If a book was ever published called “Unions Shooting Themselves in the Foot”, it would probably be bigger than the Encyclopedia Britannica, and that would only cover Canada from 2014-2015. So in this particular case it’s Local 5795 United Steelworkers which operates in Labrador City working for the Iron Ore Company of Canada.
Basically the price of ore fell and the IOC asked for a small concession from workers. What do I mean by small? They asked workers to give up a 4% wage increase! Lol, they didn’t even ask for a reduction in wages.
So anyway, reading the articles about the issue, the president of the union basically said he thought the company could save money other ways. How he knew this is a mystery to me. Is he more highly trained than the CEO or other senior managers at the company whose main job is to increase revenue and decrease cost? Call me skeptical, but I highly doubt it.
So out of spite, the union voted 91% to reject maintaining the same wages. The result: 150 workers will lose their jobs. That’s good though, because they need to “Stop the Union Busting”, “Stand With Lab West”, because “Solidarity is a Weapon.” A weapon for what? Stupidity and job loss?
When daddy goes home and his little daughter asks why he’s sad he’ll say “cuz I lost my job.”
Little girl: but why daddy?
Daddy: Because they didn’t want to give me a raise.
Little girl: Now what happens?
Daddy: We go on welfare and suffer. But, my girl, I stood up for Lab West and stopped union busting.
Little girl: Will we have enough to eat and a place to live?
Daddy: We’ll have to eat mayonnaise sandwiches and live with Aunt Bertha in her tiny apartment. But you wanna know the good news?
Little girl *through tears*: yes daddy?
Daddy: Solidarity is a weapon…
Some people are now blaming the company for being “greedy”. Guess what – it’s the same company as before. The same company that was paying gigantic salaries to workers which they then used to overspend on unnecessary frivolities. The company is just as greedy as before, but greed has absolutely nothing to do with business operations, salaries, contracts, etc. The price of iron ore is not determined by the Iron Ore Company, it’s determined by the laws of supply and demand. Companies constantly try to be more efficient and save money. The salaries they were paying were necessary to get the workers they needed.
And as we see, no matter how many protests you hold, no matter how often you appear on Open Line, no matter how much you belly-ache to the government for help, none of this can change market conditions. Those workers who are “fighting for their rights” have lost or will lose their jobs. You want to call the company greedy? Go ahead, it changes nothing.
But also look at what people were doing in times or prosperity. Were they saving money in case of a rainy day? Every article on the subject talks about the huge salaries people were earning, but along with that people were spending money like it was going out of style. Huge houses, huge trucks, skidoos, quads, trips, everything you could think of. Somehow they thought their jobs were permanent. Now we hear all the sap stories about people who have “no hope”. Get over it, people lose jobs every day. You aren’t guaranteed anything and half the people working in Lab West didn’t even have much education – unskilled labour. Go find yourself a new job like everyone else has to.
But what makes this whole story even worse is that Lab West which once bragged about its unending stream of money now finds itself broke, and because it was financially irresponsible, everyone else in the province has to bail them out. The provincial government has already given this town of 9000 $3.8 million. That comes from everyone else in the province and the taxes we pay. What’s next, a millionaire loses his job but because he was wasteful and didn’t save anything, we have to bail him out? And who is bailing these people out? Other six-figure earners? Yes, but also everyday people who earn far less than this. It includes people with meager salaries who work hard to save whatever they can. Now they have to lose money to support once-rich people who squandered what they had.
Lessons to be learned:
- Your job is not permanent. Very few people remain in the same job. Don’t spend 110% of your huge salary on “goodies” and go in to debt.
- If you are in a union (which is probably stupid), try to be reasonable. Companies are greedy, so are union members. The members in this story were clearly greedy. Instead of accepting the same wage as the previous year, they were stubborn and lost their jobs. Greed, or self-interest, must be balanced with reality. That’s what the market teaches us, but unions think they are immune from the laws of economics. They think economics are determined by protests and squeaky wheels. Well, we all see the result.
- It’s not everyone else’s responsibility to bail out six-figure earners or a town when people lose their jobs. Maybe the company could give the laid-off workers a flight to St. John’s to see if there are any jobs available. Don’t get me involved.
- Companies have no obligation to take care of your every need and desire. Being hired is an agreement between employee and employer. They are not your stand-in parent or guardian. You are responsible for yourself. If you don’t like the contract, then renegotiate or leave. You have no “claim” on the money of a private company.
In a perfect world, these unions would learn from their mistake, but they probably won’t. They’re based on a flawed philosophy and I don’t see that changing anytime soon.
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