Tuesday, October 10, 2006

Labor's Dilemma

Bismarck hosts a Bobcat manufacturing facility. The Bobcat line of machinery can be found internationally in thousands of construction or work sites. It is a shining North Dakota success story. They also make similar models at their original Gwinner site. The company's unionized Bismarck workers have gone on strike for higher wages and better health care benefits than has been offered them by management, and I'm sure of one thing: the union workers will garner negative comments from some quarters for their action.

I am sure of one other thing: because of labor unions, the middle class of this country is much larger than it would have been without them. Even good capitalists should agree with that. With decent pay the huge mass of workers bought goods and services that created even more manufacturing capacity. But the upshot of higher wages is that factories have closed and capital moved to third world countries in search of the low wage worker. Yes, that has lowered prices, and domestic-made products, if you can find them, are relatively higher in price. This eerie specter looms in our future. If we devolve into a service related economy, we'll run around trying to sell insurance policies to each other.

None of us are innocent of turning our backs on domestic products. I have a few power tools in my little wood shop bearing the mark "Made in China." Before they were available, I used hand tools or did without. Take a look in your closets. Where were your clothes made? When you're in the middle of a flood, you're bound to take on some water. I wish I had answers for the dilemma so I could protect our productivity sector. I just know from reading the early history of unionism that many labor leaders suffered mightily to establish U. S. worker's rights. Is there a danger of Bobcat moving overseas, too?