I don't think they do unions better in Europe. The main difference is that Europe's population is thankfully still very pro union which makes it politically dangerous to be seen as too aggressively anti union, therefore most companies have stopped their eternal war with them. Instead in many countries they integrate Union reps right into the management structure up to and including their Board of Directors. It leads to greater understanding of each others problems which makes for more honest compromises that benefit both sides. The end result is that both sides naturally must learn to coexist rather than continually attempt to wipe each other off the face of the earth.
By contrast, the US population has allowed itself to be swindled into believing that Unions are bad for the economy, etc resulting in a very hostile anti Union environment. This in turn allows most management to take incredibly aggressive anti worker positions without paying any political price. Add it all up and you have a recipe for very confrontational Labor relations.
Put another way, why should a worker feel loyalty or go above and beyond when he/she is constantly given the message that they don't matter and are totally replaceable whenever management feels like it? Blaming Unions for this state of affairs is like blaming the deer when some drunk hunter falls out of his blind and breaks his neck.
Sorry, but I disagree.
European companies "tolerate" unions better that in the US, not because they're more enlightened, but because they have to. Their further left-of-center laws require it. As a matter of law, they have no other choice, so unions have much more power in Europe than they do here.
And this is the fallacy in the argument you presented above: you assume that management's motives are always bad, and that unions' motives are always good. Therefore your conclusion: "the unions have the power, so the result MUST be the fair one." Well, I suppose it depends on how you define "fair."
In actuality, there needs to be a balance. Neither side can have too much power. We're still fighting that battle over here, but in my opinion, the Europeans have already lost. Their unions have way too much power, as a result of their societies' socialist leanings. The unions have extracted so many benefits and entitlements out of the government (ie taxpayer), that the countries are imploding under the weight of financial obligations they'll never be able to meet, under any circumstances.
Ever.
That's your idea of "fair"?
Bubba