AT&T and its Unions

In response to this article: Found Here 

I fully agree with AT&T's argument.  Now, I also haven't gone deeper into these issues to see what other terms and conditions apply the contract between AT&T and its workers, but I am still mad that the Union is taking this stand.  As an AT&T shareholder, I believe that it is in my best interest for management to control costs and drive profitability.  If the national average of Health care costs, paid by workers, is 34% and the AT&T Union is only paying 8%, then I say they are getting a great deal and something should be changed.  The Union could take on 20% of the costs and still be way ahead of the national average.  They see this as a loss thought, because they gave something up and the corporation, on paper got stronger.  That is not the case.  All you need to do is look at the auto industry to understand why.

Before I get into that, I just want to say that the auto industry unions are not the sole cause of that industry's problems, but they are a contributor.  When a corporation can shed costs and stay competitive, it can weather financial storms and economic cycles and keep people employed.  This is what a lot of Unions don't get.  They see things only int he short-term.  If your company fails because it was unable to remain profitable - due to high cost structures, then it doesn't matter how long you stood your ground for.  Simple lesson of business, the companies that can keep their costs in check and remain highly profitable, usually do not go out of business.

The last major piece of that article is an argument that is used time and time again.  Its the old battle of apparent "haves and have nots."  Here you find a group of people claiming that because someone can afford something than they should pay for it.  Just like so many people believe that because "upper class" families can afford to pay more taxes, they should pay more taxes.   Where is the "fair" in that?  Fair would be the company paying half and the Union paying half.  That's fair.  Fair would be one flat tax rate.  The list can go on. 

I hope AT&T does not cave and sheds some of the costs of Health care.  If their employees don't like it....lay them off, I hear unemployment is fairly high right now.