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August 16, 2011

Union!

There’s a shortage of Wite-Out in the conservative business camps lately, the’ve begun to quietly paint over a whole section of history, because frankly it doesn’t make any sense to them. During the late 1950’s and early 60’s Union participation was at it’s highest, almost 30% of jobs were unionized. Unfortunately this was also a time of unprecedented industrial and economic power for the United States. That’s awkward.

The unionization of the American workforce didn’t come about because the working man’s or working women’s lives were hunky dory. Both public and private unions grew and flourished because workers faced the same problems; oppressive work and compensation systems that favored profit over safety and secure employment.

Giving employees the power to negotiate their salaries, benefits and working conditions was a tough pill for employers to swallow. They fought hard to prevent this loss of power and spent billions throughout the years trying to defeat unionization. Although, many union members and organizers were hurt or killed attempting to get these concessions, these bands of employees fought on. And after all of that struggle, the evidence is clear the Union movement was actually very good for American companies, making them the industrial and service leaders of the world.

It wasn’t really all that new idea, long before Union members were being called Communists and Socialists, they were known as Guilds and Confraternaties where talented workers banded together to level the playing field between consuming companies or individuals and workers supplying the effort and expertise. Collective power is a very old concept, in fact the only word for employees who don’t band together to better their lives is slaves.

A group or organization that collectively organizes workers is good not only for the workers but also for those who employ them.  The Union or  Guild provides a single point of contact for all employment negotiations.  This means that there is a single set of rules and costs for employment, which make planning and projection much easier.  When approached in partnership these organizations enable. When approached in competition the relationship is rarely profitable.  No one wins in a adversarial negotiation or  a strike.  The workers might eventually get back pay and the company might start running smoothly again, but the intervening time is lost to all.

That is why the current actions of Verizon’s management is questionable at best. 45,000 trained and experienced linemen, installers, and other service workers have been out for a week demanding that Verizon negotiate in good faith. The Communication Workers of America have put concessions on the table, but sensing the toughness of the current times Verizon management is going all out. Taking advantage of the surplus in unemployed people, Verizon is hoping to eliminate or “roll-back” all the contract specifications that it has taken years of negotiating to achieve. They are attempting to deal a powerful psychological blow to their workforce and force them to accept a brand new deal.

Verizon has several services that are selling like hotcakes right now, FIOS, a premium Internet and television service is probably their biggest. We might be tempted to feel that maybe the unionized employees are too expensive, however a quick look at this years stock holder’s meeting report show’s that obviously they don’t feel the same way about the top 5 in their management team. Although they didn’t meet their target goals, they still managed to walk away with over a quarter of a billion dollars over the last 4 years in salary and stocks. A quarter of a billion? Oh, and they get to use company cars and jets for personal use as well.

Why not? Verizon pulled in 100 billion in revenue and over 6 billion in pure profit this year, even after paying their owners VodaPhone a 10 billion dollar dividend. VodaPhone is a multinational conglomerate operating directly, or in partnership, in over 65 countries. However, somehow those 45,000 workers who made this all happen are getting it in the neck.  This is a tough time for workers, but not Verizon.

Those workers were out in the rain yesterday and today waving wet signs and being sprayed by passing cars as they heaved up waves of dirty water from rain soaked streets. They’ll be out tomorrow as well, their hard-earned vacations cancelled and mortgages and school expenses looming.  At the end of August they will no longer have medical insurance coverage.

It’s easy to overlook that these workers are all middle class Americans who have negotiated their employment contracts. Years of consistent service has brought Verizon to it’s success. The “Hard line” workers who climb poles in the rain, lug heavy ladders through the bushes and have to deal with the inevitable wasp’s nest while balancing high above the street are the ones who made all this success possible.

Verizon’s problem is that this is not the kind of work it’s possible to ship offshore. It takes trained skilled hands right in our own neighborhoods. This is a business that needs a strong manual labor component, and it’s expensive labor because it has to be done knowledgeably with experience. However in the midst of their success, Verizon management has chosen to take advantage of the current economic situation and try and devalue their own workforce.

As a consequence 45,000 people don’t know if they will have jobs again. They don’t know if the years of service they’ve put in to these careers are wasted. They don’t even know if they can keep their houses, pay that college tuition for their children or do any of the other things they had planned on.  You need consistent employment to plan, or even eat regularly.  You put in your time, day after day, rain or shine (or snow).  You get in your truck when the storms have knocked down your neighbors power telephone and cable and work until it’s fixed.  That’s your job and you do it because it pays the bills and you’re good at it.  You show up every day because that’s the deal.  You work consistently and the company pays you and gives you benefits, until they don’t.

That’s the real conundrum, where’s the loyalty? Where’s the fair dealing? Even if the strike is settled how do you trust a company who may just pull this again in a couple of years? How do any of us do business with a company who at a time of their greatest profit, dumps 45,000 employees out on the street?  Just close our eyes and pay the bill?

I guess as a worker you hope the Union can hold together and settle the strike so you can go back to work for another few years. I guess we as customers can hope we don’t have a problem that will cause some inexperienced manager, shipped in to cover from the mid-west, to come out and spend the entire week trying to fix our problem. But this won’t be over soon. Just as we can’t seriously expect a CEO winging his way in the private jet to see anything but the bottom line, we can’t expect the thousands of union members to give up their homes and futures without a fight.
Copyright Prentiss Gray 2011
Prentiss Gray is a writer and columnist and currently writes the Domesti-Tech Blog for Gannett.  He can be reached through his website at www.prentissgray.com

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Prentiss Gray

Prentiss Gray is a writer/columnist/blogger from New Jersey. After 27 years as a Information Systems consultant and the death of his wife of 21 years, he returned to his roots as a writer, creating the national column Adventures of the Lone Dad/ Daddy chronicles. He now Blogs for Gannet on domestic technology, and writes feature pieces and stories for general publication. He is a member of the American Society of Journalists and Authors and contributes to Bloomberg News, Daily Record, Gannett and the Tribune Syndicate.

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7 comments to Union!

  • steveG

    Prentiss, I have been a teamster for 40 years now and I am pro union. What I am not in favor of is when unions use their power to extort contracts, or abuse sfety rules, work rules etc. I see it all the time. My generation realized we had to work hard and partner with the company in it’s long term survival, often today and for many years now unions are doing their best to put these companies under with outlandish retirement and benefit packages. Problem is both sides are greedy and who ever has the most leverage at any given time gets their way. This can work against the long term survival of the union member.

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  • Prentiss, you are a Marxist or Socialist mouthpiece in everything you write. I can only surmise this is unwittingly or by design. Either way it makes for a very one sided argument by someone who I doubt has very little real management or labor union experience.

    The sword has two edges. There were times far earlier in our history than you reference where employers abused disadvantaged workers and literally left them no choice but to organize or move on and out. Forming a guild or employee union was absolutely necessary.

    Since the end of WWII unions have nearly ruined many a business, drove up costs, and productivity down dramatically and in the process insulated sub par performers from remedial action. Unions are notorious for corruption internally and through the Democratic party. No industries I know of have has perfected sloth and quality erosion more than auto workers, public employees and the education community.

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  • Prentiss gray

    Steve for a union member I’m surprised you assume what you do. Does your comment describe you? Surely you have seen both sides of this situation. Have you never taken action with your union to protect your livelihood? Are you that sure these 45,000 people are unjustified?

    If that’s not what you ment by your comment, I apologize.

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  • Michael Crumling

    I won’t say anything about the rest of the story at this point, but I did notice something. By your own numbers, Verizon had 100 billion in sales and a profit of 16 billion (16-10=6).

    You rail against the quarter of a billion paid in stock and compensation to the top 5 management personnel in the company over the last 4 years. That works out to 12.5 million a year on average for each of the top 5 over four years. 12.5 million a year. While you and I certainly don’t make that kind of money, it doesn’t seem out of line to me for a 6 billion dollar profit performance. Certainly the other workers participated in making this happen, but we can’t be hell bent on minimizing the executives skills either.

    After all the network news anchors make that much and more. All they really do is sit in a seat with good hair, and read the news from a teleprompter. In other countries, they are called news readers. I’ll bet none of them generated a 6 billion dollar profit.

    How many major league sports stars make that much money? Many of them do. How about movie actors? Some of them make a whole bunch more, and can’t really act any better that you and I can. They are just pretty or popular. Some of them make 20million for a 200 million dollar revenue performance.

    Was what Oprah did worth billions? I’m not so sure. I mean she did connect with people, but where is the value? Was Charlie Sheen really worth all of the money paid him? What about Nicholas Cage? These people all made more than the executives at Verizon.

    What about singers and rappers. Many of them make tons more than 12.5 million a year. Are they really supplying anything worth so much?

    I don’t mean to minimize what working people do. I surely am one. I work 7 days a week most weeks. But I don’t begrudge the top executives what they make. They work for it too!

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  • steveG

    Prentiss, I really don’t know anything about verizon. Just speaking for experience I have seen unions run good jobs out of California time and time again. I have also seen companies simply close their doors because they got fed up dealing with workers who didn’t want to work. In my 40 years I have witnessed less than 1 dozen grievances filed. Nearly all of those were by useless lazy employees looking for a free ride. We have a situation at my job right now where I feel an employee should use his union, he has been overlooked for promotion after promotion simply because he is not well liked by the boss. He works directly under me and I have recomended him each time a position has come up but the jobs seem to go to the bosses buddies with less seniority and qualifications. This is about $800.00 per month he is loosing out on. I firmly believe unions have a place. But members need to be responsible and reasonable.

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  • Michael, the payment due VodaPhone does come out of gross receipts, but it’s more like a finance charge and so while it has an impact on profit it doesn’t mean they had a profit of 16 billion.

    Your right, of course, we really can’t have much to say about the compensation of others. I put it in to illustrate that Verizon certainly can’t plead poverty, nor that the Union is “driving them out of business.” All of the success that the company has enjoyed has been under the current contract, which, from what I’ve heard, is more generous that what the union is now asking for.

    Steve I certainly agree they do have to be responsible and reasonable, but they currently suffer under the myth of greed and destructive behavior. That is mostly manufactured by corporations using disinformation to gain a better bargaining position.

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