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Wednesday, May 2, 2012

Outsourcing: Are Labor Unions to Blame?


After reading my post on Outsourcing, my good friend Diane asked where I thought labor unions fit into the picture, and whether or not I thought they perhaps had “gone too far.”  Great question.  Here are my thoughts on the matter.

                The purpose of a labor union is to safeguard the rights and working conditions of our American workforce. (http://www.howstuffworks.com/labor-union.htm) Put in place during the American Revolution, Unions regulated the working environments: making factories safer; setting minimum wage requirements; preventing children from being exploited.  Basically, Unions protected the people from being taken advantage of by employers.  As you can imagine, this quickly became a thorn in the employers’ sides- with unions now demanding fairness on the behalf of  the employees, suddenly this leveled the playing field.  Frankly, the only people that would have been upset about being regulated are probably those who were profiting the highest by taking unfair advantage the most.  Factory owners who were already treating people fairly would not have had much to complain about.  In fact, those of us who make it a habit of looking out for our fellow (wo)man are likely to be in support of rights groups such as labor unions.

                Do I think labor unions pushed too hard, thus “forcing” U.S. manufacturers to go outsource their operations overseas?  Absolutely not.  If anything, the same greed that made labor unions necessary in the first place is still alive and well; now U.S. manufacturers have figured out how to get around those pesky regulations like minimum wage and human rights issues- by building factories in countries where unions don’t exist!   I can hear it now, “so it’s the unions’ fault our jobs went overseas!”  No.  This is what I was referring to in my original article as the need for Protectionism.  It is also in part what is fueling the Occupy Movement in this country.  When big business makes profitting more important than people, the only winner is big business.  Such is the case today, and it’s out of control.  A very slim percentage of people are amassing multi-million and billion dollar fortunes by taking advantage of tax loopholes in this country, and human rights loopholes in foreign countries.  Either way you look at it, it is still wrong for industry to profit at the demise of the consumer, or in this case, the worker.  It boils down to greed. How rich does Apple need to be?  Their profits every year are in the Billions.  Who benefits from this?  And on whose backs are those fortunes made?  Today it is desperate Chinese factory workers who don’t have the protection of labor unions.  Is this better for profits?  You bet!  But is it RIGHT?  Does the end justify the means?  In my opinion it does not. 
 
Chinese factories have now installed suicide prevention nets around the buildings because so many people there are in such a state of mental anguish they simply can’t bear another day of the abuse.  This abuse is being driven by us, Diane- it’s a machine. Consumers demand products.  Manufacturers supply those products.  Demand goes up, and manufacturers seize the opportunity to capitalize on the demand.  Ten percent profit seems good, until cutting a corner turns it into 20%.  Then cutting another corner turns it into more profits.  Ad campaigns create a buzz, making us want the next gadget, newer, sleeker, faster- the manufacturer is no longer happy with 50% profit margins and sees he can double, triple, quadruple his profits by taking production overseas to China.  More factories see how it’s being done and follow suit, and pretty soon nothing is being made in America any more, the manufacturing sector of our workforce has nearly ceased to exist as a result, and people in less developed areas of the world desperate for work are willing to put up with the abuse in exchange for jobs making our gadgets. The American economy suffers as a result, with the 99% getting poorer, while the 1% is getting fatter.  This is a dangerous imbalance, and is why so many of us are crying foul.  This is why the playing field must be leveled again, this time on a global scale.  And while that’s going to piss some rich people off, it still is the right thing to do.

                Protecting the well-being of another person, particularly when that person is at a lesser advantage than you are, is never a bad thing.  Labor unions are absolutely not to blame when it comes to the issue of outsourcing of American jobs.  American workers demand a certain standard when it comes to working environments and I believe they have every right to do so, to be treated humanely, to be paid fairly, and to be kept out of harm’s way while doing their jobs.  Demanding fairness is not wrong.  But denying it is.