For some workers, cronyism prevents receiving raises in pay. In early 2011, a Giant Eagle supermarket in Edinboro, Pennsylvania, wanted to give wage increases and higher starting wages to 25 employees. But a union wouldn’t let it do so.
Why would a union object to workers receiving higher wages? Because in this case, the increases went to “less senior” employees. The union went to arbitration and won a judgment that Giant Eagle can’t give raises “without first obtaining concurrence from the Union”—and an order to rescind those increases already given.
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