Labor Unions Shrink Except Government Workers

It is customary on Labor Day for know-it-alls to evaluate the status of manufacturing workers -- as if farm, professional and service sectors are sidelines. On this basis it can be said that labor unions are doing very well and very badly.

The viewpoint depends upon how one reads soggy tea leafs. Peripatetic politicians spent the holiday interpreting for true believers.

President Bush – whose idea of a vacation is speechifying non-stop – went to Ohio for the holiday. He noted to a lukewarm, union gathering that he had inherited a declining job market. Not to worry, he persuaded Congress to stanch the flow by measly tax cuts.

“We have a responsibility that when somebody hurts, government has got to move,” asserted Bush.

This is a dubious remedy but standard fare for such occasions.

Bush declared he will appoint a “jobs commissioner” for manufacturing and services in the private sector. Also, he will “send a message” to China and other countries that “Americans expect there to be a fair playing field when it comes to trade.”

Democrat wannabes – the plethora of names is daunting – played variations on a theme that the nation has lost two- million non-farm jobs since Bush took office. The Labor Department says nine million people were unemployed in July.

There is nothing wrong with Bush’s intentions or the meager job improvement on his watch. Democrat candidates correctly recite selected Labor Department statistics.

Yet, neither they -- nor most Americans -- face up to realities of globalism.

The unemployment rate of 6.2 percent is the average since President Truman started measuring it 53 years ago. July figures always are skewed by graduating students entering the job market.

A real problem is the down-grading of pay scales for the manufacturing sector and – yes – profits for factory owners.

Democrats must give up the phobia of “big businesses” oppressing their workers for the sake of “big profits.” Some corporations pay a few, top executives inordinately large salaries. So do movie studios, rock bands and sports teams. It’s called supply and demand.

Ninety-percent of profits of large corporations go to owners – stockholders, most of whom are everyday folks trying to get ahead.

The Federal Reserve Board’s industrial production index has increased 5 percent since the 1998 peak in employment – but is down 5 percent from its output peak in July 2000 – a delicate balance despite Clinton’s admitted “too much” tax increase recession.

Industry’s achievement was made possible through technology. Automation has changed forever the premium for hard or repetitive labor.

Asia now – Africa poised – fills the need for menial labor and accounting tasks.

The bad news is that 20 million jobs formerly held by Americans now are performed more cheaply abroad.

The good news is that the volume of products manufactured in the United States has increased slightly – thus continuing the flow of foreign money into our economy.

The task for us is to go with the flow through education and training. This is cold comfort for displaced workers. However, technology has staved off economic depression and provides opportunity to keep a step ahead of the pack.

Union membership today is 16 million – down from the high of 20 million in 1983 according to the U.S. Bureau of Labor Statistics. Yet, the opportunity for collective bargaining moves to a new, continuing level for semi- professionals.

The AFL-CIO says half of its members are “white collar” teachers, police, firemen and government employees.

Future challenge for Americans is how to milk workers and factory owners for more money for social services without driving more jobs overseas.

American employers do not “export jobs,” as Democrats claim. Buyers do this by seeking lower prices at equal or better quality. American manufacturers meet the challenge or they and their remaining employees go hurting to the government.

Our industrialists deserve gold medals for keeping our overall economy on an even keel through technology and coping with a ruinous tax load.

With 37 percent of all our earnings going for taxes, there is not much room left for mistakes and/or economic ignorance of our lawmakers.

PARTING SHOTS

Rep. Dennis Kucinich and Carol Mosley Braun are said to be withdrawing from the race for Democratic presidential nomination. Now we’re down to the Seven Dwarfs.

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Arnold Schwarznegger says his past potsmoking and womanizing was “crazy stuff.” Now he is a shoo-in for California governor.

Lindsey Williams is a Sun columnist.

Williams – Labor Day 03

Sunday – sept. 7, 2003

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