Is QUESTION: "Is Organized Labor A Decaying Business Model?"
http://www.outskirtspress.com/chrismosquera
Thursday, October 29, 2009
EMPLOYEE FREE CHOICE ACT
Please download and read the EFCA from the House and/or Senate web sites. The Senate is S.560 and the House version is HR 1409.
I am not anti-union, but rather maintain an objective and academic view point on the subject of organized labor and labor unions. In fact I want the EFCA to pass...it will be excellent for businesses--both pro labor and anti-labor.
Technical it is true the labor union that is organizing the campaign does have the choice to request a secret ballot election, but in practical terms, it may never happen. There is no point for the union to chance a secret ballot, when card check recognition, that is 50% plus one, is all that is required to bring management to the bargaining table.
You also must bear in mind that organized labor is a very large industry into itself. Union dues are the economic engine that pays for labor unions operating expenses, overhead, salaries and profit. Union membership dues also pay for lobbying and political influence. Politics is an expensive business.
Organized labor as a group or industry, spent close to a billion dollars in cash and services electing the Democratic Party on all levels during this election cycle. The financing comes from union membership dues, contributions and time spent by union officials door knocking all over the country. So YES, the EFCA is organized labors reward for the money spent and for putting boots on the ground to elect the various Democrats, from President to local officials.
Also bear in mind that labor unions have been in a steady decline for years. One has only to look at the U.S. heavy industries, such as auto, manufacturing and steel, to see that it is a decaying business model. As a business model, organized labor has failed to evolve with the changing economic climate, just as dinosaurs became extinct because they failed to evolve with the climatic changes. Labor unions have failed to realize that outsourcing, downsizing, business closures are all a result of a changing business climate.
Corporate America is mandated to produce the best product for the least cost, and thus increase profit. If companies can move a facility overseas, or to a lower wage state within the US, to save labor and production costs, it is required to do so by its stakeholders. Labor is a very expensive component of producing goods or services.
The EFCA is widely regarded as a legally mandated method for labor unions to grow quickly and become more profitable. It is the same profit driven business model that drives corporate America. The EFCA is a vital tool for union growth. Andy Stern, the head of SEIU, admits that with the passage of the EFCA, he will be able to organize a million new members per year, as opposed to the current average of one hundred thousand.
That is like any decaying industry that desperate needs a revival and an infusion of business. The passage of the EFCA will be organized labors infusion, and may contribute to labor unions sustainability. The more members, the more membership dues income, the greater political and economic power labor unions will enjoy. It is a business, just like any other industry.
For more information about organized labor, I invite you to read a new book just published on the subject: "Is Organized Labor A Decaying Business Model?"
The book examines the organized labor business model from the perspectives of the economic and political influences or organized labor, relative to the domestic and global economy.
Please refer to: www.outskirtspress.com/chrismosquera.
It is available on line through Amazon.com and Barnes and Noble.com and in electronic form through Kindle.
Let us keep the lively conversation going.
I invite others to participate in the exchange of ideas.
Thank you,
Chris Mosquera
I am not anti-union, but rather maintain an objective and academic view point on the subject of organized labor and labor unions. In fact I want the EFCA to pass...it will be excellent for businesses--both pro labor and anti-labor.
Technical it is true the labor union that is organizing the campaign does have the choice to request a secret ballot election, but in practical terms, it may never happen. There is no point for the union to chance a secret ballot, when card check recognition, that is 50% plus one, is all that is required to bring management to the bargaining table.
You also must bear in mind that organized labor is a very large industry into itself. Union dues are the economic engine that pays for labor unions operating expenses, overhead, salaries and profit. Union membership dues also pay for lobbying and political influence. Politics is an expensive business.
Organized labor as a group or industry, spent close to a billion dollars in cash and services electing the Democratic Party on all levels during this election cycle. The financing comes from union membership dues, contributions and time spent by union officials door knocking all over the country. So YES, the EFCA is organized labors reward for the money spent and for putting boots on the ground to elect the various Democrats, from President to local officials.
Also bear in mind that labor unions have been in a steady decline for years. One has only to look at the U.S. heavy industries, such as auto, manufacturing and steel, to see that it is a decaying business model. As a business model, organized labor has failed to evolve with the changing economic climate, just as dinosaurs became extinct because they failed to evolve with the climatic changes. Labor unions have failed to realize that outsourcing, downsizing, business closures are all a result of a changing business climate.
Corporate America is mandated to produce the best product for the least cost, and thus increase profit. If companies can move a facility overseas, or to a lower wage state within the US, to save labor and production costs, it is required to do so by its stakeholders. Labor is a very expensive component of producing goods or services.
The EFCA is widely regarded as a legally mandated method for labor unions to grow quickly and become more profitable. It is the same profit driven business model that drives corporate America. The EFCA is a vital tool for union growth. Andy Stern, the head of SEIU, admits that with the passage of the EFCA, he will be able to organize a million new members per year, as opposed to the current average of one hundred thousand.
That is like any decaying industry that desperate needs a revival and an infusion of business. The passage of the EFCA will be organized labors infusion, and may contribute to labor unions sustainability. The more members, the more membership dues income, the greater political and economic power labor unions will enjoy. It is a business, just like any other industry.
For more information about organized labor, I invite you to read a new book just published on the subject: "Is Organized Labor A Decaying Business Model?"
The book examines the organized labor business model from the perspectives of the economic and political influences or organized labor, relative to the domestic and global economy.
Please refer to: www.outskirtspress.com/chrismosquera.
It is available on line through Amazon.com and Barnes and Noble.com and in electronic form through Kindle.
Let us keep the lively conversation going.
I invite others to participate in the exchange of ideas.
Thank you,
Chris Mosquera
Is Organized Labor A Decaying Business Model?: Is Organized Labor A Decaying Business Model?: QUESTION: "Is Organized Labor A Decaying Business Model?"
Is Organized Labor A Decaying Business Model?: Is Organized Labor A Decaying Business Model?: QUESTION: "Is Organized Labor A Decaying Business Model?"
"Is Organized Labor a Decaying Business Model?”
I have just published a book "Is Organized Labor a Decaying Business Model?” which is based on a PhD dissertation in Business Administration-Labor Relations. The book is based on six years of labor union research and extensive direct union experience in various capacities.
I understand how unions operate and the modus operandi of labor unions, having been on the inside as a union organizer and union shop steward. I also understand and respect the needs of both sides of the labor-management equation.
Given the current global and domestic economic, business, and social climate, including, technology, the internet, downsizing, outsourcing and corporate consolidations, organized labor needs to become less "us" (labor) versus "them" (management) mindset.
Organized labor must become a value added component to business. A failed or closed business does not need employees, and therefore organized labors reason for being is under attack.
Simply put: No Employer - No Employees - No Union.
One needs look no further than the current situation with the auto and related industries, to see a business model and industry in trouble. It is bad not only for the workers, and the economy, but also bad for the union, whose job it is (or was) to represent and protect the employees who are the unions membership.
Union memberships pay dues, and are the "customers" of the labor union, and the economic engine, that enables the union to have political and economic strength. If the union looses dues paying membership, and therefore its "customer base" it is facing the same economic issues that the employer faces. In this case, the Organized Labor Business Model is under attack, and can become a decaying business model.
If organized labor (labor unions) do not change, and do not recognize that the nature of work has evolved, and if unions continue to operate as they have historically, then they will become less relevant to workers and employers. Organized labor will become the one century wonder.
Please refer to the website: www.outskirtspress.com/chrismosquera for more information.
The book is available through Amazon.com, and Barnes and Noble.com, or directly through the publisher.
Please keep the conversations flowing.
Thank you,
"Is Organized Labor a Decaying Business Model?”
I have just published a book "Is Organized Labor a Decaying Business Model?” which is based on a PhD dissertation in Business Administration-Labor Relations. The book is based on six years of labor union research and extensive direct union experience in various capacities.
I understand how unions operate and the modus operandi of labor unions, having been on the inside as a union organizer and union shop steward. I also understand and respect the needs of both sides of the labor-management equation.
Given the current global and domestic economic, business, and social climate, including, technology, the internet, downsizing, outsourcing and corporate consolidations, organized labor needs to become less "us" (labor) versus "them" (management) mindset.
Organized labor must become a value added component to business. A failed or closed business does not need employees, and therefore organized labors reason for being is under attack.
Simply put: No Employer - No Employees - No Union.
One needs look no further than the current situation with the auto and related industries, to see a business model and industry in trouble. It is bad not only for the workers, and the economy, but also bad for the union, whose job it is (or was) to represent and protect the employees who are the unions membership.
Union memberships pay dues, and are the "customers" of the labor union, and the economic engine, that enables the union to have political and economic strength. If the union looses dues paying membership, and therefore its "customer base" it is facing the same economic issues that the employer faces. In this case, the Organized Labor Business Model is under attack, and can become a decaying business model.
If organized labor (labor unions) do not change, and do not recognize that the nature of work has evolved, and if unions continue to operate as they have historically, then they will become less relevant to workers and employers. Organized labor will become the one century wonder.
Please refer to the website: www.outskirtspress.com/chrismosquera for more information.
The book is available through Amazon.com, and Barnes and Noble.com, or directly through the publisher.
Please keep the conversations flowing.
Thank you,
Saturday, October 24, 2009
WHAT THE EMPLOYEE FREE CHOICE ACT MEANS FOR EMPLOYEES AND EMPLOYERS
** WHAT THE EMPLOYEE FREE CHOICE ACT MEANS FOR EMPLOYEES AND EMPLOYERS **
A dark tempest is brewing over the employee and employer work relationship. That Perfect Storm is the Employee Free Choice Act (EFCA). The EFCA (H.R. 1409 and S. 560), is widely expected to pass in some form. The Democratic Party is heavily indebted to organized labor for their financial and political support.
Congress will feel the need to show populist support for labor unions. There is a very real possibility that the EFCA will become the labor law of the land!
What does this mean for both the Employees and the Employer?
The National Labor Relations Act, for over 70 years, has recognized a labor union as the official bargaining agent representing employees only after the union wins a secret ballot election. The Employee Free Choice Act will require an employer to recognize a union after the authorization cards (‘Card Check’) are signed by a simple majority of 50% or more of the eligible workers, with NO SECRET BALLOT ELECTIONS.
NO SECRET BALLOT ELECTIONS ARE REQUIRED!!
• There will be no opportunity for management to explain their reasons for opposing unionization!
• Even those employees who oppose unions will be required to become union members, against their free will!
• Co-workers and company management will know exactly how all the employees voted!
• As the employee, you will loose the right to the secret ballot election process!
• As the employer, you will loose control of your company!
Current labor laws allow a free exchange of ideas from both the employers and the union organizers. The employees are presented with facts, and opinions, from both the union and management. The employees have the time to understand their choices and options.
Under current National Labor Relations Board (NLRB) rules, the employees have the rights under a free democracy, to cast their secret ballots in privacy, and without coercion.
The basic rules of a democracy include secret ballot elections, only after the people have had an opportunity to understand the issues, and form an independent opinion free from peer pressure.
After all, how would you like it if you went to your polling place after a two-minute lecture from only one political party and only one viewpoint, and then forced to stand in a big room, in front of your co-workers, and family, waving a card voting YES or NO?
Yet, that is exactly what the EFCA expects workers to do!
Labor unions should adhere to the basic rules of democracy, which include a secret ballot election. We expect the privacy and security of a secret ballot election.
** THE EMPLOYEE FREE CHOICE ACT IS VITAL TO ORGANIZED LABOR SURVIVAL **
Organized labor considers the EFCA vital to the survival of the labor movement. Labor has pledged to spend over $300 million on securing passage of the Employee Free Choice Act. SEIU, the Service Employees International Union said the legislation would enable it to organize a million workers per year, up from its current pace of one hundred thousand workers per year.
Labor unions have experienced a steady decline in dues paying membership, industry saturation, and political power. Organized labor has made the “Employee Free Choice Act” (H.R. 1409 and S. 560) its highest legislative priority.
The Employee Free Choice Act would drastically increase the number of unionized workers, because it will simplify and speed labor’s ability to unionize companies.
The EFCA specifically bars the National Labor Relations Board from holding an election if a union turns in cards from a simple majority of employees!
Simply put, if 50% plus one of employees signs a card, the union is recognized as the legal bargaining agent for ALL the employees of your business unit.
** Corporate America wants less union influence. **
** Unions want more influence in corporate America. **
Instead, the Free Choice, or “card check” legislation would let unions form if more than 50% of workers simply sign a card saying they want to join. It is far easier for unions to get workers to sign cards because the union organizers can canvass workers repeatedly, over a period of weeks or months, until the union obtains the support needed.
The union organizers job is to recruit new dues-paying members to their union. They are trained to perform a four-part house call strategy that includes Introductions, Listening, Agitation, Union Solution, and Commitment.
The goals of the union organizer are to quickly establish a trust relationship with the worker, move from talking about what their job entails to what they would like to change about their job, agitate them by insisting that management will not fix their workplace issues without a union, and finally convincing the worker to join the union by signing a card.
The Major Items of the EFCA Include:
The Employee Free Choice Act, would provide injunctions for specified Unfair Labor Practices (known as ULP’s), during union organizing drives and prior to union certification.
• When the NLRB certified the union, the parties would have 90 days to come to acceptable ‘First Contract’ terms, after which either party could ask the Federal Mediation and Conciliation Service (FMCS) to mediate the differences.
• If mediation fails after 30 days, the contract would be referred go binding arbitration. The decision of the arbitrator is final and a two-year contract is binding on all parties.
• The EFCA provide damages equal to twice-back pay, if the company violated certain Unfair Labor Practices, after recognition as the bargaining agent.
There are other civil penalties attached to the bill, designed to force employers to sign a ‘First Contract’ and to reduce intimidation and retribution for workers involved in unionizing attempts.
For example:
• Civil Penalties: Provides for civil fines of up to $20,000 per violation against employers, who have been found to willfully or repeatedly violate employees’ rights during an organizing campaign or first contract drive.
• Treble Back Pay: Increases the amount an employer is required to pay when an employee is discharged or discriminated against during an organizing campaign or first contract drive to three times back pay.
• Mandatory Applications for Injunctions: “…the NLRB must seek a federal court injunction against an employer whenever there is reasonable cause to believe the employer has discharged or discriminated against employees, threatened to discharge or discriminate against employees or engaged in conduct that significantly interferes with employee rights during an organizing or first contract drive. It authorizes the courts to grant temporary restraining orders or other appropriate injunctive relief.” (www.employeefreechoiceact.org).
** As an employer, you may never know a union has arrived at your front door,
until after the union becomes the official bargaining agent for your workers. **
Companies may not be aware of an organizing drive until after the union has collected the required authorization cards. The employer may be denied the opportunity to exercise their rights of free speech, and to present the companies side of the story.
Union Political Strength:
EFCA is another example of union political strength. It is a crucial piece of pro-labor legislation, and if enacted as labor wants, will help the labor movement regain the strength in numbers, and the political power it once had. Unions have flexed their political and lobbying muscle to push this bill. The Democratic Party needs to pay back the unions for their huge financial and political support.
** THE EFCA IS ORGANIZED LABORS REWARD **
Labor unions need to win pro labor legislation, to prove to their membership that they are viable and have the political muscle. Organized labor still wields strong political power, has the ability to bring out large voting blocks for candidates that support its goals, and can bring down opposing candidates.
Unions will be able to organize more workers, in more industries, easier, and thus grow stronger, faster, and more powerful.
Management organizations oppose the EFCA, for the reasons unions support it. It is considered in the best interest of corporate America to remain union free, and the Employee Free Choice Act would increase unionization.
LABOR UNION MEMEBERSHIP IS DOWN:
At the beginning of the twenty-first century, labor union membership and union density, a measurement of the percentage of unionized workers, had reduced to about 7% of private sector workers, and about 12% of all unionized workers, down from about 35% of all workers in the 1950’s. Unions have seen better days, and have experienced a rapid decline in saturation, as companies search for lower cost business models.
ORGANIZED LABOR IS VERY BIG BUSINESS:
Organized Labor is Big Business with “union income about $10 billion per year” (http://www.unionfreeamerica.com/duesforpolitics.htm). If labor unions were publicly traded companies, the balance sheets of the AFL-CIO and the larger unions are impressive, and would command high stock prices.
Organized labor desperately needs new industries and new members!
Increased union membership translates directly to increased dues income. The larger the base of dues paying unionized workers, equals stronger economic power, which buys greater political influence.
FOLLOW THE MONEY:
For labor unions to grow, they must organize and create more dues paying members. The basic business model for labor growth is “organize or perish.” Dues paying union membership are the lifeblood of the labor movement, and are the major income source and reason for being. For labor unions, the EFCA is all about increasing membership faster, and at a lower per capita cost, which will strengthen unions financially and politically.
*** FOR UNIONS IT IS A STRUGGLE FOR SURVIVAL***
The alternative is less relevance, irrelevance, or extinction. The nature of work has changed, and unions have failed to evolve with this change, just as dinosaurs became extinct because they were not able to evolve with the climatic changes.
** THE EMPLOYEE FREE CHOICE ACT IS ORGANIZED LABORS SALVATION FROM IRRELEVANCE **
For more information about the Employee Free Choice Act and Organized Labor, please read a new book called:
"IS ORGANIZED LABOR A DECAYING BUSINESS MODEL?"
The book is available from the publisher: http://www.outskirtspress.com/chrismosquera
It is also available on line from: www.amazon.com and www.barnesandnoble.com
© 2009 Chris Mosquera. All Rights Reserved.
Email: chrismosquera5@yahoo.com
A dark tempest is brewing over the employee and employer work relationship. That Perfect Storm is the Employee Free Choice Act (EFCA). The EFCA (H.R. 1409 and S. 560), is widely expected to pass in some form. The Democratic Party is heavily indebted to organized labor for their financial and political support.
Congress will feel the need to show populist support for labor unions. There is a very real possibility that the EFCA will become the labor law of the land!
What does this mean for both the Employees and the Employer?
The National Labor Relations Act, for over 70 years, has recognized a labor union as the official bargaining agent representing employees only after the union wins a secret ballot election. The Employee Free Choice Act will require an employer to recognize a union after the authorization cards (‘Card Check’) are signed by a simple majority of 50% or more of the eligible workers, with NO SECRET BALLOT ELECTIONS.
NO SECRET BALLOT ELECTIONS ARE REQUIRED!!
• There will be no opportunity for management to explain their reasons for opposing unionization!
• Even those employees who oppose unions will be required to become union members, against their free will!
• Co-workers and company management will know exactly how all the employees voted!
• As the employee, you will loose the right to the secret ballot election process!
• As the employer, you will loose control of your company!
Current labor laws allow a free exchange of ideas from both the employers and the union organizers. The employees are presented with facts, and opinions, from both the union and management. The employees have the time to understand their choices and options.
Under current National Labor Relations Board (NLRB) rules, the employees have the rights under a free democracy, to cast their secret ballots in privacy, and without coercion.
The basic rules of a democracy include secret ballot elections, only after the people have had an opportunity to understand the issues, and form an independent opinion free from peer pressure.
After all, how would you like it if you went to your polling place after a two-minute lecture from only one political party and only one viewpoint, and then forced to stand in a big room, in front of your co-workers, and family, waving a card voting YES or NO?
Yet, that is exactly what the EFCA expects workers to do!
Labor unions should adhere to the basic rules of democracy, which include a secret ballot election. We expect the privacy and security of a secret ballot election.
** THE EMPLOYEE FREE CHOICE ACT IS VITAL TO ORGANIZED LABOR SURVIVAL **
Organized labor considers the EFCA vital to the survival of the labor movement. Labor has pledged to spend over $300 million on securing passage of the Employee Free Choice Act. SEIU, the Service Employees International Union said the legislation would enable it to organize a million workers per year, up from its current pace of one hundred thousand workers per year.
Labor unions have experienced a steady decline in dues paying membership, industry saturation, and political power. Organized labor has made the “Employee Free Choice Act” (H.R. 1409 and S. 560) its highest legislative priority.
The Employee Free Choice Act would drastically increase the number of unionized workers, because it will simplify and speed labor’s ability to unionize companies.
The EFCA specifically bars the National Labor Relations Board from holding an election if a union turns in cards from a simple majority of employees!
Simply put, if 50% plus one of employees signs a card, the union is recognized as the legal bargaining agent for ALL the employees of your business unit.
** Corporate America wants less union influence. **
** Unions want more influence in corporate America. **
Instead, the Free Choice, or “card check” legislation would let unions form if more than 50% of workers simply sign a card saying they want to join. It is far easier for unions to get workers to sign cards because the union organizers can canvass workers repeatedly, over a period of weeks or months, until the union obtains the support needed.
The union organizers job is to recruit new dues-paying members to their union. They are trained to perform a four-part house call strategy that includes Introductions, Listening, Agitation, Union Solution, and Commitment.
The goals of the union organizer are to quickly establish a trust relationship with the worker, move from talking about what their job entails to what they would like to change about their job, agitate them by insisting that management will not fix their workplace issues without a union, and finally convincing the worker to join the union by signing a card.
The Major Items of the EFCA Include:
The Employee Free Choice Act, would provide injunctions for specified Unfair Labor Practices (known as ULP’s), during union organizing drives and prior to union certification.
• When the NLRB certified the union, the parties would have 90 days to come to acceptable ‘First Contract’ terms, after which either party could ask the Federal Mediation and Conciliation Service (FMCS) to mediate the differences.
• If mediation fails after 30 days, the contract would be referred go binding arbitration. The decision of the arbitrator is final and a two-year contract is binding on all parties.
• The EFCA provide damages equal to twice-back pay, if the company violated certain Unfair Labor Practices, after recognition as the bargaining agent.
There are other civil penalties attached to the bill, designed to force employers to sign a ‘First Contract’ and to reduce intimidation and retribution for workers involved in unionizing attempts.
For example:
• Civil Penalties: Provides for civil fines of up to $20,000 per violation against employers, who have been found to willfully or repeatedly violate employees’ rights during an organizing campaign or first contract drive.
• Treble Back Pay: Increases the amount an employer is required to pay when an employee is discharged or discriminated against during an organizing campaign or first contract drive to three times back pay.
• Mandatory Applications for Injunctions: “…the NLRB must seek a federal court injunction against an employer whenever there is reasonable cause to believe the employer has discharged or discriminated against employees, threatened to discharge or discriminate against employees or engaged in conduct that significantly interferes with employee rights during an organizing or first contract drive. It authorizes the courts to grant temporary restraining orders or other appropriate injunctive relief.” (www.employeefreechoiceact.org).
** As an employer, you may never know a union has arrived at your front door,
until after the union becomes the official bargaining agent for your workers. **
Companies may not be aware of an organizing drive until after the union has collected the required authorization cards. The employer may be denied the opportunity to exercise their rights of free speech, and to present the companies side of the story.
Union Political Strength:
EFCA is another example of union political strength. It is a crucial piece of pro-labor legislation, and if enacted as labor wants, will help the labor movement regain the strength in numbers, and the political power it once had. Unions have flexed their political and lobbying muscle to push this bill. The Democratic Party needs to pay back the unions for their huge financial and political support.
** THE EFCA IS ORGANIZED LABORS REWARD **
Labor unions need to win pro labor legislation, to prove to their membership that they are viable and have the political muscle. Organized labor still wields strong political power, has the ability to bring out large voting blocks for candidates that support its goals, and can bring down opposing candidates.
Unions will be able to organize more workers, in more industries, easier, and thus grow stronger, faster, and more powerful.
Management organizations oppose the EFCA, for the reasons unions support it. It is considered in the best interest of corporate America to remain union free, and the Employee Free Choice Act would increase unionization.
LABOR UNION MEMEBERSHIP IS DOWN:
At the beginning of the twenty-first century, labor union membership and union density, a measurement of the percentage of unionized workers, had reduced to about 7% of private sector workers, and about 12% of all unionized workers, down from about 35% of all workers in the 1950’s. Unions have seen better days, and have experienced a rapid decline in saturation, as companies search for lower cost business models.
ORGANIZED LABOR IS VERY BIG BUSINESS:
Organized Labor is Big Business with “union income about $10 billion per year” (http://www.unionfreeamerica.com/duesforpolitics.htm). If labor unions were publicly traded companies, the balance sheets of the AFL-CIO and the larger unions are impressive, and would command high stock prices.
Organized labor desperately needs new industries and new members!
Increased union membership translates directly to increased dues income. The larger the base of dues paying unionized workers, equals stronger economic power, which buys greater political influence.
FOLLOW THE MONEY:
For labor unions to grow, they must organize and create more dues paying members. The basic business model for labor growth is “organize or perish.” Dues paying union membership are the lifeblood of the labor movement, and are the major income source and reason for being. For labor unions, the EFCA is all about increasing membership faster, and at a lower per capita cost, which will strengthen unions financially and politically.
*** FOR UNIONS IT IS A STRUGGLE FOR SURVIVAL***
The alternative is less relevance, irrelevance, or extinction. The nature of work has changed, and unions have failed to evolve with this change, just as dinosaurs became extinct because they were not able to evolve with the climatic changes.
** THE EMPLOYEE FREE CHOICE ACT IS ORGANIZED LABORS SALVATION FROM IRRELEVANCE **
For more information about the Employee Free Choice Act and Organized Labor, please read a new book called:
"IS ORGANIZED LABOR A DECAYING BUSINESS MODEL?"
The book is available from the publisher: http://www.outskirtspress.com/chrismosquera
It is also available on line from: www.amazon.com and www.barnesandnoble.com
© 2009 Chris Mosquera. All Rights Reserved.
Email: chrismosquera5@yahoo.com
Sunday, October 11, 2009
Sunday, May 10, 2009
QUESTION: "Is Organized Labor A Decaying Business Model?"
"Is Organized Labor A Decaying Business Model?"
By Chris Mosquera
Executive Summary
Is Organized Labor a Decaying Business Model? The answer is not a definitive yes or no, but rather yes and no. If organized labor continues in the same manner it has for the last century, then the probability of relevant existence in the next century is very slim, and labor will become the one-century wonder. Unions must accept the new paradigm, which is the nature of work is changing, and will continue to evolve. The economic forces of globalization are a major contributor to this evolution, as is the shift towards an internet based information society. The traditional blue-collar labor business model is being replaced with robotics, technology, outsourcing, and globalization.
Big labor is big business, but still stuck in the last century. Unions have failed to accept that the nature of work has changed. Business as usual, usually means that you are out of business. Market forces are forcing economic changes, and unless labor adapts quickly, it will become irrelevant in the global market. Virtually every product and most services can be performed offshore in low wage countries, or outsourced to lower wage states, using eager low-wage non-union workers.
The internet and technology, has created the global 24-hour workday. When it is night in the western hemisphere, it is day in the eastern hemisphere and workers can perform back office functions in the east, ready for the workers in the west the next business day. Telephone communications is seamlessly transferring calls to worldwide call centers, where cheerful representatives, will answer your concerns in the language you have chosen. “For English press one, for Spanish press two, and for other languages, please press three,” is the globalized method for customer service communications.
American companies can make candles in China, and sell them in Chicago, cheaper than making candles in Chicago and selling them in Chicago. These same companies can make candles in China and sell them in China, and internationally, even cheaper and for a greater profit, than selling the same candles in Chicago. To an extent, labor unions are to blame. They have priced labor above economic returns. This oversight is a significant contributor to the decline of the organized labor business model.
Labor, in its basic element, is a commodity, like any raw material or production facility. Best business practices mandates that companies go where they make the most profit. Labor is expensive. Corporate America has fought back, by outsourcing, moving to non-union and less expensive environments, downsizing, embracing technology, and by aggressively fighting union organizing campaigns. It is not personal, just business.
The survival business model for organized labor is to become more relevant with the times and re-format itself to meet the needs of its members. Corporate America uses a similar business model, as they shed old products, and old production methods. Corporate America emerges leaner and more agile, able to meet product demands quickly and adjust to market realities. Unions need to adjust their business model to market realities and become more business centric and less fraternal.
If organized labor is to survive, it must look to the past to see the future. Labor unions have become complacent, unable, or unwilling to adjust to change. The axiom of unions being “male, pale, and stale” has merit. Unions are coming to the slow realization they must shed their old-boy ways, and embrace immigrants, minorities, service workers, and all disenfranchised workers. Traditional blue-collar workers in heavy industry are declining, and no company or industry wants to bet on a loosing horse.
Politically and economically, the future for organized labor as an industry is with the sectors of the economy that have been previously ignored. This includes service sector employment, low-wage workers, minorities, and immigrants. These workers need the services that unions provide, such as better wages and benefits, better health care, and collective bargaining benefits. Unions must return to their roots. Historically, unions represented oppressed workers, which is exactly the category that minorities, immigrants, and low-wage workers represent.
Unions have seen better days. Private sector unions have experienced a rapid decline in saturation, as companies search for lower cost business models. Public sector unions are the only bright spot, and these numbers are barely holding steady as governments on all levels are facing the dilemma of servicing more people with shrinking budgets.
The key to union growth is organizing, and the mantra of “Organize or Perish” is an absolute. Organizing is the method for unions to grow and expand their business. Companies expand by adding paying clients. Unions expand by adding dues paying members. Corporate America wishes to remain non-union, and when faced with an organizing attempt, swings a heavy hammer spending vast sums to remain union free.
The labor relations business (‘union busting’ in the labor vernacular) is a huge industry on to itself, and has been a significant contributing factor to the decline of unions. The goals of the labor consultants are to convince employees that unions are bad, and the company is good. Companies that hire professional labor consultants, have a significantly higher win rate over those companies that try to do it in house, or do nothing at all.
Unions argue that labor laws are written to support the employer, and make organizing difficult. That will change when some version of the Employee Free Choice Act (EFCA) becomes the labor law of the land! It will simplify and speed labor's ability to unionize companies. Unions consider the EFCA vital to the survival of the labor movement, and have pledged to spend $300 million on the election and securing passage of the Employee Free Choice Act. The Service Employees International Union said the legislation would enable it to organize a million workers per year, up from its current pace of 100,000 workers per year. This is good for unions, and bad for employers!
Currently, companies can demand a secret-ballot election to determine union representation. Those elections often are preceded by months of aggressive employer union free campaigns, and pro union campaigns. Under the proposed legislation, companies could no longer have the right to insist on a secret ballot. Instead, the Free Choice, or "card check”, legislation would let unions form if more than 50% of workers simply sign a card saying they want to join. It is far easier for unions to get workers to sign cards because the union organizers can pressure workers repeatedly, over a period of weeks or months, until the union obtains the support needed.
Unions thrive when employment relationships are oppressive and exploitative. Unions have difficulties organizing companies when employees are happy, fairly compensated, and productive. Repressive employers create strong unions, and good companies do not have unions. Happy workers are productive workers, and the employer and stakeholders all benefit.
Union labor has priced itself out of the global marketplace. Blue-collar industrial employment is outsourced to non-union low wage nations. Private industry must earn a profit or go out of business. “Union Made in America” is not an economic reality, given globalization and technology. Gone are the days of the workers versus management mentality. Labor must accept that to survive and prosper, they must become productive partners with business, not anti-productive adversaries. Welcome to the new reality!
The only stability is in the public sector. Organized labor contributes to political parties and campaigns, and therefore politicians do not want to bite the hand that feeds them! They placidly support government union organizing or remain neutral. Government services are not profit motivated and the increased labor costs are supported by taxpayers.
An unintended consequence of public sector unions is an entrenched bureaucracy where it is extremely difficult to terminate underperforming employees. The stereotype of lazy government workers is legendary. When you compound the union job protection clauses, it becomes the perfect storm for incompetence. Unions protect low productivity workers, support poor employee work ethics, and enable incompetency. The system rewards longevity and not productivity. The bureaucracy outlives the bureaucrats.
Foreign automakers (such as Honda and Toyota) are awarded tax incentives to build domestic factories, usually in lower wage states. The foreign automakers create blue-collar and white-collar jobs in states with high unemployment, low union saturation, and improve the prevailing area wages. This raises the local standards of living, and increases the tax base, which in turn helps the local economy. It is a winning situation for all parties. The plants tend to be staffed with younger, non-union, less costly workers, and therefore the retirement and health care liabilities for the employers are less expensive. The legacy automakers are usually saddle with archaic union work rules, and staffed with unionized, older, higher paid workers, with expensive health care and retirement benefits.
If unions are to succeed and remain relevant, employers need to view workers and unions, not just as costs factors, but also as productive partners. A modern employer and progressive labor union, working together, and not as adversaries, can achieve higher productivity, and higher wages, with increased competitiveness and higher corporate profitability.
A case in point is the comparison between Costco and Sam’s Club (a Wal-Mart company). Both firms sell similar products to similar customers, and are aggressive competitors. Costco’s labor costs are about 40% higher than Sam’s Club is. In 2005, Costco’s operating profit per employee was $21,805, as compared to Sam’s Club of $11,615, and Costco’s sales per square foot was $866, compared to $525 for Sam’s Club. Moreover, Costco’s employee turnover rate was only 6%, as compared to 21% for Sam’s Club. Profit, productivity, and unionization can be positively related, if all partners work in concert. (Economic Policy Institute Briefing Paper. Unions, the Economy, and the Employee Free Choice Act. Briefing Paper #181. Shaiken, Harley. 2007).
One of the roles of government is to distribute economic prosperity to the workers who are both a major contributor and a major benefactor. Business and labor are mutually dependent on each other, and their success is based on a cooperative positive relationship. A company that fails to be profitable because of out dated and unrealistic labor policies, soon consolidates, files for bankruptcy or closes shop, and the workers loose. An empty factory or closed store does not need workers. Simply put, no employer, no employees!
The American Dream, and thus the nation’s “American Dream” of economic prosperity are co-dependent on productive labor relations. Globalization, outsourcing, downsizing, technology, and the internet are real threats to the American blue-collar worker. “Union Made in America” has become a history lesson, and now might mean, at best, “Maybe Partially Assembled in America.” A realistic economic alternative is a mutually dependent labor and management relationship, with government acting as a helpful “consigliore” or counselor and advisor to both sides.
Government plays a role in American prosperity, by establishing and developing economic initiatives that benefit workers, and support economic growth policies. Government institutes macroeconomic policies to support long-term job creation, and to provide the tools to educate, train and support workers and their families. Micro economic policies, such as local job creation requires the sustained support of government, industry, and unions, to provide the education, training, and career paths to create jobs consistent with the economy, industry and community needs.
All workers need to earn a living wage, in order to support a family and to grow the economy. Workers at the lower end of the wage scale, require larger social services supports, and contribute little to the economic well being of the nation as a whole. Raising the federal minimum wage to a level that may actually support a family is an example of a government policy that may positively affect families, and in the long term the nation. To keep up with the real purchasing power, wages must be relative to the local economy. Higher wages provide benefits to society, by increasing the families buying power, which stimulates production and consumption, and reduces dependency on social services and government programs.
Lifetime employment, if it ever really existed in the United States, is an outdated concept and does not connect with a fast changing global environment. Advances in technology and economic global competitive realities have reduced the power of the unionized rank-and-file worker, and increase the pressure of management to increase corporate profitability. This has fundamentally changed the nature of work. No longer does an employee expect to spend their entire working lives with one employer, and retire with a gold watch and a small pension for a lifetime of service!
Labor unions understand the needs of the workers, but few unions understand and accept the needs of business. This is a very important concept often ignored. When an employer does not earn a profit, the business will be out of business, and does not need workers. The reality is the old ways of doing business do not work in the new global market place. Labor unions need to become a value added partner with business, not an adversary to economic survival.
The labor unions versus management mindset will lead to labor without a place to work, because management has reduced production, merged, or moved the industry to a lower cost environment. “If unions are going to survive and prosper in the 21st century, we still need to meet the needs of workers, but we also need to find a way to serve important business needs… We can no longer simply demand that business adapt to our needs. We need to adapt to the needs of business…” (http://www.virginiaclassifieds.com/biz/virginiabusiness/magazine/yr2006/dec06/ideas.shtml)
The nature of work has changed, and unions must change together to meet global market demands. The key to long-term union survival, increased economic strength, and political power lies in the ability to adapt to changes. In other words, organized labor must become productive allies with business, and become part of the solution, not part of the problem. To do less will result in a decayed organized labor business model creating its own irrelevance, and labor unions will soon go the way of the dinosaurs.
“If organized labor continues to do what it has always done,
it will continue to get less than it has always got.”
-Anonymous-
********© 2007 Chris Mosquera. All Rights Reserved.***************
By Chris Mosquera
Executive Summary
Is Organized Labor a Decaying Business Model? The answer is not a definitive yes or no, but rather yes and no. If organized labor continues in the same manner it has for the last century, then the probability of relevant existence in the next century is very slim, and labor will become the one-century wonder. Unions must accept the new paradigm, which is the nature of work is changing, and will continue to evolve. The economic forces of globalization are a major contributor to this evolution, as is the shift towards an internet based information society. The traditional blue-collar labor business model is being replaced with robotics, technology, outsourcing, and globalization.
Big labor is big business, but still stuck in the last century. Unions have failed to accept that the nature of work has changed. Business as usual, usually means that you are out of business. Market forces are forcing economic changes, and unless labor adapts quickly, it will become irrelevant in the global market. Virtually every product and most services can be performed offshore in low wage countries, or outsourced to lower wage states, using eager low-wage non-union workers.
The internet and technology, has created the global 24-hour workday. When it is night in the western hemisphere, it is day in the eastern hemisphere and workers can perform back office functions in the east, ready for the workers in the west the next business day. Telephone communications is seamlessly transferring calls to worldwide call centers, where cheerful representatives, will answer your concerns in the language you have chosen. “For English press one, for Spanish press two, and for other languages, please press three,” is the globalized method for customer service communications.
American companies can make candles in China, and sell them in Chicago, cheaper than making candles in Chicago and selling them in Chicago. These same companies can make candles in China and sell them in China, and internationally, even cheaper and for a greater profit, than selling the same candles in Chicago. To an extent, labor unions are to blame. They have priced labor above economic returns. This oversight is a significant contributor to the decline of the organized labor business model.
Labor, in its basic element, is a commodity, like any raw material or production facility. Best business practices mandates that companies go where they make the most profit. Labor is expensive. Corporate America has fought back, by outsourcing, moving to non-union and less expensive environments, downsizing, embracing technology, and by aggressively fighting union organizing campaigns. It is not personal, just business.
The survival business model for organized labor is to become more relevant with the times and re-format itself to meet the needs of its members. Corporate America uses a similar business model, as they shed old products, and old production methods. Corporate America emerges leaner and more agile, able to meet product demands quickly and adjust to market realities. Unions need to adjust their business model to market realities and become more business centric and less fraternal.
If organized labor is to survive, it must look to the past to see the future. Labor unions have become complacent, unable, or unwilling to adjust to change. The axiom of unions being “male, pale, and stale” has merit. Unions are coming to the slow realization they must shed their old-boy ways, and embrace immigrants, minorities, service workers, and all disenfranchised workers. Traditional blue-collar workers in heavy industry are declining, and no company or industry wants to bet on a loosing horse.
Politically and economically, the future for organized labor as an industry is with the sectors of the economy that have been previously ignored. This includes service sector employment, low-wage workers, minorities, and immigrants. These workers need the services that unions provide, such as better wages and benefits, better health care, and collective bargaining benefits. Unions must return to their roots. Historically, unions represented oppressed workers, which is exactly the category that minorities, immigrants, and low-wage workers represent.
Unions have seen better days. Private sector unions have experienced a rapid decline in saturation, as companies search for lower cost business models. Public sector unions are the only bright spot, and these numbers are barely holding steady as governments on all levels are facing the dilemma of servicing more people with shrinking budgets.
The key to union growth is organizing, and the mantra of “Organize or Perish” is an absolute. Organizing is the method for unions to grow and expand their business. Companies expand by adding paying clients. Unions expand by adding dues paying members. Corporate America wishes to remain non-union, and when faced with an organizing attempt, swings a heavy hammer spending vast sums to remain union free.
The labor relations business (‘union busting’ in the labor vernacular) is a huge industry on to itself, and has been a significant contributing factor to the decline of unions. The goals of the labor consultants are to convince employees that unions are bad, and the company is good. Companies that hire professional labor consultants, have a significantly higher win rate over those companies that try to do it in house, or do nothing at all.
Unions argue that labor laws are written to support the employer, and make organizing difficult. That will change when some version of the Employee Free Choice Act (EFCA) becomes the labor law of the land! It will simplify and speed labor's ability to unionize companies. Unions consider the EFCA vital to the survival of the labor movement, and have pledged to spend $300 million on the election and securing passage of the Employee Free Choice Act. The Service Employees International Union said the legislation would enable it to organize a million workers per year, up from its current pace of 100,000 workers per year. This is good for unions, and bad for employers!
Currently, companies can demand a secret-ballot election to determine union representation. Those elections often are preceded by months of aggressive employer union free campaigns, and pro union campaigns. Under the proposed legislation, companies could no longer have the right to insist on a secret ballot. Instead, the Free Choice, or "card check”, legislation would let unions form if more than 50% of workers simply sign a card saying they want to join. It is far easier for unions to get workers to sign cards because the union organizers can pressure workers repeatedly, over a period of weeks or months, until the union obtains the support needed.
Unions thrive when employment relationships are oppressive and exploitative. Unions have difficulties organizing companies when employees are happy, fairly compensated, and productive. Repressive employers create strong unions, and good companies do not have unions. Happy workers are productive workers, and the employer and stakeholders all benefit.
Union labor has priced itself out of the global marketplace. Blue-collar industrial employment is outsourced to non-union low wage nations. Private industry must earn a profit or go out of business. “Union Made in America” is not an economic reality, given globalization and technology. Gone are the days of the workers versus management mentality. Labor must accept that to survive and prosper, they must become productive partners with business, not anti-productive adversaries. Welcome to the new reality!
The only stability is in the public sector. Organized labor contributes to political parties and campaigns, and therefore politicians do not want to bite the hand that feeds them! They placidly support government union organizing or remain neutral. Government services are not profit motivated and the increased labor costs are supported by taxpayers.
An unintended consequence of public sector unions is an entrenched bureaucracy where it is extremely difficult to terminate underperforming employees. The stereotype of lazy government workers is legendary. When you compound the union job protection clauses, it becomes the perfect storm for incompetence. Unions protect low productivity workers, support poor employee work ethics, and enable incompetency. The system rewards longevity and not productivity. The bureaucracy outlives the bureaucrats.
Foreign automakers (such as Honda and Toyota) are awarded tax incentives to build domestic factories, usually in lower wage states. The foreign automakers create blue-collar and white-collar jobs in states with high unemployment, low union saturation, and improve the prevailing area wages. This raises the local standards of living, and increases the tax base, which in turn helps the local economy. It is a winning situation for all parties. The plants tend to be staffed with younger, non-union, less costly workers, and therefore the retirement and health care liabilities for the employers are less expensive. The legacy automakers are usually saddle with archaic union work rules, and staffed with unionized, older, higher paid workers, with expensive health care and retirement benefits.
If unions are to succeed and remain relevant, employers need to view workers and unions, not just as costs factors, but also as productive partners. A modern employer and progressive labor union, working together, and not as adversaries, can achieve higher productivity, and higher wages, with increased competitiveness and higher corporate profitability.
A case in point is the comparison between Costco and Sam’s Club (a Wal-Mart company). Both firms sell similar products to similar customers, and are aggressive competitors. Costco’s labor costs are about 40% higher than Sam’s Club is. In 2005, Costco’s operating profit per employee was $21,805, as compared to Sam’s Club of $11,615, and Costco’s sales per square foot was $866, compared to $525 for Sam’s Club. Moreover, Costco’s employee turnover rate was only 6%, as compared to 21% for Sam’s Club. Profit, productivity, and unionization can be positively related, if all partners work in concert. (Economic Policy Institute Briefing Paper. Unions, the Economy, and the Employee Free Choice Act. Briefing Paper #181. Shaiken, Harley. 2007).
One of the roles of government is to distribute economic prosperity to the workers who are both a major contributor and a major benefactor. Business and labor are mutually dependent on each other, and their success is based on a cooperative positive relationship. A company that fails to be profitable because of out dated and unrealistic labor policies, soon consolidates, files for bankruptcy or closes shop, and the workers loose. An empty factory or closed store does not need workers. Simply put, no employer, no employees!
The American Dream, and thus the nation’s “American Dream” of economic prosperity are co-dependent on productive labor relations. Globalization, outsourcing, downsizing, technology, and the internet are real threats to the American blue-collar worker. “Union Made in America” has become a history lesson, and now might mean, at best, “Maybe Partially Assembled in America.” A realistic economic alternative is a mutually dependent labor and management relationship, with government acting as a helpful “consigliore” or counselor and advisor to both sides.
Government plays a role in American prosperity, by establishing and developing economic initiatives that benefit workers, and support economic growth policies. Government institutes macroeconomic policies to support long-term job creation, and to provide the tools to educate, train and support workers and their families. Micro economic policies, such as local job creation requires the sustained support of government, industry, and unions, to provide the education, training, and career paths to create jobs consistent with the economy, industry and community needs.
All workers need to earn a living wage, in order to support a family and to grow the economy. Workers at the lower end of the wage scale, require larger social services supports, and contribute little to the economic well being of the nation as a whole. Raising the federal minimum wage to a level that may actually support a family is an example of a government policy that may positively affect families, and in the long term the nation. To keep up with the real purchasing power, wages must be relative to the local economy. Higher wages provide benefits to society, by increasing the families buying power, which stimulates production and consumption, and reduces dependency on social services and government programs.
Lifetime employment, if it ever really existed in the United States, is an outdated concept and does not connect with a fast changing global environment. Advances in technology and economic global competitive realities have reduced the power of the unionized rank-and-file worker, and increase the pressure of management to increase corporate profitability. This has fundamentally changed the nature of work. No longer does an employee expect to spend their entire working lives with one employer, and retire with a gold watch and a small pension for a lifetime of service!
Labor unions understand the needs of the workers, but few unions understand and accept the needs of business. This is a very important concept often ignored. When an employer does not earn a profit, the business will be out of business, and does not need workers. The reality is the old ways of doing business do not work in the new global market place. Labor unions need to become a value added partner with business, not an adversary to economic survival.
The labor unions versus management mindset will lead to labor without a place to work, because management has reduced production, merged, or moved the industry to a lower cost environment. “If unions are going to survive and prosper in the 21st century, we still need to meet the needs of workers, but we also need to find a way to serve important business needs… We can no longer simply demand that business adapt to our needs. We need to adapt to the needs of business…” (http://www.virginiaclassifieds.com/biz/virginiabusiness/magazine/yr2006/dec06/ideas.shtml)
The nature of work has changed, and unions must change together to meet global market demands. The key to long-term union survival, increased economic strength, and political power lies in the ability to adapt to changes. In other words, organized labor must become productive allies with business, and become part of the solution, not part of the problem. To do less will result in a decayed organized labor business model creating its own irrelevance, and labor unions will soon go the way of the dinosaurs.
“If organized labor continues to do what it has always done,
it will continue to get less than it has always got.”
-Anonymous-
********© 2007 Chris Mosquera. All Rights Reserved.***************
Friday, February 20, 2009
“Is Organized Labor A Decaying Business Model?”
This paper will examine the organized labor business model from the perspectives of the economic and political influences of organized labor relative to the domestic and global economy. The traditional organized labor business model, as we have known it over the past century, is not sustainable in it present form, and will become less relevant, irrelevant or extinct, unless major changes are made. The nature of work has changed, and labor unions have failed to evolve with this change, just as dinosaurs became extinct because they failed to evolve with the climatic changes.
Union representation serves a very important business and economic function. Repressive employers create strong unions, because unions protect workers from abusive management. The organized labor business model for growth is to unionize low-wage workers, such as immigrants, minorities, and females, in industries and locations with traditionally low union saturation.
Historically, labor unions have encouraged an adversarial (us versus them) approach to business operations. The key to long-term survival, increased economic strength, and political power lies in the ability of organized labor to adapt to changes, become productive allies with business, and be part of the solution, not part of the problem. To do less will result in a decayed organized labor business model creating its own irrelevance and going the way of the dinosaurs.
© 2007 Chris Mosquera. All Rights Reserved.
Contact: chrismosquera@gmail.com
Subscribe to:
Posts (Atom)
