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Source link: http://blog.mises.org/10695/mass-unemployment-in-the-name-of-norma-rae/

Mass Unemployment in the Name of Norma Rae

September 22, 2009 by

Thirty years ago Sally Field won the Best Actress Academy Award for her gritty portrayal of Norma Rae, a widowed small-town Southern textile-mill worker. Even those who haven’t seen the entire movie have viewed stills or clips of a sweaty Field standing atop a work bench holding over her head a piece of cardboard with UNION written in black letters.

The scene portrayed happened verbatim to the woman who inspired the movie, Crystal Lee Sutton, who acted in defiance after being fired for copying a flyer put up by the mill that claimed black workers would run the union she and labor organizer Eli Zivkovich were agitating for at the J.P. Stevens textile mill in Roanoke Rapids, North Carolina.

Ms. Sutton passed away September 11th, a victim of brain cancer, and union leaders are using her death to rejuvenate interest in the Employee Free Choice Act (EFCA). As membership in unions has plummeted in the last half century from over 35 percent of all workers in 1945 to just over 12 percent currently — and only 7.6 percent if government workers aren’t included — labor leaders view EFCA as the magic bullet to increase union membership and, in turn, union political influence. FULL ARTICLE

{ 19 comments }

Barry Loberfeld September 22, 2009 at 8:00 am

“But if big labor and their friends in big government have their way, in the name of Norma Rae, the Crystal Lee Suttons of the world will be unemployed.”

Let’s not forget the other partner of this threesome: big business. As even Ralph Nader says:

The arms-length relationship which must characterize any democratic government in its dealings with special interest groups has been replaced, and not just by ad hoc wheeling and dealing, which has been observed for generations. What is new is the institutionalized fusion of corporate desires with public bureaucracy — where the national security is synonymous with the state of Lockheed and Litton, where career roles are interchangeable along the industry-to-government-to-industry shuttle, where corporate risks and losses become taxpayer obligations. For the most part, the large unions do not object to this situation, having become modest co-partners, seeking derivative benefits from the governmental patrons of industry.

BrentR September 22, 2009 at 8:12 am

“That is tragic for America because good union wages were critical to creating and are critical to sustaining the nation’s middle class.”

Yeah I heard a rumor about textile mills leaving the States and headed overseas. Any grounds to these rumors?

EnEm September 22, 2009 at 10:15 am

“Thirty years ago Sally Field won the Best Actress Academy Award for her gritty portrayal of Norma Rae, a widowed small-town Southern textile-mill worker. Even those who haven’t seen the entire movie have viewed stills or clips of a sweaty Field standing atop a work bench holding over her head a piece of cardboard with UNION written in black letters”.

Unfortunately, that’s how I’ll always remember Sally Field. Shame on the Academy for handing her the award, since it is so sensitive to actors potraying roles that are not in line with norms existing at that given time and favoring those who push popular trends. I don’t think Sally was acting. I think she is quite capable of propagating anything socialistic without even trying. Universal Studios must be her favorite haunt. Note that she craves recognition from all and sundry; from the competnets and from the flotsom and jetsom in our society, or she wouldn’t have said in her acceptance speech.

greg September 22, 2009 at 10:52 am

Unions don’t help the situation, but these jobs were going to disappear with or without them. As an economy matures, manufacturing will give way to distribution, marketing, finance and technology. The reason is quite simple.

In the chain of bringing a product to market from extracting the raw materials to selling it off the store shelf, the lowest net money made in that chain is in the manufacturing. Typically, a product that sells for $10 at retail cost about $1.25 to produce, leaving the manufacture a net profit of about $.50 per unit.

Just like the large number of US homeowners that rather pay someone $200 a month to mow their grass, they send this manufacturing overseas because the returns are not there to mess with the lower ends of the product chain.

Another example is Nike. Their cost to produce a shoe in Asia is less than $5 and that shoe retails in the US for $90. That is $85 that is made on that shoe from point of manufacturing to point of sale! All you have to do is follow the money.

Unions will continue to decline as their target market of employees will continue to loose jobs to developing markets. Unless they start to target other buisnesses in the product chain, their only hope is to move to those developing markets. They need to take a lesson from the Catholics which is kind of like a union. Seeing their flock declining in the developed parts of the world, they concentraited on the developing countries to expand their numbers.

mpolzkill September 22, 2009 at 11:13 am

Mr French,

The union representatives are here.

Inquisitor September 22, 2009 at 11:43 am

Indeed, their level of discourse seems to be around that of leftist drones.

Barry Loberfeld September 22, 2009 at 1:02 pm

mpolzkill: “Mr. French, the union representatives are here.”

Love it!

Ron September 22, 2009 at 1:45 pm

When ever a group in this country can’t find public support, and the inevitable realization of doom is upon them for their failure to secure a need or fund their own existence, the route has become all too familiar; extort your value from Washington.

If unions were so great they would have taken over as the predominant employee representation in this country, but low and behold their benefits and values are as speculative as Obama’s trustworthiness on any given subject.

My view is any group that has coerced its value from government intervention, and forced its predominance upon civilization with coerced political power and not a fundamental need given from societies desires should be looked upon as a threat to liberty and free choice.

The Unions seemed to be using backdoor leverage to maintain their value which is being spurned from the work place because their product isn’t adding to the success of the work place at this moment.

I don’t see how we can compete or succeed with this government induced practice of political favoritism toward special interest groups for the sake of party strength in exchange for Americas survival.

We are paying dearly for Obama’s misguided will to borrow our future financial solubility for political coerced power today, that he and Congress can’t seem to curtail.

mpolzkill September 22, 2009 at 1:50 pm

Ha ha, glad you liked that Barry. The moderator removing all the goon’s posts has spoiled my little jest though. Speaking of union goons, has anyone here seen this:

http://www.youtube.com/watch?v=sUxjahek0f8

Gil should especially appreciate it. The look on the thug’s face when he spots the sidearm is priceless. Gotta love the cop taking care of everything at the end, too.

PM Dumas September 22, 2009 at 1:53 pm

“Essentially, the unions know that the government would backstop their negotiating position. They would demand outrageous contract terms knowing government arbitrators will “split the baby,” even if the terms are economically unviable for the employer”

- I wish I could predict the future like this!

mpolzkill September 22, 2009 at 2:08 pm

“I wish I could predict the future like this!”

Then study more Austrian economics. You’d be amazed as the things Mises accurately predicted. Who knows, you could become another Peter Schiff.

USA Today September 22, 2009 at 2:23 pm

Ron,

I disagree that greatness automatically dominates over other.

This all too common argument that: “If it’s soo good, then we would not need to force people to adopt it” is fatally flawed in my own opinion.

Because it supposes that if what’s good cannot dominate on it’s own, then some government or other force must impose it on others.

Sometimes, even what’s good and what’s best cannot impose itself and nobody wants it and it disappears in oblivion.

Freedom is not about choosing what’s best or what’s great, freedom is about being free to make mistakes and correct those mistakes on your own.

Freedom is not concerned about what’s good or bad, it’s concerned about freedom.

Under freedom, unions would be made of willful and voluntary members who could anytime leave or join or agree on binding membership contracts.

Under freedom there would be trade unions but they could not coerce or intimidate their way into recruitment and factory and business owners could hire scabs.

Freedom is what’s good.

Texas Rex September 22, 2009 at 2:24 pm

I try to make it a point to not buy union products. I was drinking a Miller beer the other day and read “Union Made”. It was my last Miller beer. The unions have destroyed the competiveness of business in this country.

USA Today September 22, 2009 at 3:36 pm

Texas Rex,

What would you prefer, “Union Made” or “Made In China” ?

I could not believe it when I heard Barack Obama saying about United Auto Workers that Unions were not part of the problem but they are part of the solution.

I can’t believe that Barack Obama thinks that unions, especially the infamous UAW, could make the car industry more competitive in America.

At this point, it was clear that Barack Obama was pandering to unions to buy their votes.

Yes, Obama is a liar and electorally minded.

And all his “we’re going to tax 5% of Americans to give it back to 95%” And his $250,000 a year figure.

Barack Obama is clearly a power hungry marxist wanting to buy the majority vote using the rich’s money.

Stephen Grossman September 22, 2009 at 5:21 pm

Even with laws privileging unions, they have only 12% of US workers! Why?

Steve Hogan September 22, 2009 at 7:33 pm

Why only 12% of the workforce? Because union workers are paid above their productivity level. They are pricing themselves right out of jobs. It’s that simple.

Bennet Cecil September 22, 2009 at 8:12 pm

Politicians in power are determined to force wages above market rates. Democratic economists complained that middle class Americans did not gain purchasing power in the last ten years. Policies that aggressively promote unionization will push union wages higher at the cost of the rest of Americans. The nation will face higher unemployment, inflation and taxes. Just like the real estate and stock market bubbles resulted from the government pushing interest rates below their market level, we will experience stagflation from forced unionization.

Dale F September 22, 2009 at 9:50 pm

Remember before the Globalists shoved NAFTA down out throats, you would here that “”a dollar would circulate through the economy 7-11 times”". Where are all the high tech jobs we were promised? Mexico was to have so many jobs that it would end migration. Now we compete against a VAT tax in other countries that gives then a 19% trade advantage. CEO wages went from 20-1 to 200-1. Then we want to blame unions for not being able to compete. The dumbing down of education is another major cause, of 190 countries in the world all but 30 are third world, these thirty have the ability to produce steel hence manufacture. Of the thirty industrialized nation the US ranks 28 in math and 29 in science. The only way the US can compete is to destroy the middle class, but remember were the jobs go so goes the research and development.

Paul Marks September 23, 2009 at 9:35 am

American wages were the highest in the world long before unions were of any importance at all.

“Where are the high tech jobs”?

Why on Earth would anyone set up a high tech manufacturing company in a country as highly taxes (especially in terms of company taxation) and as highly regulated as the United States?

There are much better places to set up high tech manufacturing companies (although, no, Mexico is NOT one of them – low wages are not the point, it is the taxes including “unoffical taxes”, regulations and legal system that matter). And people who still try to set up such factories in the United States go bankrupt.

And, no, higher taxes on imports would not help.

As for education – the more government education has failed the more money is thrown at it. It has a incentive to fail.

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