The Labor Movement Goes Silent

It's not easy these days being the member of a union. If you're in the automotive world, you're under siege from both GM and Ford to make concessions on your pension and benefit plans. If you're in the airline industry, you have the same worries along with the added benefit that every stinkin' carrier is either in bankruptcy or careening toward it.

America owes a lot to the labor movement (hey, they brought us the weekend). Without them we might still be lorded over by a nation of Montgomery Burns' from The Simpsons. They came along at a time when America needed a voice for the working man (sorry for the sexist writing ladies, but that's who was working back then). The ability to bargain collectively brought the working man into the middle class and provided good lives for millions of American families.

Today the tale is not as cheery. The global economy has commoditized so much of the so-called "skilled labor" that it is difficult for nation's who have a vibrant "blue collar" class to compete. Case in point: A UAW worker makes over $36.00 an hour in pay/benefits while a Chinese worker makes around $1.70 an hour. That is a shocking disparity.

In fact it makes you wonder how we can even save the cause for the working stiff. What good is the ability to bargain collectively when you can be outsourced for amazing cost savings?

As a result unions are finding themselves under immense pressure not just from management to give concessions but from competition. In fact, Northwest Airlines is reportedly putting out ads on Monster.com to for flight attendents (needed in case of a strike). That same airline is toying with the idea of outsourcing mechanic work overseas to save money as well.

All of this adds up to critical diagnosis for America's trade unions. What can they do to save themselves and their cause?

Hawk's View: Never underestimate an American with his/her back against the wall. Unions came about because of unfair treatment and they can reinvent themselves again using that same mentality. I don't pretend to have the answer, although I think a tighter union/management partnership with the union having more ownership of the company than they do now could help, but somebody needs to be this centuries John L. Lewis. Without leadership that promotes competition, instead of protecting, is at least a start in the road to winning the day. If the trade unions continue their stance of protectionism they will go the way of the dodo.