The UAW's Gamble
At the time I write this, the United Autoworkers Union just ended a seven-hour strike against Chrysler — thus ending the walking off of jobs by workers and the restriction by threat of violence of those who would have tried to take their place.
Those are, after all, the two characteristics of a strike. You don't work, and you physically threaten those who want to. Unions are, as Rothbard noted, the only organization in society besides the government with the legal right to use coercive force on adults. Unions in the United States were given this right with the passage of the Norris-LaGuardia Act of 1932. FULL ARTICLE
Comments (3)
As there is a drive by business to enter an unholy alliance with government there is a drive for labor and business to enter into an unholy alliance. I thought from the beginning of the GM strike that it was actually a work slowdown allowing GM to work off some inventory. The final agreement seemed to confirm my thoughts because it actually took the burden of health care off of the company and put it on the union. The ageement with Chrysler does the same.
Don't be misled. This is another move to nationalize health care. When the union workers become threatened with losing their health care because the union cannot afford it the union workers will change from their conservative voting posture and vote for nationalized health care.
There is a very strong effort right now to position institutions so that they will welcome nationalized health care. SCHIP and these union agreements are part of the same plan. Keep your eyes open to other such moves prior to the persidential election.
Published: October 17, 2007 7:00 AM
You had it. The issue facing private unions and thier employeers is two fold:
1. Competition from foreign labor. But this can be handled via protectionism, note 2/3 of Republican voters want protectionism. You wonder why I am not a Republican anymore.
But the part that can not be resolved is:
2. Competition for capital. There is only so much capital to go around and it can move quickly. This means that Ford, GM and the like have much more fierce competition for investment capital from the likes of Google and Microsoft than from other auto makers.
The competition for capital has driven the high legacy costs companies to cut dividends and dramatically increase their debt loads. It has also forced them to retain earnings that would have in the past gone to salaries and bonuses. Several airlines and steel companies have already gone bankrupt.
I think that in the end it will be competition for capital that kills these industries with large legacy costs and not foreign competition.
Published: October 17, 2007 8:05 AM
I have to say this is simply a horrible article. The author fails to mention every single sentence that we're not in a completely free market. This makes his entire argument false.
I have to go now. I gotta go start a revolution. We're gonna take down the government and then the labor union who is not the government but will act exactly like the government will take over power. But don't worry it's not government. It just works the same way.....
sarcasm.....
Published: October 18, 2007 3:02 PM