The Death of the American Union?

Are the pinky ringed thugs running scared? I think they should be. Why are they holding on so tight to a presidental administration that is failing miserably? Could it be that they are trying to hold on to power that is slipping away? I think so.

Over the last year or more, I have been hearing and reading stories about how the unions are in trouble. Day after day we are seeing stories about how companies are threatening to move union jobs and how unions are making concessions in order to keep them. That is not the union way. The union tradtition is to improve working conditions as well as pay and benefits for their members. Their weapon of choice has alwasy been the strike.

In today's market, unionized companies have to compete, not only with non union labor, but with labor from all parts of the globe. When a union threatens to stike, a company can simply pack up and take jobs elsewhere and they do. Sometimes, new companies will come into a market that is dominated by unions. They do so, not burdened by wage, pension and healt care plans imposed on them. they make competitive products at lower costs and make money. In time that will drive the unionized companies out of business or force them to negotiate reductions. That is what happened in the U.S. auto industry and why two of our three auto companies are now goverment owned. I forgot one other little item. Profit! A company whose cost per unit are not competivtive will soon lose money. You loose money too long and there go the jobs. The unions loose membership and they loose power. Those auto plants that are in thr process of being closed right now will never reopen. Those jobs are gone forever.

Where are the unions going now? The only places where unions can safely go is the health care industry and government. They do not have to face competivtive pressure. If you want to see government unions in action, look at the Postal Service. It is facing rising costs and handing less volume than ever. It is losing money at a growing rate. Customers who are facing increasing costs and reductions in service are taking their business elsewhere. In other parts of the public sectior, the problems are similar. Costs of government, driven in part by union contracts are growing at a time of decreasing tax revenues. Governments react by raising taxes, which has a net result of decreasing revenues furthur as taxpayers pack up and leave. Look at what is happening with California. Look at what is happening in your city or town..

Meanwhile back in D.C. the union leaders buddy up with the President of the United States, a President who they bought and paid for. I hope and pray that President Obama will be the last one. Whether they know it or not,he may be the one to put the last nail in their coffins with his health care, cap and trade and other legislation.

What may have been good for GM might have been good for the nation, but what is good for the unions is killing our nation.

John Kokolsk is the son of a deceased member of the Steelworkers Union and a former member of the Postal Workers Union. He holds a B.A. in Economics from Rhode Island College.

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