Labor Unions

The UAW strike against GM has raised some interesting issues about the general question of big business and big organized labor. Each side characterizes the other in ways that are both partly right and partly wrong.

The corporate side says that the labor unions will kill their business with their demands for expensive healthcare and pension benefits, plus overly restrictive work rules. They also suggest that the unions exist more for the benefit of corrupt mobster leaders than for the rank and file.

The unions say that if they didn't exist, employers would exploit workers with unsafe working conditions, unfairly low wages, little or no assistance with high healthcare costs and no retirement benefits. They suggest that corporations exist for the sole purpose of maximizing profits, even if their workers are abused to meet that end.

There is truth to be found in the arguments on both sides. Having worked in a union manufacturing company in the 80's, I saw firsthand how damaging it is to productivity for the company to have to deal with the work rules and liberal benefits demanded and given to the unionized employees.

On the other hand, the employers now have a global labor market they are gladly exploiting, with most manufactured goods now coming from China.

I'm neither anti-union nor anti-corporation. I believe that the best governance of these entities is to promote policies that allow neither side to become more powerful than the other.

On the corporate side, I believe that it can be reasonable to enforce rights of labor to organize for the purpose of bargaining with the company for fair pay, benefits and working conditions. I also believe that it would be reasonable to create certain incentives for business to keep their operations in the United States, and protect workers who are laid off so their jobs can be transferred to a cheaper worker.

On the labor side, I believe unions should be required to have wide open books that can be analyzed by their union membership and anyone else to keep corruption down. I believe no worker should be compelled to allow their dues to be spent in sweetheart deals with the Democrat party. I believe union members should be empowered to elect their own leadership.

On the corporate side, I believe the laws regarding freedom of their employees to organize should be upheld and the often extreme and illegal methods often employed to intimidate workers from joining union efforts prosecuted. I think that employers should accept mediation and arbitration where indicated if they need assistance in resolving contract negotiations. I also believe corporations should not be allowed to underfund pensions they committed to in previous union contracts - if they want out of the pension business, they should negotiate the terms with their union employees and convert the pensions into fully funded 401K's.

The impossible dream, of course, is that employers and their unions find a way to work together to share success or failure for the common good of the company and its employees. Wouldn't it be nice if negotiations for pay and benefits focused on a baseline, plus certain bonuses and incentives that reward the workers for helping the company achieve their profitability goals?

Too bad neither side would ever consider such a radical idea.