Monday, June 8, 2009

The end of business as usual

The Washington Post's article on the need for autoworkers to be adaptable (http://www.washingtonpost.com/wp-dyn/content/story/2009/06/07/ST2009060702616.html?sid=ST2009060702616) sheds some very interesting light on what I believe has plagued many of American corporations.

In the article, the Post interviews a current GM employee, Tom Goddard, who sees a critical need for all in his situation to change their mindset, turn the page, and say goodbye to the time when being a union covered employee meant high wages, unparalleled benefits, and job security and be more adaptable to their new reality. I say, welcome to the real world!

For those in the salaried world (and much more so for the self-employed/business owners like me), performance and adaptability has always been an important aspect of job stability (not security), advancement, and financial success (yes, I know there are exceptions! a.k.a. Enron, AIG, etc.). However, the entitlement mentality that has been a hallmark of the union movement and which has also been pervasive in too many cozy corners of the corporate world has taken too long to finally come to a reality check.

Don't get me wrong, I'm not anti-union or unfriendly to union-covered employees. I have family members and dear friends who work or have worked in such positions. I've worked side by side with people "on the floor" helping make change happen. Many of the people that I've known within union shops are hard workers and want to truly contribute to the company and make a difference. The irony is that many times what holds them back is...yes, the union. Specifically, the union contract and the stifling cultures that they often create. Cultures that kill innovation (pay for time, not contribution), resist change (contract violation), reward longevity instead of performance (seniority model), squash accountability (it's always management fault, never the employee), create a false sense of security ("I'll turn the lights off if we ever close"...don't know how many times I've heard that...not lately though), and keep people doing the same few jobs because they can make more than their supervisor ($25-$35/hr for manual labor+time and a half for OT+60-hr. weeks!) so what's the point in advancement? What sense does that make? And we wonser why we've lost our edge in the world!

I may be a lone bird singing here but I believe unions AND management alike are to blame for the plight of many union employee and retirees. First, corporations such as GM, etc. sold their future 30 or 40 years ago by making concessions that now folks like Tom are having to pay for (and by extension all the rest of us who will have to bail out the pensions plans of the bankrupt companies who can't fulfill their financial liabilities). Second, the decades of tango that unions and large corporations have been dancing (I've seen this first hand, posturing, positioning, phony deals that are so absurd as to put a spanish-speaking soap opera to shame) has produced an employment model that is just not sustainable. The cracks are showing and obviously people are feeling the pain.

Yes, I agree with Tom, it is time for a more adaptable model. The whole union movement needs to drastically change the model. I'm not saying that collective representation should dissappear but I do believe the union model of the 30's has outlived its usefulness. I also believe adaptability and a new paradigm is necessary at the top of American corporations and throughout every office if we are to regain our footing and standing in the global economy.

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