It is only a problem if you are paying an employee over their value. If my employer said he was cutting my pay 10% I would just go to other companies in the field because I can. Other people that can would to. You would only be left with the ones that can't because there is limited market for their skills. If there is limited market for their skills well then that means something.
Originally Posted by Adjuster
I dislike unions myself but I think I understand their position. If the union caved in and accepted the not agreed to pay cut then every company in the future in the same type of situation will simply threaten to close the doors and shut down unless the union accepts the offer.