Sunday, September 26, 2010
U.S. Labor Unions Hurting American Businesses?
I agree with the original intention of Unions in the sense that they looked out for worker's rights in a time when unfettered capitalism was quite harmful, economically and sometimes physically, to most people that weren't the wealthy investor in the situation. I'm OK with humanizing working conditions and providing proportional compensation for work.
However, as I understand it today, Unions have become more along the lines of rackets, that they basically are what people are beginning to see them as; generally overpaid groups of workers who demand an amount of benefits that are disproportionally large for the amount of work they do. My uncle is a project manager for construction projects and according to him, based on his own first-hand experience, when using Union labor "its like you're not allowed to make a profit".
I'm OK with providing a fair amount of compensation and benefits to laborers, but there's a limit to how much someone should be paid to drive a bus, push a button, or swing a hammer, and an annual $80k (plus benefits) is too much. There are so many Labor Laws on the books now that that Union, in it's current form, is simply something that isn't needed and American businesses can no longer afford.
If you want proof of the damage that most modern day Labor Unions have caused, look no further. Turn your eyes and attention to the cities of Cleveland, Baltimore, and most importantly, the Motor City -- Detroit and the Big 3 (Ford, Chrysler, and GM). All of them are great examples of what happens to heavily Unionized cities in the dying Rust Belt. This is the reason so many companies are outsourcing to places like China. Some companies opt for the less drastic option and at least keep their factories in America, by relocating to one of the Southern States in America, where there are significantly less Unions, but adequate Labor Laws. Alabama and Kentucky are examples of states reaping the benefits of the mass exodus of businesses from the Rust Belt to the South.
Before you place the entire blame on China or other countries with a population willing to work in slave conditions, take a look around and see the reasons WHY corporations and manufacturers are taking such actions and you will see the answer is simple: there isn't a feasible profit to be made by keeping it "Made in USA".