It has to be a partnership. Just as the business owners cannot run their businesses without the participation of the workers then also the workers cannot hold a business to ransom thinking that the business will not function without their labour. The only way forward is for business people to recognise that their workers are entitled to a wage that will give them a decent living standard as opposed to merely a subsistence. The workers need to know that by making excessive demands they will eventually kill the golden goose that is the business. The welfare of both parties is inextricably and intrinsically linked.
Generally, depending on the state of the employment market at any one time it will be the position of the workers that will be weaker than that of the employer. The position of the workers cannot be strengthened without threatening the business. In a weak employment market the workers cannot even threaten the business with withdrawal of labour in the knowledge that the employer will simply replace the existing workforce with a more compliant and cheaper workforce. So should then an employer grind down his workforce into working for a bowl of rice a day knowing that there are no jobs to be had and that the workers have families to feed and so have no other choice. The prevailing environment might make it feasible for an employer to cut wages with impunity, the question is is it right to do so.
This is my argument for morality in capitalism. It is in fact the only recipe for progress. Both parties voluntarily understanding the position of the other and working to make each others, and therefore their own position more prosperous and stronger.
Great post mate.
However, what I would say is that you make no mention of a couple of things, one is foreign competition, and the other is skills.
On the former, it's no use us paying what is considered a fair wage to provide a decent living standard in this country, bearing in mind the cost of living in the UK, if that means the goods and services produced are uncompetitive with other goods and services from other countries. So what's the solution here? There's a number of options, none of which are ideal.
1. Force the employer to pay wages that are unsustainable for the business. Will put companies out of business and increase unemployment.
2. Pay people less and compensate them with government benefits, i.e. supplement their income. Essentially the current scenario.
3. Subsidise the employer - probably not allowable under EU law, and requires taxes from others in society to enable employers to underpay people. A dubious choice.
4. Impose import tariffs on cheaper imports. Again only possible outside after Brexit (and maybe not even then). Doesn't help the businesses exports and penal to the consumer
None of these are good, are they. And without the ability to influence wages and costs in other countries, I can think of no better options than the ones above. Which brings me on to my second point: skills. Businesses happily pay people more for more valuable work and this has to be the answer, imo. Although we are currently the 5th or 6th biggest economy in the world, the direction is downwards and there's no god-given right for us to stay at 5 or 6. Anymore than to stay at number 1, or number 2, or number 3 ... We're going down!
If we are to reverse this trend, we have to accept that some kinds of work are inherently too low in value to pay our citizens an acceptably high wage. We need to transition out of these kind of jobs, into new ones with highly skilled workers producing high quality, possibly high tech goods. Of course we've seen much of this happen already with the decline of our mining, shipbuilding and textile industries. Whereas in motor manufacture, aerospace & defence and high tech, we continue to do well. We need to do much more of the latter, and less of the former.
It's not easy, and there will of course be pain as traditional low paid jobs are lost, and we as a society need to bear that in mind and invest in training and skills and help people transition. There will always be a need for some unskilled work for those who cannot transition, and for those people and for those I think the least worst option is No. 2 above. But Option 1, is not an option. A business selling uncompetitive goods and services will ultimately go bust.