Corrupt UAW Executives and the General Motors Strike

According to a report in the Detroit News, UAW corruption was responsible for the General Motors strike. UAW Secretary/Treasurer Gary Casteel and Danny Tull, the former deputy to UAW Gary Jones, are co-operating with US Federal investigators in providing information of over $1 million allegedly spent on luxuries for UAW officials. The article cites unnamed sources and a Federal Court Affidavit by the US Labor Department. The allegations directly implicate UAW President Jones. Investigators uncovered sworn witnesses that allege that Jones spent UAW dues on golf clothing in Palm Springs, and that money was also spent on high-end retreats, cigars, and liquor, among other luxuries. Jones’ charity, 5 Game Changers Charity Fund, was allegedly ordered to hide the expenses UAW leaders took their GM members off the job because they lacked the credibility to sell a contract without a walkout. A federal probe into union corruption has so compromised the union officials that members can have no confidence they are bargaining in good faith, unaffected by the bribery and kickback scandals.

The role of unions today is being questioned

Corruption is nothing new to the UAW and other unions. The Canadian Unifor group have had their fair share of alleged corruption over the years. Cries of "More! More! More! must humbly turn into apologies asking for forgiveness. The role of unions today is being questioned. As extinct as those creatures in Jurassic Park, unions have served a role in social development, with the emphasis on the past tense. It is appropriate to use the Latin term, Bi-Pedus Union Memberus. Today, many successful corporations offer better salary packages than do unionized firms. The added load that management is forced to deal with in terms of collective agreements and bureaucracy hinders their abilities to remain competitive in these fast-paced days of corporate trimming. These days, the power wielded by the money of these unscrupulous teamsters is enough to scare any prospective business away. A service sector must be driven by a productive economy. If we do not encourage the growth of manufacturing and production, we will never be able to support our lifestyles. Just as some addicts support their habits by stealing, governments do the same under the guise of "deficit financing".

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Union behemoths change direction more like large and bulky freight ships

Unions are one of the key tumors in this cancerous economy. The increased cost of labor in North America has made it less expensive to produce goods in many jurisdictions around the world. The cost of labor also includes the extremely expensive and resource-consuming costs associated with labor grievances. Employees are encouraged to file such complaints, many in order to justify the union's existence. Employers of unionized firms are mummified in bureaucratic tape and lose sight of what managing is all about. Collective agreements are designed to tie the hands of business by limiting flexibility. In an era where market responsiveness is crucial to competitiveness and survival, a company is able to maintain amicable employee relationships and incentive programs without the need for unions. Union behemoths change direction more like large and bulky freight ships. By the time they have made the adjustments necessary to compete, the rest of the pack has a considerable advantage. Those employees who are able to learn, adapt and produce more quickly and efficiently than others deserve more of what the company has to offer. Unions, however, view advancement on a seniority basis. Although seniority seems like a noble gesture, business is no place for nobility. The merit principle should be the first study in any consideration of advancement, not the only one, but the first. Seniority based advancement breeds apathy in workers and once apathy spreads, it spreads like the plague.

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Recent economic theories stress the emphasis NOT on labor or capital

With unions employer costs increase in administrative, legal and production, which cost companies contracts. Contracts mean jobs and fewer jobs increase the burden of government support and the levels of unemployment and so goes the vicious cycle of economic disaster. The headaches associated with being a union member have become apparent. Global trends of self-determination and individualist market-oriented economies have forced many to re-think their position in society. Recent economic theories stress the emphasis NOT on labor or capital. Our emphasis should be on the creation of real wealth from the value of innovation. This theory posits that neither labor, not capital, as was previously held to be true, drives the economy by creating real wealth. Real wealth, which comes from our ability to commercialize and develop new and exportable technologies, creates jobs and allows governments to foster those socially necessary programs. The rearranging, manipulating and accumulating of capital do not provide us with any new taxable income. Unions are not about change. They are about maintaining the status quo indefinitely while industry around the world is sprinting past us by leaps and bounds. No one is suggesting that we eliminate all of our coveted benefits, however, maintaining the degree of luxury to which we have become accustomed to is becoming impossible. Unions have become oblivious to the facts. North America is on the verge of a disastrous economic state. Cries of "More! More! More! must humbly turn into apologies asking for forgiveness. North Americans need to desire a competitive economy. Current governments have fostered an attitude that more services for less work are a viable practice in daily life. Well someone has to pay for these services which will eventually come from the workers in tax revenues. The time to end this shuffling of capital is now. Unions are a roadblock to change and North America needs to desperately alter its position. Those who adapt survive! Those who cannot die a thousand deaths.