This has already happened in America - many union based orgs become totally noncompetitive and had bankruptcies and layoffs rather than blowing away the "drinking buddies" businesses. In the private sector unions now only have a small fraction of jobs (I think < 10% now?)

Unions work much better in public sector where they can't go out of business. Police unions, prison guard unions, teacher unions etc. I wouldn't say service or accountability is that great in these systems.