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f the business fails, the investment by the owner is lost. The individual employee has taken absolutely no risk, therefore has no interest in the success of the company

What absolute nonsense. Employees invest considerable time and accumulated experience in the business enterprise. Their self-interest in economic stability is very much tied to the continuing fanancial prosperity of the corporation. True, employees have the freedom to disrupt their lives and relocate to seek employment elsewhere. Similarly, businesses are free to relocate to other communities and labor markets as well.

"Employees invest considerable time and accumulated experience...."

And they are compensated at the time by the employer. The employer is provided value to the employee at the exact time of the investment by that employee. Your statement does not constitute a risk by the employee.

"Their self-interest in economic stability is very much tied to the continuing fanancial prosperity of the corporation."

A self interest does not constitute risk. Risk is an investment with the hope for future returns on that investment. The employee is compensated in real time to their labor investment. Yes, they may have an interest personally in the continual availability to sell their time to the employer (owner/risk taker), however that self interest is not taking a risk! In fact, the interest of the union, securing garunteed employee slots, is in direct conflict with the individual's self interest. The union is directly against improved efficiency, the company needs to improve efficiency to remain competitive. The employee's self interest is to stay employed in a competitive/efficient company to continue to be paid for the time they are willing to sell. The union causes a company to be less competitive, therefore causing increased risk to the owner for less compensation. The owner is more apt to take that risk elswhere! If they do, the employee then loses the opportunity to sell their time to the risk taker.

"True, employees have the freedom to disrupt their lives and relocate to seek employment elsewhere."

If they can chose to leave the company at will, then the employer is not obligated to garuntee employment to that same person. The choice is up to the individual to "disrupt" their lives or to remain where they are. If they see more value in leaving the company, then they are free to do so! It is a value equation, not risk!

"Similarly, businesses are free to relocate to other communities and labor markets as well."

Not when the union is involved! The union ensures a certain number of slots to keep their rolls fat. The union restricts the freedom of the risk taker and increases the risk while decreasing the reward.