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Old 19th Feb 2008, 10:49
  #134 (permalink)  
Pass-A-Frozo
 
Join Date: Mar 2001
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Nice Dream Going Boeing, but not grounded in reality. The higher you price a product (including labour) the lower the demand for that product.

Sure, a shortage shifts the demand curve to the right, but the union driving conditions above the market rate decreases demand.

To take things to an extreme to prove a point: if the union managed to get an EBA up that caused all pilots will be paid $400,000 , do you think that there would be more jobs than if an EBA got up that all pilots will be paid $100,000 ?

This is why I have insisted that Unions are for the domain of the selfish. Looking after themselves. I'm all for people looking after themselves, but let's not go down this path of trying to put forward the illusion that the union pushing for higher T&C's / Pay creates more jobs. It's simply illogical.

Just admit that during a shortage the union can push for higher pay and new jobs will still be created (well depending on the level on the increase!) - but not as many jobs that would have been created otherwise.

What you have argued is that we could increase the price of Airline Tickets and their would be no effect on the number of ticket sales. If that's the case then you are a genius and should be in management - because what that means is that QF could simply increase ticket prices and increase profit.
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