I think that unions have done a commendable job of raising the living standards of American workers, especially in the early days of modern american capitalism when they had almsot know protection (plus striking mine workers are just some damn romantic and make for great folk songs). At the same time, many unions have gradually become corrupt institutions (mob ties!) which exist more for the betterment of the union leaders and their personal gain and political agendas than for the betterment of the workers. They also serve to further the interests of entrenched existing workers over the interest of new entrants to the labor force (particularly minorities and imigrants).

As an example, years ago, I worked tangentially on a deal where a European steel company was going to invest $1 billion in am American steel plant to turn it into a world class railmaking facility. The deal cratered because the union wouldn’t accept changes in work rules and pay which would have made the workforce more flexible and rewarded better performance with increased pay. The union said that they’d rather see the plant close than make any concession. The investment never happened, and the plant has been closed for years.

Not all unions are like that, but they certainly haven’t been the unblemished force for good that some of the commentors have made them out to be. Walk around North Philly and see all the factories which have left. Not all the fault of unions, but they certainly had a role.

On an semi-related topic, I would also like to note it’s hard for ANYONE to compete with the Chinese and their slave labor conditions and therefore, comparison to Chinese manufacturing in general is inherently dishonest.

To be fair, that is SEPTA policy. Still they don’t need to be rude assholes about it and certainly don’t deserve 4% raises each year while working in a permanent-deficit-subsidized-by-taxpayers operation like SEPTA. Though TWU sickens me, I still value Unions in general (they just need pragmatic and responsible leaders that keep things fair given the greater economic context).

http://www.independent.co.uk/life-style/motoring/world-auto-sales-chart-europe-and-china-fighting-tooth-and-nail-for-top-spot-1803396.html

True, you could argue that Japan is making a killing per capita.

RE Japanese producing in the US, you may be interested in an old Time piece about why US-manufactured “import cars” are doing better than the US Auto:

“The stock explanation for this situation is that the foreign makers pay their U.S. workers less in wages and benefits than do the Big Three. But that answer is wrong; the compensation is roughly equivalent. The real reasons for the transplants’ success are much more interesting and instructive: more efficient manufacturing systems, better labor relations, more collaborative relationships with suppliers, lower “legacy” costs for retirees’ pensions and health benefits, and hard-earned reputations for quality.”

more: http://www.time.com/time/magazine/article/0,9171,451002,00.html

Obviously, I will cede the retiree benefit costs insofar that Japanese manufacturers have been here for less time and have accrued less retirees on their dole. Again, UAW is not guilt-free, but certainly do not deserve anywhere near the lionshare of the blame as they often do…

Very well said.

So true.

Unless you read today’s headlines. The insurance companies are now claiming they barely make a profit (though I think their executive barely mention that profits have soared 400% percent since 2001 when premiums of consumers doubled.)

^Corporate America is evil.