GM, France and Albany
Saturday, April 8th, 2006I couldn’t agree more with the conclusions and similarities this article from today’s Wall Street Journal draws about unions. If organizations can’t fire easily, they definitely don’t hire easily. Did you know that Michigan had the lowest rate of home price appreciation of all 50 US states last year? This theme also rings true in the Indian context….labor reform is key to a vibrant future India. I, personally, have observed the impact of unions on 2 of my former clients. At a mining client, we had a really tough time implementing pay for performance on the front line…as unions are generally anti performance based differentiation (which I’m definitely for!). At a hospital client, I saw how expenses grew uncontrollably due to unions…forcing prices up and/or profits down (usually into the red).
