shutter their unionized plants while moving south.

Some psychologist needs to study why people respond this way.