Sunday, August 14, 2011

An alternative to Unions

In most human endeavors the successful enterprises are teams.   Yet in most business relationships the basic nature of unions and management relations is adversarial.  This is partly historical accident, partly a result of the ideological notion held by some people that unfettered free enterprise always produces the best result.


How could we make enterprises operate more as a team, and less as adversaries?  Sometimes hard times forces that kind of behavior, as we have seen in the auto industry, but that only happened when the industry was on the verge of collapse and both sides perceived that a big part of the industries problems was the adversarial nature of the relationship that inhibited innovation.


What if we could make enterprises work as a team before they are facing a disaster?  If we aligned the factors motivating people to make enterprise goals everyone's primary goal.


What if we made Corporate tax rates a sliding scale.  The flatter a corporations pay structure, the lower the corporate tax rate.  Measure the average rate of compensation from the deviation from the mean of the top and the bottom.  As the tide rises all boats do actually rise.  Exclude dividends from the computation if they are paid to someone not involved in management of the corporation, (or held in trust until some years after an employees tenure with the corporation ends).


If someone wants to run their corporation as their fiefdom, pay employee's as little as possible and take as much as possible, they are imposing real costs on society - from health care costs, to reducing the number of consumer dollars available to support the greater economy.  When workers have money to spend the economy grows, when management hoards money the economy suffers.  We should reward companies that share the risk and reward with workers without forcing employee's to band together to demand it..

No comments: