It seems like every time a troubled industry starts to make money, the labor unions in those large companies in those industries demand more money, and if they don’t get it, they will strike. This is one reason the airline industry cannot re-invent itself, innovate, or buy more fuel-efficient airplanes to help it to greater profitability. The auto industry desperately needed to re-tool to build smaller cars instead of SUVs due to the higher fuel prices.
Unfortunately, the big three automakers were bogged down in sand due to the labor unions. The increased profits from making all those SUVs should have been reinvested in the future of those companies. But instead, the labor unions demanded better benefits, more health care, greater pensions, fewer hours, and more money. That took away all the profits, which should have been re-invested.
John Sweeney the president of the AFL CIO is retiring and what a beautiful golden parachute indeed. He had enabled the envious employees and labor unions to destroy General Motors and Chrysler. Along with several auto parts companies such as Delphi which closed 25 plants, taking most of that work to Mexico. Who won? The answer is nobody.
In the end, it was the US taxpayer who bailed out General Motors and Chrysler. This is interesting because it was also the citizens who paid more for buying American cars. After all, the unions demanded more and those costs increased the price of American-made automobiles to an uncompetitive and unsustainable level.
Adam Smith warned us that we have to look out for corporations and governments getting into cahoots with each other. Still, we should have also been watching the labor unions, and how their politics and political strategies have harmed consumers, free markets, and shake the core of capitalism itself. Please consider all this, as the coordinator for the Online Think Tank; I am quite concerned about our future, and global competitiveness.
Unions never seem to miss an opportunity to raise their pay, increase their benefits, or stifle a company from growing and winning market share. Let’s talk.
Steven Wilhelm of the Puget Sound Business Journal wrote an interesting piece in the late evening on November 13, 2013, titled; “Machinists reject Boeing contract,” which explained that the union did not like Boeing’s deal, but why? It was a fair deal. Could it be that at the Dubai Air Show early in the day (Middle Eastern Time Zone) that the Boeing Company announced potential sales figures of $100 Billion, commitments to buy 250 aircraft from 5-airlines in the Middle East? Yes, the union saw dollar signs and wanted to cash in – this is a little greedy the way I see it – hardly a team player effort.
How is it that the union can complain about CEO and executive pay and how greedy they are at the top when the union bosses make bank and the rank and file see dollar signs and they want to get all they can. Unfortunately, when they do this, Boeing cannot meet the price points to deliver those aircraft, labor is the highest costs, and materials are second when you buy lots of materials, alloys, components, there is a supply and demand issue there too and those costs go up as well. There is a way for the Boeing company to control those costs when the union plays hardball dividing the company from within, and the answer goes something like this;
Fine, Boeing should immediately start building all components and aircraft outside the United States, especially all Middle East bought aircraft in those countries, why shouldn’t those aircraft be built there, employing their population, a population that wouldn’t cause strikes, work slow-downs or production disruptions? All Boeing would have to do is start slowly closing all US factories.
Then, “IF” any US labor union worker purposely does a work slowdown – they should be arrested for corporate and industrial sabotage immediately. Not just in my opinion, but with other industry experts observing all this, we say; these unions are out of control in the US. One recent airliner manufacturing expert told me “let’s outlaw extortionist unions in the United States of America – they are NOT with us,” and he explained it to me like this; “when unions act like the enemy – and they may as well be working for the competition in this case – no one is served.” 987 Union is one of the best union organization that you’ll find interesting.
Harsher words have probably not been spoken on the other side of the corporate-union divide, but in many regards, he’s right (pun intended), after all, he’s not a left-leaning card-carrying socialist. The fact is, the union and corporate America need to work together, and when they don’t everyone loses. Please consider all this and think on it.
Most of what you read about unions is either pro or anti-union, and what you read here will be an angle that you have probably not seen before. If you are not already familiar with how a union organization would affect your business (if your business is eligible), then now is a good time to get educated. The EFCA would make it easier than ever for a union to be installed in your business, and that should concern you deeply.
What it means is that a government arbitrator could legally order you to dramatically shift your management infrastructure, compensation structure, therefore profit dynamics, and possibly make it very difficult to earn the same amount of money that you’re earning now. A union interrupts the manager-employee relationship by inserting a third-party mediator (the union) who can negotiate on your behalf.
To understand this subject, you have to “go meta” to what a union is, and why employees vote them into their workplaces. The union was a solution to a very real problem of exploited workers hundreds of years ago. While the roots of unionization can be traced back to medieval craft guilds, they came into their own in the latter half of the 19th century and the rise of industrialization. This website can help you decided on your future.
Again, the issue of healthy self-interest is at the center of the issue. The cause of the mistreatment of employees is almost always employers who have made a false god out of money and seek to get the most for the least amount of effort. So while part of the evolution of consciousness was the formation of the democratic structure called the union, it doesn’t take much of an analysis to see that it hasn’t worked. True, labor laws that give workers the right to organize have ended many unfair labor practices, but what has been the cost?