D
Docker
Guest
Except in the most extraordinary circumstances, there is no acceptable reason for a union to bargain concessions. In the case of a business that is profitable, there is absolutely no reason for concession bargaining. The results of concession bargaining over the last two decades should stand as proof that concessions do not benefit workers.
While concessions are often presented to workers as "necessary", something that the company needs to remain viable, let's keep one thing in mind: The objective of a business is to maximize profit. Wages and benefits are a drain on the bottom line so it stands to reason that if these can be reduced, profits will increase. Business, therefore, needs no reason to demand concessions beyond the fact that this will improve bottom line profitability. If you don't ask, you don't get. If a union has a history of concession bargaining, the company is that much more likely to ask. Concessions are not a matter of need, but a competitive advantage to be sought out where it may be achievable.
An employer's inability to compete or to meet the challenges presented by the arrival of new competitors is a failing of management. Some businesses are hampered by unhealthy management cultures that tolerate incompetent managers and generate poor management decisions. All things considered, management ineptitude is more likely to sink the business than the arrival of new competition. Rank and file workers should not be responsible for years of bad management. Concessions on the part of rank and filers will not save a business that is its own worst enemy. At the end of the day, it is management's job to deal with the challenges of being in business.
In short, a business that is failing because of inability to compete or because of a management decision to leave a particular market, will do so no matter what the workers give up. Concessions will only serve to reduce workers' severance and pension entitlements when the inevitable comes to pass.
Concession Bargaining - How Not To
While concessions are often presented to workers as "necessary", something that the company needs to remain viable, let's keep one thing in mind: The objective of a business is to maximize profit. Wages and benefits are a drain on the bottom line so it stands to reason that if these can be reduced, profits will increase. Business, therefore, needs no reason to demand concessions beyond the fact that this will improve bottom line profitability. If you don't ask, you don't get. If a union has a history of concession bargaining, the company is that much more likely to ask. Concessions are not a matter of need, but a competitive advantage to be sought out where it may be achievable.
An employer's inability to compete or to meet the challenges presented by the arrival of new competitors is a failing of management. Some businesses are hampered by unhealthy management cultures that tolerate incompetent managers and generate poor management decisions. All things considered, management ineptitude is more likely to sink the business than the arrival of new competition. Rank and file workers should not be responsible for years of bad management. Concessions on the part of rank and filers will not save a business that is its own worst enemy. At the end of the day, it is management's job to deal with the challenges of being in business.
In short, a business that is failing because of inability to compete or because of a management decision to leave a particular market, will do so no matter what the workers give up. Concessions will only serve to reduce workers' severance and pension entitlements when the inevitable comes to pass.
Concession Bargaining - How Not To