Job Security

Sep 25 2007

I’m sorry, but IMHO I just think that in today’s modern and global economy labor unions are about as worthless as you know what on a boar hog.

The UAW (The International Union, United Automobile, Aerospace and Agricultural Implement Workers of America) started a strike against GM yesterday afternoon.

From the release on the UAW website:

UAW workers went on strike against General Motors over job security, economic issues, benefits for active workers and winning investment in future products

Job security? Is it GM’s mandate to guarantee you a job? To guarantee you pensions and medical benefits until you die? Maybe we should do what France does, seems to work well there: no one gets hired because they can’t get fired and unemployment is like at 25% in certain age groups. Economic issues? When did it become GM’s job to address economic issues? Isn’t that a Macro issue that no one company can be expected to let alone predict, but manage? Winning investment in future products? Let me get this right, the union is trying to tell GM through a strike that they need to investment in winning products? You don’t think that the leadership of GM wants that? Good hell.

The UAW president, Ron Gettelfinger, also said these nuggets from at a press conference yesterday:

“We’ve met and solved all of GM’s problems since 2003.”

“We’ve done a lot of things to help THAT company.” (emphasis and all caps mine)

Look, when you get into this type of deal, you should just shut GM down. Has GM’s turnaround been helped by their employees? Sure. Has it been damn good leadership and strategy and management? Yes. Did the Union solve all of GM’s problems? Far from it; create a lot of the problems more like it.

I know that Gettelfinger is not an employee, but I watched the interviews on the news this morning with several GM employees and they all have an US versus THEM relationship: it’s THAT company, not OUR company. My $0.02: Shut GM down and start over with employees that aren’t unionized, that care about total success of the company, and that quite bitching and moaning about what they don’t have and just get back to work.

I’ll end my rant with this. Not only are unions useless, but I’ll go on record and make a little prediction. Any company that has a significant portion of their workforce unionized is doomed. The massive acceleration of globalization combined with domestic problems such as a completely derailed and broken health are system, a culture of entitlement, and a citizenry in America not taking any responsibility for their own future and economic wellbeing will cause unions to try and do what their mission is (Good Jobs. Good Communities. – that’s the UAW mission) and they will be an Achilles heal for these companies. The companies will be paralyzed, they won’t be able to adapt to macro changes, and they will get their you know what handed to them by competitors–a good number of them that live and exist by a different set of rules most likely in a different country than the blessed U.S. of A.

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  • Kevin, appreciate you posting your viewpoint. You bring out some good points, and you're exactly right when you mention that some of the other countries' rules might not be what's best for people. Thanks for reading! Thanks for discussing!
  • kevin
    Im so sorry that you feel that way about Unions. I was born in Ky and raised in mid Ohio. I think too often we adopt the what have you done for me lately version in America. Have we forgotten what China does to its people in its country concerning workers rights and if not for what the UAW has done for this country where would labor rights begin and where would any company be if not for the true fight for eqaulity for the pursuit of happines." In what ever form you deem happiness is to you" There would be no entrepenuers because you would not have the ability to be one because you would be working in a slave type enviroment. When it comes to asking a company to treat your fairly. It is every business man's objective to get the most for less. It has been proven time and time again business does not operate on a hand shake and a smile. I know this company doesnt do it. And while im on the subject of contracts how do you think the people of "or the children" of India feel when it comes to child labor ? I say no to alot of what your comment was about Unions. Unless you would suggest we use our children to compete with other countries when it comes to laboror wages and leveling the playing field. I would say this to you. The same way we fight for freedom abroad in other countries we should fight for fair labor practices in others. " You and I know that will never happen" Let other countries raise their level up to ours, not ours down to them. Thats a poor notion to have. Are some Unions bad "YES" but a lot are good. We still have a use for unions and fair labor in this country. We are not promised a job but if you do your job sufficiently you should be able to keep your job. Not because you have a stroke and now the company wants to toss you out. And by the way a lot of illnesses are directly related to on the job stress so take that into consideration. Now I could go on with this all day but im gonna end it on this. I worked for a foreign car company for 15yrs and i know the differance between whats right and whats wrong. Why do you think most of the Auto industry has settled in the south over the last 25yrs? Its because the people in the south and mostly its politicians are ignorant when it comes to dealiing with big time companies. Just a quick example. In my State of Tn. We gave a car company a 30yr tax break. It sounds good for the company. We built a new Stadium for our football team, and we brought in a NHL team. All the while our school are going to $%^%$ and our taxes are steadily increasing to make up for the loss revenue. That tells me that the state was slow in really knowing what going on when it comes to putting together a win win contract for the people of this state. Thats why they move here and thats whey people are being taken advantage of.
  • You're spot on.

    This is addressed heavily in Atlas Shrugged and its one of the reasons why I loved the book so much.
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