The trouble with that argument is that you haven't justified why it should only cause downward pressure on prices when companies have to increase pay due to unions demanding more cash. The exact same process should drive down prices and the amount executives make all the time, which means that the price will already be near the optimum given a particular level of costs and that increasing the costs will increase that optimum price. (This is particularly clear in scenarios where this works so well at pushing prices down that the increased wage demands would lead to losing money on every unit sold at the original price. Obviously in this scenario the price must increase.)
Well, I don't think I said it caused downward pressure on prices! So I don't have to explain why that might happen.
Obviously, if workers can negotiate more effectively by being unionised, that exerts upward pressure on costs. Those additional costs can be met out of profits (i.e. shareholders pay, and execs get sacked) or "efficiencies" (e.g. automation, reducing headcount).
If you can figure out how to make a better product that you can charge more for, then everyone's happy. If you can't, then perhaps your competitor can, even if he's unionised too. Unions can contribute at least as much to product and process improvement as management can. In fact unions can be seen as an adjunct to management.
> In fact unions can be seen as an adjunct to management.
That's arse-over-tit. My view has long been that management's purpose, in a company that makes stuff, is to remove obstacles from production staff. In that respect, they are servants: rather like clerks, or office managers. Managers are an adjunct to production workers, not the other way round.
I don't mean to disparage either clerks or office managers; most of the ones I've worked with were pure gold. But I've never met a useful project manager; and as you get higher in the monkey tree, you meet people who are more difficult/dangerous, and less helpful.
/me retired, had time to reflect on my career. A bit.
I always liked computers as a teen.
I started work in a Big-5 computer company, and gradually moved to smaller companies. Me and big companies wasn't a good match, on reflection. But I can't see what I could have done differently, at the time. Even in the light of what I've learned since.
Sure. So the customer buys less product, the company makes less profit, and the shareholders eject the executives.
But there are huge delays in these chains of causation, which provide opportunities for arbitrage.