Wednesday, October 20, 2010

Unions: The Good, The Bad, The Ugly

Franklin Roosevelt is quoted as saying, “If I worked in a factory, the first thing I would do is join a union.” In the early 1930’s this was good advice. The US Constitution reinforces the right of people to assemble peacefully and to organize. This is what America is all about. Working conditions in the first three or four decades of the twentieth century were poor to say the least. At the same time, factory owners and managers had the right to hire others and to choose whether or not they wanted to improve those working conditions. Workers had the right to quit and go work somewhere else if they were unhappy with conditions at work. They also claimed the right to organize and bargain collectively.

There was contention. Both business owners and union members used strong-arm tactics to drive home their particular point of view. Crimes were committed. Laws were broken. The courts became involved. Ultimately, however, the workers and the unions were successful in getting conditions improved. This was a complex situation and causes one to wonder the degree to which government involvement was good or bad during this period. Having said that, we must acknowledge that the liberal establishment of the 1930’s, 40’s and 50’s sided with unions to the point where big unions were as powerful as big business. In fact, they became big business.

Along with that development came government-supported pressure on business to yield to union demands. And here is where things began to go a little crazy. Instead of protecting workers from unfair labor practices, unions became a shill for unproductive employees. Union contracts gave the unproductive worker the support of the union and tied the hands of management. The auto industry is only one of many areas undermined by management concessions to unions.

The National Labor Relations Board was created by congress in 1935 to safeguard employees' rights to organize and to determine whether to have unions as their bargaining representative. The agency also acts to prevent and remedy unfair labor practices committed by private sector employers and by unions. It immediately became a “pro-union” institution. Unfair labor practices were and, to a great extent, still are usually considered actions of businesses and not unions. In fact, the NLRB became the bane of private industry. Unions were given the benefit of the doubt in virtually all situations.

In recent years, however, union officials have been accused of more violations of fair labor practices than have employers. While the unions claim to be there to serve the employee, the majority of allegations said that union members were the ones hurt by the actions of union officials. In short, the unions have violated the trust of those they are obliged to serve. In 2005, almost 4000 charges were filed against Service Employees International Union (SEIU), and almost 7000 against the Teamsters union.

More egregious are the terms of the contracts which compel employers to actually pay union members who do not work. In this same category are the blatant efforts to retain unproductive employees simply because they are union members. It is possible for many union members to make more money in retirement than they did while employed. Teacher’s unions are notorious for this. “Tenure” has come to mean, “I can’t be fired regardless of how poorly I perform my job.” This attitude and mindset comes from those who hold the future of our nation in their hands. The union does not serve the students. It serves the teachers. Students be damned!

Industries and commercial businesses are organized to make money. The owners take the risks and put their wealth, livelihoods and often more on the line. If they do not go into business, no jobs are created. If their businesses fail, the jobs disappear. Somehow, employees have come to believe that they “deserve” a piece of the business. They say, “It is only fair!” They want what they call their fair share. Of course, they have not invested their money and risked their family’s comfort. Still, the idea of employees getting “their fair share” seems to have been accepted by many.

Our Constitution provides the same right of free enterprise to all Americans. Any employee has the right to quit an hourly job and open his own business. He or she may even choose to compete with a previous employer. This can, however, create a bit of a conundrum. Now, the onetime worker has become the employer. That change of perspective is a big one. Suddenly, the new entrepreneur measures “fairness” in a different way. After all, it is his money invested. His new employees see him as “big bad management.” They want their share; it’s only fair.

Roosevelt’s comment was probably appropriate in the 1930’s. Unions sought better working conditions and better wages. Unfortunately, the entire concept of unionization has become warped and misused. Where it once served the employee and resulted in improving production for the nation, the character of unions has changed significantly. They have become big business. They serve union officials and have made many of them wealthy indeed. At the same time, they have become an institution of mediocrity, poor production and business failure. The realization of the negative impact of unions on our nation is clear to see. Where they once enhanced our national character, they are now undermining the capitalist system and creating mediocre production and unsuccessful business efforts. The end will be disastrous for America.

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