Democratic Talk Radio Blog

http://www.post-gazette.com/pg/08246/908668-432.stm

The Private Sector: One CEO’s case for the power of unions

By Roger Smith

Another Labor Day has come and gone, and while our economy continues its downward spiral, we have a unique opportunity to reflect on the relationship between companies that are trying to stay afloat and their workers, who are also struggling to make ends meet — as prices continue to skyrocket for everyone.

As the president and CEO of a major insurance company, some might call me an anomaly. I am an ardent supporter of the Employee Free Choice Act — national legislation that would make it easier for workers to organize unions.

I can speak firsthand about how managing a unionized workforce makes my life easier and saves me money. More than 40 years ago, the workers at American Income Life formed a union with the Office and Professional Employees International Union. While working together to grow the business over the years, we have developed a productive relationship.

I have never understood why CEOs spend hundreds of thousands of dollars on high-priced legal consultants to keep unions out. Letting anti-union consultants absorb company resources just isn’t responsible financial stewardship. I’d rather put that money into raises for those who do the real work at our company. At the hourly rates those anti-union firms charge, I’ll probably save money.

The collective bargaining agreements at American Income Life and National Income Life provide the economic stability that workers want, particularly during these tough economic times. The contract ensures fair compensation, benefits and working conditions for our workers.

But the peace of mind goes both ways– a work force with experience, professionalism and longevity creates the stability that I want, too. Workers stay at my company because they get a fair deal — and I save the cost of training employees that other companies incur because of high turn-over rates.

The nature of our contract also encourages us to listen and value each others’ perspectives. Respect for the contributions of our employees has become an integral part of our corporate culture, and it enhances our ability to make a profit for stakeholders. In fact, involving workers in times of significant change or restructuring has been vital to our success and growth.

Working through our collective bargaining agreement has forced us to manage better because we have a process for taking employees’ opinions into account as part of the decision-making process. Unions give credibility and standing to employees in a way that cannot be achieved with a nonunion work force.

Even as the economy slumps, we’re showing significant gains right now in monthly production records, and we’re even seeing projections of double-digit growth in annual sales. I am convinced that we would never have achieved this outcome without the involvement and feedback of our employees.

Unions also are good for the communities in which we live. Experience has taught me that fair wages and good benefits are paramount to keeping our communities healthy. In the insurance business, we deal with bread-and-butter issues. When we go to workers’ homes, we see the reality of the middle-class struggle — fear of foreclosures, lack of health care, declining wages and buying power.

It’s worth noting that a union worker earns 30 percent more in wages, has better access to health care and is more likely to have a 401(k) or pension plan. The truth is, everyone in the community wins when there are workers with enough buying power to provide for their families.

When we celebrated Labor Day yesterday, we didn’t just mark the unofficial “last day of summer,” but the beginning of a new opportunity to do what is right for workers, for our companies and our communities. I invite you to stand with me on one of the wisest decisions I have made — honor a worker and their freedom to form a union by supporting the Employee Free Choice Act.

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Roger Smith is chief executive officer of American Income Life Insurance Company.

This entry was posted on Tuesday, September 2nd, 2008 at 7:51 pm and is filed under Labor Issues, Healthcare, Economics, Employment. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.