The Pen is mightier than the sword, but the Pen must sometimes move the sword against corruption if the corrupt are not moved by the pen.. An idea without an implementer is useless. "The Rulers do not carry the sword in vain"Rom 13:4

Saturday, January 11, 2014

Our Wonderful System of Industrial life.

So, famous lawyer, (Scopes monkey trial) Clarence Darrow said mockingly in a speech about "Industrial conspiracies".  He was referring to some kind of attitude by presumed capitalists that "We don't even want the Chinaman to volunteer to come and do our work for us... work is a blessing,  we don't want a machine because that will put one of our people out of work and make him a beggar".

But then, the people he was representing, labor Unions continually demand better wages. So, where will they come from? Ok..raise the price of goods, but the Unions didn't want that either...so again..where will these higher wages come from? Ah... from improved efficiency... yes.. a machine will mean we can make more with the same??? number of people and our output per manhour will be higher and the company can make more with the same labor input, so.. we can demand higher wages....right?

So the reasoning used by Walter Reuther (United Auto Workers) in his 1965 ish speech about how the profits of giant corporations had vastly increased by some many percent, the wages of workers had not. So he used the improved efficiency and higher profits  to justify higher  wages. He made the point that  in 1960 the industry produced a million cars with 610,000 workers, but in 1964 (numbers and years are not exact) it produced two million cars with only 630,000 workers. Obviously, there was room for massive increases in wages.  

In those days, the increased efficiency and output through the use of machines, kept pace with the increase in demand...most of the time.  So he had some justification for his point. Unfortunately, their demands did not stop at fairness they vectored off into absurdity and irrationality. (which is why Detroit is now pretty well broke and why GM had to call for bankruptcy protection)

But the problem comes when demand is stagnant, and a business can only increase it's profit by increasing efficiency with a static demand. So... = "Machine" replaces worker.  So it just depends on where the business is in the supply demand cycle at the time.   Then we have the case where a trade union 'conspiracy' movement called the Australian Council of Trade Unions (ACTU) demands higher wages for low paid workers.   Did they demand workers increase their output and effiency at the same time? Nope, not a murmur. So.....what happened?  Workers were given an increase in their hourly rate and my wife lost one days work with an urgent request/demand by the boss to produce as much in only 4 days rather than 5. Woop de doo.  It just so happened that the business which employs her is not exactly galloping in the economic stakes. It's hanging in.... and increasingly outsourcing parts to China. No longer do they do much in the 'press shop'.... nope.. bits come in already made from China.

So, you might say I 'feel' these things quite personally and close to home.  My conclusion is, that the only people who benefit ultimately from all these strikes and campaigns are Union leaders who have embedded themselves in cushy positions with Union funded vehicles and who knows how many 'allowances' they also have. The End.

No comments:

Post a Comment

Please make comments here. Vulgarity or namecalling will not survive the moderator. Reasoned argument alone will survive.