In a town where the unemployment rate is nearly 20% who in their right mind would strike for more than three years?
Well, about 130 workers from a musical instruments plant in Elkhart, Ind., are doing just that, according to an MSNBC report.
On April 1, 2006 230 workers at the Conn-Selmer plant in Elkhart say they walked out when contract talks broke down over wages and benefits, including demands from the company of 40% pay cuts and other reductions, MSNBC reports.
The plant workers were making an average of $20 per hour.
At least a few people decided that having some type of job was better than no job at all. About 70 replacement workers, or “scabs,” have filled some of the positions while others crossed the picket lines and returned to their old jobs.
If it’s true that the company asked for 40% pay cuts, that’s harsh. But is it worse than layoffs in a region where jobs are already scarce? Or, how about the plant shutting down altogether and moving operations to Mexico where the labor costs are even cheaper?
The value of unions is to protect the value of the employees. The value of Reality is that it is a self-correcting mechanism. When the employees could not accept the fact that their value had declined in the market, then Reality made it possible for the company to continue operations. BUT, the underlying question here that should be asked before we just assume the union was completely stupid is what are the actual profits/loss of the company?
Without knowing that, we cannot say that the reduction of compensation was a fair one or if management has unfairly exploited the employees. We have simply assumed under present economic circumstances that it was a necessity of survival to reduce compensation and not really a matter of short term greed that will harm the long term well being of the company. If the later is the case, then Reality will self-correct by lessening the value of the company or outright eliminating it. We have seen this second scenario playing out in present circumstances across the economy with a vengeance, no?
Spent some time looking at news and stock reports.
Modern industrial tragedy.
Failed union. Mature, stagnant industry. Stubborn but competent execs.
The union has failed, Leadership has quit or stalled. The photos of picket huts was disgracefull, looked like a bunch of bums. Deer skulls, plastic sheeting, scrap wood. What message are they trying to send? That they have a buch of primative (possible canibal) hillbillies on strike? When pop-up gazebos are as cheap as they are now? One guy runs the strike, the pres quit, a new one was appointed, another officer is being kicked out. Votes are "held" and not documented, meetings are cancelled. If this is typical UAW, man, they be in trouble.
Looked at Conn-Selmer, good horns, my boy played them. My hat is off, props to the craftsmen who made them.
Looked at the parent company, Steinway. Nearly dead flat sales and financials for the last five years, a bit of a wobble in 2006, stock tanked this year. Sales and profit to share price ratio was a bit high but is back in line now. Sales about 387 million a year, 125 million gross profit, about 25% of that as net profit. No flags there, they can afford to pay productive employees living wages. Noticed that the founding family sold out in 1972 to CBS, then it was dumped off to investors in '85, Kirkland and Messina became officers in '93. Bought Conn-Selmer in 1995. Henry Z Steinway worked for the company, died 9-18-08. At age 93. RIP.
The company financials point to agressive but competent management. The 175 million in notes taken out in 2006, and due in 2014 are a bit of a worry, at a few times net annual profit. The industry is probably a poor fit for agressive growth type of management, props to management for not taking the whole company into digital electronic music. They are living a good life, enjoying the company of great musicians, building great products. -And respecting those products.
Dana Messina, pay is about $604,000. A little high, based on our other conversations about executive compensation. But not out of this world. He doesn't seem to be bleeding the company.
Kyle Kirkland, pay is about $487,000. more justifiable than Mr Messina, but still interesting. Noticed he is selling some of his company stock, $600,000 recently. No reason to panic. Probably personal reasons.
It can take years to kill a company, but it seems that Kirkland and Messina have been fairly good managers. Maybe they learned some things in their former lives.
My guess is, based on general observations over the years, Conn may have been about ready to croak when it was purchased, Steinway inc. saw an oportunity to do a turn around and stepped in. As for wages, IF the union behaved this way after the strike, HOW were they before? Wage numbers are hard to get a handle on. Benefits etc make way to much of a difference between companies. Shop work methods, processes, and the tools used make a whale of a difference in what can be paid.
One man running a 988 cat loader is worth more in a gravel pit than a hundred with #2 hand shovels, wages can reflect that difference. .
The union needs new leadership, and a hired staff including accountants, manufacturing experts and knowledgable Conn-Selmer workers. they need to get their act together, get some numbers, get with management.
The alternatives may be to decertify the union or close the factory.
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The Airline industry is a interesting case of 2 unions, the machinist union usually says "full wage to the last day" and is typically run by loudmouths. They show up in flannel shirts and make demands. ALPA is the pilot's union, they usually feild senior pilots with PHD degrees, USAF Col. Ret, and professional management and accounting specialties as negotiators. They show up in full uniform, with lots of stripes on their sleeves. They usually know the companies books and operations better than the company negotiators. That is why the pilots make a good wage, and have good work schedules. While the mechanics get only a few cents more an hour for an FAA issued A&P licence than they would without, and work lousy hours. (My solution? - The FAA ticket holders need to join the Pilot's union.)
Well all people can speculate all you want and give all your opinions on things you know nothing about all you want.
Being involved in this strike I will give my and most of the other fellows strikers our opinion. This strike was always more than about a 40% reduction in pay and benefits to a company that remained highly profitable and was out sourcing our jobs to china while attempting to break the union.
Steinway CEO Dana Messina and his partner Kyle Kirkland are former Investment bankers who worked with the famous corporate criminal Michael Milken the junk bond king and have about the same ethics and morals.
Messina made a contract offer which he new would be totally unacceptable to workers and the day before the strike he had sold thousands of shares at a high value before the stock dropped.
Stopping pension benefits & canceling death benefits while denying strikers access to 401k benefits were just some underhanded tactics used by these corporate raiders .
Messina strategy was buy up as much of the competition as possible then cry over capacity and shut down facilitates with no regard to community or workers.
These two corporate raiders who run a offshore hedge fund based in the Cayman islands and own their own casino in California (club one casino) in Fresno also are ranked players on the world poker tour.
As for all the union haters out there I am sorry to inform you that the union(UAW) tried to force us to take the companies first concession offer with no luck.Thank GOD we still had our vote which Messina has and still is trying to take away from us.
I am glad to see someone noticed our presences out front of corporate office and the factory, evidently our message got across.Yes we are uneducated hillbillies and proud of it and we have been able to inflict well over $25,000,000 in strike related cost on Steinway musical, but at least we stood up for what we believe in, something I am sure most of you people no nothing about.
After this strike is officially over and we are destroyed all you union hatters and republicans can help support us along with our new president Barack Obama.
Yes this strike became very personal very quickly. As a matter of fact it became personal a couple of years before the actual strike began.It became personal when top management started their policy of "intentionally creating a hostile environment in which to work" with selected management people being intimidated, threatened, harassed in an attempt to get them to resign to avoid severance charges. Typically after management was "realigned" the work began on the rank and file. Us workers were well aware that we were being forced to the street but feel that Messina underestimated our resolve a bit. Messina likes to brag that "in the long run" he will be more than able to recoup his strike related cost which may be true, However there is no doubt in my mind that if his reduction in the work force would have been handled in a moral, ethical manor it would have not only have saved millions on dollars it would saved bitterness and anger on both sides.
Us strikers are not looking for, or want anyone's sympathy because you can't do us any good any way. We are just telling our story of another example of corporate greed and evil little CEO'S like Steinway Dana Messina and his polices , which are becoming far to common in this nation today.
CEO,
I guess, our question was, why would the strike last so long. You eloquently answered that question, it became personal, and about principles. You also demonstrated a sense of ownership in the company that is is usually not present, or is suppressed. Many strikes are about wages only. It seems your needs run deeper.
Decertification of the Local, or closure of the plant are clearly not your goals.
Since negotiations are "ongoing" but stalled, I would be out of line to ask you to say what plans for future your union members, or Local have made. Or what your strategy and goals are.
Nobody from outside can help you unless you ask. The reason is that local community politics are very delicate. It seems that the breakdown occured because a solution was being crammed down your throats, and your only voice was to be a negative vote. Then no meetings have been held recently, according to your web sites, thus no recent progress has been made.
It seems to me, If the members of your union can get together and agree to get some outside experts who can play buisiness poker at Messina's level, then you have a chance. I have no doubt he would play, - what you bet, and when, would be up to you. I have little doubt that you may even have someone in your local, or town who could be a very good front man. You have seen the poster of bulldogs playing poker, a cat may be smarter, but at the table he has to look like a dog.
If you have not read Saul Alinsky's "Rules for Radicals" , it may help, the most important part for your union may be in how to organize, and invite in a poker player- or dress like one. Another book is "Management and Machiavelli" it could help you see the other sides goals. The book "The Prince" by Machiavelli is the basic book for leaders, he was brutally honest, the most important part was in planning ahead, and avoiding petty arguments.
If it is read with your information I'll still stick by my assessment, but it was and is incomplete without your insight. but you knew that!
Thank you, and the best of luck.
Hey Wes, thank you for your time and input on this discussion, I will try and enlighten you on our strategy and goals in this difficult matter which I am sure will run contrary to your seemingly intellectual approach. I really enjoyed your assessment of our shelter out front of corporate office which served a dual purpose. 1, protect us from the elements in sub freezing temps with nice warm gas heat compared to some fancy pop up style gazabo tent. Do you actually think we are trying to impress somebody with our brains ? 2,The other purpose which it also demonstrated was a source of embarrassment to the company which I know it accomplished by their many attempts to have them legally removed. Your statement about bums, cannibals, and hillbillies was also quite refreshing as that is the exact image we are, and trying to project.
The UAW has never been really interested in us or our strike and in my opinion just supported us to avoid bad publicity. They did not even bother to send down their top lawyers from Detroit to represent us and out sourced the work to some young attorney from Indy who had no experience to go against some top union busting firm from Chicago who represented the company. The top people in Detriot have tied the hands of local representatives for whatever reason to properly represent us.
Small efforts have caught the attention of Steinway Musical such as government officials relaying information to us complaining about labor charges and the statments of people and their screen names being made against this company.As a matter of fact CEO. Steinway even had his own Email address for a few weeks until it was mysteriously deleted.
The Plan is,there is no plan. Mr. rbrooku had it exactly right when he said "REALITY WILL SELF CORRECT" and that is where our faith and hope lies.There are only 2 parties that know the truth,Messina and the workers and reality will correct no matter how smart, educated or corrupt the parties may be.
Our goal is to have Steinway CEO Dana Messina and his corrupt partner chairman of the board Kyle Kirkland replaced which would benefit shareholders, dealers, workers, and musicians alike. It may be just wishful thinking thinking but recent events like a unpaid board position being filled by a beneficial owner who's firm is a watchdog for undervalued companies that can force change by stock acquisition is a hopefull sign in that direction. It was interesting to watch ValueAct and David Lockwood purchase a large amount of shares at near a all time low while kirkland and Messina where selling at a all time low.
Also thank you for your recommendation of books which I am sure are helpfull if you are attacking on a intellectual level, however I think I will stick with a book that has been on the best seller list for quite some time now. The book has been quite helpfull to me and I read it through my own personal filter,as I feel everyone should do for themselves instead of letting someone else interpret it for them. I call it the King Davids version.
the strike started before the current economic problems, and at that time the Michiana area was widely touted as a strong economic area.
and secondly
Quote:
After this strike is officially over and we are destroyed all you union hatters and republicans can help support us along with our new president Barack Obama.
despite tremendous support from labor, it is becoming more evident every day that Mr Obama is no friend of US mfg or labor based on his treatment of Detroit and the automakers, and like his prediecessor is all too cozy with the "wizards" of Wall street.
I feel the same sense of betrayal from Obama with his snub of US mfg and labor as I did when Clinton signed Nafta
I am done with either party. neither represents the interests of working people or US based mfg
__________________ Who ever heard of a skilled labor shortage that did not have a corresponding upward pressure on wages?
Intellectual? I do know cold weather. I understand why you had to build shelters, "freeze out" gets very real in a midwest winter. -And it would kill the effort if you don't have pickets on site.
Good luck, letting things work out over time may be the only way out if the UAW main office won't help. Seems kind of short sighted of them. But if they lose a case it makes a precedent, that would be bad for them. They may think a long inconclusive strike may be better for them.
I guess the UAW has other problems right now, it isn't how it was supposed to be. But Bernie Madoff has had better returns over the last 5 Years than GM stock. Investors may stand to salvage more value at the end as well.
New investors sound good, if the plant is a little weak on profits maybe the shine will go off of it for the present owners. It may be best for Messina to sell off a property where his actions led to labor trouble, no real loss for him, everyone has to back up and re-evaluate once in a while.
Time for Three-Year Strike to End
Re: Time for Three-Year Strike to End
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