The end of `more'
I HAVE NEVER wavered in my support for policies that relieve poverty and improve the standard of living of American workers. As a lifelong liberal, I supported Medicare and Medicaid, civil rights, Social Security and workplace safety requirements. Today, I strongly support universal healthcare.
And I have always been a supporter of the labor movement. Unions have a proud legacy of improving the lives of millions of workers over the last century.
But lately I have seen developments that have me worried. And I have been reminded of legendary union leader John L. Lewis, who was once asked what his miners were after. His answer? "More."
It was a funny answer, and perhaps it was honest too. But these days, it's not a very effective strategy, and we are seeing some unfortunate and unintended consequences of Lewis' "more" philosophy.
Delphi Corp., the biggest auto parts supplier in the country and the employer of 34,000 hourly workers, is bankrupt. One big reason is that the company's unionized workers earn $64 an hour in wages and benefits -- more than twice what some of its competitors pay.
General Motors and Ford -- the companies that have epitomized high-paying unionized jobs over the last several decades -- have stated that they will lay off 30,000 workers each. The United Auto Workers, General Motors and Delphi recently announced an agreement to offer voluntary buyouts to the UAW-represented employees at the companies. Wall Street thinks these are just the first steps.
Airlines have come under similar pressure. The bankruptcy stories associated with legacy carriers are driven in large part by the compensation packages and work rules that unions have won for their members, which are too expensive compared to more recent entrants such as Southwest. "More" has, unfortunately, become "too much" in a global and far more competitive economy.
Many of my friends will consider this view heretical. But it is based on stark reality. Some progressive union leaders, facing this economic reality, have come to the same conclusion. Others are holding fast. Their behavior is partially a function of internal politics -- and sheer habit. Not unlike members of Congress, union leaders are in the business of asking for more. That's what their mentors and predecessors and heroes did. It's very difficult to turn around and say that "more" is not always possible.
