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Major Appliance
Joined: 09 Feb 2008
Posts: 1292
Location: Brand Central
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Posted: Fri Aug 01, 2008 4:10 pm Post subject: Regarding the Walmart thread
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So I'm not accused of 'threadjacking' the Walmart thread, I'll start another in reply to the premise:
This will probably be unpopular here, however... the following statements are simple basic economic truth:
- Higher wages equal fewer employment opportunities due to higher costs.
- Higher costs equal higher prices and lower sales.
- Unions typically remove or hinder the flexibility that many business require to be successful in a competitive market (See: GM, Chrysler, Ford). When the Big 3 (plus AMC til they went under) had only to compete with each other in the US, the system and market could support the interdependent auto maker/union system created in the post WWII era.
NOW:
That said... In the past unionization was instrumental in helping create safer, better workplaces. Labor Day exists to celebrate the achievements of the efforts of labor organizers in making the workplace a far better place than was described in say, Upton Sinclair's "The Jungle"
The problem is, in today's global environment, heavy handed union work rules, featherbedding and such similar tactics make it impossible for the host companies to compete effectively, even in their home markets.
A similar effect is occurring in the EU as trade barriers and subsidies are removed.
Does this mean unions are a bad thing?
No, and thats not my point here. This means that they have to change to be effective and have a purpose in today's marketplace of ideas. If you remove public sector employees from the equation, unions have shrunk dramatically in membership (and therefore relevance) since the 1970s.
With most (if not all) of what they have stood for enacted into law, they need a new purpose in life, and I'm not sure they have found it yet.
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allhandsabandonship
Joined: 28 Apr 2005
Posts: 1634
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Posted: Fri Aug 01, 2008 5:29 pm Post subject: Re: Regarding the Walmart thread
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| Major Appliance wrote: |
This will probably be unpopular here, however... the following statements are simple basic economic truth:
- Higher wages equal fewer employment opportunities due to higher costs.
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Since the employees are also customers wouldn't higher wages give them more money to spend thus increasing revenues and profits for the companies with which they do business? Seems to me "simple basic economic truth" maybe isn't so simple if we look at the overall system effects and not just isolated units.
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dictators_rule
Joined: 08 Jul 2003
Posts: 4780
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Posted: Fri Aug 01, 2008 5:46 pm Post subject: money to spend
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agreed,need money to spend on the economy,where is it going to come from?
You used to be able to make enough to live off something like retail but you can't.
And the cannot compete argument is comparing apples and oranges.In non union over seas countries the employees or workers unfortunetly have to spend most of their money on food but NOT on stuff like homeowners insurance,auto insurance,utilities that work,health insurance-their paycheck doesn't cover what is a basic standard of living here.I'm not even talking cable,big screens or ice makers.
I saw a show on outsourcing where a call center supervisor in India going to work in nice clothes in a air conditioned corporate office go home to basically a hut,probably squating.
And the cannot compete argument doesn't work for factory costs as well because we have those pesky things called pollutions laws,safety regulations and privately owned business and not psuedo franchises for the military.
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Tigerlily
Joined: 06 Oct 2004
Posts: 102
Location: mid-west
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Posted: Fri Aug 01, 2008 6:59 pm Post subject:
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In my opinion, having a point of view is not thread jacking. Please feel free to post your replies in the walmart thread.
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USA#1
Joined: 04 Jul 2003
Posts: 1946
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Posted: Fri Aug 01, 2008 7:05 pm Post subject:
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Well, Welcome Back Tigerlily. Like to see your posts.
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Major Appliance
Joined: 09 Feb 2008
Posts: 1292
Location: Brand Central
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Posted: Fri Aug 01, 2008 7:11 pm Post subject:
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Well, some of the points you make are ones I agree with, but for different reasons...
You cannot compare apples and oranges, and yet the market has those two competing economically. The high cost (relatively) US market competes with the (relatively) low cost markets of India and other places... and loses.
Even within the US you see low cost states draining away investments in capital (SC, MS, TN & AL vs. MI, OH, PA as examples) for import car manufacturer's plants.
So, for some time, the challenge for unions is to move away from their traditional adversarial role and to a more collegial working relationship with the companies who employ their members in an effort to save what they have in terms of employment opportunities. In fact, 'sticking it to the company' is really just 'sticking it to yourself', as companies can move their operations elsewhere easily... although perhaps not as successfully as they or their customers would like (see: unintelligible call center conversations)
The call centers will get better with time, and in time it may be harder, if not impossible, to detect foreign centers as their language skills improve. Customers hate call centers and phone trees, and when you add a thick foreign accent to the mix, you have serious anger as a reaction.
That customer dissatisfaction seems to be a wedge issue unions could be using to their advantage, but they have not exploited it. I wonder why they have not embarked on a PR campaign on this matter.
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Major Appliance
Joined: 09 Feb 2008
Posts: 1292
Location: Brand Central
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Posted: Fri Aug 01, 2008 7:13 pm Post subject:
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Tiger: Sorry, gun shy a bit here. I keep getting my head bit off when I have dared render opinions that are not sanctioned! LOL
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Tigerlily
Joined: 06 Oct 2004
Posts: 102
Location: mid-west
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Posted: Fri Aug 01, 2008 8:17 pm Post subject:
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Well that's not much of a discussion then is it. Were you acting like a dick when you disagree?
Hey USA! How are you?
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USA#1
Joined: 04 Jul 2003
Posts: 1946
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Posted: Sat Aug 02, 2008 12:17 am Post subject:
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Doing good Tigerlily. Working us to death at Sears.
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trueairspeed
Joined: 13 Mar 2005
Posts: 139
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Posted: Sat Aug 02, 2008 12:51 am Post subject: Re: Regarding the Walmart thread
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| Major Appliance wrote: |
| Does this mean unions are a bad thing? |
And unions aren't necessarily a "good thing" either...
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Major Appliance
Joined: 09 Feb 2008
Posts: 1292
Location: Brand Central
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Posted: Sat Aug 02, 2008 3:01 am Post subject:
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| Tigerlily wrote: |
Well that's not much of a discussion then is it. Were you acting like a dick when you disagree?
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LOLOLOL. now thats the spirit!
I don't really know you and i already like you.
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sleK
Administrator
Joined: 30 Jun 2003
Posts: 1010
Location: over yonder
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Posted: Sat Aug 02, 2008 4:10 am Post subject:
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| Quote: |
- Higher wages equal fewer employment opportunities due to higher costs.
- Higher costs equal higher prices and lower sales.
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You're only telling half the story and neither point is absolute "truth."
Higher wages also puts more money in the pockets of consumers. Given that fact, it does not stand to reason that consumers will be unable to cope with higher prices due to increased costs. Likewise, as consumers have the cash to pay the higher prices and essentially nullify the higher costs to business there should be no reduction in employment opportunities.
The system balances itself out.
| Quote: |
| - Unions typically remove or hinder the flexibility that many business require to be successful in a competitive market (See: GM, Chrysler, Ford). When the Big 3 (plus AMC til they went under) had only to compete with each other in the US, the system and market could support the interdependent auto maker/union system created in the post WWII era. |
Profitability is the sole and exclusive responsibility of Management. If any given business finds itself unable to compete it has no one to blame but the brass. Period. End of story.
Any one of the Big 3 would have to do little more than to produce a compelling product to turn the tide. That they can't in no way shape or form reflects poorly upon their employees or the Union nor relieves Management from their contractual obligations to their employees. And let's be clear here; Management in each of those businesses chose to enter in to an Collective Agreement with a Union and further agreed to the terms of that Collective Agreement.
As I'm sure you're aware, there exists no right to profitability nor any right to competitiveness nor any right to remain in business at all. Accordingly, any one of the Big 3 could have told the Union to stuff it and dealt with the consequences. They didn't and that's neither the fault of the employees or the Union.
To summarize, the blame for any failing business falls squarely on the shoulders of Management. If they can't compete they should die and allow the market to fill in the gaps.
With regard to the usefulness of today's unions, they mostly suck but some do justly serve as a speed bump in the race to the bottom.
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Major Appliance
Joined: 09 Feb 2008
Posts: 1292
Location: Brand Central
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Posted: Sat Aug 02, 2008 4:37 am Post subject:
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| Quote: |
| Profitability is the sole and exclusive responsibility of Management. If any given business finds itself unable to compete it has no one to blame but the brass. Period. End of story. |
Agree. 100%.
And yes, compelling products are solely the province of management... I was discussing (in the abstract) one part of the equation (as that was the subject at hand) .... and certainly not blaming a lack of profitability upon the workers.
If properly motivated, a workforce that produces more, even at a higher cost, has a commensurate increase in productivity, and productivity is truly the unit of measurement of profitability.
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Nofsdad
Joined: 06 Jul 2003
Posts: 6727
Location: Central CA
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Posted: Sat Aug 02, 2008 5:10 am Post subject:
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I don't think unions are any threat to any of the major retailers nor am I inclined to belive that who sits in the White House has any bearing whatsoever on it.
That IS what the Walmart press release was all about, right? An attempt by a major corporation to influence the outcome of an election by veiled threat and innuendo?
I've said it before and I'll say it again... unions are NOT for retail... especially with the work force in that sector today. Retail employees, given the largely itinerant or temporary and/or part time nature around which the job revolves today are simply not targets for organization.
Hell, you can't find five people in the same store to agree with each other on what needs to be done, so how are you going to get 300 thousand people nationwide to?
Then you have the simple fact that rich Democrats... as they've proved repeatedly over the past two years... are no more inclined to do anything to actually improve the lot of the lower income working classes than rich Republicans are. They make their money the same way Republicans do.
We can talk about the merits of unionization in retail or more to the point, the lack thereof until the cows come home... won't make any difference. And in fact, I suspect that most of us would agree on the basics, albeit for varying reasons.
But Walmart? For years people have been claiming that they were the great Satan who had run all the mom & pops out of business and shut down "Main Street America" and they had absolutely no credibility with anyone. Now they're providing anti-labor talking points to get their guy elected and people are suddenly taking them seriously? What's the difference between bulldozing Main Street America and bulldozing their own work force?
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Major Appliance
Joined: 09 Feb 2008
Posts: 1292
Location: Brand Central
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Posted: Sat Aug 02, 2008 5:20 am Post subject:
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Well.
I was with you 100% until the last paragraph.... You can dispense with the innuendo there.
I still think Walmart sucks, and their tactics here are really sleazy, even if they are supporting 'my guy' however implicitly.
I removed my comments from the other thread since I wanted to (surprise!) comment on tangental issues that the initial comments raised in my head.
My musings were directed at the reality of unionization and whether they are good or bad for the economy and workers as a whole, and I framed a discussion with pros and cons here...
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sleK
Administrator
Joined: 30 Jun 2003
Posts: 1010
Location: over yonder
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Posted: Sat Aug 02, 2008 5:35 am Post subject:
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| Quote: |
| a workforce that produces more, even at a higher cost, has a commensurate increase in productivity, and productivity is truly the unit of measurement of profitability |
Labour productivity is a partial measure. Capital, materials, and energy, among any number of other more abstract concepts, are equally important factors in profitability.
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Nofsdad
Joined: 06 Jul 2003
Posts: 6727
Location: Central CA
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Posted: Sat Aug 02, 2008 5:58 am Post subject:
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Innuendo? What innuendo did you get from that last paragraph? That is EXACTLY the reasons most people who hate Walmart... including me for that matter... give for hating Walmart. Geez, you just LOOK for crap, don't you?
And is your idea of innuendo anything like the following, a version of which you pop up with on roughly a weekly basis these days, even though nobody has said boo to you in days now?
| Quote: |
| Sorry, gun shy a bit here. I keep getting my head bit off when I have dared render opinions that are not sanctioned! LOL |
I can't help feeling you just keep tossing the bait out there hoping for a negative response so you can go through all the usual routines again.
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Major Appliance
Joined: 09 Feb 2008
Posts: 1292
Location: Brand Central
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Posted: Sun Aug 03, 2008 12:38 am Post subject:
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If I misread the meaning in the last paragraph, then my bad. Guess I just got used to being the 'bad guy' *wink*
And the other line you quoted was intended as a bit of a self-depreciating joke.
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dictators_rule
Joined: 08 Jul 2003
Posts: 4780
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Posted: Sun Aug 03, 2008 1:55 am Post subject: 2day not retail
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excellent point,unions not for retail in todays enviorment
And who's fault is that,it is the employees themselves who let people convince them that this a temporary job,you can't make a living off this etc and YET;Managers and longtime employees tend to perpetuate that myth in the name of their own job security.
There is money to made and there is more money that can be made.But it is the execs,board members and district level managers tend to be the only ones making that money.How the heck did they get 20-30 years with one company.Too many have tunnel vision or never worked in retail in a time when you could make a minimal living.
Going into the conversion of 02 we had several people in one department averaging 14-16$ per hour and believe you me be it store management or associate there were no brain surgeons in the bunch.But for Sears that's where it literally all fell apart-forcefully.
The big corporate store ie the likes of Walmart,Home Depot and Target have helped perpetuate the myth.The retail rookies don't know any different.And in retail especially you have a lot of new citizens who really don't know any better.The young folk is just as bad they were supposedly educated here,in US history-I remember watching the old reel to reel history films of strikes being broken up in like the 1930s,I don't think many today don't even know ANY history on unions other than the screen actors guild or these players associations.
If enough generations of employees are never even exposed to even the chance of a union let alone participate in one no one will even stand up for their rights let alone try to start a union.Just look at some of the legitimate complaints here-everyone should know where and how to complain ie OSHA ,DOL etc.
Even Home Depots Frank Blake who took over after Nardelli raped HD said turn-over went down and sales went in many categories.What did he do-he hired FULLTIME 35-40 hour a week employees paid more than many like Sears.Sick Sig Nardelli reduced fulltimers and benefits and the bottom dropped out of HD sales by 2006.
Yeah retail sucks but it wasn't always that way and it does not have to be that way.
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Nofsdad
Joined: 06 Jul 2003
Posts: 6727
Location: Central CA
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Posted: Sun Aug 03, 2008 2:32 am Post subject:
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| Quote: |
| There is money to made and there is more money that can be made. |
I remember the old FT-40s and some of the older FT-30s in HA in my old store... they all made from $25 to $27 an hour in our little B store all through the 90s. Of course commissions were higher then and the company wasn't gouging every nickel they could get out of them but still... think about it.
The conversion of 2002 was aimed at exactly those kinds of associates. These people, some of whom had busted their ass for years to help make Sears what it had been were suddenly had great big old bullseyes painted on their backs when the "robber baron" PEFs began to move into retail, first by simply buying up stock and taking an "activist role, later by outright merger/takeover.
And I'll never forget that once Eddie came in and the conversion became a full scale slash and burn cost cutting operation, he personally made a billion freaking dollars that first year, based on nothing but cost cuts in the companies he controlled, most of which came in payroll.
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