LABOR UNIONS INCREASE UNEMPLOYMENT

From the desk of Stephen Cabot: During the current recession when unemployment hovers near 10%, President Obama and his hand-picked ideologues on the National Labor Relations Board are using all their wiles and power to effect a pro-union business landscape. The combination of Executive Orders (which I have written about in previous blogs) and the decisions of NLRB member, Craig Becker, (a decidedly radical pro-union advocate and former SEIU official), have resulted in union friendly policies that are injurious to Corporate America and are driving up unemployment. It has been a well-established fact that unions reduce the numbers of employed workers by mandating wages that move in an ever increasing upward spiral. (The average union wage is 28% higher than a non-union wage). In such situations, cash for hiring new workers diminishes as does cash for R&D and capital improvements. Furthermore, those high union-mandated wages result in increased prices for manufactured goods. It has long been an established fact that as labor costs increase, demand for consumer goods diminishes and the pool of consumers shrinks. Faced with such an economically unattractive scenario, corporations will choose to reduce their labor costs by outsourcing work, replacing workers with machines, and/or moving manufacturing facilities to low-labor-cost nations. One need only look at the iconic American manufacturer of motorcycles, Harley Davidson, which announced that it might have to leave its home town of Milwaukee, where it has been an essential manufacturing presence for more than 100 years. And why will it have to move? The simple answer is its union-mandated cost of labor.

While President Obama and his designated pro-union advocate, Craig Becker, would like to do all that they can to help unions, Harley Davidson and other manufacturers will have no choice but to move the states or countries where unions will have no influence. And if that happens, one will see a rise in unemployment greater than 10%, a further diminishment of consumer spending, and a worsening economy.

expert labor relations advice