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photo unavailable Gathering Place

Don Newman


Labor unions have
a stranglehold on Hawaii


The purported reason for Hawaii's labor shortage among dockworkers was an unanticipated surge in cargo from China ("Matson hit by import surge," Star-Bulletin, Sept. 15). But that explanation glosses over the real reason for the problem.

Since all longshoremen positions are union jobs, and unions restrict membership in order to maintain exorbitant wages for those workers, the actual reason is the unavailability of workers to fill the increased demand. Because of union exclusionary practices, they were unable to quickly fill the needed labor positions. Thus the severe shortage.

Unions maintain their control over labor markets by excluding other workers who would undercut union wages. It is very difficult to join a union such as the International Longshore & Warehouse Union. One has to know someone, get a sponsor or be related to a member to even apply. So while unions decry high prices and exclusive markets for products, they, at the same time, do everything they can to increase those prices by increasing labor costs for every aspect of product production and delivery.

Such practices increase the already burdensome cost of living in this state. It isn't simply the transportation costs of bringing products to Hawaii that drives up the cost of living, but the fact that we are squeezed by unions at every turn. They limit the labor force for their given professions and make it extremely difficult for newcomers to enter. They hold down the union membership to squeeze the employers for increased wages and then scream about the excessive workload.

It is strange that the people of Hawaii have never made the connection between the high cost of living here -- among of the highest in the nation -- and the prevalence of labor unions. One wonders what people are thinking when they advocate higher wages for workers and then complain about the high cost of goods. Wal-Mart is a non-union company and yet is successful because it provides goods at the lowest possible price. How is it that people fail to see the connection here?

Of course, some people don't. They realize precisely what is going on. They are in on the deal, which brings us back to the unions again. Union leaders know full well they are costing other workers jobs for the benefit of their members. Driving up wages for union jobs doesn't increase wages in other fields; this doesn't make sense. Increasing costs in one area means there is less available for another.

Hawaii is fortunate that it has the lowest unemployment rate in the nation, at the moment. This wasn't the case just a few years ago and unions shouldn't be credited for bringing about this situation. Fact is, the economy here would be booming if it weren't for the roadblocks that government and unions put in the way of private enterprise. The latter succeeds in spite, not because of, such obstacles. Such is the power of capitalism.


Don Newman is senior policy analyst for the Grassroot Institute of Hawaii.

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