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Corporate Offense Against Unions Relies on Myths
Economic crises are as endemic to capitalism as is its resilience. Nonetheless, the system seldom survives in the terms predicted even by its most powerful players. The corporate CEOs that dominate contemporary capitalism know that the system cannot survive in its present incarnation. Most, however, demand that however much they rely on public dole, they should continue to dominate business and finance.
The Employee Free Choice Act is at the center of a battle to challenge such hubris. For more than a year, right-wing groups have lavishly funded anti-labor initiatives. These charge that granting employees the right to choose either card check or secret ballot elections would subject workers to possible workplace coercion. Yet their oft stated concern for workplace democracy won't stand common sense scrutiny.
Would American workers consent to hundreds of millions in bonuses to corporate CEOs who trashed their businesses? Or would workers accept a generation-long wage freeze even as their productivity increases every year? Not surprisingly, polls show that a majority would like to join independent unions.
Since corporate claims of concern for worker democracy ring hollow in the face of CEO crime and abuse, employer interests have opened another front in the war: this is not a good time to unionize. Unions will increase labor costs, thereby making it impossible to hire new workers. This new corporate tack is based on an ideol-ogy being discredited every day. The very inequalities fostered by corporate workplaces led to the current crisis. Underpaid workers had insufficient income to purchase the goods their own more productive plants produced. Future profit-making possibilities came to depend on perilous forms of "creative finance."
The corporate offensive against unions relies on two myths. Free markets guarantee full employment and corporations are natural ways of doing business. The corporation, however, is a creation of government and law. From its inception it has been the recipient of special privileges. Those privileges are justifiable only to the extent that a public purpose is served.
Corporations can raise capital far more effectively than business partnerships. Government grants them limited liability. The owners of the corporation, its shareholders, only stand to lose what they have invested in the stock. They cannot be held personally liable for any other debts if the company goes bankrupt.
Government allows individuals to form corporations in order to facilitate economic growth. Nevertheless, government will be less effective in promoting this goal if it does not impose the right rules for corporate governance. As economist Dean Baker points out, "The rules placed on corporate conduct are part of quid pro quo in-volved in establishing a corporation."
Lax anti-trust enforcement, no-bid contracts and special favors now enhance corporate power. These have fostered domination of many sectors of the economy by a few firms. Major corporations no longer negotiate with workers on a level playing field. Workers suffer diminished wages. Smaller suppliers also often see their margins squeezed. The markets that sustain many small businesses shrink.
Americans historically have worried about corporations abusing their power. That concern often manifests itself in support for small businesses, viewed both as job creation machines and escapes from the tyranny of the boss.
Yet small business is no complete answer to corporate power. Small business can be a source of innovation and flexibility. Nonetheless, return to an early 19th century world constituted primarily by small enterprise is neither likely nor desirable. Large corporations are often vital to the economies of scale of which we are justly proud. And though small business is, as President Obama argues, our largest source of job creation, small-business failures constitute our largest source of job destruction.
Only a strong union movement can provide the countervailing force that will sustain equitable wages and a more robust democracy. Unions as countervailing power can also supplant much of the need for detailed government regulation.
Many Maine small-business leaders fear unions. They should reconsider. As Jack McKay of Food and Medicine recently pointed out on Bangor television, union workers care about their jobs and won't push management with unsustainable demands. But by the same token, when WalMart fails to share its growing profits with productive workers, it drives all wages down and threatens job growth and prosperity everywhere.
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7 Comments so far
Show AllThe US Government has allowed corporate merger upon merger in an ever more deregulated environment that results in every industry having companies that monopolize markets, exploit labor, wrangle ever larger sums of corporate welfare, which is further enhanced when they are deemed too big to fail.
Wal-Mart is the largest private employer in more than half of the states.
We need to resurrect Teddy Roosevelt to break up the trusts.
The consumerist society the corporatists have nurtured serves their purposes not only by creating greater profits through the generation of greater demand, but also by influencing the evolution of the attitudes and perspectives of the population so that there is a greater focus on narrow self interest and resistance to the broadening of self interest. This makes it more difficult to develop the political consciousness necessary for the formation of a cohesive and powerful movement of the common people to pursue the common good, a movement that would inevitably attempt to limit corporate predations and power.
I certainly support the author's cause and the labor unions, but it often seems that the US political/economic system would have to completely collapse before much progress can be made with respect to the control possessed by such entrenched corporate interests. To paraphrase the dead, erratic, one-time on-screen Moses, we may only be able to pry control over the US political-economic system from the corporatists' cold, dead hands.
Monopoly Capitalism and Enormous Gov't bureaucracy are crushing everyone in between. If you have a job with either of these entities life is sweet. If you don't then your probably just hanging on right now if ur lucky. If you've fallen off the bus your fucked.
Both the corporate world & the unions are raping average citizens, wake up!
One way for We the People to beat corporations and banks is for us to BE the largest corporation and bank.
We're buying them, so they belong to us.
Give equal, non-transferable shares of their stock to each American adult instead of back to the plutocrats.
Ezeflyer's idea is pretty good. Too bad there is no political mechanism to bring this about. Stock market socialism. That's the way it ought to be.
Back when I was a corporate yuppie at one of the large national banks, there was a whole protocol alert for anyone trying to speak to any employees about unionization, and a whole highly organized department ready to jump in there and attack before anything could get started. I'm pretty sure most large corporations who don't have a unionized staff have something similar.
When they invaded Iraq, the Bush gang didn't have to change Saddam's policies on unions. Saddam hated them, too. Opposition to labor unions is a defining feature of oppressive governments.