The truth of unions: looking a gift horse in the mouth

Many people see this factory. You know, the facility that used to be where we all picked up our checks. Some people put together transmissions and some people have hand painted pin stripes on the cars that drove the American economy. On the backs of workers the companies have become wealthier than most small republics that litter the coast of Africa.

In a country that has been built by the blue-collar worker it is sad that companies have not adequately taken care of their workers. But wait. Have the big three really forgotten the American workers that have formed labor unions against them. When we look at the economics of the labor union models they make no sense for several reasons.

The economics of the issue come to where the real profit belongs, in the pockets of the equity owners or in the pockets of the workers. The labor unions have seen the large profits in the past and have negotiated, using predatory tactics, raises and benefits that far outweigh the real market value of what they do.

In the last months we have seen a renegotiation of union labor contracts. It was in these negotiations that the Big 3 will be turned into the Big 1. Chryslers’ private equity management group was not as successful as GMs’ management group that was able to put off about $1000 per car expense to labor unions.

What Labor unions do not realize is that as jobs leave the U.S. there maybe less of an opportunity to find an alternative job in the U.S. if the Big 3 go under. While it is hard to think of that scenario, it is possible if labor unions continue to keep looking a gift horse in the mouth.