UPS turns a higher profit than FedEx despite being unionized. Companies can thrive unionized, they just have to be efficient. The only problem with unions for companies is they have to usually pay better, that's about itgut;1324116 wrote:No, I reject that the answer is that simple. Companies that survive the long haul are able to adapt and change, but when you have a labor intensive business and labor costs that are inflexible (because of unions) your options are limited.
In most cases, the issue you site where people overproduce and take a loss is because reduced volume costs them MORE money because of guarantees to union workers. I know at one point a laid-off UAW worker would get 95% of their take home (something like making up the difference vs. unemployment, obviously before 2008). Idling or closing plants have costs associated with them, so often the lower cost alternative is doing exactly what you are siting as evidence of mismanagement.
I'm not saying management was good or even not poor, but it's a fallacious assumption to think you can just turn a wage structure put in place over decades on a dime to be more competitive with a changing marketplace.
Classyposter58
Senior Member
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Classyposter58
Senior Member
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posts
Sun, Nov 18, 2012 6:01 PM
Nov 18, 2012 6:01 PM
Nov 18, 2012 6:01pm