Category: Economics, Finance, and Political Economy

by Bill Joslin

As far as I know, the difference between guilds and unions is that guilds worked in both directions (internal-external). they policed the reputation (value) of the guild by training and policing merit within their ranks (the internally facing focus) as well as negotiated with the employers (collective bargaining i.e. external focused activiry)

where as fraternities looked to insure their own against misfortune (pass the hat to help members in need) as well as policed membership (shine shame those acting immorally). i.e. and two way focus – internal-external. and they didnt seek to provide this insurance beyond their membership (provide what insurance they could by what resources the could collect internally)

unions only focus externaly. they seek resources from the.employer based on moral justifications for “workers rights” opposed to insuring quality workers. i.e. they don’t bring anything to trade with outside of the threat of state enforced boycott). and don’t ensure quality of work via the merit of their membership but rather replace merit with seniority (disenframchises the most capable of the younger members, who generally then leave to either contract as independents and eventually start their own businesses – i.e. unions incentives the flight of their best and brightest out of their ranks).

its an imbalance of malincentives offset by moral posturing.

in other words – guilds and fraternities responded to and use market forces, while unions insulate from market forces.

think of it this way – a.union which ensures they have the best and brightest within an industry brings to the table something of value to negotiate with employers.

a union that only brings to the table the option of state enforced boycott equates to extortion.

ive had many conversations with both owners and tradesmen in the toronto construction market, about establishing a guild, where by membership requires one to maintain a quality of service and skill – if you don’t meet this requirement, or deviate from guild approved best practices, then you’re tossed out.

by doing so the guild represents quality control of the workforce, in exchange they can then demand better treatment of workers.

in short, unions do not offer reciprocity.

guilds as i envision it would be based squarely on reciprocity.

reciprocity

reciprocity

reciprocity.

Curt Doolittle – might be something of interest here. i.e. how unions would be transformed by reciprocity.