Couldn't this just be because unions can have a deteriorating effect on meritocracy?
Say you have 10 workers - 2 are rock stars and make $50/hr, 6 are average and make $20/hr, and 2 are bad and make $10/hr (min wage - because they are never promoted).
Average "non-union" pay is: $24/hr
Now say you unionize and the union forces you to start paying the bad employees $20/hr like all the other average ones. So now you pay the 2 bad employees $20 each. Well, you still want to incentivize good work so you bump average employees to $25/hr. But dang, that's a lot of money, time to reign in rock star budget a bit. Now rock stars make $30/hr, average make $25/hr, bad make $20/hr.
Average "union" pay is: $25/hr
So yes, the "average pay" will be higher for "the worker"... but at a cost. Your average high performers will now be paid less, and your average low performers will now be paid more... which creates perhaps undesirable incentive structures ("why work my butt off to get ahead when it really won't make that much of a difference? I'd rather switch to a non-union company where my pay is directly tied to my output").
I'm not sure what companies you've worked for, but salary is almost never based on a 'meritocracy,' it's based on the minimum amount an employer thinks they can get away with. That value has nothing to do with an employee's output, and everything to do with minimizing costs.
Well, speak for yourself and the companies you've worked for, but that hasn't been my experience at all.
At both of the companies I've worked at we got a yearly "merit-based" increase depending on how your manager ranks you vs. your peers. The increase is anywhere from 0-5%, and the manager can only recommend their top employees for the high (5%) merit-based increases. This is on top of other increases (such as promotion-based increases), btw. I've gotten several pretty high merit-based increases back-to-back, and those +5% really start to compound with other forms of increase (promotions, bonuses, etc) after a few years.
That isn't paying by merit, it is a leadership style with financial incentives. An obnoxious one in my opinion, but some people like it. Very common in sales.
If you were paid by "merit", you would be paid by your contribution to the revenue of the company. That is mostly restricted to owners.
I disagree. Unions tend to favor seniority-based promotion over merit-based promotion[0] for obvious reasons (unions can't tell how much merit an employee has without deferring judgment to company managers/execs, but unions can tell how long someone has been working without deferring judgment to anyone).
Say you have 10 workers - 2 are rock stars and make $50/hr, 6 are average and make $20/hr, and 2 are bad and make $10/hr (min wage - because they are never promoted).
Average "non-union" pay is: $24/hr
Now say you unionize and the union forces you to start paying the bad employees $20/hr like all the other average ones. So now you pay the 2 bad employees $20 each. Well, you still want to incentivize good work so you bump average employees to $25/hr. But dang, that's a lot of money, time to reign in rock star budget a bit. Now rock stars make $30/hr, average make $25/hr, bad make $20/hr.
Average "union" pay is: $25/hr
So yes, the "average pay" will be higher for "the worker"... but at a cost. Your average high performers will now be paid less, and your average low performers will now be paid more... which creates perhaps undesirable incentive structures ("why work my butt off to get ahead when it really won't make that much of a difference? I'd rather switch to a non-union company where my pay is directly tied to my output").