The history of these Unions is a long series of defeats of the workingmen, interrupted by a few isolated victories. All these efforts naturally cannot alter the economic law according to which wages are determined by the relation between supply and demand in the labour market. Hence the Unions remain powerless against all great forces which influence this relation. In a commercial crisis the Union itself must reduce wages or dissolve wholly; and in a time of considerable increase in the demand for labour, it cannot fix the rate of wages higher than would be reached spontaneously by the competition of the capitalists among themselves. But in dealing with minor, single influences they are powerful. If the employer had no concentrated, collective opposition to expect, he would in his own interest gradually reduce wages to a lower and lower point; indeed, the battle of competition which he has to wage against his fellow-manufacturers would force him to do so, and wages would soon reach the minimum. But this competition of the manufacturers among themselves is, under average conditions , somewhat restricted by the opposition of the workingmen.
Every manufacturer knows that the consequence of a reduction not justified by conditions to which his competitors also are subjected, would be a strike, which would most certainly injure him, because his capital would be idle as long as the strike lasted, and his machinery would be rusting, whereas it is very doubtful whether he could, in such a case, enforce his reduction. Then he has the certainty that if he should succeed, his competitors would follow him, reducing the price of the goods so produced, and thus depriving him of the benefit of his policy. Then, too, the Unions often bring about a more rapid increase of wages after a crisis than would otherwise follow. For the manufacturer’s interest is to delay raising wages until forced by competition, but now the workingmen demand an increased wage as soon as the market improves, and they can carry their point by reason of the smaller supply of workers at his command under such circumstances. But, for resistance to more considerable forces which influence the labour market, the Unions are