Founder's Note: March
From March 2006
Community Comments
Labor unions
By Warren Smith
You’ve seen it in your business, and I’ve seen it in mine. Sometimes a system created to further the bottom line becomes obsolete because of new thinking, new technology or a new world marketplace.
“Labor Pains” (see page 32), a look at the current state of labor unions in the Sacramento Metro Market, paints a similar picture for the labor movement. It made sense for a while, but the dynamics have simply changed. Non-union employers have improved wages, benefits and pensions to competitively hire and retain skilled workers.
Therefore, it’s ludicrous for a governing body, such as a city council, to limit the competitive bid process by demanding that union-only need apply. A non-union company that trains, retains and rewards the best and the brightest isn’t right for the job? A primary function of government is to encourage investment. Acquiescing to escalating union demands will only hamper the myriad of projects and therefore jobs that want to grow here.
As Jess Sullivan’s article explains, the unions, as a reaction to declining membership, are turning up the squeeze and, I think, focusing their energy in the wrong direction. Union dollars supporting lobbying efforts, sympathetic candidates or legal challenges should be funneled into the job-training arena.
Historically, labor unions provided great value when there was an abundance of available workers and not a lot of jobs. Now the reverse is true. There is a multitude of employment needs and a shortage of skilled workers.
Like all good ideas that have run their course, labor union representation is going to be a history book footnote unless it looks for a new opportunity. I encourage them to continue to train workers but give the model a modern twist. Turn out skilled workers whose accomplishments have no boundaries. That is the future.
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Community Comments