Of the four factors of production, land, labor, capital and organization, labor is important. For, capital without labor is dead!
In US, the challenges did exist. The escalating retirement and health costs had the telling effect on the US economy. When about 8 percent of the gross domestic production is consumed by the healthcare and retirement benefits, such a policy is unsustainable. In early December 2005, the management of MTA offered a new contract to the TWU. The proposal offered was not favorable to the employees. Modest increase in wages, reduction in health care benefits, and a revised pension policy-these were the highlights. This was done to counter the alarming situation that the health care costs continued to grow faster than the US economy, and its adverse effect on the budget needed correction. Discontent began to brew amongst the workers when the management withdrew these facilities, even though that was done after an agreement. Probably the workers union was driven to the wall, and signed the agreement under duress.
The new head of the MTA, Peter Kalikow, had better ideas to run the Organization. He had the double advantage and support of two other important tools of Democracy. The press and politics! He was the former owner of New York Post and an active Republican. ...Show more