Tuesday, December 20, 2005

How a union shut down New York City

The Transport Workers Union in New York City has ordered a strike for a second day in a row causing havoc on the city's transportation system. The strike is leaving people stranded, having to fend for themselves for a way to work and to go back home. KRT Wire polled a few people regarding their feelings towards the strike. "I'm disgusted," said Sandra Picon, a hospital clerk from Queens. The union "used New York people as a pawn," Picon added.

Unions once had a great benefit to the average American worker when labor laws and protections weren't in place; however, now labor unions are starting to threaten the average American worker. Transportation strikes only cause more harm than good, with an estimated loss of revenue from businesses at a staggering $400 million/day. That's right, each and every day they are on strike, New York citizens and businesses are hurting financially.

Corporations, and organizations that have abusive union challenges are hurting. Take a look at Delta or GM, both companies have been considered market leaders in their specific sectors eons ago are now considered junk stocks or junk bonds due to partly their problems with their unions. While profits and margins continue to shrink due to external factors such as oil prices, the cost of pensions and other benefits continue to rise, which in turn brings a business on a road to bankruptcy. Businesses like GM or Delta can't change their policies to adjust for the costs because they have to negotiate each and every penny with the union.

Avoid job loss and avoid $400mil/day losses by avoiding abusive unions.

No comments: