Blow for Unions in EU

The EU court system has recognized the realities of the free market.

Blow for unions in EU labour row

The European Union's highest court has backed the right of companies to move to another EU state to cut costs.

The European Court of Justice (ECJ) was ruling on a Finnish ferry company, Viking, which replaced the crew on one of its ships with Estonian workers.

Trade unions intervened, preventing Estonian union members from negotiating with the company.

In economics there is a well know concept called "the law of substitutability". In short, it means that where an option exists, you will substitute a lower cost option for a higher cost option. The Estonian workers were a lower cost option and so were used.

The point to be learned here is that you can price yourself out of your market. And if your price is higher, you darn well better be providing a much higher value/productivity to make it worth it.

The Finnish workers were not.

This is nothing more than the "invisible hand" concept that Adam Smith talked about way back in 1776 in his incredible work Wealth of Nations, which some people apparently never learn.

Joe Stalin must be spinning in his grave.