American auto parts titan Delphi has been pushed to bankruptcy. Unions are to blame! In this case the United Auto Workers to be exact!

In short this is another case where Union strong arms have prevented an American company from making needed adjustments in order to compete in the global marketplace. In most every single case of a major US company going under you will find that a Union unwilling to give in to changes was a major contributing factor. The Union strong arms prevent these companies from being able to compete and so they go under. Then who has a job? Once Delphi is under bankruptcy rules they will make many of the changes the Union would not allow anyway. Once again a Union will prove that it is very effective in killing a company, which also results in the company being less able to offer anything to employees. Bottom line is that companies need to be able to adjust to changes in the marketplace. Unions are an inhibiting factor in that process. Which makes the company go into bankruptcy or just die. With bankruptcy rules changing in the future more companies will just die, because it will be harder to file for bankruptcy! Meaning nobody has a job and all assets are liquidated!

I’m all for employees being able to say they want to walk out on their job. And I’m also all for the employer being able to immediately replace them permanently!

The issues with Delphi will also have an adverse effect on GM. And as these Unions destroy US companies it destroys the investment funds of ordinary Americans with accounts like a 401(k). Yes Unions are destroying America!

And some will say “well the executives still get good deals”. Well the executives’ deals amount to peanuts when compared with what Unions strong arm for in the name of the the greater employee population. Not that I am against employees having good benefits. But companies have to be able to adjust and the greatest cost to a company is that greater employee population. So employees have to understand that cuts must be made on that level or they will be without a job!

Given Federal labor laws already in place to protect workers Unions are now obsolete and far more a detriment than benefit to any company. This is why most White collar workers RUN from the prospect of a Labor Union at their company. They know that the Union will bring more bad than good in the long run!

update (10/9/2005 1:51PM ET): Blogger Booker Rising offers coverage and analysis, asking the following:

I think we all know there are instances of poorly run companies, especially in the US automotive industry. However, adjusting from mistakes is only harder to do when proposed changes are inhibited by Unions. Unions are not management and a company’s management should be able to make adjustments as needed.