Pitching In When Times Are Tough: OOPS!

One of the things I love about the the good ol' US of A is that, as a whole, we are a generous people. Individually we give ALOT of money to charities that help people across the nation and across the world. And of course the government is very generous with our money, helping countless causes around the world, supplying disaster relief, providing money to governments and charities to make up for the shortfall. This is something the US should be proud of doing. So it goes to figure that when our own country starts to suffer some we pitch in. We send money to areas hit by hurricanes. The government, with our money, bails out the banks. Which is ok, it will be good in the long run. We conserve fuel and start taking public transportation. So everyone pitches in to help make keep the economy whole and get things turned around. Right?

Well wait a minute. Not everyone! How can this be you ask? Aren't we all patriots? Apparently not the 27,000 Boeing machinists, who have gone out on strike. This is a strike which will cost the company $100 million a day according to a Reuter's news story. Additionally it has already had a global impact, depressing some stocks and raising the value of Airbus. In Seattle the local economy will be hit hard, given that is where the machinists are located. The machinists are even angry at their own union for trying to delay the strike in order to reach agreement with Boeing. So they have gone on strike and the effect is being felt worldwide.

The issue is apparently not money (hmmm, really?), it is about subcontracting and outsourcing. It is that Global Economy thing. Well, we will see how this turns out. Here is an Associated Press story which has a more complete detailing of the issues and demands.

You will note that the major issue in this article is money. They wanted more than the 11% increase that was offered. (I think most of us would be pretty happy with an 11% increase.)Given that the average wage for machinists is $56,000 a year before overtime and benefits that raise would have been $6000+. If my calculator is correct that is $162,000,000 in additional wages. It is no wonder Boeing has to outsource or subcontract work.

Anyway, read the articles. You decide if the machinists are helping or hurting our tough economy. USA, USA, USA

(Photo credit: Robert Sorbo/Reuter)

Sign of the Times? Union Activity Rising?

As the U.S. economy slides employees feel the pressure on their pocketbook. So what do they do about it. They cut corners, they reduce the "extra" spending. But eventually they start looking for more money. One way of doing that is looking for a different job, though that may be problematic and a bit unsettling for many. A second way for getting more money is to try to get it from their current employer. They look for bigger raises or they look for "cost of living" increases. Ann Bares, in Compensation Force warns against this with the statement "Experts warn (and I would second this warning) of the pitfalls associated with simply increasing base pay (in the form of a "cost of living" increase) to address these rising costs. What happens if gas prices continue to increase indefinitely, and you've set a precedent for covering the cost? And why increase pay to address fuel costs but not rising healthcare expenses? Again, potentially dangerous and slippery territory to step into." She offers some alternatives to COLAs so read her article.

Another way employees may try to get more money is to seek third party representation. And unions are selling it. Rising prices, job cuts, fear and a union friendly Congress are all leading to what may be an uptick in union activity. Atlanta, Georgia (where I work) has not exactly been a hotbed of union activity in the past. But union radio ads have been on the rise, and just last week in one day I saw two union picket lines where wages seemed to be the issue.

So beware! Be on your guard. Pay attention to signs of union activity in your workplace. Unless of course you want a union. I believe that as the economy worsens this activity will increase. And if we end up with a Democrat administration we will likely see union friendly legislation passed (See my previous post on the Employee Free Choice Act and Kris Dunn's post When "The Sopranos" Force an Employee To Sign a Union Card...) which will facilitate union organization. Clean up your "house", train your supervisors, put them on guard about accepting any union cards, otherwise you will get something you don't want. There is a big cost associated with unions (look at the auto companies.. are they doing well right now?) and in tough economic times do you want any more costs to handle?

UAW and GM: Unions Wonder Why Membership Has Decreased

The news about the United Auto Workers and General Motors has been in all the newspapers and we all know that the strike of one day is over with and that an agreement is pending. Here is a good article on the website for The Detroit Free Press summarizes the agreement.

I don't know about the rest of you, but wouldn't it be nice to get a $3000 check for refusing to do your job for a day???

Also, it was hard to be sympathetic to a group of employees making $58,000/yr. (at a minimum) for assembly line work.

Read the article and see what you think. Ready to join the union?