Tag: right to work

  • How To Fix the Auto Industry: Federal Right to Work Laws

    This is my second idea: Pass a federal right to work law. (Idea #1)

    For anyone outside of the pretend world known as Detroit, this solution is a no-brainer. In order for Ford, GM, and Chrysler to move forward into the next 100 years of automaking they have to restructure how their labor is paid.

    One important element, the heaviest of them all, is to dump the UAW as the only labor force. With unemployment hovering near 10% in most of the Detroit area counties there is no better time to renegotiate with the unions. (In other words, if the unions refuse to comply simply replace those workers with unemployed people at new, lower wages.) Simply put, if the federal government is going to loan automakers $34 billion to get out of this mess, they should also pass a federal law making every shop in America an equal opportunity employer. As I wrote in January 2008, I think allowing employees to decide whether or not they will join a union is fair. But, today in America, in many states that choice is not allowed.

    More importantly, for the former Big 3 to survive they need to scale back wages to more reasonable levels across the board to compete on the open market.

    Yes, I am arguing that the Big 3 compensate their employees like other US-based automakers. Toyota, Honda, Nissan, and many other “Japanese” automakers pay their employees well, but still roughly half what the UAW demand as “fair.” And when the Big 3 made money hand over fist, who cared what they paid people? But if you’re going to mortgage our childrens future on bailing out these failed companies… let’s spend the American tax payers dollars wisely. Their pay should be based on what these other automakers pay their employees. Or perhaps, since this is federal money, they should be compensated like government employees?

    I’m not suggesting that we make unions illegal. I’m suggesting that it become illegal to force people to join them! Allow auto workers, state employees, teachers, and other unionized types of workers to chose for themselves if they want to be in a union or not. Isn’t that fair?

    It’s time to have all employees work together for the good of the Big 3. Again, if you haven’t been exposed to the auto industry you have no idea of some of the silliness. There are two separate classes of employees at an auto manufacturer. There is union labor and there is management labor. They have different pay structures, different disciplinary structures, different hiring practices, and even different parking areas! It’s time this all ended! We need the plant manager and the woman on the line to be on the same team. We need the executive and the janitor to have the same health care options, benefits structure, and vacation times. We need to completely kill the entitlement society that the unions create. No more 80% pay layoffs. No more pools of employees who get paid 100% of their salary to play cards. No more union stewards making what a plant manager makes. On and on.

    If Ford, GM, and Chrysler are going to take federal money it is time they started acting like 21st century companies. In other words, it is time the former Big 3 started acting like the companies who are kicking their butts.

    Learn more about the National Right to Work movement.

    Idea one: Change the car buying experience

    Idea two: Open the manufactoring to non-union employees

    Idea three: Coming soon…

  • Right to Work Michigan

    Right to Work StatesI just saw a commercial against legislation called “Right to Work.” (Here’s the “anti-right to work” to be fair.)

    From what I understand, the legislation will allow individual employees to decide if they would like to be in union or not. (If it’s a union shop) So let’s say you are a teacher… this legislation would allow you to opt out of the teacher’s union and remain being a teacher. Or if you work at a plant and would like to leave the union, this would allow you to do that and still keep your job.

    I can’t lie. I think this is a good idea for Michigan. Take a look at the map. Southern states are the ones attracting businesses. Even places like Boise, Idaho have made the list so there is hope for Michigan! Check out Forbes Magazines “Best Places for Business” list and you’ll see that almost all of the top 10 are located in right to work states. (8 out of the 10.)

    I’m not saying “let’s stop the unions” and I’m not a union hater. What I am saying is that there should be legislation that allows employees to chose what is best for them. Employees should have the ability to chose if they’d like to pay into a union, accept union benefits, or otherwise opt in or opt out without threats.

    Would right to work negatively impact unions? Probably. As I talk to people in my life who are in unions most would opt out if they could. The one protection they appreciate most, job security, hasn’t worked in Michigan or protected jobs. Companies simply haven’t been able to afford union workers and remain profitable in this new economy. There is a general assumption among pro-union people that the buying public is willing to pay more for products produced in union shops. Wal*Mart, Toyota, and Honda have blown that theory out of the water. The American people may say that they will buy “American made” or “union pride” products… but they don’t care. Consumers are driven by value, price, and how a product makes them feel.

    Why am I so suspicious of the “anti-right to work” ad campaign? Um, follow the money trail.