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Posts Tagged ‘burden rates’

Bye-Bye Unions, Hello Jobs!

OK, before I get the boo-hiss from all my fellow blogging  buds that are part of some kind union, hear me out.  On light of what is happening in Wisconsin I am going to take my day I dedicate my soap boxes to this subject. 

I have to say I have never worked for a company that had a union, but I have worked in corporate America private and non-profit.  I have also been on the giving end of “no more work for you, we are sending your job overseas or to Mexico because it is cheaper to make and we can’t compete.”  I have seen the hard “back-room” numbers that come with strategic planning and how much it costs to run a company and the burden rate of employees and I have to say unionized companies have an exceptionally high burden rate and the only thing I see that unions do now for the country is driving up the costs and putting certain politicians from certain political parties in office, thus the very “invested” interest politicians are having on this whole issue.

I have studied employment and ERISA law more than I want to  recall and this country does not need the collective bargaining and union protection of working and wage conditions.  Labor Law is strong and can hold and has proven it can hold up on its own well.  Just ask Wal-Mart about that.  

I once did a study on the burden rate of Toyota vs. GM and it was staggering the difference. Notice, Japan was not bailing out Toyota even in the recent recall crisis they had on sticky throttles.   Once while I was doing a wage/benefit analysis on positions that were the same as county/state employees as those of the non-profit I was working for, we could not compete.  It was nearly 15k 25k more in benefits and wages per position for the county/state employee and we wonder why the state of California is broke?

Now don’t get me wrong, I think that if a company/agency has been promising a person that has invested more than 18 plus years to a company for a solid pension and retirement plan, that needs to be honored – they don’t have time to contribute to a 401(k), they counted on that promise to survive .  But moving backwards the further down in years of service you go, the less benefits you get until all new hires are promised a solid wage, good work conditions, state law and reasonable benefits.  That would give time for people to regroup retirement planning.   In doing this, would  encourage companies to compete with each other and if the employees don’t like how they are treated they go to a company that does treat them better which puts the heat on the companies that don’t to do better or they fail. 

Oh, yes good old capitalism and at its finest!  I hope that the unions are done away with and that we can get competitive again and be the great nation that we are known to be. 

On a caveat, those that are true service workers for our communities, the soldier, the fireman, the cop, the nurse, the doctor, and the teacher, they need to be compensated above and beyond since they go above and beyond each and everyday making a HUGE investments into the communities present and future and I have no problem my tax paying monies go to them. They deserve rich benefit plans, not the guy that is pushing a button on a machine putting out widgets or a clerk pushing paper.  

Unions had its place and was very needed, but we evolved from that time.  We are in a society that is natural litigious and very employee friendly that they are not needed.  And for you that work for the union based organizations, ask yourself when was the last time they really did something for you except take a chunk out of your paycheck?

And on another note, these young teachers that are trying to build their careers that walked off the job site of educating young minds, who are they picketing for?  It appears they are not picketing for the kids, they are picketing for themselves and doing nothing to help get those kids educated right now in the present.  Get back in the class room and quit worrying about your benefits and teach, that is what the taxpayers are paying you for!

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