Small business and a union organizing threat

Union representation in the private sector has dropped from around 30% in 1960 to less than 8% today. The union product doesn’t sell well to the new generation labor force because 21st century employers do a pretty good job of taking care of their workers. I consider unions to be dinosaurs waiting to become extinct.

To reverse this trend, unions, with the help of their soul-mates in the U.S. Congress, have concocted an erroneously named bill called the Employee Free Choice Act (aka Card Check bill). This law would be anything but free choice because, as designed, a union organizer can require an employee to vote “yes” or “no” on a card in front of the organizer and anyone else standing around. In other words: no secret ballot – one of the cherished hallmarks of our democratic heritage.

This bill, which should be called the, “Employee No Choice Act,” will likely be introduced and brought up for a vote within the first 100 days of the Obama administration. If passed, it will create a dangerous scenario for many small businesses because it would allow union organizers to have more influence with workers at smaller and smaller businesses, which historically were not attractive union prospects. All they need is a majority of votes to organize, and if the small business owner and newly organized labor can’t come to an agreement on terms within 90 days, either party can require a process that would lead to binding arbitration.

Clearly, vestiges of 20th century commitments to the UAW is a significant reason the Big Three U.S. auto makers can’t compete in the 21st century with foreign auto manufacturers, who built factories in the U.S. and employ thousands of Americans without union representation. One of the most dramatic example is what’s known as the “Job Bank.” Check out the information on this link or do a Google search with this term to see for yourself.

Why would we want to impose unions on more companies, including small businesses, when the evidence of their negative impact has never been more dramatic. With so many union “soul mates” in control of the Federal government in 2009, small business owners will have to step up our vigilance and do what we can to defeat this dangerous law.

I talked about this issue on my radio program, The Small Business Advocate Show, this week. Take a listen and let me know what you think about my ideas.

2 Responses to “Small business and a union organizing threat”

  1. 2
    c.a.g. Says:

    Union yes more money for the workers, whats wrong with that.
    or do you want to give the money to one person (CEO).
    the CEO will put it in the bank, the workers will put it back into the economy.

  2. 1
    Bud Perry Says:

    Although I agree that the Unions are slowly becoming both a dinosaur and an albatross (especially around the automaker’s necks) it would be foolish and myopic to blame the current state of the Big 3 Automakers on the unions. GM’s CEO Richard Wagoner is quoted numerous times that “Americans don’t want hybrids and we won’t make them”. Instead the Big 3 launched expensive media campaigns to influence Americans to buy SUVs and to influence politicians to offer tax incentives to people buying the gas-guzzlers. The state of the Big 3 sits squarely on the shoulders of the Big 3 leadership and the recent bail-out negotiations has proven this resoundingly.

    It is also a mistake to assume Asian car plants in America are all non-union. This is simply not true; the UAW is represented at the majority of Asian auto plants on American soil. Yet it costs these plants far less to produce a vehicle than the Big 3. Perhaps it’s because, as USA Today reported, even the Mazda plant utilizes a higher percentage of US born product than the Big 3 counterparts who utilize much foreign material.

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