The Daily Caller

The Daily Caller

Ten reasons why telecom unions are going extinct

As America approaches the back-to-school sales and end-of-summer cook-outs of Labor Day 2011, Verizon and representatives of the Communication Workers of America (CWA) and the International Brotherhood of Electrical Workers (IBEW) are negotiating a new contract following a 16-day strike that ended on August 23.

“We showed Verizon that they can’t push us around,” a union official bragged. In fact, Verizon didn’t make a single significant concession to its original proposal, which included “the same full slate of market-competitive medical benefits that apply to the vast majority of other [non-union] Verizon employees.” Meanwhile, each striking union member lost thousands of dollars in wages that will not be recovered. The union leadership did a superb job of demonstrating why the telecom unions’ demise is accelerating:

1. Unions don’t provide value in the workplace or benefits to members. At Verizon, where less than 25% of the workforce is unionized, union members can readily see that they have non-union peers who are receiving competitive salaries and benefits for similar work — and they don’t have to pay $60 a month for the privilege. When union members get more bang for the buck joining Sam’s Club or Costco than they derive from compulsory union membership, the union is not long for this world.

2. Unions suppress job growth. Antiquated union rules developed during the heyday of telephone monopolies cause Verizon to be less efficient and less competitive in a telecom marketplace where purchasers have choices and unions are now the exception, not the rule. Unions have traditionally been about securing more jobs for their members. But, Verizon is less likely to hire more employees in the businesses where costly unions are involved. The immutable irony is that the existence of telecom unions results in fewer jobs, not more.

3. The wireline business is shrinking fast. Except for Verizon’s fiber optic-based FiOS services, the growth part of telecom and most of the profits are in the wireless and Internet “space,” both of which are almost entirely non-union.

4. Unions are anti-matter in a matter-dependent world. Unions promote conflict instead of teamwork, opposition instead of collaboration. I asked a manager who previously worked in Verizon’s labor relations group what that was like. “Every little thing was a confrontation,” she sighed. It’s extraordinarily difficult for a company to succeed today if a core group of employees within its business maintains an allegiance to a third party that promotes its own agenda at the expense of the progress and success of the company providing the paycheck.

5. Union leaders are clueless. How else to describe a union management that calls a strike when the economy is nose-diving, unemployment exceeds 9%, many of the jobs covered by the strike require no more than a high school education and a strong work ethic, and the units affected by the strike have experienced a significant, irreversible drop-off in business as customers “pull the plug” and go wireless or use the Internet. You have to be a dim bulb to bluff in a game when you’re holding a lousy hand and your opponent can see all your cards.

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  • PhiloProf

    I grew up in a union home and every time we had a vacation planned it was time to strike.  Of course the savings went to the bills.  And that 5 cent raise was never enough to recapture what was lost because of the strike.  Years later I went to the union hall to seek a job.  None to be had.  There were over 175 men on the bench waiting for a job and the union was looking at going on strike again. Told me to come back after I went to school or some other activity.  
    I was ready to move to Ohio to work in a machine shop for an uncle when the shop wanted to go union.  He asked them not to until the contract was complete but they wanted to and a month after becoming organized they went on strike because the union said it would be best to show the man who was boss.  The next weekend my uncle sold the business lock, stock and barrel because he knew he would not meet the demands of the contract or the union.  Monday morning the strikers showed up to “show the man” and realized no one was around, looked in the windows and the only things on the floor were their tool boxes.  Why they asked and my uncle explained.  When the grocery industry decided to go on strike I was talking to my cousin about it.  His store had not gone on strike but he was waiting until the others came back because they were next.  I told him that would not happen because of the of this strike had on the coffers of the union. And their chain did not go on strike and the answer was that the coffers needed refilling but hang in there.In our discussion we talked about how much money it really cost and was the strike for 8 cents worth it.  He argued it was but then when pen, paper, and a calculator we discussed how much it cost a family of 4 to go on strike for 3 months.  Almost seven years to recover if the family had no savings and 4 years to recover and be back in position with the savings at where they would have been if not on strike.  Now the union boss got paid and he rode around in his Lexus checking up on all the parking lots to make sure they had plenty of signage.  Avery good article.  Enjoyed it.

  • Fuckyou

    I can’t tell if this article is a joke or not?  You see I am not from the ol’US of A and so I have read at least one history book and read more than the sports section of the local paper so I know that all of the arguments made by this hack who probably lives in his suburban parents basement are complete bs, so I am confused as to what type of audience this is aimed at.  Obviously it is either a joke – an ironic play on the absolutely worthless scum who benefit from the unimaginably unequal distribution of wealth in the US of A – or the writer, along with a few of his daddies friends got together and tried to do something ‘cool’ and start a website but the only ideas they had in their heads were those that there rent-paying daddies had taught them…

    blah blah this is a joke right?  you americans aren’t this stupid are you? 

  • VZSuperTech

    While union membership is on the decline in America so to is the work offered to all Americans by multinational corporations that have zero loyalty the the countries that have made them very, very rich.

    Check out what theses big companies want to pay your college grad and try and justify the college debt incurred to earn these wages. The way college costs are going junior will be starting their adult lives in deep debt with no sign of the American Dream in sight thanks to the substandard wages offered to them by these greedy multinationals.

    This is not a union issue as much as an American middle class issue which is clearly on the decline.
    Calling the Union and it’s middle class values obsolete implies we should all get in line and accept a 1930′s style standard of living being offered.

    Unless you are ok with America becoming a third world nation with an even greater disparity between the rich and poor I suggest unionizing