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Hobson, John A., 1858-1940

"Problems of Poverty"

We saw that the real value of organization to a
body of workmen lay in the power it gave them to make it inconvenient
for an employer to dispense with their services in favour of outsiders.
Now the degree of this inconvenience will obviously depend in great
measure upon the number of outsiders qualified by strength and skill to
take their place without delay. The whole force of Unionism hangs on
"the unemployed." The strongest and most effective Unions are in trades
where there are the smallest number of unemployed competitors; the
weakest Unions are in trades which are beset by crowds of outsiders able
and willing to undertake the work, and if necessary to underbid those
who are employed.
Close attention to the composition and working of our Trade Unions
discloses the fact that their chief object is to limit the competition
for work in their respective trades. Since their methods are sometimes
indirect, this is sometimes denied, but the following statement of Trade
Union methods makes it clear. The minimum or standard rate of wages
plays a prominent part in Unionism. It is arbitrarily fixed by the
Union, which in its estimate takes into account, [Greek: a]. prices paid
for articles produced; [Greek: b]. a reasonable standard of comfort;
[Greek: g]. and remuneration for time spent in acquiring necessary
skill.[30] This is an estimate, it must be remembered, of a "fair wage,"
based upon calculations as to what is just and reasonable, and does not
necessarily correspond to the economic wage obtainable in a
neighbourhood by the free competition of labour and capital.


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