If Unions Don’t Adjust, They Will Become Irrelevant

Indiana Doing Better Than Its Neighbors - Indiana is Now A Right-to-Work State

As people see that pension and healthcare costs are unsustainable, a new debate is rising up in this country – what are we going to do about unreasonable unions?

Occupiers, who include large union representation, are creating mayhem and only make their colleagues look more thuggish. Then when one sees unions marching with communists, damaging the Wisconsin statehouse, and threatening conservatives, they lose even more supporters.

Everyone cannot work for a union and unions are asking people who make far less money than government union workers, for example, are being asked to support them.

Then there is the fact that union leaders often get full pay for no work as part of their role – what kind of nonsense is that? And they have the nerve to rant about the 1%???

If unions don’t adjust with the economy, they will hurt their members. Their stubbornness and inflexibility will be their downfall. Their demands are simply not affordable.

Caterpillar is a great example –

“…The Peoria, Ill.-based maker of heavy equipment  [Caterpillar] is adding jobs at the new plant in Muncie even as it closes an older locomotive factory in London, Ontario. At that Ontario plant, unionized workers earned about twice as much as the company pays in Muncie.

When Caterpillar announced the closure of that Ontario plant in early February, the Canadian workers were enraged. “I’ve been here 25 years and they wanted to offer us a bowl of rice to work, like we were workers in Asia,” says Rafeek Khan, a 55-year-old machinist at the plant. Other workers planted burial-style crosses, bearing their names, in the soil outside the chain-link fence Caterpillar had erected to keep them out. Caterpillar said wages at the plant were too high, making the plant uncompetitive.

The contrasting experiences of workers in Muncie and London show how the 2008-2009 recession and the painfully slow recovery of the job market since then have left North American workers with less bargaining power. The median weekly earnings of U.S. wage and salary workers, adjusted for inflation, were down 1.8% in last year’s fourth quarter from a year earlier and have been about flat over the past decade, according to the Bureau of Labor Statistics. Employers rarely cut wages, even during recessions, preventing any sudden plunge in median pay. But many new hires are willing to work for lower pay when jobs are scarce, and that is keeping a lid on wage costs…Read here: WSJ