Current Events > so, unionization is actually good for businesses, did you know that?

(+) Yeah! (+)

https://twitter.com/JohnHolbein1/status/1140026987345412096

What happens to companies' stock prices when their workers unionize?

They become much less likely to crash in the future.

Why?

"Labor unions constrain managerial resource diversion and overinvestment, demand less risk-taking, and facilitate transparent information flow"

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3394379

This study examines whether and how labor unionization influences stock price crash risk. Using a regression discontinuity design that employs union elections as an exogenous shock yielding local variation in unionization, we find that unionization leads to a significant decline in stock price crash risk. We further explore the underlying mechanisms through which unionization affects crash risk and find that labor unions constrain managerial resource diversion and overinvestment, demand less risk-taking, and facilitate transparent information flow, which in turn reduces crash risk. Overall, our results suggest that unions play an important governance role. Our study sheds new light on a formerly under-researched beneficial impact of unionization and the role that organized labor plays in influencing extreme downside risk in the equity market.
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Thats pretty interesting. So much for the unions ruin businesses narrative.
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Well... yeah?

If you run your business for long-term growth, instead of short term gains, your company tends to be more stable.
A competent union just reinforces that.

I remember seeing something similar about Germany's codetermination model.
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Antifar posted...

I remember seeing something similar about Germany's codetermination model.

King_Hellebuyck posted...

Thats pretty interesting. So much for the unions ruin businesses narrative.

Unions = good.
Antagonistic unions = bad.
Corrupt unions = y'all fucked now.

Unions are why the roads are never NOT under construction
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PatrickMahomes posted...

Unions are why the roads are never NOT under construction

you're confusing unions with powerful oil and gas industry interests
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PatrickMahomes posted...

Unions are why the roads are never NOT under construction

Uhhh what?
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News only it far right leaning people.
Whaaaat? You mean when people have more rights and protections, its better for literally everyone?
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Balrog0 posted...

PatrickMahomes posted...

Unions are why the roads are never NOT under construction

you're confusing unions with powerful oil and gas industry interests

whut

PatrickMahomes posted...

Unions are why the roads are never NOT under construction

ITP: Wear and tear from hundreds of cars running over the road every day doesn't exist.
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always found it funny how republicans were always so anti workers rights. they always support whatever lacks compassion/humanity.
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Questionmarktarius posted...

Balrog0 posted...

PatrickMahomes posted...

Unions are why the roads are never NOT under construction

you're confusing unions with powerful oil and gas industry interests

whut

the interstate highway system is and always has been a big giveaway to gas companies (and others, obviously, like the auto industry, rubber, etc)

the reason we have so much construction as opposed to maintenance is because they run state departments of transit and they want more lanes so that more people can be on the road in their individual vehicles buying gas and etc

im being partially facetious btw
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Roads are "always" under construction because the US is almost entirely a temperate zone, and the roads have never really been engineered around that.

Questionmarktarius posted...

Well... yeah?

If you run your business for long-term growth, instead of short term gains, your company tends to be more stable.
A competent union just reinforces that.

Unfortunately, too many companies listen more to their stockholders, who seem to care more about the short-term.
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Balrog0 posted...

Questionmarktarius posted...

Balrog0 posted...

PatrickMahomes posted...

Unions are why the roads are never NOT under construction

you're confusing unions with powerful oil and gas industry interests

whut

the interstate highway system is and always has been a big giveaway to gas companies (and others, obviously, like the auto industry, rubber, etc)

the reason we have so much construction as opposed to maintenance is because they run state departments of transit and they want more lanes so that more people can be on the road in their individual vehicles buying gas and etc

im being partially facetious btw

you're spot on for california. Standard oil back in the 30s killed every mass transit project in the state. there are still abandoned tunnels from the project.
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