One of the obvious characteristics of labour unions is that most of them have zero understanding of economics. This is not only in South Africa, unions in other parts of the world tend to also have a similar characteristic. How the local and the global economy ought to function, is something that labour unions do not grasp and refuse to grasp.
The rate at which this ignorance from labour unions is happening intrigues me – that I sometimes ask myself “To which schools did these people go to?”. How is it that they do not even comprehend the basics of common sense?
Unions lack understanding in everything about the economy – investment; how prices work, including wage prices; the objective of business; trade; and so on.
What is troubling is that unions tend to present themselves as pro-poor. With this false presentation, they have managed to draw support from the dominant mainstream left-wing media. Hence, you’ll often find the media supporting their cause.
The on-going strike against Clover, South Africa’s foods and beverages company, is an indicator of how destructive labour unions have become in the country.
Clover has been bought by an Israeli company, Central Bottling Company. As part of the acquisition process, the restructuring of the business must take effect. There is nothing surprising in that. When businesses are bought such a process does take place – which sometimes leads to retrenchments.