Labor Day

Today is a holiday in America. It was solely created to celebrate the contributions to the nation’s security, prosperity and well being by American workers. It began at the behest of the labor union movement and later spread to recognize the benefits from all workers, union or not.

In 2014 the labor movement is a shrunken giant. It still has muscle and purpose but it is nothing as it was in the 19502’s or 1960’s. Historians will wrestle with the ‘why’ of this shrinkage of labor union power, but in the end it will still be a movement that had and still has great value to the American culture and economy.

Labor unions mightily helped improve working conditions. Then livable wages were targeted and won. Finally worker benefits were championed. Along the way holidays, seniority and work rules that improved worker training and productivity gained traction.

Today the American economy has transformed into several divisions of activity: first is services, second is manufacturing, third is micro markets for both products and services, and fourth is entrepreneurial thirst to build one’s own business from the ground floor up.

Each of these divisions in the economy fractures the hold that labor and separately, management, has had over the economy. Major corporate leaders no longer hold the sway they once did. Same for labor unions. At one time the nation would grind to a halt if management locked out its laborers. The unions had the same power: they could call a strike and shut down transportation, communication and other key industries that otherwise keep the country working.

Compensation for work performed has shriveled in recent years. There is too little work available and too many potential employees to fill the job openings that exist. This spells lower salaries.

Management mindsets began in 1992 or before to cheapened worker benefits. Health coverage was the first to move to complicated co-pay requirements, then higher premiums passed directly on to employees. Increasingly annual pay increases pretty much matched premium increases. This was the case for several years. So, first lower or stagnant pay, then lower health benefits, and finally pension benefits. Those are nearly gone. And even those that remain are being threatened for revaluation to lower benefits and higher premiums.

Compensation is a combination of pay and benefits including pensions. Lest we forget, however, the work is paramount. The companies need work performed well by a willing labor force. And the labor force deserves to have a meaningful career now and in the future. It may be the personal responsibility for each worker to prepare for their next step forward, but it is also incumbent on the employer to make career options open to those capable of filling the company’s needs. It makes good sense. It shares the responsibilities among the two parties.

Neither political party should have frown on either corporate or labor points of view. They ought to support what’s good for the economy and the nation. An impoverished labor force bodes ill for the nation’s future. Dickensian power over labor by the titans of industry is an hideous view back centuries. It wasn't good for society then and certainly wouldn't be a positive today.

We have vast untapped worker resources in the country. We have an economy finally facing up to the realization that it needs to reinvent itself in both manufacturing, labor movement practices, and benefit plan development. The ends of what we are all working for should be our focus. Not the means. Otherwise we get back to the old argument of the ends justifying the means.  No, no. In those days gone by more was destroyed than built.

America is a deep well of creativity and inventiveness. Unlock that and there are no limits to what we can do. The trick is how do we unlock that promise so we all can benefit?

A good question. Why are the answers not forthcoming?

September 1, 2014