…explained in one article. This recent article in Labor Notes purports to explain the problems with today’s labor movement. It begins, “Jack Welch, former CEO of General Electric, is famous for having said that if he had his way, he would put his factories on barges and drag them around the world, in search of the lowest wages and least regulation.” Now before you think that I’ve fallen off my rocker, I suggest reading this article for great illustration of how out of touch (and self-contradictory) the labor movement is today. My three “favorite” criticisms made in the article (followed by my take) are: 1. “In many ways Jack Welch’s vision is becoming a reality, as advances in technology and work organization allow management to take increasing control over work…The failure of unions to take on the restructuring of the workplace is a disaster for workers’ future.” My take: The failure of more companies to take on restructuring their businesses using the latest technology is the biggest threat to workers’ future. Workers should embrace technological and business process change – refusal to adapt does not prevent the change from happening, but it does insure that workers in those companies will be vulnerable, and most likely unemployed (and perhaps unemployable) when the market shifts. The fact that after decades of seeing their memberships decline, due in major part to union opposition to competitive business processes and technology, is proof that unions just don’t get it. This attitude kills the companies that provide the members. 2. “Automated teller machines lead to automated check-in at the airport and automated check-out at the supermarket, with fewer workers doing more work controlled by more machines.” My take: This is just another version of outsourcing fear-mongering. See here for a good example of how automation actually results in more employment (due to, gasp, increased business from making the customer experience more satisfying – probably due in no small part to being able to avoid grumpy union members). 3. “Because of automated dispatch technology in the trucking industry, service drivers in utility companies are being allowed to “home garage” company vans. For these workers, the single significant opportunity for interacting with peers and sharing experience is eliminated.” My take: This is the best example of just how out of touch unions have become. Union members should not be allowed to spend more time with their families because it robs unions of the opportunity to “educate” workers about how bad they’ve got it. Give me a physical break. Unions need to re-examine their role if they ever hope to be relevant again. When companies succeed their employees succeed – unions need to embrace the technologies and business process changes that help companies excel, so they no longer wish to put their factories on barges.
