U.S. workers must find new ways to cope

U.S. workers must find new ways to cope
By John Schenkenfelder

Global competition has rendered manufacturing-related unions in America virtually powerless. On the other hand, trade unions such as plumbers and electricians have no foreign competition and enjoy some collective bargaining benefits.
American manufacturers face ever-increasing pricing pressures from low-cost producing nations such as China, Vietnam and Mexico. Such competition restricts collective bargaining demands for increased wages and benefits. When worker demands are fiscally unreasonable, plants are shuttered and moved offshore or to states that favor a nonunion work force.
Global competition for jobs has successfully stifled wage increases in this country. In fact, despite inflationary pressures in oil, housing and food, middle income wages have stagnated. The American worker is long overdue a pay raise. Just ask any family trying to survive on two incomes.
Ironically, most small business owners complain that hard-working, loyal employees are hard to find. The reason is low wages. A logical mantra would be to pay them handsomely and they will come.
Competition in every industry squeezes prices at all levels, forcing businesses to keep a tight grip on costs. Over time, wages are the primary company expenditure, exceeding major capital expenditures, such as machines and technology,
Currently, American workers operate under constraints that make large salary increases nearly impossible. As a result, to earn a higher wage the average employee must continually upgrade educational and technological skills, move to a competitor or change careers.
Baby boomers should take particular note of this low-wage dilemma. Succeeding generations of underpaid young workers will find it difficult if not impossible to increase their standard of living. Moreover, inflated real estate values are beyond the earnings power of most young middle-class shoppers. Consequently, home prices will most likely plateau or decline, unless salaries increase sufficiently to make higher priced homes affordable.
In general, labor unions no longer wield sufficient authority to compel companies to change. As a result, American workers will have to find other ways to cope if they hope to get ahead financially.