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The Gaffer's Philosophy:
Part 122: Unions:
September 27, 2004:
It is impossible to speak of the economy and commerce without taking into account the ongoing effect of labor unions. Let us briefly look at the history of labor unions. They have not been around forever. They came into being for a solid reason as a response to really short sighted management practices supported by blundering governments.
It all started with the industrial revolution. At that time, large numbers of people left their agrarian roots and migrated to the larger population centers. There they found work, but under abominable conditions. They lived and worked in overcrowded miserable situations. The hours were long and the work was dirty and difficult. There was enormous risk to life and limb and no recompense for the unlucky or careless. The emphasis was on productivity above all and children were not spared from the ordeals.
The worker's response was the organization of trade unions, first in England, where the industrial revolution started, and later elsewhere. These trade unions were first legalized in England in 1824. In those times, what happened in England often migrated across the ocean to America. Thus, in 1869 a fellow named Uriah Stephens secretly organized the Noble Order of the Knights of Labor (KOL). Secrecy seemed prudent at the time to protect the members from retaliations by overzealous employers. By 1886 they had 700,000 members, more or less. After a successful railroad strike in 1877 they felt secure enough to come out of the closet, which they did in 1879. So far so good. They had become the largest labor organization in America.
After that, things kind of went to heck. In their zeal they staged some 1600 strikes in 1886 with a great deal of violence in some of them. These culminated in the Haymarket riot in Chicago on May fourth of that year. That riot came out of an attempt to negotiate an 8 hour work day at McCormick Harvesting Machine Company. When the police intervened to protect scabs and acted to break up a rally in Chicago's Haymarket Square all hell broke lose. Seven law officers were killed and 60 were injured before it was over.
For sure, there was a backlash. In an irrational reaction to the riot, four labor leaders were convicted and hanged and another took his own life even though there was no evidence of their involvement in the riot. With that kind of intimidation coming down the KOL became defunct. Not for long thought. Out of the ashes, the American Federation of Labor (AFL) was born. That group organized by Sam Gompers was a loose federation of autonomous trade unions. They are still with us.
After some internal squabbling another group split off from its association with the AFL. This was the Committee for Industrial Organization (CIO). These people argued that the unions should be organized by industry rather than craft to deal with the huge mass production industries. The AFL pretended to boot them out, but they were already out by choice and they promptly organized the workers of the steel, rubber, and automobile industries. Later they changed their name to Congress of Industrial Organizations (still CIO). The famous Flint, Michigan sit-down-strike against GM in 1937 increased their power and their membership.
Looking at this history, much of it violent, it is easy to conclude how the unions came about. They came into being because of the theory x management philosophies of early American entrepreneurs supported by corrupt government with police that were little more than thugs. It was a mostly successful effort to deal with the oppressive conditions resulting from stupid management practices. Nothing else. Without bad corporate management, unions could never have been organized. Currently, in spite of all the lip service about enlightened management, those short sighted self defeating management philosophies persist. So long as they do, unions will be necessary. Unions are a viable answer to human exploitation.
Under the unions it is guaranteed that all workers will get the same treatment. This was usually true before unions also. The difference is the level of treatment. Before unions, workers were treated like excrement. In areas where there are no unions, this bad treatment still occurs. American nurses are the latest to experience these insane self destructive management practices. Now, they're organizing. It's a darn shame, but a fact. As long as we have rabble in management, we will need unions.
So, what is wrong with unions? As I see it, the current problem with labor union leadership is their very narrow focus. They focus almost exclusively on the short term gains of their current membership without regard for the long term effects of their actions on America. Like most every other leader, they cannot see beyond the year end bottom line. As a consequence they do damage to the future of the country. This has never been more evident than in their opposition to NAFTA. NAFTA may need to be modified. We may even need new laws to control the abandonment of workers, but the treaty itself should remain. It holds out the promise of making the Americas the most powerful trading block in the world. That is the kind of economic power that will guarantee the future of the American workers.
Also in the area of technology too many of the union bosses are Luddites. They want to go backward in time. They want to stop technology. They demonstrated this in the recent dock strikes that brought American commerce to a halt. They wanted to ignore the automated loading and unloading cranes and do it the old way. Instead of upgrading their skill levels to use the new technology, they tried to block the technology.
That is long term stupid. It threatens the future of every kid in America. The economic system that maximizes technology is going to dominate the world. Do we want it to be China or Europe? Improving wages and working conditions should be their focus rather than blocking technology. The use of technology is a legitimate management prerogative. I flatly reject the notion that employees should have a say in how a company is run. An enlightened company may allow them to have input, but is should not be a right. It should be the carefully used privilege of working for an enlightened management, and it should be limited in scope. It should be input, not control.
All that being said, we still need labor unions. That is the
tragedy of America. We have very few managers who are wise enough
to see the advantage of theory Y management practices. In addition
we constantly get administrations in Washington who meddle with
the laws in brazen attempts to favor big business over workers.
So long as this continues, we will need powerful organizations
of labor to oppose those attempts at worker oppression.
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