Monday, June 15, 2009

A Lesson Not Learned

This White House loves the unions. No question about that. Biden slobbers over the unions. Obama told the Union Bosses at a White House ceremony, “Welcome back to the White House.”

Consider this:

Nearly 93 percent of America's private-sector workforce has not chosen to unionize, so union officials hope to leverage these federal funds in a full court press to corral millions more workers into forced-dues-paying union ranks.

It is beyond irony that at the same time Obama and Biden are pushing for more union workers, we see the end result and failure of what unions do to a company.

I give you GM.

Unions, like welfare, are a well intentioned idea gone horribly wrong.

GM long dominiated the car industry. A great powerful and producing company for decades upon decades. What brought this great company down? Many things, but the union is at the top of the list.

From The Week:

The company, which in the 1980s employed over 800,000 people worldwide, brought labor peace by giving it's unions lavish pay and benefits packages that earned it the nickname, "Generous Motors." But those labor contracts crippled the company's ability to cut costs.

They resisted the closure of unneeded factories and pressured GM to create a "jobs bank" that paid laid-off workers up to 95% of their salary and benefits.

The United Auto Workers, meanwhile, resisted every attempt to shrink the company to match it's declining sales. It refused to renegotiate health benefits for its current members and the 377,000 retirees, even though they cost GM about $1,200 per car, putting the company at a sizable cost disadvantage to Japanese rivals.

So here we are with proof in the pudding of how harmful unions can be to a great company, and we learn nothing. We have an administration that embraces unions and works to require more and more workers to join unions.