I want to explain the concept of "free ride".
Suppose a condo wish to apply for a licence to operate a shuttle bus. The licence is given on condition that a fare of $1 be charged for the ride but any resident should be allowed to take the bus, even if they do not wish to pay the fare, i.e. have a "free ride".
What would happen?
Some residents will enjoy the "free ride" but to cost of running the shuttle service has to pay by the other residents.
It is obvious that this arrangement is unfair to the paying residents and will not be workable.
This is what happens with trade unions.
Workers have to pay a fee to join a trade union. The union negotiate with the employer for better terms of employment. The employer provides the negotiated term to all workers, including the non-unionised members.
Some people decide not to join the union to avoid paying the union fees and to enjoy the benefit of the work done by the union.
This is unfair to the union members, but most governmens tolerate this "free ride" flaw to weaken the trade union.
There are other examples of "free rides" in our society. Can you identify them?
Suppose a condo wish to apply for a licence to operate a shuttle bus. The licence is given on condition that a fare of $1 be charged for the ride but any resident should be allowed to take the bus, even if they do not wish to pay the fare, i.e. have a "free ride".
What would happen?
Some residents will enjoy the "free ride" but to cost of running the shuttle service has to pay by the other residents.
It is obvious that this arrangement is unfair to the paying residents and will not be workable.
This is what happens with trade unions.
Workers have to pay a fee to join a trade union. The union negotiate with the employer for better terms of employment. The employer provides the negotiated term to all workers, including the non-unionised members.
Some people decide not to join the union to avoid paying the union fees and to enjoy the benefit of the work done by the union.
This is unfair to the union members, but most governmens tolerate this "free ride" flaw to weaken the trade union.
There are other examples of "free rides" in our society. Can you identify them?
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