The Pendulum Is Set to Swing Back in Favor of Labor

The influence of organized labor has been waning for years. Among the reasons: the growth of "offshoring," which has thinned the ranks of traditionally heavily-unionized domestic manufacturing industries; a sustained period of economic expansion (up until recently, at least), which convinced many workers that they did not need union backing to make their way up the economic ladder; and, a lack of political support in the wake of the secular shift to the right following Reagan's election as President in 1980.

However, several developments suggest the pendulum is set to swing the other way.

First is the fact that a crashing economy, widespread and growing resentment over perceived "fat cat" bailouts, and Democratic control of the executive and legislative branches will almost certainly shift the moral high ground and balance of power away from financiers and senior corporate executives to those who are seen as having lost out -- the workers.

In addition, energy, security, and political concerns appear to be driving nascent efforts to have more goods produced locally instead of overseas, countering some of the competitive pressures that have undermined the bargaining position of domestic employees.

Finally, economic insecurity, wealth and income inequality, anger and resentment over all that has been lost, and the perception that those at the top are increasingly vulnerable, will motivate employees to become more activistic and to bolster their bargaining position by banding together to achieve strength in numbers.

With that, I expect that we will see many more incidents like the one described in the following Reuters report, entitled "Laid-Off Workers Occupy Chicago Factory, Seek Pay."

Invoking Main Street resentment of Wall Street's federal bailout, some 200 workers entered their third day of occupying a shuttered Chicago window and door factory on Sunday, demanding that Bank of America agree to pay them severance plus vacation pay.

Workers belonging to the United Electrical, Radio and Machine Workers union began their peaceful occupation of the plant on Friday after family-owned Republic Windows & Doors said it was closing after Bank of America canceled its line of credit.

The workers said Republic Windows & Doors gave them only three days notice of Friday's closing instead of the 60 days required by law, and owes them roughly $3,500 per worker including unused vacation pay.

A union spokeswoman said Bank of America is not letting the company pay the workers.

"We're just shocked that Bank of America, after receiving $25 billion in bailout money, not only do they refuse to extend credit to companies but, to add insult to injury, they don't allow these companies to fulfill their legal obligations to their workers," union spokeswoman Leah Fried said.

The downturn in home construction doomed the plant, which has manufactured windows and doors for more than 30 years.

Bank of America was among several U.S. banks to receive funding from a $700 billion federal bailout package designed to stabilize the financial system.

The laid-off workers hoisted placards saying, "Bank of America: You got bailed out. We got sold out."

According to the Chicago Tribune, the bank said it was not responsible for Republic's financial obligations to its employees. A Bank of America spokesman was not immediately available for comment.

Officials of Republic Windows & Doors also could not be reached for comment.

The parties were expected to meet on Monday.

Comments

[poor boomer]

Which parties, specifically, are expected to meet Monday? All three? At the same time and place?

[James]

I like the worker's referral to Bank of America as some kind of respectable organization. BAC is a bunch of dirt bag lawyers, scum bag executives dispersed in hiding places around the country.

How to solve this problem?

1. Find the executives
2. Post their homes and their locations.
3. Film them and taunt them continuously so they have no lives.
4. Make sure they are forever hounded and know no peace.

They are criminals they, are sub-humans!

[Cherubim]

Obama has chosen, mostly, Wall Street promoters and corporate lawyers to be in his cabinet.
He hasn't included anyone who knows how to go out interact with the everyday American citizens around the, and then report back to him what the people’s needs, and assess whether his administration’s new Initiatives are working. During the Great Depression, Eleanor Roosevelt
fulfilled this role. I nominate John Edwards for this role. John Edwards would be a refreshing change. Is not change what Obama s supposed to be about? He has spoken up for over and over for average Americans, i.e. Main Street, not Wall Street.
During his “Road to One America Poverty Tour” John Edwards demonstrated that he is uniquely qualified for this role. Watch the videos:

He also walked and comforted people whose homes were being foreclosed:
http://www.youtube.com/watch?v=9i_GWrYkcCI
The Great Moral Test of Our Generation:
http://www.youtube.com/watch?v=eS1x88ZmohM
He has visited workers employed in the new renewal energy economy:

http://www.youtube.com/watch?v=50yOR5bvMV0

John Edwards is, also, the only candidate for President that actually went down to New Orleans on several occasions and worked along side those striving to try to bring back the areas that remain so devastated from the effects of Hurricane Katrina.

Watch the videos:

http://www.youtube.com/watch?v=xAqktFnA4nk&feature=PlayList&p=EB1EC8919DC5DC52&index=0

http://www.youtube.com/watch?v=7DaofQCkbA8

[Nick]

Subhuman? They were there to make a profit. To Poor Boomer, you are poor for a reason, you are uneducated and most likly work for a union. Union has destroyed America. Bank of America does not OWE the company a loan. The company is the one who owes the workers money, if they do not have it, they can not pay it. If Bank of America gives these jokers the money we are in realy trouble, this is how we ended up in the housing crisis. They would be giving money away to a company who would default. Keep in mind, they loan from the goverment has to be paid back. It is not free money, I don't want MY tax money going to a failed company. Regardless of who they owe money. If the workers were truely skilled they would have no problem getting a job. Issue is that once factories shut down, most of these individuals do not even have HIGH SCHOOL diplomas and get turned away from fast food restraunts. THIS IS FACT. Elkhart Indiana has a 6 month GED wait due to the fact that 60% of their factory workers who were making 80K+ have no high school diploma and now can't even get a fast food job.

[ron]

Without the liquidity to fund excess speculation throughout the financial system folks will have to make do based on their actual earnings vs borrowing on infating assets. That said manufacturing direct labor, construction labor operates higher value machinery that replaces lower value labor in the chain and the trend is for greater higher value machinery with less labor. Clearly the recognition of this issue and the impact on our economic and social lives continue to be put off by the political class as the public enjoys the lifestyle created by easy credit and would prefer
to maintain the status quo..Times are a changing..

[dearieme]

Unions are a conspiracy by workers in a job against wannabe workers who would like a job.

[roger]

There is the educated & then there is the very sophisticated ones
with PhD's ,experts,professionals even Nobel Price winners 10s of
thousands of them.They are in charge of policy's they EDUCATE the
ignorant masses and look at the magnificent results!! The uneducated
did not in any way or form create this mess.in conclusion: you have
to be really at the bottom of the uneducated to accuse them of
responsibility for this FINANCIAL CHAOS

[Eric]

Obama's infrastructure jobs are the equivalent of putting thousands of engineers and construction crews on the govt payroll. Auto workers will soon be paid via bail-out money. Banks and insurance are already on the govt tit via the Fed & Paulson's liquidity schemes. Pretty soon 75% of the population will be financially dependent on govt checks in some form. Small businesses who actually create profits will be taxed to death or leave the country. It's very sad to see what has become of the greatest experiment in democracy. RIP USA.

[roger]

Eric...Experiment in democracy is not dead,its the way the
monetary structure is set up it needs some serious overhauling
Read " MONEY AND THE CRISIS OF CIVILIZATION, By Charles Eisenstein"
its a good beginning for understanding our problems.

[MurrayR]

This is no ordinary downturn. After the biggest credit bubble in history, we face a correction on an unimaginable scale. Make no mistake about it: This is a credit-cycle bust that the government cannot stop. The losses are already catastrophic. And the economic indicators confirm that the massive unwinding is nowhere near finished yet…

http://www.crisisstrategyalert.com/