Question

Why do Unions ruin companies?

The Dock workers did it, the Miners did it, and now the Royal Mail workers are going the same way. The Vauxhall cars workers have opted for a cut in staff total and a 2 year wage freeze. At least the company will still be in operation, and in the future can build up the workforce again, a very sensible way of doing things. The Royal Mail could lose 65% of it's contracts and still the Union puts it's head in the sand, or is waiting for the Royal Mail to shed half it's workforce and then privatised. The mind boggles at the stupidity.

2 months ago - 4 answers

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Regarding Royal Mail - I think its worth noting that the changes to Royal Mail's operation that are proposed by the management, the ones that the workers want to strike over, would ruin the company from the employee's and the customer's point of view (although it may be beneficial to the shareholders). This isn't a reaction to the recession, its been brewing for far longer than that - although recession hasn't helped. If all of the proposals just went ahead, you could see less and less of your postman. Many sorting offices would close, many postmen made redundant. The ones who remain would have longer hours, less pay, more to deliver in less time, as well as no flexibility in the working arrangements (which would go hideously wrong quickly, because its impossible to predict the exact amount of mail posted in advance). You'd also see less collections, and possibly less deliveries. The price would also probably go up. Postal workers are looking out for themselves when it comes to wages and working conditions, but the way we want to work is best for us, as well as better for the public. Its just that it costs too much. That is why I feel that Royal Mail should be treated as a public service, rather than a profit making corporation. No postman wants to strike - it costs us in pay, but its about trying to protect our jobs in the long run. The threat of strike is usually enough to bring the management to the discussion table, which is what we want. The national strike may not actually happen.

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by ToodlePip

1 month ago

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Other Answers

their outrageous benefits is what I hate. I don;t begrudge them their hourly wage that much but some unions my company deals with in Pennsylvania, USA - we pay $8/hr just for their PENSIONS - it's insane - they can retire at age 55 and probably get 70,000+ a yr in pension income. I'm lucky if my company will match $3-4000 a yr of my 401k contributions and I HAVE TO contribute $5000 to get that. I'll be lucky to have enough in my 401k plan to get 25,000 a yr income to start when I retire and that's a lot less than I make right now and in 15 yrs when I hopefully can retire, it will be worth even less. union guys also don't have to pay anything towards their medical, while us admin people and non-union craft workers have to pay 25% of the monthly premium cost and they probably get FULLY PAID medical when they retire too, which no one else in the real world gets. and then they wonder why so many union workers are out of work right now - we have to charge our customers $100/hr vs probably $70/hr for non-union workers that some of our competitors use - plus they have 3-5% annual increases guaranteed for the next couple years of their current contract, while I don;t expect to see more than 2.5% a yr increase any time soon. I hope we can get some leverage against them in the next round of contract talks - like 2%/yr for 3 yrs to make up for the well above average increases they've been getting in this economic downturn

by Doctor Deth- 1 month ago

Because too many people buy into the b.s. and it always comes down to them burying their heads in the sand -not 'being a voice for the people' like they claim.. It's a business in itself, collecting dues from hard working people to pay themselves, etc...The grocery store strike about 7 yrs. ago in California screwed a lot of people. The stores that chose not to strike, the employees dues were raised to pay the wages of the people that were striking because they had to pay them 'something' LOL It's sad.

by Kmmv- 1 month ago

Unions do not ruin companies as you have put it - the problems usually stem from management & unions having different ideas in how the business goes forward or modernises. I am not an advocate of strike action as I believe everyone is a loser. There are two sides to every story - Royal Mail has to collect mail from Post Boxes & Post Offices. Royal Mail has to carry out the doorstep delivery to private & business customers. There is no competition for doorstep delivery, instead this government has allowed competition for bulk mail users to have mail collected by the company with the most competitive price - thereby taking away a profitable part of Royal Mail. Most people need Royal Mail, not everyone has email or chooses to correspond in that way. Even many businesses rely on the end delivery by Royal Mail even if they initially pay a courier service to collect their output. How would you like an increasing work-load, reduction in pay or reduction in hours(again reducing pay) - that is the reality facing many Royal Mail workers. Modernisation has its place but has to be managed sensibly - something that needs careful negotiation. After all the Roayl Mail can't be privatised - it is what it says.

by legs- 1 month ago