| What Union
Sympathizers Say |
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Here are some comments people who sympathize
with unions, along with my responses. Some of the comments are in response to my
statements on this website. Some are from letters to the newspaper.
| Union
Sympathizer |
Surely you don't think that it would
be ok to lower US workers' wages to a point competitive with workers in
Sri Lanka or Viet Nam? Wouldn't that be necessary to make a difference
if, as you say, it is wages that are making their employers less
competitive?
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| My Response |
I don't think we'd have to go that
low. Look at this chart,
which is from a 2006 national compensation survey done by the U.S.
Department of Labor. The mean (average) hourly wage for non-union
private industry production workers is $13.79, while union workers
average $19.53. This does not include overtime and bonuses. $13.79 isn't
much, but it is well above the $6.55 minimum wage. And the $19.53
average for all union production workers is a lot less than the $27 that
UAW workers get. I'd like see
workers get good wages, but my first concern is for the
416,200 people
in Michigan who are unemployed.
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| Union
Sympathizer |
I've noticed that income
of CEOs and other upper management doesn't seem to be competitive! |
| My Response |
I agree, some CEO
salaries are ridiculously high. And still they make colossal errors in
judgment and occasionally steal from their stockholders and end up in
jail. I can't imagine anyone being worth more than $1 million a year. I
don't know the solution. But overpaying executives doesn't justify
overpaying workers.
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| Union
Sympathizer |
Your quote from U. of M. News Service
["Since mid-2000, 400,000 jobs have been lost in Michigan, 70 percent of
them in manufacturing"] doesn't
say anything about the losses being because of union wages. I think back to the
oil shortages of 1973 and 1976 when GM, Chrysler, Ford were all saying,
"American's don't want small cars." And the waiting lines for VW Rabbits,
Datsuns, and Toyotas were as much as 9 months long. Oh, wait, we don't have to
go back 30 years for this attitude. Let's go back 30 days and see if the
domestic car manufacturers have changed their stances. Hmmmm, doesn't look like
it. Maybe they'll lose another big share to the "foreign" manufacturers, then
tell us that they have to take away more health and other benefits from the
workers.
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| My Response |
I don't think you would
disagree that if labor costs were less, auto manufacturers could lower
their prices and sell more cars, and if they sold more cars, they'd have
to hire more workers to build them. There may be other factors that are
causing U.S. auto makers to lose market share, but certainly labor cost
is the big one. About those small
cars. I've read that the Big 3 make money on big cars and SUVs and lose
money on small cars. I've never heard an explanation for that, but here
is my theory: Although there is more metal in a big car, by far the
largest part of the production cost of any size UAW-built car is the
labor. The man-hours required to build a big car aren't all that much
higher than for a small car. Therefore, it is easier to make a profit on
a car sold for $40,000 than one sold for $15,000. To see if anyone
agrees with my theory, I did some web research.
This is from a March 7, 2008
article
by Sam Abuelsamid in Autobloggreen:
A large part of the cost of cars is
tied up in areas like engineering, labor and tooling. Those costs
are pretty much the same regardless of whether you're building a
Toyota Yaris or a Lexus. The cost of extra materials has been less
than the price differential that customers have been willing to pay.
This is from a September 26, 2006
article by David Kiley in Business Week:
Because of the high cost of running
plants manned by the unionized United Auto Workers, combined with
the low profit margins on small cars, U.S. automakers haven't been
able to manufacture small cars profitably in the U.S. in decades.
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| Union
Sympathizer |
Not many Michigan union workers are in the
upper class, are they? How about upper middle class? Lower middle class?
Without a strong middle class (which came
about originally in this country due primarily to the formation of unions), we
don't have the strong, healthy America we all used to love and appreciate. Bush
and the neocons are all about destroying the middle class; that's one of their
main goals.
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| My Response |
In order to have a middle class, you have
to have a lower class, and if I had to pick a group to make up the lower
class, it would be the people without the education or skills that would
enable them to make more than enough to get by. When we speak of the
"unskilled laborer", we are talking about people not required to have
advanced education or special skills. They should not expect a wage that
would make them "middle class". The people that should be rewarded with
higher incomes are those who've undergone the effort and expense to get
an education.
Unions like to claim credit for
creation of the middle class in America, but it is just not true. Income
is a measure of production, and what causes productivity to increase is
education and improved technology.
So, destruction of the middle class is
one of Bush and the neocons' goals? I don't remember that as a campaign
platform. Sounds like union histrionics to me. I
just don't see what Bush & Co. would gain by the destruction of the
middle class. The middle class is indeed shrinking, but is it because
they are moving into the upper class. Economist Stephen Rose had an
article in the 12/23/07 Washington Post called "5 Myths About the Poor
Middle Class". Here are some excepts:
[F]ewer people today live in
households with incomes between $30,000 and $100,000 (a reasonable
definition of "middle class") than in 1979. But the number of people
in households that bring in more than $100,000 also rose from 12
percent to 24 percent. There was no increase in the percentage of
people in households making less than $30,000. So the entire
"decline" of the middle class came from people moving up the income
ladder. For married couples, median incomes have grown in
inflation-adjusted dollars by 25 percent since 1979.
Per capita gross domestic product
has increased by more than 65 percent since 1979 -- growth that
translates to $26,000 per household.
[D]emographic changes have sparked
many misunderstandings about the economic health of the middle
class. For example, Americans today are more likely to live in
single-adult households than they were 30 years ago. Adjust incomes
to take into account this shift, along with increasing employer
contributions to retirement savings and to health insurance
premiums, and you find that the real middle-class median income has
risen 33 percent, or $18,000, since 1979. Of course, that's a third
less than the $26,000 that those households would have gotten if the
growth had been distributed equally. But the middle class didn't
stand still, either.
|
Drive the Unions out of Michigan
Unions in state
government
Unions in public
schools
Union facts
More thoughts on
unions
What economists
think |