Thursday, February 10, 2011

Unionization! - Death Knell!

From Louis Woodhill

"The purpose of a union is to extract from its employer more than the market wage. If it doesn't do this, then there is no reason for workers to support it or to pay dues to it. Because companies must sell their output at market prices and pay market returns for the capital that they employ, they cannot afford to pay more than "market" for any major input. Accordingly, any unionized company for which labor is a significant part of its cost structure will eventually be destroyed.

Today's executives know that unionization is the "kiss of death" for their companies. They have no choice other than to resist unionization where possible and to disinvest and flee (whether to Texas or to China) if it occurs. If they don't, they will lose their customers to lower cost producers."

Now Government unionization is paramount! It is the Golden Nugget for the unions.

"In 2010, the number of union-represented employees government employees (7.6 million) surpassed the number of unionized workers in the private sector (7.1 million) for the first time. Since it's peak about 55 years ago, private-sector unionization has declined by almost 80% (from 33.9% to 6.9%), while public-sector unionization has almost tripled, from 9.8% to 36.2%.

Early union leaders thought that it made no sense to try to unionize government, because government had no profits in which labor could share. However, for more than 40 years, the union movement has understood that its survival depends upon enlisting government coercion in its cause. The labor movement has focused its efforts on organizing government employees, and unions have allocated an ever-increasing amount of their members' dues to political activities. Union money goes almost exclusively to Democrats, because the Democrats are the party of government, and the survival of unions now clearly depends upon government."

Need you know more?