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Today's Nuze

"Every government interference in the economy consists of giving an unearned benefit, extorted by force, to some men at the expense of others."

Ayn Rand

Nobody's listening.

HOW ABOUT THEM UNIONS

By
Neal Boortz
@ June 24, 2009 7:54 AM
Permalink | Comments (36) | TrackBacks (0)

I got on a rant about unions again after reading about these government school teachers in New York. You know the ones sitting in these "rubber rooms" doing crossword puzzles and playing grab-ass? Yeah, those are the ones. What a joke. But you continue to turn your children over to the government to be educated.

Anyway, that got me thinking about how hideous unions are for this country, and I was reminded of a recent study by the Heritage Foundation. Take a look at some of the highlights below. It's wonderful stuff.

  • Studies typically find that unionized companies earn profits between 10 percent and 15 percent lower than those of comparable non-union firms.
     
  • Some unions win higher wages for their members, though many do not. But with these higher wages, unions bring less investment, fewer jobs, higher prices, and smaller 401(k) plans for everyone else.
     
  • Final union contracts typically give workers group identities instead of treating them as individuals. Unions do not have the resources to monitor each worker's performance and tailor the contract accordingly. Even if they could, they would not want to do so. Unions want employees to view the union--not their individual achievements--as the source of their economic gains.
     
  • Consequently, union contracts compress wages: They suppress the wages of more productive workers and raise the wages of the less competent. Unions redistribute wealth between workers.
     
  • A better summary of the economic research is that unions do not increase workers' wages by nearly as much as they claim and that, at a number of companies, they do not raise wages at all.
     
  • In essence, unions "tax" investments that corporations make, redistributing part of the return from these investments to their members. This makes undertaking a new investment less worthwhile. Companies respond to the union tax in the same way they respond to government taxes on investment--by investing less.
     
  • Research shows that unions directly cause firms to reduce their investments. In fact, investment drops sharply after unions organize a company. One study found that unionizing reduces capital investment by 30 percent--the same effect as a 33 percentage point increase in the corporate tax rate
     
  • The balance of economic research shows that unions do not just happen to organize firms with more layoffs and less job growth: They cause job losses. Most studies find that jobs drop at newly organized companies, with employment falling between 5 percent and 10 percent.


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What others are saying

  • Unions
    I work for one of the companies that the unions are DYING to get into. From what I can see it is going to be just like "Obamacare"...a done deal that cant be stopped. SO instead of asking the question "what can brown do FOR you?"...when the unions get in it will be "What can brown do TO you?"
  • I am a libertarian and I am suspicious of any concentration of power. Unions are a problem. However, there is one solution that I think would work. Apply the antitrust laws to unions. One union per company and a union could not control a whole industry. One teacher’s union per school district and they could not control the whole education system. Now antitrust laws and the way they are used are problematic. However, we are stuck with them at least for now so why not apply them more fairly.
  • Unions <=> Dumb Masses
    A self employed "good union man" still paying dues despite having lost two "protected" jobs told me the glories of labor unions, including how the Civil War was fought to preserve the labor unions, therefore, keeping slaves (and serfs as mentioned in a the 9:39 AM comment) from getting all the good union jobs. This guy only thought he knew everything, (which really annoys those of us who do) but virtually all of it was as true as the sun rises in the west (where he saw it set), which is a literal example of him being wrong but not admitting it. He also could not understand southerners due to us using big words (like vocabulary and dialect) that he didn't know what they meant, thus there appears to be a big difference between government schools in Alabama and Ohio. I could give many more examples of how such a good union man is an oxymoron, which would be taken as compliments. Perhaps an explanation (in this case) for such ignorance transcending into stupidity is spending way to much time out in the sun without a wide brimmed hat, which shades your head rather than making it to hot for your brain to work.
    By the way sock mills are leaving the "Sock Capital" in Alabama partially (due to NAFTA and) because of lower production and quality resulting from defacto unionization of (illegal) immigrant workers that are jealous enough that anyone not in their clique getting higher pay due to higher production is sabotaged (by adjusting machines to cause broken thread, broken needles, and/or socks that are to tight at the top) while some management seems oblivious or condones it since their fixed salaries are likely exceeded by the highest production pay as well.
  • Doc
    "actually i think that the main unions are the government workers."

    That's for sure! But remember the jobs still belong to the businesses, not to the workers. And workers can still vote as far as representation in goverment. Instead of increasing the power of unions, we need to eliminate lobbists of all kinds. They always become corrupted and spread corruption.

    Keep your ear though....
  • Joyce M/Blythe
    actually i think that the main unions are the government workers.

    The unionization rate of government workers was 37.4 percent in 2001. Local government, which includes many workers in the heavily unionized occupations of teachers, firefighters, and police officers, had the highest unionization rate in 2001, at 43.1 percent.

    the police unions are a pain.
    the OSHA, EEOC, are government agencies. there been taken over by bureaucrats.
    the ACLU is half right / half wrong. when the klan wanted their free speech rights, the ACLU went to fight for them, and won. i don't like the klan, but in america all the people have freedom of speech(so far).

    i care what unions have become. i don't like it. but i care about the industrials having lobbyists getting their ways in the government. i want the people to have an equality among the government through the lobbyists. its the unions where it is only way to get it. if anybody has an idea where this can be done without unions, i'm willing to give them my ear.
  • BNeckid
    Yeah how about that $10mil going to Cambodia! Great huh!
  • Generalizing again??
    Lighten up on the Unions Neal--they are not all the same. The construction trade unions are a different animal than teachers, government workers, etc. etc.

    #1 Their productivity is closely monitored on the job and the productive work and the nonproductive sit on the bench (especially in this economy).
    #2 Most understand that if their contractor/employer is not successful they will not be successful. Union shops compete head to head with the non-union shops and the only variable is labor wages and benefits.
    #3 Education is mandatory in the union to advance; having worked both sides of the fence it is a huge difference in the knowledge of the work force.
    #4 The collective bargaining agreement provides that defective work be corrected by a tradesman on their own time without pay--never had that option in a non-union shop.

    Just some quick highlites to throw out to the readers.

    Hope you enjoy your new digs Neal--plumbed and wired by union tradesman
  • it used to be................................
    back in the bad ol' days if you could read and 'rite you waz 'sumpin.

    in these difficult times when people are watching oprah and jerry springer, I am sure there are some very talented folks that have the ability to teach kids to read 'rite do 'rithmatic and be able to put a complete sentence together.

    ok folk band together and, I don't like this phrase, git 'er done!

    this is still America, and the spirit is not dead just wounded. all it takes is a can do spirit, not a yes we can mantra.

    look at what the desert dwellers have done....all the sewersidw bombers can read and write.

    I'm not saying you turn your kids into bangbang vest wearers just get it together with friend and neighbors and take control of your kids skollin'.

    sewerside= suicide=loser,dumdass, osamabama voter...

    DRIP
    ARM PROTECT
  • william f. buckley was.....................................
    I think Jack in dayton is a BUCKLEY wanna be. sorry you ain't got the CLASS!
  • @Skylark
    Don't confuse me with the facts. After all, look at California....they have a union for everything and it worked out just peachy for them....
  • Skylark Thibedeau
    we had non-union plants go overseas too. maybe it wasn't the unions but the bosses greed what did it.
  • edukation where???????????????????????
    on drudge

    $10,000,000 for edukation in FRIGGIN Cambodia...............

    quick get your kids passports and visa's and maybe they can get an edukation over there.........you're paying for it.........
  • ouch ouch ouch...........................
    Joyce M/B......

    your tongue is mighty!
  • Summary
    Neal's story of his days with the Postal Service pretty much sums it up on the mentality of unions.
    That was in "Somebody's gotta say it".
  • Doc
    why?
    why is neal worried about unions? their only 12.4% of the labor force. that's a negligible number if you ask me. why?
    By tshirt-doctor.com

    Come on, you know they are a pain! It's the concentration of where they are that is the problem. Majority of union workers are in automotive or other places they can cause prices to go up. IF 12.4% is accurate, it's probably down tremendously as companies get smart.

    We no longer need unions to watch out for employees. We have OSHA, EEOC, ACLU (gag) and loads of local entities. If we boost business to create REAL jobs, then the worker has more choice.
  • Textile Unions
    The Unions finally prevailed and Unionized the Textile Plants in NC. Within 5 years Springs and Cannon were out of business and the jobs overseas and the pension fun gone. I'm sure all these folks enjoy working at WalMart or as janitors at the Taxpayer Funded Research Park that took the mills place.
  • Happy worker
    I work for a contract company. I get raises every year along with cola increases. My management treats me with respect and gives promotions where they are due. There is a mutual respect for eachother because we have a common goal (for you union believers, the common goal is success)i do my job well and it is rewarded. If i did not do my job well i would be replaced. That is how buisness works. I dont need a shield(union) to give my hard earned money to.
  • why?
    why is neal worried about unions? their only 12.4% of the labor force. that's a negligible number if you ask me. why?
  • I don't like it when unions cause cars to cost extra $$$
    Being the buyer of a car, I'm picking based on price. When unions cause car prices to rise in Detroit, compared to the ones built non-union in the southeast, you know what I'm picking! I have to balance the budget at home, and when Wal-mart lets me stretch my food dollars, guess where I'm going? Not to a union-run store, but to Wal-mart.

    Balk all you want about management vs. unions. The bottom line: unions cost buyers money, and drive consumers to non-union solutions. Only way unions can stop this is by government controlled restriction of non-union options.
  • Commoner
    i agree with what Commoner said.
  • Myths promoted by goon-ions?
    Often when the negatives of goon-ions are discussed people mention that they were necessary in the past because of this and that (like bad working conditions and the use of extensive child labor), but is this really true? And even if it is, wouldn't something else have come along to change it anyway?

    For example, people say that unions freed kids from child labor abuses, but where were the parents of those kids years ago? Why does no one hold them accountable for having too many kids and/or putting them into dangerous situations like that?
  • Private schools expensive
    You know Neal, I agree with you about the state of our public schools but many parents have no choice but to send their children to them. Private schools are very expensive and not all families have a spare parent who is qualified to teach their kids from home. I notice you tend to look down your nose at parents who send their kids to these sub-par public schools, but perhaps for these parents who have no choice, a better approach would be to encourage them to pay close attention to what those schools are teaching their kids and to counter the government propaganda with their own teachings and lessons in the evenings. Kids can survive the public school experience with their brains intact if they have parents who are involved and who are willing to provide alternative points of view and examples than the public schools will provide.
  • Jack Jack Jack
    There are plenty of highly educated morons out there and me thinks you ply your trade thusly....

    Use modern English, you are not impressing anyone.

    Most of those groups you cite agree with The Heritage Foundation in most cases anyway so your point is, well, pointless!

    When it comes right down to it, I will say in my own highly educated vernacular: unions suck dude.
  • unions
    I worked for years at Tower package store on Buford hwy right up the road from the GM plant. Everytime they went on break they would invade the liquor store buying beers and loading their coverall pockets with pints and halfpints of liquor. One night a car drove into the building and without missing a beat the GM workers walked over the car which was thru the front doors. Payday was full of GM checks being cashed and people wonder why the cars are crap and why GM is bankrupt.
  • neal and unions
    of course neal don't like unions. he's management.

    he likes the South by a serf labor pool for the yankee industrialists. why should we build a sock factory in new york paying men $4 a day when we can build a sock factory in alabama and pay the woman $1 a day.
    that's why anti-unionism is like a religion down here. you get people shouting anti-union slogans just the same as the father shouted them, just like his grandfather shouted them, just like his great-grandfather shouted them.
    if you pro-union you better find a new church some where else.

    don't be like these monkeys :O)

    http://www.wimp.com/humansociety/
  • Unions as scapegoats
    I am not a big union guy, but I do understand that they have a purpose and I don't fault anyone for unionizing or belonging to a union. But companies just use the unions as scapegoats. GM can't operate because the union brought them down, our education system failed our children because of the unions, etc...etc. The unions aren't the problems, it is inept management. Boortz talks about responsibility, but business needs to take responsibilty for failure and not attempt to pass the blame for failure on unions.
  • Jack in Dayton
    You may have a good point but it is impossible to read your post when you use all of them there big words.
  • Stossel has a flowchart to fire a teacher in NYC
    It is online somewhere and he published it in his book "Lies, Myths, and Downright Stupidity". Enter the words:

    John Stossel fire teacher NY

    into a Google search and you will find it.
  • Government Unions
    Unions for government workers do not have to worry about their employer making a profit and neither does the employer. Is there any wonder that city workers in some jurisdictions are facing layoffs and that many cities like Columbus (OH) are trying to raise taxes significantly. Unless governments get their workers' unions under control, the cycle of increasing taxes will continue.
  • @Jack in Dayton, Ohio
    Jack: It is obvious here that you are more than likely a Democrat voter. You are using the Moveon.org talking points instead of researching your own facts for you argument.

    This is why I am a Libertarian. We research things for ourselves and don't automatically buy into nor spout off the Republican or Democrat party talking points on issues such as this.
  • Bottom line: Punish people for achievement and you get less achievement.
    Econ 101: Reward an activity, you get more of it.

    Punish an activity, you get less of it.
  • Yesterday Drudge had a link...
    about some union passing out hard hats made in China - the morons forgot to take the stickers off! They apparently buy the cheapest things for promotions, and if they happen to be made in China, will take the stickers off. This way, the union goon fat cats can keep their precious union goon dues - something you don't ever hear a Libtard Dumocrat complain about, unlike, oh, corporate executive pay.
  • What if ...
    instead of the union "organizing" a workplace, the union could "bid" to provide labor to a workplace in fair and equitable competition from other union(s) and/or individuals? Would that cause the unions to have to compete for work based on "lower per-unit-produced cost", "fewer defects", "higher production", or some such. Just a thought.
  • Teacher's Unions
    I've been teaching in the Southern US for 10+ years. I've never belonged to a union and every district I've worked for has fired those who deserved it without fail. I don't see the point in unions at this point in history--we do not have people working 12 hour shifts on unsafe machines or children being killed in factories. I think the unions have long outlived their usefulness!
  • labor unions
    To dis-credit labor unionism why cite the morally compromized neo-conservative Heritage Foundation when there is a plethora of REAL laisser faire capitalism exalting groups extant with a proven record of exploding labor union myths such as the Future of Freedom Foundation, the Foundation for Economic Education, the Ludwig von Mises Institute, LewRockwell.com et cetera without all the gratuitous patrician conservatism, war mongering, imperialism, militarism, centralism, executivism--O wait, that was during the rockefeller pseudo republican Bush regime--tolerance of central banking, lincolnism, corporatism, interventionism & avid fixation on Israel wherefor odious groups such as the Heritage Foundation, American Enterprise Institute, Cato Institute & Objectivist Center are notorious? The late Miss Ayn Rand declaimed on a pernicious practice she called package dealing, did Boortz wilfully-perversely draw the wrong lesson thence? I am cynically constrained to wonder.
  • Unions
    How can you tell when a Teamster dies?

    The doughnut falls out of his mouth.
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