How is this possible? One answer is the declining power of unions, and the well-orchestrated attacks on unions in both the private and public sector. Employers smell blood in the water, and are taking the opportunity to squeeze every last concession out of workers.
The Verizon strike by the CWA and the IBEW is a perfect example of corporations trying to crush workers even as they enjoy record profits. Verizon's earnings exceeded Wall Street'sexpectations last year with annualized revenues of 108 billion and profits of 6 billion. CEO Ivan Seidenberg was paid 36.75 million dollars last year, and 130 million over the past five years. One would think that some of this would trickle down to workers, but one would be wrong.
Coming into negotiations for a new collective bargaining agreement for unionized workers at the firm, Verizon has insisted on a host of concessions, from increased health care premiums, to contracting out jobs, to freezing its pension plan and closing the plan to new workers, to eliminating sick days. The company is insisting on these cuts not because it needs them to remain profitable, but because it feels it can.
The real reason for Verizon's hard line is that it wants to bring unionized workers' wages and benefits down to the same level as its non-union employees. Companies like Verizon have tapped into the idea -- made explicit in Wisconsin, New Jersey, and other public employee battlefields -- that union workers are overpaid and should make what their non-union counterparts make. Companies and bullies like Governors Christie and Walker have successfully engendered resentment in non-union workers who want to know why they should support union workers with better pension and health and welfare benefits then they get.
For many years, unionized workers helped all workers make better wages and benefits, as companies would pay non-union employees more just as a disincentive to unionize. Now that the economy is in tatters and union workers are afraid to strike, companies are doing the opposite, and trying to drag wages downward.
Make no mistake about it: when employers seek to cut wages and benefits for some workers, all workers suffer. One of the theories in support of unionization across industries is that it is immoral to compete for business based on how little you can pay your workers. A victory for the Verizon strikers is a victory for all workers in the industry, while a loss is an invitation to telecommunications companies to further depress workers and wages. To show your support, click here and send in a petition:
