Is Terrorism the Biggest Threat to American Business? No, Labor Unions Are.
Let’s start by saying that we’re not comparing labor unions to terrorists. And we’re not making light of the fact that people have died defending our nation from terrorism. But when it comes to the threats American businesses will face over the next few years, you could argue that Osama Bin Laden is less of a threat than big labor. 
As a marketing professional, you’re always looking for ways to drive new prospects to your business. But if you drive prospects into a failed business model, no matter how hard you work, it’ll be a waste of your time.
Take a look at the Big Three Automakers. The CEOs from these companies each flew on their respective corporate jets (cost = about $1,000 per hour, even when it’s sitting on the runway) to go to Washington to ask for a bail out. Not only has that created a PR disaster for their companies, it’s also a sign that the CEOs are simply out-of-touch with the challenges most Americans now face.
But that’s only part of the story. The real issue is that American car manufacturers can’t compete with foreign car manufacturers. Why? Because for decades labor unions have forced the U.S. auto industry into contracts that inflate their costs. Do you know that every car built by the Ford, GM or Chrysler is about $300 more expensive than foreign cars because of their labor contracts?
That means if Toyota builds a car for $19,900 and one of the Big 3 builds the exact same car, they have to sell it for $20,200 because of the built-in labor costs. That’s a flawed business model. Who has an extra $300 to blow in today’s economy? It’s difficult for any amount of brand loyalty to overcome that price differential.
And now, as if that weren’t bad enough, the Government might pass a law that will take away American’s right to vote for or against labor unions with a secret ballot. Huh? Isn’t a right to privacy part of what it means to be an American? Not if you’re a supporter of labor unions. If they have their way, when you’re asked to vote for or against labor unions, they’ll be able to look over your shoulder and see how you voted.
What? This is outrageous. And it’s completely un-American. Worse still, it’ll give big labor so much power that it’ll further cripple our ability to compete with foreign products and/or services.
If you’re a marketer, it’s your job to drive prospects to your business. But if that business has its hands tied by inflated labor contracts, then no matter how many prospects you drive to your business, your efforts won’t succeed. For proof of this, just ask GM, Ford and Chrysler.
You may not agree with everything we’ve said here, but we’re sure you’ll agree this — no matter what your point-of-view, you should contact your Senator or Congressman today to let them know where you stand on the Card Check Program that big labor is supporting.
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It would be hard to argue against the idea that unions got greedy and exasperated the economics of the American auto industry…but what they established in the 30s and 40s were worker rights and economic subsistence goals for workers abused by the same unfettered capitalism from which we are currently being crushed by today. (i.e. credit default swaps)…In all the planet, balance of power is everything. The ebb in flo for organism or economies is always the give and take of power. BUT I FOUND YOUR USE OF THE WORD TERRORISM REPREHENSIBLE! Using your logic, terrorism and unfettered capitalism could be equated for leading to the economic crash we are all trying to survive today.
Hi, Richard — Thanks for your comment. It’s well-written and well-thought-out.
We’re both in agreement that when Unions came to power in the 30s and 40s they were a good thing — worker’s rights were being abused by big corporations. We’re also in agreement that the balance of power helps keep one side (Unions) or the other (Greedy Capitalists) in check.
But I’m curious why you found our use of the word “terrorism” reprehensible when the first line of the posting says in bold type that we weren’t equating unions to terrorists. We’re saying that unfettered union power may have a more detrimental effect on American business than any guy living in a cave in Pakistan.
Thoughts?
My first reaction upon hearing that the auto makers unions said they’d let the companies they work for go under rather than make even one concession was that those folks deserve to lose their jobs. If they won’t help ensure they have a future, why should we?
Then I heard about the executives showing up in the corporate jets and realized that as idiotic as the unions are, management is even more clueless. I can kind of see how union members might be fed up with them.
So at this point, I’m wondering how to help the auto makers and I’m still not sold on the idea we should. Seeing both sides act this badly doesn’t help.