more on competitiveness the union

So the conversation we’ve had recently points out that America has seemed to have lost much of its competitive edge in the world today. I can recall many economic discussions from my workplace and from Professor Bruce Welz at St. Charles Community College.

I guess this is a touchy subject but I’d like to get some feedback on this blog: UNIONS.

The debate seems to rage on about whether or not workers unions are a good thing. Now don’t get me wrong I’m not preaching one way or the other. I have relatives that were part of workers unions so I understand the importance to have them. On the other hand as a student of business I have seen the other point of view that unions have the ability to hurt a company’s competitive edge.

When my mother worked for the phone company she pretty much had to fight to get paid. “Yes, I did not receive my paycheck.” “Oh sorry I guess it got lost in the mail.” After not receiving her paycheck and the company’s reluctance to help resolve the situation my mother gave the union a call and got her check within the week. Unions have helped many workers avoid exploitation by their employers but the argument these days is that unions are helping employees exploit their companies.

Professor Bruce Welz said in lecture that he had taken a tour through the GM Motor Plant and told us about an interesting scene. On one section of an assembly line a recent innovation had made a two person job a one person job. Yet according to union policy it was a two person job. In the room he witnessed one person working on the line while the other was sitting down reading a magazine. After one worked a while they would switch off. Both were being paid for a full day’s work but only working half a day.

I believe the problem is that unions treat the company (the establishment) as their enemy and are reluctant to be flexible when trying to reach a compromise. On the other hand without them many companies would strip their employees of many benefits and reduce their pay buy significant margins.

Where do we tow the line?