The Middle Class Mass Suicide Pact
Stark County, Ohio is a lot like Detroit. It is old steel, old Union, and in a state of decay. The local hospital is now the largest employer in an area that onced played host to some of the world's largest companies like Hoover Vacuum Sweepers.
One of the last remaining old line companies is Timken. When the world's wheels move, there's a good chance they do so on Timken Roller Bearings. They are also in the specialty steel business and there is a growing need for US-made steel in critical parts industries like oil drilling, hydraulic fracturing and heavy equipment, places where companies can't take the chance on cheap Chinese alternatives.
Timken decided to invest $225M to upgrade the local plant. The State of Ohio promised $19M in tax breaks to help out and the company promised 18 years of steady employment levels.
The only problem is that they wanted to assure themselves that they would also have long-term labor peace and their contract with the United Steel Workers expires at the end of 2013 with the upgrades going on line in 2014. So they asked the USW to bargain early for a contract that would last through 2017.
Seeing the possibility to save jobs and enhance job security, the Union and the company reached an agreement right before Christmas. Last night the rank and file rejected it, 917-608. If the country is lucky this mill and its jobs will land in a Southern right-to-work state.
The union leadership was disappointed and now faces an uncertain future. Says Local 1123 President Joe Hoagland, “It’s up to the company. They wanted a tentative agreement by the end of 2011. If they didn’t get that, they said they’d take the money and go elsewhere,” he said. “I take them at their word.”
It's not the union or the company that failed here. The American middle class worker is committing mass suicide.
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Dec '11
Re: The Middle Class Mass Suicide Pact
Of course it's the union that failed here. The union is not its leadership, it's the members.
The rest of the middle class - those who aren't unionized - would be more than happy to have the jobs, wages and benefits those members feel are their perpetual entitlement.
I know many middle-class people who, over the past few years, have come to realize that they will probably never again make the sort of wages they used to feel were their due - but when and if offered a job that would pay them less than they've been accustomed to, they will jump at it.
Dec '10
Re: The Middle Class Mass Suicide Pact
The chief steward for my workplace posted the following on his facebook yesterday:
Now if I could link your post as a response. There is a mindset to unions that is just plain baffling. As government workers, the unions can't do anything for us directly as our pay and benefits are matters of legislation, not negotiation. I'm glad they got the extra toilets in one of our buildings, but beyond commonsense quality of life issues the union simply does not justify its existence where I work.
May '10
Re: The Middle Class Mass Suicide Pact
The King Prawn:
And if a rich man said to him, "I am not the problem. The rich are not the enemy. If you are jealous of our riches then become rich on your own," he would tell him he was a callous, unfeeling bastard.
Jan '11
Re: The Middle Class Mass Suicide Pact
I'm not unionized but am blue collar. I understand that in some of these type of votes that members (pensioners) can vote and hence won't give up their pay/benefits but that it's the most recent hires, or those with the least seniority that take the brunt of any concessions.
Still haven't heard if that one steel mill that Gov. Romney supposedly 'looted' in Kansas rebuffed concessions that were being asked of its workers. I understand that a different mill Bain invested in came out ahead & prospered.
I really think we could compete globally a whole lot more in a 'right to work', limited government environment and still enjoy high standard of living.
May '10
Re: The Middle Class Mass Suicide Pact
More Jobs for Texas!
Jun '10
Re: The Middle Class Mass Suicide Pact
Kowaliczko Tom: I'm not unionized but am blue collar. I understand that in some of these type of votes that members (pensioners) can vote and hence won't give up their pay/benefits but that it's the most recent hires, or those with the least seniority that take the brunt of any concessions.
[...]
Like all forms of organized crime (that's what I consider most unions) it's the old-timers who start the wars and the street soldiers that take the bullets.
Oct '10
Re: The Middle Class Mass Suicide Pact
Long ago, one was in a machinist union in a non right to work state. For all the promises and sales efforts of the Union, all stayed within what the market would bear.
Save that was long ago. To make a comparison here, during WW2 some of the primary targets of bombers were ball bearing factories. A mechanised nation requires this in war or peace.
So, perhaps in fact, the unions will simply bomb them out of existence and undermine a core manufacturing element of this country. A different war and defeat itself from within.
Edited on January 17, 2012 at 2:19amMay '10
Re: The Middle Class Mass Suicide Pact
We have some Timken facilities within an hour of where I sit (notably, South Carolina and North Carolina are 49 and 50, respectively, in terms of union penetration of the workforce). We'll gladly take these production jobs.
P.S. - BMW just finished a $1 billion+ expansion of the Spartanburg assembly plant. Last week they announced a further $900 million investment to build a line for a new SUV/crossover model they're preparing to roll out; rumor has it they may bring some 3-Series production stateside, too. Not all of us are running off the cliff with the other lemmings.
Edited on January 17, 2012 at 2:24amJan '12
Re: The Middle Class Mass Suicide Pact
Now of course the Justice Department will sue and sue when Timken dares to try to relocate to a Right to Work state. Way to go Ohio!! Don't worry, you'll keep getting your unemployment checks, and welfare, and housing, and healthcare, etc. etc...
Nov '11
Re: The Middle Class Mass Suicide Pact
Take that above described situation, multiply it by an entire state, and that's what Upstate NY is.
Jul '10
Re: The Middle Class Mass Suicide Pact
Mr. Robinson is a native of Vestal, near Binghamton, NY, where my brother is currently studying. I went to Geneseo, and my sister Cornell. Binghamton, Ithaca and Rochester, where each of our highly rated public colleges are located, are all former industrial and economy powerhouses, now relegated to secondary and tertiary status amongst American cities and known only for the educational institutions that remain.
The number of businesses founded or reared to prominence in Upstate NY, then either went bankrupt or fled is staggering: GE (Syracuse), Kodak (Rochester), Xerox (Rochester), IBM (Binghamton), the entire early American film industry (Ithaca), and countless steel, railroad and heavy manufacturing companies (Buffalo). This is all thanks in large part to the heavy unionization of New York State. As soon as manufacturing began it's slow death, the financial sector began skyrocketing, so state coffers have yet to truly feel the sting, but with the slowdown of Wall St., the pain is coming.
Dec '10
Re: The Middle Class Mass Suicide Pact
"Last night the rank and file rejected it, 917-608."
"The American middle class worker is committing mass suicide."
There's something else happening here. 917 people didn't just spontaneously torpedo this deal, they were led. There were big speeches, rumors, lots of friction, and these people were convinced to vote this way. Unions are sewers of bare-knuckle politics, and somebody in this story just didn't get what he wanted.
May '10
Re: The Middle Class Mass Suicide Pact
There were rumors and the Local did their best to refute them. Last week they ran a "Rumors and Fact" entry on their blog.
The underlying truth here is that the rank and file don't trust their employer and don't trust their union, either. And when these jobs go some place else the will only have themselves to blame.
Edited on January 17, 2012 at 5:37amSep '10
Re: The Middle Class Mass Suicide Pact
Thanks for the link to the union's blog, EJ. I noticed that a "Union card, Timken swipe card, driver’s license or other positive I.D. is required to vote." Will the Obama Justice Department come down on them for racism?
Apr '11
Re: The Middle Class Mass Suicide Pact
EJHill
And when these jobs go some place else they will only have themselves to blame. · Jan 16 at 8:36pm
Edited on Jan 16 at 08:37 pm
But, they won't blame themselves. They will blame the greedy corporation, for valuing profit of over people. They will blame their Union for being paid of by said corporation. They will blame Washington for helping the corporation move the plant, and not helping workers keep their jobs. Through all this there will be Republican and Democratic populists that will egg them on, hoping to ride the wave of resentment to higher political fortunes. That is what will happen. No one ever blames themselves when they are actually at fault.
Jul '11
Re: The Middle Class Mass Suicide Pact
Expectations are the cornerstone of disappointment. I have the feeling a right to work state will be very happy come 2013 unless this union comes to their senses and stops reading the Obama economic forecast.
Oct '10
Re: The Middle Class Mass Suicide Pact
The King Prawn: The chief steward for my workplace posted the following on his facebook yesterday:
Your friend perfectly illustrates why American unions are doomed, and why it's looking more and more likely that the two political parties are going to gang up on 'em sometime this decade. Union ideology survives by throwing it's own members under the bus--if it's a choice between violating the ideology, or simply firing half the workforce, union people will always choose the latter. Just look at Saturn.
Union leaders have tried to put in reforms several times since the 1980s, when Japanese companies and unions were eating our lunch. The members always stopped them. It is the the they, not the leaders, who are to blame.
Jan '11
Re: The Middle Class Mass Suicide Pact
Valiuth
EJHill
And when these jobs go some place else they will only have themselves to blame. · Jan 16 at 8:36pm
Edited on Jan 16 at 08:37 pm
But, they won't blame themselves...Through all this there will be Republican and Democratic populists that will egg them on, hoping to ride the wave of resentment to higher political fortunes. That is what will happen. No one ever blames themselves when they are actually at fault. · Jan 16 at 9:39pm
Yep!
Aug '10
Re: The Middle Class Mass Suicide Pact
EJ there doesnt appear to be any logical answers among the various postings here. what i at the bottom of this or is it really some inexplicable leap off a cliff ? someone must have promised them some sort of replacement comp vis a vis the government, dont you think ?
May '10
Re: The Middle Class Mass Suicide Pact
The local newspaper now says the reason was a "two-tier" wage structure for new hires. In other words, these guys decided to ax jobs because new workers could be paid less. So, instead, they will likely have no jobs to negotiate over as they will be created some place else.
Instead of dealing with today's realities they insist that they are living in the 1960s.