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Over the last week or so, it has been pressed that LTV Steel in Cleveland will have to file for bankruptcy. This makes nine United States based steel companies in bankruptcy. They painted a grim picture of disaster for Cleveland if this factory had to close. Not only would thousands of people be out of work, but all of the other local companies that rely on LTV would not be able to get their steel. Yes, there would be thousands of people out of work, but I don't see why the other companies can't find steel elsewhere. One of the biggest reasons sited for the company's shaky fiscal situation is that foreign competition is providing steel for cheaper. Shouldn't these other companies then be benefitted by LTV closing it's doors? The company would loose some revenue from products that would have been sold to employees of the closed plant, but their overhead would be reduced also. I think that it would all work out in the end for these other companies. One of the biggest expenses for American steel manufacturers is the cost of labor. Why is that so high? The answer is unions. The news refused to admit it, but the unions are killing American steel. Yes, the union workers have a better way of life, but in long run they are bad for business. I can remember several occasions in my short life that the workers went on strike at that plant. Little did they know that they could be striking themselves out of a job. Foreign steel companies either don't have unions to drive up expenses, or they are subidized by their government. I don't advocate government intervention so I the answer to saving this nation's steel industry is for the industries to find ways have machines do the work or have the workers take a pay cut. If they don't take the pay cut then they won't have any pay eventually. I know I wouldn't want a cut in pay, but that may be the only way to keep steel manufacturers liquid. I don't doubt that unions saved a lot of people from miserable lives, but I think that they went to far. They insisted on more pay for less work. Well, it looks like it backfired on them. Remember that while a union may help you today, it may actually hurt you in the future. |
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