I know other industries can absorb the costs to the bottom line when it comes to unions but I'm not so sure a restaurant type business can. Unionization will require higher pricing of products and from my perspective, there's only so much a person will pay for a cup of coffee.
It's a legit concern. I don't own a lot and am not worrying about this myself - no way to know - but as an example, if the Starbucks workforce becomes unionized, is there a "Most favored Nations" clause?
Meaning, do all employees receive the same terms including compensation/pay? This can work for a business with, say, 5 large plants sprinkled across the company. But to me, the barista working the Starbucks in Lebanon, Indiana, does not need to be paid the same as the one working at the Starbucks on Madison Avenue in New York.* As you say, while folks in NYC may pay one price for coffee, those in Central Indiana likely will not.
But there are other provisions where unionization may be better than neutral for the company in the long run, such as reasonable benefits.
For now I'm trusting in competent management to, if unionization becomes widespread, negotiate a sound deal. But if I had more I might feel differently.
*I don't actually know that there's a Madison Ave Starbucks, using this as an example. |
