Mark Borkowski Blog | Unions Are One Of Our Key Tumors In This Cancerous Economy | Talkmarkets
President, Mercantile Mergers & Acquisitions Corp

Mark was a co-founder president of a manufacturing automation company after leaving Hewlett-Packard in a management capacity in 1985. The partners bought out his interests in 1987. Mark founded Mercantile and operates the business on a day to day basis.

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Unions Are One Of Our Key Tumors In This Cancerous Economy

Date: Monday, January 30, 2017 12:15 PM EDT

In November 2013, Hostess International issued a terse press release to the business community. It said, Hostess manufacturing plants were being closed as a result of the dispute between the company and Teamsters Union. Over 18,000 workers went out the door.

Another great Food company got put out of business. Why?

In December 2016, Hostess was completely turned around and made a massive shareholder and company profit.

The Unions do not seem to get it. Even companies like Del Monte have stopped growing Hawaiian Pineapples. Over 900 unionized jobs have started to be eliminated after the next growing season. Cheaper to get it somewhere else with non-union labor.

Compounded with problems of foreign outsourcing from China and India, Unions in North America will lead to many other plant closings that are currently under confidentiality agreements. There are dozens more that will shock our community and local governments coming in 2017.

Unions have served their purpose and unfortunately are now a major hindrance to the North American public. The speed or lack there of, at which our over-staffed bureaucracies precede has deterred a huge number of corporate decision-makers.Salaries and benefits are not the only sources of discontent between North American and international corporations established in Canada.The power that is wielded by many of these ignorant and no business sensitive unionists is enough to scare any prospective business from deciding to continue production.It seems, unfortunately, that although we apparently operate in a somewhat market economy, business is no longer able to be the master of its own destiny.

There is a way that Big Unions could make a difference and turn around this whole mess. When a non-saleable union plant is being sold, why should the union not use its massive pension fund private equity funds to acquire these businesses? If they think they can do a better job, please put your money where your mouths are. Then you can be considered a true partner. This has rarely ever occurred. 

Since we seem to be moving to a service society, even a service sector must be driven by a productive economy.The answer is quite simple, if we as citizens do not encourage the growth of production in the Western world; we will never be able to support our life-styles. 

Unions are one of our key tumors in this cancerous economy.The increased costs of labor in the Western world will make it more expensive to produce goods than almost anywhere else in the world. Prepare yourself for more plant closings.

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