Thursday, December 30, 2010

Inevitable Outcome

The concept of a union is fairly basic and at one time there was arguable justification. Workers were at the mercy of greedy capitalists, aka the "owners of the means of production." The factory owner could demand outrageous effort and dictate unreasonable compensation under the threat of dismissal. There was no reason to provide safe working conditions if that would hamper production or increase overall operating costs. Upton Sinclair's 1906 book, "The Jungle", about conditions in the Chicago stockyards is illustrative of the time.

By unionizing the workers could present a single face to negotiate for better wages and conditions. They provided a counter-balance to the singular power of the owners. All well and good if you are talking about late 19th and early 20th century. The two-class society described by Marx was very apparent.

Time, however, has changed things. The emergence of the middle class, which Marx apparently never envisioned, means that ownership is not exclusive to a vested wealthy bourgeoisie. Workers rise in the corporate world to management. Profit-sharing plans allow employees to be a part of the enterprise. Investments let shareholders participate in management decisions. It isn't a us-or-them environment anymore. Yet, unions persist in the north and east of this nation. Despite the decline of the industrial base that can clearly be linked to the outrageous demands of the unions which drive wages and benefits without regard to profit or value of labor. The unions still wield power.

The market compels a company to provide a competitive wage. Common sense leads owners to conclude that keeping an experienced worker is less costly than training a series of beginners to replace him. Workplace safety is under public scrutiny and failures will impact the bottom line. If company A provides a package of benefits, company B will need to offer similar attractions to compete effectively in the labor market.

So, where do unions look for their power today? If competitive business finds it easier to operate in areas without unions making outrageous demands, then the only place to organize workers and milk the coffers of the employer is the public sector.

That simply doesn't make sense, does it? Government doesn't seek profit. There is no motivation for government to oppress workers. Why would workers need to unite for protection against the very government which they fund for public goods? It isn't about protection anymore. It is the Willie Sutton response to "Why do you rob banks?" His correct reply was, "Because that's where the money is."

Now this:

Pad the Overtime, Skip the Streets, Make the City Pay

Reports are now trickling in of deaths as a result of this malfeasance. Dissatisfaction by the residents of the city and demands for legal recourse are being raised.

This was a snow storm. What about police and fire protection? What about health and sanitation issues? What will be the next manifestation of the venality of the modern public employees union?

3 comments:

Farmbroker said...

Ed,

Municipal unions have been a major contributory force in the rise of the taxes on our homes. Taxpayers are getting a belly full of it too.

Another union that is having the "tides turned upon them" is ALPA, the union representing the cockpit crewmembers of the major air-carriers, who have until the recent years, been working 60-80 hours per month while being paid well into 6 figure salaries with other major benefits in addition. ALPA has just about bled the air carriers dry and has forced several into bankuptcy so that little competition is left in the industry.

The air carriers are now fighting back by hiring competent 25-year-olds and putting them into the cockpits of RJ's and paying them 1/5 the salaries of the "old-guys" while again making the airlines profitable. I say... this is way overdue.

Newbius said...

Ed,

Don't forget that qualified immunity protects these union workers from any liability resulting from their dereliction of duty. Someone died because One of Richard Trumka's boys couldn't be bothered to perform his job? Too bad, they say.

The time will come when the people see this for what it is. When that happens, it will not be pretty.

MagiK said...

Sounds a whole lot like Europe actually...