Stephen, J. Cabot blog

March 5, 2010

ONCE AGAIN A UNION HURTS WORKERS & CORPORATE AMERICA

In DeWitt, New York, Magna’s Power Train division decided that the installation of surveillance cameras was an appropriate undertaking. Keeping tabs on workers’ productivity is a responsibility of management. Not according to the  UAW. It said that the cameras should not have been installed without first consulting with the union. This is one of numerous union generated complaints against Magna.

 

Because of the barrage of union complaints and because workers repeatedly rejected contract changes, Magna has decided that it will close one of its divisions. Work from Magna’s New Process Gear plant has now been transferred to other Magna facilities and to a factory in Mexico. That means that 112 workers will lose their jobs.

 

This is just another example of why the majority of Americans regard unions as an obstacle to their economic well being. As companies, such as Magna, close plants and send manufacturing to foreign lands, workers will suffer, Corporate America will suffer, and America’s role as an economic powerhouse will diminish while the economies of other countries, such as China and India, continue to grow. It’s a sad commentary on the state of management labor relations in our time.

 

 

 

 

February 26, 2010

PEW RESEARCH: UNIONS’ FAVORABILITY RATINGS DROP

According to The Pew Research Center for People and the Press, the public has an increasingly unfavorable opinion of unions. A mere 41% of the general public has a favorable opinion of unions, while 42% expressed an unfavorable opinion of unions. Such figures contrast dramatically with those ascertained  in January 2007 when 58% of the public had a favorable opinion of unions, while only 31% had an unfavorable opinion.

The Pew Research Center for the People and the Press conducted its survey from February 3 to 9 and queried 1,383 adults via cell phones and landlines. According to the survey, “61% agreed with the statement ‘labor unions are necessary to protect the working person,’ down from 68% in 2007 and 74% in 2003. In the same survey, six-in-ten (61%) agreed that ‘labor unions have too much power,’ up from 52% in 1999.

The survey ratifies a belief that we have been espousing for some time that unions no longer represent the best interests of workers. The public realizes that if America is to maintain its position as a world economic leader it must support innovation, entrepreneurship, and capital investment in the future. Unions are often an obstacle to all three.

No matter how much support unions give to President Obama and how much he does their bidding, the public believes that the era of the union as the best representative of workers is rapidly fading and will soon become utterly superfluous.

 

 

February 19, 2010

PLAY BALL!

 

With the start of the  baseball season just around the corner, players and owners have much to consider. To wit: stadium attendance has dropped by more than 6%, and the collective bargaining agreement of the baseball franchises expires just after the 2011 season. Thus far, there has been scant news about disputes between management and players; however, that is not necessarily an indication that numerous dissatisfactions aren’t brewing.

According to an article in New York Newsday, Bud Selig stated: “I’ve been thinking about it [the collective bargaining agreement] a lot. (Major League Baseball executive vice president of labor relations and human resources) Rob Manfred and I have a lot of conversations about it. Rarely do I have it off my mind. We’ve had 14 straight seasons of uninterrupted action, though, featuring two CBAs negotiated peacefully. The first one, in 2002, went down to the final minutes. The more recent one, in 2006, reached agreement months before the deadline. That history must count for something, to both sides, as do the relatively positive relationships that have been constructed.”

While the Obama administration is attempting to push forward its pro-union agenda, baseball fans, disturbed by past labor conflicts, are generally hopeful that there will be no strike to disrupt the call of “Play Ball.” And not only the fans, but also the owners and players are hopeful that labor peace can be maintained.

In fact, professional baseball may offer an example of how labor and management can cooperate for the overall good of the economy. Corporate America and organized labor both have a vital stake in increased productivity, profitability, and cooperation. And that can be achieved by putting aside petty differences and working together to bring about shared goals. The adversarial culture, which often permeates all aspects of labor relations, is an obstacle that both sides should work to eliminate, regardless of who in Washington is pushing a pro-union agenda.

February 5, 2010

HIGHER TAXES BENEFIT UNIONS

According to a recent editorial in The Wall Street Journal (www.wsj.com), while union membership amongst private industry workers is declining, union membership for government employees is dramatically increasing.  While 7.2% of private industry workers belong to unions, more than 37% of government workers belong to unions.

Since government has become the primary employer of unionized workers, it is understandable why Andy Stern, head of the Service Employees International Union (SEIU) and Richard Trumka, head of the AFL-CIO, are such frequent visitors to the White House. And since the Democrats reliably do the bidding of unions, it also explains why unions earmark tens of millions of dollars to elect Democrats to Congress.

It also explains why unions want higher taxes, for higher taxes mean additional revenue to pay unionized government workers’ salaries. And ever increasing salaries mean greater amounts of money available for union dues. In other words, millions of American workers, who do not belong to unions, will be paying for ever higher, ever increasing union wages for government workers!

Should the demands of government workers not be met, they can always bite the hands that feed them by going on strike. Striking public service workers was once outlawed; but self-destructive Democrats will never put road blocks on the highway that leads to union goals. So if the workers don’t get what they want, one could witness government grinding to a halt. So much for the welfare of the tax-paying public!

January 29, 2010

STICKS & STONES CAN BREAK YOUR BONES, BUT CARELESS EPITHETS ARE SELF-DEFEATING

 

In politics, there is a great deal of name calling, disparagement of one’s opponents, and assorted calumnies spread through rumor mills. There is also a maxim that “it is easier to attract flies with honey than with vinegar.”

 

Attempting to defame one’s political enemies is a sure sign of desperation that will have a contrary effect to one’s intentions. Andy Stern, president of the Service Employees International Union (SEIU) is his latest broadside has accused Senators Joe Leiberman and Ben Nelson of being “terrorists” for their opposition to the bill that would create “card checks” under the union-endorsed Employee Free Choice Act.

 

From Osama bin Laden to the Christmas Day bomber, America has been targeted by one terrorist after another. To place Senators Lieberman and Nelson in that same criminal category as those who are motivated to kill Americans is not merely absurd, but it is a form of defamation that will generate considerable skepticism about Andy Stern’s values and methods of cogitation.

 

If one’ mission as head of a union is to convince as many Americans as possible that  union membership is desirable outcome for all, Andy Stern has a peculiar tactic for convincing them of his project. How many pro-union entomological subjects has he attracted by spritzing vinegar on the reputations of others? No wonder why most Americans perceive unions as creating obstacles to national prosperity.

 

 

December 18, 2009

UNION MEMBERS REVOLT

 

Municipal employees in Portland Maine have decided to show their unhappiness with the American Federation of State, County, and Municipal Employees (AFSCME). Many local union members (Local 1373) feel that they pay expensive dues and are not receiving sufficient job protections. More than ninety of their members were laid off from their city jobs.

 

Now 450 members of the union have received ballots, giving them the opportunity to decertify the union.  The local AFSCME sends the national office $130,000 a year, and feels that it’s not getting its money’s worth.

 

Local leaders had filed a petition in October with 200 signatures that asked for decertification ballots. As a result, those leaders were suspended from their leadership positions, and the Local’s assets were seized. In addition, the National office has been running local ads critical of the Local.

 

As we reported last week in our report about SEIU, a union that is in a war with a break-away union, this is another example of intense dissension within the ranks of organized labor. As unions become increasingly more superfluous, their internecine battles increase in ferocity. Organized labor, unable to connect with workers, are fighting with each other for the ever diminishing number of workers who still find what is chimerical value in being union members.

December 11, 2009

ORGANIZED LABOR’S CIVIL WAR

One of the most aggressive unions in the country, the Service Employees International Union (SEIU) will now face a challenge to its dominant role representing healthcare workers in California. The National Labor Relations Board (NLRB) has called for an election to determine if SEIU or the National Union of Healthcare Workers (NUHW) will represent 2,300 Kaiser healthcare workers in California.

 

The decision of the NLRB came as a blow to SEIU in its ongoing battle with the breakaway healthcare union, NUHW. SEIU had hoped to stop NUHW’s ongoing march to win the allegiance of thousands of healthcare workers in a wide array of states. As part of its PR war, the two sides have exchanged charges of various acts of wrong doing, including financial mismanagement. Perhaps the most hilarious charge leveled by the unions is union-busting. It’s usually the paladins of Corporate America who are accused of being union busters. If the labor movement has ever evidenced its true agenda, the bitter battle between these two unions indicates that power and money are as important to unions as they are to other institutions.

Determined to preserve its power, the SEIU says it will appeal the NLRB decision. If, however, the SEIU appeal fails, balloting is expected to take place in January.

The fight between SEIU and NUHW amounts to a civil war within the labor movement. The unintended victor will be Corporate America, and the millions of workers who will regard unionization with a richly deserved sense of skepticism, if not disgust.  



December 4, 2009

ANOTHER BLOW TO DEMOCRACY

According to a recent editorial in The Wall Street Journal, the Obama administration has delivered a body blow to Corporate America, specifically the airline and railway industries, which do not need any further impediments to their respective economic woes.

Both of those industries have their labor relations policies governed by The National Mediation Board (NMB), and the Board has maintained a consistent policy for the last seventy-five years.  

Now, however, under a proposed new rule, the board plans to tilt the playing field in favor of organized labor. To wit: In order to obtain certification, a union will no longer need to win the approval of a majority of workers. Rather than obtain a majority of workers, a union will only have to win a majority of workers who choose to vote in a union election. That works well for unions, because only a minority of workers usually votes. Getting a majority of that minority to vote for a union will be easy. Imagine, if only 100 workers out of a total workforce of 1,000 agree to vote: the union would need only 51 votes to unionize 1,000 workers! The winning team will always be the union.

This dramatic change has been the result of President Obama appointing the former president of a pilots’ union and the former president of the Association of Flight Attendants to the NMB. It is comparable to a single football team using its own players as the sole referees in all of its games. Would such a team ever lose a game?

This change will invite numerous strikes, which will cripple the nation’s transportation system. We are now light years away from the time when President Reagan fired air traffic controllers, members of The Professional Air Traffic Controllers Organization (PATCO) for going on strike. Their strike was against the national interest. President Reagan’s actions led to the demise of PATCO and to a robust airline industry that benefitted all travellers. It was a milestone in the history of labor relations, a milestone that will not  - unfortunately –  be repeated anytime soon.

 

 

November 20, 2009

THE UNION AS CULT

 

While the New York Times is generally thought of as being union friendly in its reporting, it recently reported on a union situation so egregious that the Times could not avoid it.

 

According to a report by Steven Greenhouse, the hotel and restaurant workers’ union, Unite Here, pressures it organizers to reveal the most embarrassing and distressing personal information to their superiors. Such information may include stories of childhood or spousal abuse, family members who were alcoholic or drug addicted, sexual abuse, phobias, etc.

 

Once that information is obtained by the union, it is then used as leverage against the organizers who had revealed that information.

 

According the Times article, “…several Unite Here organizers described high-pressure meetings where they were brought to tears as supervisors pushed them, sometimes in front of a dozen colleagues, to divulge personal information in what several organizers said was an effort to beak their will and ensure obedience.”

 

Such tactics smack of those used by cults to control members. And those tactics are nothing short of being highly manipulative and cynical.

 

If this is what organized labor has devolved to, then Corporate America must be on heightened alert to the efforts of organizers who have been turned into aggressive automatons whose sole purpose is to capture the hearts and minds of workers who will follow orders and pay their dues, no questions asked.

November 13, 2009

TAX PAYERS BEWARE

According to the Bureau of National Affairs, most unionized employees now work for the government.  While the overall number of unionized workers is just above 12% of the workforce, only 7.3% of those union members work in the private sector.

 

What is amazing is that more than 37% of all government employees belong to unions! That amounts to 8-million unionized government workers! The government has become the largest employer of unionized workers, and those unionized workers make sure that their voices ring loud and clear in the halls of congress as well as in the White House. After all, unions contributed more than $56-million to Democratic political campaigns in 2008.

 

While those government workers cannot go on strike for higher wages, increased benefits, or more paid vacation days; they can  and do have their officers lobby congress to achieve those results.

 

An example of union strategy has become apparent on the west coast where unions have been running television ads and supporting ballot initiatives  to raise taxes so that their members can receive higher wages. One need only stand on line at a local post office or motor vehicles office to experience union-protected inefficiencies and lack of initiative.

 

As a result of union demands, taxpayers will be footing the bill for increased taxes. And those taxes will  go to pay for unionized government workers increased salaries and benefit. As the government pays ever high wages, it will have no alternative but  to impose ever higher taxes to meet the demand. It is a classic vicious circle.

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