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Home Articles from Tom Clason Unions vs. Management – Who is the “Bad Guy”? - Fat Cats

It is understandable that when the unions see management like this being paid such exorbitant bonuses, that they have a tendency to ask for more even if more equates to excessive. Unions need not be a problem to a company if they stick to their primary role and not get involved in a negative way with issues involving productivity. It is much better to work in a company that is lean and productive long term than to be paid more for the short term or to work for a company until you are close to retirement and then find that you no longer have a job.

The situation with many companies today is sad and it didn’t have to be that way. We live in a country that is based on free enterprise. Those that find a better product and a better way of producing and marketing that product will prevail and those that start out with a good product and lose their way will eventually fail. That is the way it has been in the past and that is the way it will continue to be. A great product only saves you as long as you are the only company offering that product. Eventually, someone else will find out how to take away your market share.

The government bailouts will not save any company that is not productive even if that company has a good product. It will only delay the demise. Eventually, someone out there will find a better way and bring that better way to the market and not need government help. It is important that both company and union management come to the realization that workers and management either work together or fail together.

Cheap labor isn’t the ultimate answer because it creates a false reliance. Paying fair wages is not a deterrent to company success as long as the word “fair” is properly defined. Bad management and greedy unions the real killers. Fortunately, both can be enlightened and can turn failure into success by entering into agreements that work for both the employees and the company. If this had been done long ago, do you think that we would still have the mess that we have today?

Finally, some of the companies that I have visited have had the best wages and benefits in their industry and were not unionized. Still, the company was in trouble. I point this out because the lack of productivity in any company can bring it down in a competitive environment. There is a tendency to blame the unions for putting companies out of business and that tendency isn’t always fair. Poor management can accomplish it as well – and as quickly.

Tom Clason