Dallas Morning News: Can Unions And Big Business Be Friends?

Mitchell Schnurman, a columnist for The Dallas Morning News, challenges the "conventional wisdom about unions and big business." On the heels of CWA's successful campaign to organize American Airlines' passenger service agents, Schnurman looks at AT&T's potential merger with Direct TV.

He writes:

Many believe that unions are a drag on business because they drive up costs, resist change and limit flexibility. In right-to-work states, where unions are a smaller factor, economic growth has been stronger.

But AT&T and the CWA offer a counterpoint. Their long-term relationship benefits employees and the company, and one expert said it gives AT&T an edge in the marketplace.

"AT&T's business strategy is built on generating higher revenue instead of competing on the lowest-cost commodity," said Rosemary Batt, a professor at the ILR School at Cornell University.

That's possible, she said, because AT&T has a stable, skilled workforce that can deliver higher-quality service. In most nonunion shops, she said, employee turnover is three to five times as high, especially in call centers.

Why is turnover lower among union workers? They get higher pay and benefits, and they have a formal mechanism to solve problems on the job, Batt said.

That requires more give and take from leaders – and more management skill – but it improves employee buy-in. Over the long haul, that can be worth the higher labor costs, she said.

Read the full article here.