this post was submitted on 07 Feb 2026
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Work Reform

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[–] ALoafOfBread@lemmy.ml 47 points 18 hours ago* (last edited 18 hours ago) (3 children)

The reason for this is pretty simple: necessity.

Companies have a fiduciary duty to maximize profits for shareholders.

If no union exists, that means depressing wages as much as possible while meeting staffing needs.

If a union is forming, it means spending as much as you need to stop it since, if you don't, you'll be unable to depress wages over the long term.

When a union exists, well then they have to negotiate to continue operations and so workers get paid more fairly.

Join or organize a union if you can.

[–] birdwing@lemmy.blahaj.zone 11 points 6 hours ago (2 children)

Only public companies have that 'duty'.

Co-ops don't, their duty is to maximise wellbeing for all workers in them and concurrently society.

[–] Cruel@programming.dev 1 points 3 hours ago

How did society get in the equation? If they're maximizing the wellbeing of their workers, how are non-workers (society) benefitting?

[–] ALoafOfBread@lemmy.ml 3 points 4 hours ago

True! Co-ops are great

[–] anon_8675309@lemmy.world 5 points 7 hours ago* (last edited 6 hours ago) (1 children)

They have a fiduciary responsibility to the corporation and the shareholders. Increasing salaries to retain talent is part of this responsibility. However it is common for CEOs to mostly focus only on shareholders - mostly because their income mostly comes from shares.

This is why you always hear “they have a fiduciary responsibility to the shareholders “ and nothing else. It greatly lines their own pockets to perpetuate this.

[–] ALoafOfBread@lemmy.ml 2 points 6 hours ago

It also depends on the state the company is incorporated in, but yeah that's true.

And it is a duty to the corporation (legal entity), notably not to the workers themselves; so while the interests of workers and the corporation may align sometimes - you don't have to do what's best for the workers if it isn't best for the company.

You still need to operate lawfully, and you can't pay so little that you can't hire/retain anyone, and you need to pay enough that you can hire people skilled enough to do the job, but you need to pay (ideally) only that amount and no more. Anything else takes away from profits and, you could say, makes the company less likely to succeed - if the company doesn't succeed, then no one would have jobs. Or so they'd argue.

The same as for goods, the price of labor is treated by employers as "what the market will bear". For goods, that means higher prices, for labor it means lower prices.

[–] thenoirwolfess@lemmynsfw.com 7 points 9 hours ago

Capitalism. Minmaxxing human livelihood.