Unions, execs must work together Charleston Post Courier

09.11.09

WASHINGTON -- In the American narrative on global competitiveness, there are two enduring story lines.

In one, unions use their power to strike to win wages, benefits and job protections that are so excessive that companies become uncompetitive and lose market share to imports or nonunion competitors, or are forced out of business. By the time the unions finally face reality and agree to make the necessary concessions, it's often too late.

In the other, incompetent executives try to keep their companies competitive by moving production to lower-cost locations overseas, or nonunion regions at home, creating a race to the bottom.

Although the world tends to divide itself between people who believe one story line or the other, there is, in fact, a good deal of truth to both of them.

Consider, for example, Ford's announcement last week that it had finally achieved a profitable quarter after years of red ink and steep losses in market share.

To most of Ford's unionized auto workers, Ford's sales turnaround confirmed their long-held belief that all that -- years of layoffs, pay freezes and benefit cuts -- was required to make Ford competitive again was for its overpaid executives to come up with cars that Americans wanted to buy.

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