Unions – The Myth of the White Knight

First, before the bashing begins, let me say that I have been a member of unions for nearly thirty-five years. I am in no way “anti” union but I will say that I think the majority of Americans need to take a step back and begin to use our brains for a little bit more than storing talking-points.

This has been a long time coming. I have heard all the stories, listened to the endless arguments, and watched as both sides engaged in what I consider to be nothing more than chest beating grandstanding.

A while back I listened as the pundits all came down on municipal pensions. Being retired it is an issue that is near and dear to my heart. It amazed me that many seemed to have the skewed viewpoint that these pensions were somehow at the heart of the financial woes facing these cities / states. It is utter hogwash and I truly expected more from them.

The underlying issue, which never seemed to get any real substantive debate, is the term “unfunded liabilities.”

It sounds wonderfully technical but when you break it down it simply means you charged it and are now bitching because the bill is due.

Pensions, like any other benefit, are part of the overall contract negotiations. During these negotiations both sides enter into an agreement that in exchange for the employer giving “A” the unions will give or give-back “B.” You know it’s a good contract when neither side is overly happy.

In the case of pensions, these are serious numbers. Professionals are involved, actuaries come up with tables, and the data is gone over seven ways to Sunday. For the employer to scream foul later on is disingenuous.

“Unfunded liabilities” simply means that the employer agreed to something and never set the money aside to pay for it. Who is at fault? The greedy union members? No, it is the employer who agreed to the deal and then used the money to fund something else.

Does this make sense to you? It is like blaming the bank when they repossess your car after you stopped making payments. They gave you the money in good faith, and you reneged on the contract.

During all of these discussions I never once heard anyone say: “well, if the unions need to renegotiate the pensions, should the employers give back all the concessions that were negotiated in good faith?”

As you can see, I am hardly anti-union.

That being said, I think we need to start looking at things with clear glasses instead of the rose colored ones we seem to enjoy these days.

Unions are at the vanguard of almost every issue we are facing today. Whether that is healthcare, wages, etc. However, just because they are at the forefront doesn’t necessarily mean they are correct.

A zealot is someone who is a fanatically committed person. Zealotry was originally a political movement in 1st century Judaism. It sought to incite the people of the Judean Province to rebel against the Roman Empire. I see a lot of this manifesting itself today.

While it is good to have passion for something, it is almost always a bad thing to be so passionate that you are blinded to everything beyond it.

Lately I have been watching a lot of coverage on the topic of minimum wages. On one occasion there was coverage of workers storming a McDonalds and demanding more money. Another time I heard a person speaking out against the evils of corporate greed. We all know how popular the theme of wealth redistribution has been lately. As the president says “level the playing field to create equal opportunities.”

Sounds very noble and keeping with the whole “White Knight” theme. But is it honest?

As a kid I started working in a supermarket making minimum wage. At the time it was a great deal, I worked and I got paid. I had no real responsibilities other than to take care of my needs. These were generally simple. As time went on I moved from one job to another, each time climbing a bit higher on the employment ladder as my needs changed. It was a conscientious decision but it was not rocket science. I simply took stock of where I was at financially and made changes based upon what my needs were now. This means that when the job could not provide for me financially, I changed jobs.

While I empathize with the kind folks at the local McDonalds, I gotta say……. It’s McDonalds. If you are unhappy with the wages quit and find something better. If you lack the skills to find something better that’s a good indicator that the problem might not be McDonalds and may in fact be you.

It may sound harsh, but it is life and it doesn’t owe you anything.

I know, I know, …….. Somewhere, someone is pulling a friggen’ Harvard graduate, who happens to be the head fry guy at the local Mickey D’s, out of a closet and saying “see he has skills and deserves more……..”

Really? Sounds a bit more like he chose the wrong school or at least the wrong major, to me.

I have no empathy for struggling college grads. I’d like to, I really would, but you see I paid my way through college on my own (as in ZERO grants, loans, etc..), all while working full time and raising a family. Again, life is tough deal with it.

But we live in an age of deniable personal accountability. It’s always someone else’s fault: mommy, daddy, your boss, God, the kids who picked on you in pre-pre-K, the neighbor, the mailman, the dog, and the absolutely greedy corporate CEO.

Then along comes the wonks at the union. He believe that everything is a conspiracy against the American worker. They sit there and blast the employers for not sharing more of the profits with the employees. They demand better pay, and threaten force to achieve it.

It is a tune that resonates well with its audience. But when you get away from all the smoke and mirrors, what is the truth?

The truth is that no one is holding a gun to the head of the American worker and demanding that he work at a particular job.

This may come as a surprise to many but companies exist to make a profit and those who run companies get rewarded by making big salaries. That doesn’t necessarily mean that the workers will share in that. Unfair? Not really.

When an employee takes a job he or she agrees to it at the wage they pay. There is nothing hidden. No one says “well come to work and every other week we will pay you what we think you are worth.” They are hired based on what they provide to the company. If they bring a lot to the plate they might even get promoted. But if they are hired and turn out to be nothing more than oxygen thieves they will most likely piddle along as a burger flipper for their entire career.

Unlike the worker, the head of a company has a bit more on his plate. The company’s bottom line is his judge. For that he is paid very well. When he fails he is most likely kicked out, generally with a very nice severance package. Is it fair? No, but it is just business. These things were worked out well in advance between both sides. Like a typical contract negotiation, except to the best of my knowledge there is no CEO union.

But is it fair to say that just because you started at the bottom that’s where you are destined to stay?

Hell no and that’s my issue. This is America and if we stop listening to the entire BS about having to level the playing field we would see that we make our own opportunities.

In 1971 Jim Skinner started with McDonald's as a restaurant manager trainee. In 2004 he was named CEO of the company. 

Brian Dunn started with Best Buy in 1985 as a sales associate when there were only 12 stores operating. He was named Director and CEO in 2009.

Jim Ziemer started out at Harley-Davidson as a freight elevator operator in 1969. He became President and CEO in April 2005.

Ursula Burns started in the summer of 1980 as a mechanical engineering intern with Xerox.  In July 2009 she was named CEO and then Chairman in May 2010.

You see, my experience is that if you are hard working and show some thought and initiative, most companies don’t want to lose you.

But when you have the union head spewing this vitriol about “us versus them” the waters get really muddy. So here is my advice to my fellow union members. When they start talking about corporate greed and “fair wages” for all, ask yourself if the hard earned money that goes into your union dues should be used for your benefit or the benefit of the union heads?

I’ll leave you with this to chew on.

Michael J. Sullivan, general president of the Sheet Metal Workers’ International Association. Salary: $1,043,023.

Robert A. Scardelletti, international president of the Transportation Communications Union. Salary: $748,531.

Newton B. Jones, president of the International Brotherhood of Boilermakers.
Salary: $607,022.

Terence M. O’Sullivan, general president of the Laborers’ International Union of North America. Salary: $589,124

John T. Niccollai, president of the United Food and Commercial Workers Union. Salary: $532,752.

Paul Rinaldi, president Air Traffic Controllers. Salary: $411,740.

Randi Weingarten, American Federation of Teachers president. Salary: $407,323. 

Walter Wise, Iron Workers president. Salary: $397,684.

Edwin Hill, International Brotherhood of Electrical Workers. Salary: $380,688.

Dennis Van Roeke, National Education Association president. Salary $362,644.

Richard Trumka, AFL-CIO president. Salary: $301,932.

Brian Lambert, SEIU vice president. Salary: $296,161.

At some point, you have to ask yourself the question. If I’m struggling to make ends meet, why am I paying the union bosses so much money? Truth is, a strong union means job security for the top people.

In the end there will always be some type of pay disparity, whether it is between workers and workers, workers and management, or even workers and their union representatives. The bottom line is that if the job you are at isn’t cutting it, maybe you need to begin looking elsewhere.

I never thought I would quote Ashton Kutcher, on anything….. Ever! I don’t agree with him on political issues and, to be quite honest, I am not a very big fan of his acting. Yet I find myself compelled to quote him today.  

“I never had a job in my life that I was better than. I was always just lucky to have a job. And every job I had was a stepping stone to my next job, and I never quit my job until I had my next job. And so opportunities look a lot like work.” – Ashton Kutcher, Teen Choice Awards.