Labor and Management

[Dr. Shane]

There seems to be an Us-vs.-Them fight between labor and management. Management will view labor as a cost that needs to be minimized in order to maximize profits for the company. Labor views management as undeserving of earning higher salaries and things they (labor) should get a larger piece of the pie. These are typical views and do not hold true across the board of everyone in these positions.

Management needs labor to produce the goods and services that the company is in the business of producing. These workers deserve to be able to earn enough to support their families. Thus the government needs to establish a baseline minimum wage. Workers can earn more than minimum wage by acquiring skills that are in demand in the work place. Thus government should subsidize public schools that quip students with the skills demanded by the work place. Government may create prevailing wage laws that set minimum wages for various different positions within the work force. This is only necessary when the free market fails to place significant value on specific skills that are needed by society. Several countries have done this including the US and Mexico.

Labor needs management to create business which creates jobs. Furthermore then need management to keep these business producing a profit so the business stays in business and the jobs remain permanent. Government needs to make businesses accountable by auditing the books and making sure false profits are not being reported.

So it is a complete cycle. In a healthy and functioning economy labor, management and government all work together to ensure the needs of society are met. Also, in a healthy society individuals are free to move from one group to another. An individual in labor may move into management or into government. A person in government may move into management. This is also part of a free and healthy society. No one is locked into one group and unable to move.

[Bravus]

As in most things, balance is the key.

[carolaa]

It's like the unions. Their original goals were good, and they have improved the way companies treat their employees. But on the other hand, they have been known to bully their own members.

[Dr. Shane]

I think it a mistake to view unions as being the same as labor. They are a separate party. We have management, labor and unions. Three different parties in the mix.

[Gerr]

Far too many on both sides view the other as an antagonist to exploit; they do not realize the symbiotic relationship between management and labor - one cannot exist without the other.

[carolaa]

I found it really interesting in talking with 2 different people in the sales industry. One works for a GMC dealership, and they pride themselves on treating their employees well. They believe if they treat their employees well, their employees will work hard and stick around. The other worked for a copier dealership where the turnover was high because there was such extreme pressure put on the sales staff, and they could never do good enough.

[Dr. Shane]

There are a lot of companies out there that still don't get it. Treating your employees good will create higher morale and lead to more efficiency and less turn-over. Kicking your employees in the rear and yelling at them will make them hate you, steal from you and quit. Business schools are on board and teaching future managers how to treat employees right. Companies that don't treat employees well tend not to do as well as companies that treat their employees good.