In These Times - March 23, 2021

Unionize Goldman Sachs. I do not say this to be cheeky. I do not say this ironically, nor with a winking sneer. I do not say it as a fantastical absurdity. In fact, if the employees of Goldman Sachs were as smart as they think they are, they would have unionized a long time ago.

Last week, the beleaguered first-year analysts of the fancy investment bank made news when they circulated a slide deck and survey complaining of 100-hour work weeks and inhumane working conditions that are destroying their mental and physical health. Such stories crop up regularly, and reflect the fact that even the most prestigious Wall Street banks tend to operate exactly like the most prestigious college fraternities, complete with hazing rituals and fanatic demands for loyalty in exchange for the promise of being served by future generations of slavish recruits. This sort of built-in mistreatment makes perfect capitalist sense. It selects for the people willing to endure any outrage in order to get rich, and simultaneously inculcates in them a feeling that they have ​“earned” their riches because of what they endured. The way these pathetic young Ivy League try-hards are treated is indefensible on human rights grounds, but then again, if they cared very much about human rights, they wouldn’t be working on Wall Street in the first place.

Yes, a union could mitigate these abusive working conditions. But that is only a secondary reason for these budding masters of the universe to organize. Goldman Sachs is the pinnacle of high finance, the place with the strongest reputation for controlling every nuance of the economic world. Yet, incredibly, in the past 150 years, none of its employees have realized the basic truth that bargaining collectively with your coworkers will always get you more, in aggregate, than bargaining alone. The bankers who work for Goldman have been leaving money on the table every single year because they do not have the leverage inherent with being able to negotiate together as a single group — the only leverage that allows the labor force of any employer, even a Wall Street bank, to extract the maximum possible share of the proceeds of a business. You would think that they would have learned this rudimentary fact during their early days at Harvard Business School, but apparently their ignorance is the price they pay for going to a school that considers labor only a cost to be controlled, rather than an identity that encompasses almost everyone. ...
Read full commentary at Goldman Sachs