People say there are unions, therefore there are problems. Not true, there are problems, therefore there are unions.
- Gary Booker
The law requires labor and management meet and confer, not meet and agree.
- The law.
There is no such thing as an outrageous union demand, there are only outrageous management concessions.
- R A Smardon
This is exactly right. Unions formed in reaction to management abuses. If you look around today, poorly run companies have unions, well run companies do not.
(None of this applies to house unions, which are not unions at all, for example a government worker union. A government worker cartel is no more a union than a school is a gun-free zone. Or As President Roosevelt put it
All Government employees should realize that the process of collective bargaining, as usually understood, cannot be transplanted into the public service. It has its distinct and insurmountable limitations when applied to public personnel management.
Read more at http://globaleconomicanalysis.blogspot.com/#lYyO62WlMrLIDskz.99
But do note, not to put too fine a point on it, the State is heavily unionized.)
In 1934 Boeing was a well-run company with a brilliant manager in charge. The progressives in DC accused Boeing of being a criminal and began writing rules on how his company should be managed. Bill Boeing sold out and left the company, and in essence the State took over. One year later Boeing was unionized. As in every economically challenging time, war strains were in the background, so being in essence state-run was good for a company that would make war materiel.
After the wars Boeing developed the jet airliner under heavily subsidized conditions, which made it easy for the unions to charge management a high fee for lack of management capacity. Given the state was so advanced in managing the economy circa 1970, and with the failure of the SST program at Boeing, the company went on life support. Nixon closed the gold window, which gave inflation a chance to rage, and Boeing grew with the booming economy, led by its military contract baby, the 747, a freighter converted to haul humans.
Today Boeing workers are considering a strike, put on hold as Boeing's latest great hope is grounded worldwide. Boeing workers blame the problem on outsourcing. Wait. Boeing always has outsourced. Boeing is a big assembly plant fed by 3000 subcontractors who ship in parts JIT. So they must mean outsourcing overseas. But this is a management decision. And outsourced parts are managed in production as well. So this problem is again management, not labor.
When a company becomes State run and State subsidized, it will be no more successful than Сухой, which has emerged from its Soviet origins but is yet to build a winning craft. Boeing's big threat is not Airbus, but the Chinese airlines. Back in the early 1980s Boeing knew immediately China intended to compete when China bought Boeing jets but enough spare engines (the toughest part of a plane to get right) to go into Chinese production.
A privately owned Boeing would not be in the condition it is today. The solution is for Boeing to compete with China by becoming a military division, like its Chinese competitor, or better yet, remove all of Boeing's subsidies and regulations so it folds and 1000 more Bill Boeings today start aircraft companies that no other country could take on competitively. An Aaron Swartz would bury Airbus, Сухой, and anything the Chinese State coudl produce. O wait, we killed Swartz. But you get my point, somebody.
Jimmy Hoffa saw the state taking over the economy, the inevitable theft of the worker pensions, and was having none of it. He was tossed into prison by the State for his resistance, but Nixon let him out after closing the gold window in 1971. With the gold window closed, there was no chance Hoffa could do anything to save worker pensions. Inflation would do the trick. But by 1975, after Nixon was putsched out, Hoffa began outing the state on other matters, and Hoffa, Roselli and Giancana were assassinated in turn within a year's time.
Within a few years, Reagan was elected and signaled the future by busting PATCO, and a year or so later I was sitting on management's side in the 1982 West Coast Longshoreman's Master Contract negotiations. There were murders then too, in Oakland and San Francisco at this time, but internal union stuff. The "strike issue" was unfunded pension liabilities.
In the 1980s the teamsters, with Hoffa gone, were decimated and pensions plans folded with the companies that could not stay open in the inflation-driven "get big or get out" Government economic policy.
So Mish comes now with his theme that unions are a bad thing, busting them is a good thing. He hails a court decision backing up Wisconsin governor's divide and conquer union busting. Complicated business, that. This busting is inevitable. In the Wisconsin case, it does not matter, because it is state unions being busted.
But real labor unions are needed where management is bad. Sadly, their leadership too have been bought off, not that it would matter, because the fix is in on the pensions anyway. The court ruling is just the judiciary doing its part, consolidating the strangulation of all unions. For a literal case-by-case study of how the courts follow political whims, read Horwitz.
If you do not study this book, you've never studied the USA.
What USA needs is in fact a genuine renaissance in labor unions to check the rampant fascism of the Obama administration, or whatever party is in charge.
Feel free to forward this by email to three of your friends.
- Gary Booker
The law requires labor and management meet and confer, not meet and agree.
- The law.
There is no such thing as an outrageous union demand, there are only outrageous management concessions.
- R A Smardon
This is exactly right. Unions formed in reaction to management abuses. If you look around today, poorly run companies have unions, well run companies do not.
(None of this applies to house unions, which are not unions at all, for example a government worker union. A government worker cartel is no more a union than a school is a gun-free zone. Or As President Roosevelt put it
All Government employees should realize that the process of collective bargaining, as usually understood, cannot be transplanted into the public service. It has its distinct and insurmountable limitations when applied to public personnel management.
Read more at http://globaleconomicanalysis.blogspot.com/#lYyO62WlMrLIDskz.99
But do note, not to put too fine a point on it, the State is heavily unionized.)
In 1934 Boeing was a well-run company with a brilliant manager in charge. The progressives in DC accused Boeing of being a criminal and began writing rules on how his company should be managed. Bill Boeing sold out and left the company, and in essence the State took over. One year later Boeing was unionized. As in every economically challenging time, war strains were in the background, so being in essence state-run was good for a company that would make war materiel.
After the wars Boeing developed the jet airliner under heavily subsidized conditions, which made it easy for the unions to charge management a high fee for lack of management capacity. Given the state was so advanced in managing the economy circa 1970, and with the failure of the SST program at Boeing, the company went on life support. Nixon closed the gold window, which gave inflation a chance to rage, and Boeing grew with the booming economy, led by its military contract baby, the 747, a freighter converted to haul humans.
Today Boeing workers are considering a strike, put on hold as Boeing's latest great hope is grounded worldwide. Boeing workers blame the problem on outsourcing. Wait. Boeing always has outsourced. Boeing is a big assembly plant fed by 3000 subcontractors who ship in parts JIT. So they must mean outsourcing overseas. But this is a management decision. And outsourced parts are managed in production as well. So this problem is again management, not labor.
When a company becomes State run and State subsidized, it will be no more successful than Сухой, which has emerged from its Soviet origins but is yet to build a winning craft. Boeing's big threat is not Airbus, but the Chinese airlines. Back in the early 1980s Boeing knew immediately China intended to compete when China bought Boeing jets but enough spare engines (the toughest part of a plane to get right) to go into Chinese production.
A privately owned Boeing would not be in the condition it is today. The solution is for Boeing to compete with China by becoming a military division, like its Chinese competitor, or better yet, remove all of Boeing's subsidies and regulations so it folds and 1000 more Bill Boeings today start aircraft companies that no other country could take on competitively. An Aaron Swartz would bury Airbus, Сухой, and anything the Chinese State coudl produce. O wait, we killed Swartz. But you get my point, somebody.
Jimmy Hoffa saw the state taking over the economy, the inevitable theft of the worker pensions, and was having none of it. He was tossed into prison by the State for his resistance, but Nixon let him out after closing the gold window in 1971. With the gold window closed, there was no chance Hoffa could do anything to save worker pensions. Inflation would do the trick. But by 1975, after Nixon was putsched out, Hoffa began outing the state on other matters, and Hoffa, Roselli and Giancana were assassinated in turn within a year's time.
Within a few years, Reagan was elected and signaled the future by busting PATCO, and a year or so later I was sitting on management's side in the 1982 West Coast Longshoreman's Master Contract negotiations. There were murders then too, in Oakland and San Francisco at this time, but internal union stuff. The "strike issue" was unfunded pension liabilities.
In the 1980s the teamsters, with Hoffa gone, were decimated and pensions plans folded with the companies that could not stay open in the inflation-driven "get big or get out" Government economic policy.
So Mish comes now with his theme that unions are a bad thing, busting them is a good thing. He hails a court decision backing up Wisconsin governor's divide and conquer union busting. Complicated business, that. This busting is inevitable. In the Wisconsin case, it does not matter, because it is state unions being busted.
But real labor unions are needed where management is bad. Sadly, their leadership too have been bought off, not that it would matter, because the fix is in on the pensions anyway. The court ruling is just the judiciary doing its part, consolidating the strangulation of all unions. For a literal case-by-case study of how the courts follow political whims, read Horwitz.
If you do not study this book, you've never studied the USA.
What USA needs is in fact a genuine renaissance in labor unions to check the rampant fascism of the Obama administration, or whatever party is in charge.
Apple never unionized, but Jobs is gone. Jobs was an Arab-American love child who grew up in anarchy, the unregulated micro-computer world, which was further opened by deregulation of telephony. Unregulate the airlines and we will see an economic renaissance. And USA jets that can actually fly safely.
Feel free to forward this by email to three of your friends.
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