The National Labor Relations Board (NLRB), on August 26, 2016, ordered VW to reconvene with UAW Local 42, the regional UAW section, to discuss the representation of its employees. The NLRB sided with the UAW in accusing VW of preventing unionization of its skilled workers, thereby violating federal law. Yet VW was adamant about proceeding with the appeals process, to prevent the unionization of only a portion of its workforce. Several companies, including Macys and FedEx, who recently launched similar appeals against ‘micro-unions’ and the NLRB lost their appeals. The courts demanded that these companies prove the excluded workers were unfairly segregated upon by being left out of the unions (Wiessner & Woodall, 2016). Regardless, VW argued
…show more content…
While the reasons are many, they include, at least in part, political repression and relative absence of collective bargaining efforts in the southern states, plus favorable financial incentives from the local governments (Blank, 2011). A pro-business political climate within these states has been enhanced by low business costs such as for taxes and labor, strong labor pool as well as elaborate transportation networks of roads, rails, air and sea ports linking manufacturers to national and international hubs. Furthermore, public-private partnerships have been introduced by these local governments to promote the business environment, provide development aid and tools, train highly competent workforce plus encourage innovation (Blank, 2011). In addition, favorable natural conditions such as the warmer weather, low cost of living, lower income taxes, lower property costs, all contributed to make a compelling case for location of manufacturing plants within southern …show more content…
Unions originated as mechanisms of offering leverage to workers. It is expected that the same workers would theoretically be disadvantaged subsequent to the abolition of unions. Not surprisingly, the current decline in unions, membership and bargaining power have at least contributed to a decline in the American middle class, through stagnation of wages, mediocre healthcare benefits, and of course sky-rocketing, outrageous executive compensation schemes.
Even while absent in the southern states, unions, or at least apprehension of them, have helped to increase the salaries of all workers since companies proactively increase employee remunerations packages and benefits to keep workers contented enough to reject union membership efforts. Hence workers within these states are actually, indirectly, enjoying some benefits of unions without having to pay membership fees. Such increases in prosperity may help to boost wages within the entire area, though if substantial could also eventually reverse the favorable labor costs that initially attracted the foreign car manufacturers. While the opposition to collective bargaining still appears strong, it is likely that newer tactics such as ‘micro-unionization’ of pockets of employees and favorable federal laws may eventually increase union membership across the south. The recent election of Mr. Donald Trump and Republicans to control all branches of government would nevertheless dampen such potential enthusiasm
While the reasons are many, they include, at least in part, political repression and relative absence of collective bargaining efforts in the southern states, plus favorable financial incentives from the local governments (Blank, 2011). A pro-business political climate within these states has been enhanced by low business costs such as for taxes and labor, strong labor pool as well as elaborate transportation networks of roads, rails, air and sea ports linking manufacturers to national and international hubs. Furthermore, public-private partnerships have been introduced by these local governments to promote the business environment, provide development aid and tools, train highly competent workforce plus encourage innovation (Blank, 2011). In addition, favorable natural conditions such as the warmer weather, low cost of living, lower income taxes, lower property costs, all contributed to make a compelling case for location of manufacturing plants within southern …show more content…
Unions originated as mechanisms of offering leverage to workers. It is expected that the same workers would theoretically be disadvantaged subsequent to the abolition of unions. Not surprisingly, the current decline in unions, membership and bargaining power have at least contributed to a decline in the American middle class, through stagnation of wages, mediocre healthcare benefits, and of course sky-rocketing, outrageous executive compensation schemes.
Even while absent in the southern states, unions, or at least apprehension of them, have helped to increase the salaries of all workers since companies proactively increase employee remunerations packages and benefits to keep workers contented enough to reject union membership efforts. Hence workers within these states are actually, indirectly, enjoying some benefits of unions without having to pay membership fees. Such increases in prosperity may help to boost wages within the entire area, though if substantial could also eventually reverse the favorable labor costs that initially attracted the foreign car manufacturers. While the opposition to collective bargaining still appears strong, it is likely that newer tactics such as ‘micro-unionization’ of pockets of employees and favorable federal laws may eventually increase union membership across the south. The recent election of Mr. Donald Trump and Republicans to control all branches of government would nevertheless dampen such potential enthusiasm