Which doesn't happen, since every union contract is a contract signed by both company and union. You act like unions have unilateral powers. They don't. You act like compensation is tightly tied to profit. It isn't, except in very rare cases.
barfo
Unions have quite a bit of power that non-union workers do not have. Like the ability to strike and collective bargain.
Compensation is tightly tied to profit which I demonstrated with the math and you haven't at all come close to showing that it's otherwise.
You can't make it out so the basic rule (profit/loss = income - expenses) isn't applied.
If you'd have read the link I posted, you'd maybe understand why union salary raises can't be fully passed on to the consumer, so some portion of those raises must be coming from profits. Even if they could be fully passed on, it'd still be reducing or taking from the company's profits. If the raises do, then so dos the entire sum of the salaries paid out.
And surely if a company far exceeds profit expectations, the union is going to demand a huge salary increase or other compensation (like pension fund contributions or other benefits). Why? Because they want their "fair share" of the profits.
It has to be a deal between the union and the company that's at least somewhat reasonable or you end up with GM going broke. Profit is not the same thing as cash flow - the company has to be able to pay out dividends as promised to shareholders (oops, GM shows unions take those shareholders to the cleaners, too). Expenses like buying new machines for the factory are capital expenses and are paid for from the profits as well.
It's not like the unions want to strangle the golden goose, but they absolutely have their hands wrapped around its neck really tight.
All this is coming from a guy who likes unions (me).