Amerika

Unions Are Parasitic By The Nature Of Collective Bargaining

Yet another view to how parasites have burned down a once-prosperous nation:

American Airlines (NASDAQ:AAL) and the TWU-IAM Association announced in a joint statement that they have reached an agreement in a deal that affects 30,000 unionized ground workers, effective immediately. American Airlines currently estimates the pay hike will increase pre-tax costs by $75 million in the third fiscal quarter and $120 million in the fourth fiscal quarter.

The deal covers 12 organized groups of workers in maintenance, fleet service, and other related jobs. The terms of the deal include: raises ranging from 15% to 36% for maintenance and other related employees, 24% for fleet service employees, 31% for tower planners, and 55% for weight and balance planners. Union officials claim the pay raises will net an average of a 22% increase for the unionized employees.

Executives at American Airlines said that employees in the organized groups will hold the highest hourly wages when compared with others working for rival carriers in the industry.

We are conditioned to think this is acceptable, but it is not. Collective bargaining is a strike against quality and ensures that better workers will not be rewarded. With a union action, the worst worker is rewarded as much as the best, which reduces incentives to improve and creates a disincentive to the better workers. The best can no longer pull ahead of the pack because the worst have been brought up to their level.

In the meantime, the costs are passed along to the consumers, who apparently are oblivious to both quality and cost and blithely wave it aside. When the elections come around, they have either forgotten outrages like this, or are thinking of their own unions and their hope of being “guaranteed” more money without having to do anything for it.

Economies work like decentralized calculators. For healthy results, ensure that economic Darwinism is present: reward the best, and give nothing or pink slips to the rest. For bad results, ensure that the people you should fire and the people you should promote get exactly the same reward.

Unions are like pacifism, communism and lynch mobs based on the principle of “equality” which is the opposite of quality, health, sanity, reality and every other good thing.

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