Rethinking Unions VI: embrace unions and extend them to a true worker movement

Previous in the series:
I, II, III, IV, V

Embrace and extend is a proprietary software company strategy that was made famous by Microsoft’s use of the practice. The idea was to embrace an open standard, create the best implementation of that standard in part by adding proprietary extensions, and get everybody to use your version and become addicted to the proprietary goodness which was not released as an addition to the standard. Everybody buys your commercial software that includes the enhanced standard feature and you gain an extra dollop of lock-in profits for several product cycles.

The challenges of moving beyond current unionization efforts to a true workers movement is a bit like a photo negative of Microsoft’s strategy. What’s desired in this case isn’t to create something proprietary to extend a standard for advantage but to identify the jewels in the proprietary 1st generation unions, standardize and spread their benefits to all workers, and create efficient methods to achieve legitimate worker ends without the violence and without the contribution to crony capitalism that present day unions participate in.

Jewel #1 – Education
US vocational education is generally a mess. Union vocational education is generally considered a viable, quality system.

Jewel #2 – Benefits provider
According to the US tax code ( 501(c) 5 ) Unions have the ability to provide benefits consistent with their purpose. That makes them natural health insurance and pension providers that are financially distinct from the company. Union provided benefits are associational and allow increased worker mobility between firms covered by the same union which is both good for workers and good for capitalism.

Jewel #3 – Worker Protection
This one’s a very flawed jewel, but in a dysfunctional organization that has not yet gone broke, the union might be all that is between you and bearing the cost of changing jobs in a sticky economy when you’ve been done an injustice or have even been asked to do something dangerous or illegal.

Adaptation #1 – The open badging movement in education needs extension into the vocational education sphere. This isn’t really a technical challenge, that part is being handled by the technical crowd admirably. Instead the major unaddressed issues are social and organizational ones. People need to know about the badges both in HR departments and in the job seeking population. Badges need to be something that can give you an edge in finding a job. Badges need to be something that lets you find more good employees and filter out more duds. This is a major work in progress and nobody’s really cracked the code yet though there are a lot of entrepreneurial initiatives trying to work out the issues including big names like MIT and Harvard.

Adaptation #2 – Unions are a ready made association that can stay with workers throughout their working lives and provide benefits no matter what happens to a particular employer. This is a very valuable service, one that could use as many entrants into this market as possible in order to prevent membership gouging If you’re a Catholic, scout master, and bricklayer, picking your benefits among your three major associations gets you better possibilities if all of them are participating as benefits provider associations. This is going to require a sea change in legislation so that cross-state associations can provide benefits packages. President Bush proposed this early in his 2nd term and had his head handed to him. President Obama is obviously not interested. Would our next President do better? On the first day President Romney says he would work to replace Obamacare with a more common sense set of reforms. Would this qualify as part of the solution?

Adaptation #3 – Ultimately, this is the most difficult of adaptations because here is where threat and intimidation get applied in a form of street justice to handle situations that are ill suited to the formal justice system. If management behaves badly, unionized workers impose costs is generally how it works. But the ultimate expression of this tactic in current unions, the strike, is disruptive without being very effective. An entire industry has grown up around making it ineffective. Either formal justice needs to be radically reduced in costs to make these situations solvable by the courts or street justice needs to move into the 21st century so that it has lower dead weight loss, lower overhead, and higher effectiveness.

“50 Years Of Government Spending, In 1 Graph”

A helpful chart.

(Via Chart Porn.)

Murderers of the Middle Class

I was reading about an aspect of the composite New York girlfriend which our current President incorporated in that gracefully luminescent autobiography which apparently very few people read, when I was reminded yet again of how much I despise Bill Ayers. Yep, that Bill Ayers, wanna-be terrorist, influential educationist, neighbor and apparently BFF with said president. My daughter has a word (or several, actually) for people like him, of which the mildest is ‘hipster douchbag.’ It seems that some of the elements of the composite girlfriend have something in common with the girlfriend of Bill Ayers in his bomb-throwing days … the one whose skills at bomb-making were shall we say somewhat less than skilled?

Diana Oughton like Mr. Ayers and some of his other confreres came from an embarrassingly well-to-do family. They pleased and amused themselves four decades ago by messing around with violent revolution, bank robbery and the inexpert assembly of high-explosive devices, presumably for the benefit of the working class, the poor, the proletariat, or whatever Marxist euphemism it pleased them to label the recipients of their beneficence. The bomb, which exploded prematurely in March of 1970 in a Greenwich Village townhouse, was made of roofing nails and dynamite stuffed into a length of water pipe; the intended target was a dance at the Fort Dix NCO club.

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“Sooner or later, your schtick will wear thin, in half empty halls.”

This classic song by Nardwuar The Human Serviette & The Evaporators is dedicated to President Obama.

He began his re-election campaign today in a half empty stadium in Ohio.

Mr. Obama’s advance team really screwed the pooch on this one.

The story is not his speech, or his campaign, but the empty seats.

It is a long way to November. But this is not a good omen for Mr. Obama.

“Sooner or later, your dream will crash, in half empty halls.”


Quote of the Day

Richard Epstein:

So what next? The best first step is to free up labor markets world wide. Specifically, we need policies that take aim at the unbearable political forces that seek to tighten the regulatory noose on voluntary labor markets.
 
Unfortunately, the dominant attitude of macroeconomists is to assume that nothing that takes place within the labor market (of which Krugman never speaks) is large enough to influence the large macro trends to which they attribute today’s high employment rates.
 
The blunt truth is exactly the opposite. The calcification of labor markets is the primary impediment to economic recovery. The direct effects of government regulation of labor can matter far more than the indirect effects of macroeconomic policy, whether Keynesian or austerity-based. Neither austerity nor lavish public expenditures will improve the overall situation, which is why the massive increase in American public debt has not nudged unemployment rates down. The only workable solution has to stress job creation, not by misdirected subsidies, but by dismantling the government obstacles to market exchange.