The GigReporter

The Federal Trade Commission (FTC) has initiated the Joint Labor Markets Task Force to confront harmful labor-market practices such as wage-fixing, no-poach agreements, and noncompete clauses. While this is a commendable step towards addressing anti-competitive behavior, it largely overlooks the monopolistic tendencies of labor unions, which can also harm workers. Unions like the International Longshore and Warehouse Union (ILWU) and the International Longshoremen's Association (ILA) dominate labor representation in U.S. ports, controlling 97% of major ports and 100% of East Coast ports. Similarly, the Teamsters represent nearly all UPS workers. Such concentrated power in labor representation raises concerns about market competition and creates risks, including economic harm during strikes, reduced investments by companies, slower employment growth, and job losses.

Research indicates that monopolistic union power can result in harmful agreements that affect both workers and businesses. European labor models demonstrate how unions with balanced demands and flexibility can better protect workers while fostering a competitive market. Moderate union power preserves the benefits of collective bargaining without the detrimental effects of excessive market concentration.

The FTC's directive provides a crucial opportunity to reassess labor market competition, not only addressing employer monopolies but also union practices that stifle competition. A legislative framework is necessary to strike a balance, ensuring workers receive fair representation alongside healthy competition. Concentrated power, whether by corporations or unions, rarely serves workers' long-term interests. Effective pro-worker policies should embrace both fair treatment and robust work opportunities, fostering a balanced labor market that benefits all.