Unions Never Seem to Learn

If one thinks back to the auto industry in the 1950-1970 period, one remembers the whipsaw tactics that the UAW used to jack up wages and benefits.  

They would strike one of the big three and extract a contract that the company couldn't afford.  Then they would use that contract as a model for the other two who couldn't afford either, but agreed to to avoid a strike.

The companies might have been able to afford the contracts in a buy American environment, but the world economy was coming on strong by then.  They didn't have a buy American environment.

Worse, the unions used their clout to prevent the auto companies from disciplining workers who routinely took Monday and Friday as sick days.  The assembly lines were so disrupted by replacement workers who didn't know the job they were doing that day that 40% of the cars being produced had a high chance of being lemons.  

Of course, the buyers had no way of knowing which cars were lemons, so they avoided the brands entirely. It dosn't take much analysis to see that the companies didn't destroy the American Auto industry, the unions did.  Isn't it ironic that the people who are going to be left with the big piece of that very small pie are the people who caused the problem?  That is socialism for you.

The only defense a company has against whipsaw tactics is to agree that if one is struck the others will lock their employees out.  That way the union cannot confer an advantage to one company while damaging another.

Here in Colorado, the grocery unions want to do the same thing to the grocery industry.  Their allies in the legislature want to help them by requiring that workers locked out by companies determined not to be whipsawed get unemployment benefits.

Fortunately, that bill, HB 1170, was vetoed by Bill Ritter.  Ritter may pay a price for it, but the business community will have a reason to back him over another Democrat.  Unfortunately, his veto message invited the sponsors to put the bill up in a future year.  Does anyone think a Bill Ritter who is safely past his last election will veto it a second time?

The sad thing is that what seems to be good for the union in the short and medium term can be very bad for it in the long term.  Ask the UAW.  No, they won't give an honest answer.  Ask the auto dealers who got bad news last week and the communities that will be hurt by their closure.