Friday, June 15, 2007

Union. What is it good for?


I have a problem with Labor unions. To be quite honest, I abhor them. They are the antiquated dinosaurs leftover from an earlier time, and they are as out of place in our time as Tyrannosaurus Rex would be. Now to give credit where credit is due, unions have done many positive things for workers. Early union demands centered around improvements to the immediate work environment, like better wages, hours and working conditions. But the demands of unions have become a yoke around the neck of American industry. The auto industry has been severely hampered by the high wages, health care packages, and pension plans demanded by the Auto Workers Union. The Wall Street journal reports "In the past two years, GM has put almost $30 billion into its pension funds and a trust to cover its OPEB obligations. Yet these accounts are still a combined $54 billion underwater." These fiscal handcuffs make a level playing field impossible to attain and is a contributing factor in the decline of the US automotive empire.

In recent years unions have seen a decline in numbers, except for the service and government sector where they still thrive. As a former City Councilman, I was shocked to learn that our City Administrator had to negotiate with 7 different unions every contract year. Imagine having to negotiate a wage increase, benefit and health care package acceptable to 7 different organizations with 7 varying opinions on what is acceptable. Also take into consideration the vast amount of time wasted by having to meet with all of these different organizations.

And what about rewarding hard work and individual effort? When the union negotiates a pay increase, it gets spread out equally across the board to all workers. This means that the best worker gets the same percentage increase as the worst worker. Where, in this type of system, is the incentive to do better? In France, Germany and other European countries, socialist parties and anarchists played a prominent role in forming and building up trade unions, especially from the 1870's onwards. Unions had their beginnings in socialism, which is in direct contrast to our form of democratic government.

Unions have become a powerful political tool in our society. Take a look at the Teachers Union the NEA. It is one of the most powerful lobby groups in Washington (behind AIPAC of course). I challenge you to find a Senator or Representative willing to take on the NEA concerning fiscal responsibility, benefits packages or tenure. Ask a school administrator how easy it is to fire a bad teacher, it is damn near impossible thanks to the NEA. We don't approve of businesses that have a monopoly in America, so why do we tolerate unions which have a monopoly on the commodity of labor? The government has strict rules and regulations regarding labor standards for corporations to follow. Workers have become a valuable commodity, so employers are already treating them to health care packages, and other benefits such as 401k plans and stock options. The era of needing a union to represent you has long past, unless of course you don't mind standing in line for handouts.