Ashley Hall – 1/2/06

This page was last updated on January 3, 2006.

Unions still matter; Ashley Hall; Beaver County Times; January 2, 2006.

Below is a detailed critique of the subject letter.

“In response to the Dec. 15 letter to the editor by Paul Dici (‘Put the blame on unions’):

“I am a proud union member. There is still a need for unions. Unions fight for decent wages, work rules, work conditions, health care and fair labor practices.”

[RWC] If there is still a need for unions, why do less than 10% of private sector employees belong to unions? If the need for labor unions is so great, why must some states force workers to join unions via closed-shop labor laws?

Two (“work conditions” and “fair labor practices”) of the five items Hall mentioned are covered by legislation and don’t require unions. The other three are compensation issues anyone can negotiate on their own. If you can’t negotiate, go to work for someone who will pay you what you think you are worth.

To get a feel for how much labor unions look after employees, go here.

“Unions’ biggest nemesis? Wal-Mart. It pays minimal wages, has been accused of unfair labor practices, discrimination, hiring illegal immigrants, denying required lunch breaks, skirting child labor laws, and inadequate/unaffordable health-care coverage for most workers, forcing 46 percent of them to rely on Medicaid. Management says it can’t afford to change, but its profits are astronomical as are corporate paychecks.”

[RWC] Wal-Mart is the boogeyman; how original. Would Hall support Wal-Mart increasing prices to overcompensate employees? What about pension funds, 401(k)s, et cetera that include Wal-Mart stock?

Of course Wal-Mart’s profits are large; it’s a huge business. What Hall fails to note is Wal-Mart’s return is fairly low as is the return for all mass-market retail businesses. For example, Reuters reported Wal-Mart’s net margin for 2005 (as of 12/26/06) was 3.5% vs. 4.0% for its industry as a whole.

“Workers have taken huge pay cuts to ‘save’ the company from bankruptcy (e.g. United and US Airways) while their CEOs and top management take huge bonuses and stock options.

“United’s CEO, Glen [sic] Tilton, is taking a $4.5 million pension as his employees lose theirs. Most CEOs make 400 times or more what their average employee makes.”

[RWC] I have to admit I have a problem with how much some people in management get paid, but that’s a choice made by the owners.

On a side note, I especially don’t see why Glenn Tilton should get any premium given his track record. He’s been in top management for two failed companies, Texaco and United. Even when he and I were at Texaco at the same time (We didn’t know each other personally.), I never understood how he moved up the ladder. Of course, that was true for too many in Texaco management and is why Texaco was in a 25-years+ spiral until its eventual disappearance.

“There is a parallel between the decline in union membership and the increase in minimum-wage jobs with few or no benefits, more families living in poverty and homelessness and those living without basic health-care coverage.”

[RWC] What is the parallel? This is more union management claptrap.

“Labor unions are fighting for the basics and for what is fair. We know the good old days don’t exist anymore, but we demand corporate accountability and disparage corporate greed, which has spiraled out of control and affects the bottom line for all of us.”

[RWC] Where are the statistics to show “corporate greed … has spiraled out of control?” Note how Hall never mentions labor union management “accountability” or “greed.”

“Unions have to negotiate their contracts within parameters; CEOs and management can literally milk whatever they want from a company, even if it’s in bankruptcy.”

[RWC] Hall fails to mention that violence against non-striking employees and replacement employees is apparently “within parameters.” The AK Steel strike in Ohio a few years ago is a recent example.