It's simple, the time of unions being powerful and relevant has long since past. Early in the 20th century when workers were oftentimes exploited by immensly powerful and heavy handed corporations the union was a natural, dare I say, even needed result.

The federal government oftentimes sided with the corporations (because they frequently were on the payroll as well) little power and few protections were afforded the average working man. The unions helped to fill the vacuum. They leveled the playing field forcing companies to negotiate with a partner of co-equal or near co-equal strength. Corporations were still powerful, profitable and growing but the situations improved for the average worker as well raising his pay, benefits and overall standard of living while at the same time affording him some basic protections.

Somewhere along the line the federal government decided they needed to be the protectorate of the American working man. Over a period of decades literally thousands of laws, edicts and madates spewed from within the bowells of the bureaucracy provided a giant "bubble" of collective immunization for the multitudes of average Joe's. This concurrent with the progressively increasing greed of the unions began to spell the end.

Companies no longer bargained from a position of superior or even co-equal power. They became the underdog being battered frontally by the unions and flanked by the federal government. Productivity waned, profits suffered. The corporations began to realize that they could not win a war against two such overwhelming opponents head to head.

The strategy they developed was multi-faceted and ingenious. First, when a union or the federal government makes doing business at a profit unfeasable, close up shop. Either move to a non-union area of the country or move offshore or even shut down completely. Second, preempt the union. Offer higher salaries, more benefits, better working conditions up front. A happy employee does not want to rock the boat. If he believes the union will not make things significantly better for him, why bother. The union wants 15% of his pay; Why vote for a union when the federal government and the company will do it for free. Lastly, eliminate as many working people as possible. If there is a machine that can do it, buy it. If there's technology out that that can eliminate men from the payroll, incorporate it. No matter how long it takes to break even on the investment, it's worth it. And so the paradigm has changed.

The Teamsters are right about one thing, the political obsession of the AFL-CIO has hurt them. After all at least a third of the card carrying union members vote Republican. It irritates these 30% that a big chunk of what was formerly their money is going to prop up Democrats. Many causes of which they personally disagree are being funded by their dues and that creates animosity in the ranks. The unions for a long time now have neglected to dance exclusively with the person that brung em.

Union membership is declining precipitously. Company's that continue to be beat up by them are destined to take one of the above courses of action. There may come a time when the only workers in this country remaining unionized are federal and municipal government employees. After all being that profit is not an issue, it's only the government as an employer who still is content to allow themselves to be extorted.

Companion OpiniPundit

Posted by: Traderrob at 09:43 AM | Comments (5) | Add Comment
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