Monday, 13 May 2013

That's not a union

There are aspects of Indian and Nepali life which seem to mimic more developed nations, at least in the terminology used. These are the strikes, unions and associations of the different industries in each country. The trouble is in the subtle mislabeling or misinterpretation of each concept... A 'strike' may actually mean 'civil disobedience'. There are also the self employed workers striking at the government to set a minimum wage...
The more troubling case is the lack of understanding or enforcement of competition law (which does at least exist in India). It is not uncommon to see associations or 'unions' of hairdressers, vehicle hire shops, internet cafes or auto drivers. These associations see it as quite reasonable to set minimum rates, and you may hear 'union price' or in Nepal see the 'official' rates written down. The trouble is, these are actually self employed business owners and not simply employees, and this amounts to collusion to fix prices. The correct term for these associations is 'cartel'.
While the almost excessive competition of the slow trading Indian and Nepali small businesses may seem a cruel fate for the workers, price Inflation fixes nothing.


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