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#1 |
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Kasper's Automated Slave
Join Date: Nov 1997
Posts: 6,151
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Palm rejected Apple's no employee poaching offer - report
Ed Colligan, the former chief executive of Palm, reportedly rejected an offer years ago from Apple co-founder Steve Jobs to agree to not hire each others' employees.
The information comes from a U.S. Justice Department investigation that obtained communications between the two CEOs, according to Bloomberg. After rejecting the offer, Colligan reportedly told Jobs that what he proposed was "likely illegal." The conversation took place in August 2007, just after the launch of the iPhone, and when Palm appointed Apple's former senior engineering VP, Jon Rubinstein, as executive chairman. According to the communications between the two, Jobs told Colligan he was concerned that Rubinstein, as a former Apple employee, was recruiting existing Apple employees. "We must do whatever we can to stop this," Jobs reportedly said. The documents say that Colligan told Jobs he considered the proposal, but ultimately decided against it. "Your proposal that we agree that neither company will hire the other’s employees, regardless of the individual’s desires, is not only wrong, it is likely illegal," Colligan said to Jobs, according to the communications. However, Jobs' specific proposal was not included in the communications. It was only referenced and discussed by the two executives. "Jobs said Apple had patents and more money than Palm if the companies ended up in a legal fight, according to the communications," Bloomberg reported. Apple spokeswoman Katie Cotton declined to comment on the matter and Jobs did not return e-mails. Since Rubinstein came on board, Palm has hired a number of former Apple employees. Also in 2007, Apple's former chief financial officer, Fred Anderson, joined as a general board member. Most recently Jeff Zwerner, a former creative director from 2001 to 2003 at the Cupertino, Calif., company, now serves as Palm's senior vice president. The proposal from Jobs sounds similar to a informal agreement that was reportedly held between Apple and another rival, Google. Earlier this month, it was revealed that the two companies shared an agreement to not poach each others' workers while the Google CEO, Eric Schmidt, served on Apple's board. It is believed the unwritten agreement may have sparked an antitrust investigation from the U.S. Justice Department. |
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#2 |
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Registered User
Join Date: May 2008
Location: North Carolina
Posts: 249
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I don't blame Colligan. I wouldn't have agreed to it either unless it was some legally binding non-compete clause in an employee's contract. Jobs was doing what was in the best interest of Apple (keeping them on top), and Colligan was doing what was in the best interest of his company -- even if it means taking employees from his competitor.
It happens in business all the time. Palm is in the weaker position, so it's expected that they would want to hire people from a more successful company. Hell, Chrysler hired Toyota's Jim Press (formally the President of Toyota North America) back in 2007... not that it helped them out any ![]() |
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#3 |
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Registered User
Join Date: May 2009
Posts: 35
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This isn't anything new
Palm has been recruiting Apple employees for a damn decade now. It's like they are playing Pokèmon. As soon as someone leaves Apple, they pop-up instantly with an offer. Now I don't know if this conversation between Steve and Palm actually happen, so I can't comment on that, but as far as Palm collecting folks from Apple, this is old news. With all the high rankings that Palms gives to the Apple recruits, you'd think they would be out of that slump.
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#4 | |
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Registered User
Join Date: May 2009
Posts: 35
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Lol
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#5 |
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Registered User
Join Date: Jan 2007
Posts: 849
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If these types of agreements are illegal, is there any difference between agreeing not to hire anyone coming from the other company vs agreeing not to actively recruit them (cold calling)? The difference would be that in the 2nd example the employee would be free to look for work at the other company if they chose to, but in the 1st they would not.
Then again, I don't see this as any worse than a union saying you can't work here unless you join the union first. Either case the potential employee is being interfered with in seeking employment. |
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#6 | |
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Registered User
Join Date: May 2005
Posts: 424
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As for unions, they seem to be exempt from anything involving anti-trust laws. |
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#7 | |
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Registered User
Join Date: Feb 2007
Posts: 659
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Global Warming, Carbon Dioxide, Greenhouse Gases, Shrinking Ice Caps, Carbon Neutral, Carbon Credit, Generation Investment Management - Al Gore - "Beware the Prophet seeking Profit!" - Dennis Miller
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#8 |
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Registered User
Join Date: May 2008
Posts: 235
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People steal employees all the time, hence a no compete clause. Crazy.
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#9 |
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Registered User
Join Date: Apr 2009
Posts: 558
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typo
"Also in 2007, former Apple's former chief financial officer, Fred Anderson"
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#10 |
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Registered User
Join Date: Jan 2007
Posts: 12
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Interestingly enough this revelation may help Apple's case in terms of the agreement between Google and Apple. Apple had a connection to Google but did not have a connection (via the board) to Palm. I wonder if this could show that Apple was willing to consider the same deal with a variety of similar-sized firms, thus making it a public offer and not an inside deal?
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#11 | |
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Registered User
Join Date: Jun 2009
Location: Canada
Posts: 20
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Is that a good thing?
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#12 |
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Registered User
Join Date: Aug 2006
Posts: 2,066
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University and pro sports teams do it all the time, with and without contracted players.
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#13 |
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Registered User
Join Date: Jan 2007
Posts: 849
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#14 | |
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Registered User
Join Date: Jun 2007
Posts: 423
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#15 |
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Registered User
Join Date: Jun 2007
Posts: 423
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#16 |
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Registered User
Join Date: Mar 2006
Posts: 634
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If Palm doesn't come back from the brink with the Pre then their employees will be lining-up to work at Apple.
Besides the Pre and WebOS what else does Palm offer as value? Does Apple have this kind of agreement with RIM or is this just for California companies?
Tory Hagen
Break the Wedge! |
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#17 | |
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Registered User
Join Date: Jul 2009
Posts: 156
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I don't like the idea of going to work for one company, and finding that agreements at board level have reduced my opportunities for advancing myself by moving to a competitor; it also reduces any reason for my employer to incentivise me to stay with him if he can agree with other companies in the industry not to even consider employing me. |
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#18 |
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Registered User
Join Date: Apr 2009
Posts: 558
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webOS has enough potential to keep them afloat
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#19 | ||
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Registered User
Join Date: Jun 2009
Posts: 773
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Without unions, working condition in this country would not be, and were not, any better than the conditions in China today. (In fact, before unions, working conditions were in this country, arguably worse than in China today.) Unions are largely responsible for the prosperity of the U.S., particularly in the post World War II era. Union organizers died, yes died, killed by company 'goons', and in some cases government forces (law enforcement and military), so that the majority of working Americans could have better lives. Their sacrifices are no less important to the greatness of this country than any other "patriot" who died defending this country and its people. So, yes, unions are rightfully exempt from laws intended to limit the ability of rapacious corporations from imposing their will on society because unions serve exactly the same ends as anti-trust laws. |
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#20 |
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Registered User
Join Date: Mar 2007
Posts: 728
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#21 | |
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Registered User
Join Date: Mar 2007
Posts: 728
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I second and third that. Its hilarious to watch the mini-Ayns in the tech world delude themselves into thinking they have any leverage as individuals against mega-corporations when it comes time to bargaining. They take what they're offered, keep their mouths shut out of fear, and blame immigrants when they're down-sized. Add to that that EVERY benefit they take for granted were fought for with the blood of unionists before they were born. |
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#22 |
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Registered User
Join Date: Feb 2008
Posts: 1,415
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Shouldn't this article read:
"Palm hired ... failed product designer Jon Rubinstein, and disgraced former chief financial officer Fred Anderson?" ![]() The way I heard it, Rubenstein was the guy arguing (very forcefully) that the iPhone would be a better device if it used Linux instead of OS-X, and Fred Anderson got caught cooking the books.
In Windows, a window can be a document, it can be an application, or it can be a window that contains other documents or applications. There’s just no consistency. It’s just a big grab bag of monkey poop.
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#23 |
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Registered User
Join Date: Sep 2005
Location: New England
Posts: 480
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And if Steve gets real pissed, Apple will (try) to buy Palm, then fire all of those folks who use to work for Apple, who now work at Palm …
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#24 | |||
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Registered User
Join Date: Jun 2008
Posts: 655
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also, there is a difference between saying you won't actively recruit (cold call etc) each other's companies, which might be what Jobs was suggesting, and turning down a good employee (outside of the hold of any non compete) just because he/she once worked for Apple at some point, which is what the other guy is suggesting. since we haven't seen the proposal's details we don't know. if it was the first, I see no issue with it. both sides have a lot of R&D invested in their work and neither would fancy it given away to another side. if it was the latter, that just isn't cricket. but i'm not going to assume either way until I see the full facts Quote:
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Last edited by charlituna; 08-20-2009 at 12:45 PM.. |
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#25 |
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Registered User
Join Date: Nov 2007
Location: Second star to the right
Posts: 595
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Hiring away former Apple execs does not turn Palm into another Apple.
Pity the agnostic dyslectic. They spend all their time contemplating the existence of dog.
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#26 |
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Registered User
Join Date: Apr 2002
Posts: 875
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It seems Palm should have been a little less confrontational and negotiated with Apple. Palm had a lot more to gain by having good relations with Apple than pissing them off. They might have even been able to get Apple to give some access to iTunes or some other concession. Palm was shortsighted. When a bigger, stronger competitor asks for a favor, that is the time to seek advantage through partnership, not confrontation. Palm seems to be badly mismanaged and stupid as a box of rocks.
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#27 |
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Registered User
Join Date: Jan 2009
Posts: 47
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We have no idea if Steve made a proposal, or suggestion. If he did we have no idea if he meant it.
On the other hand Colligan's motivation is quite clear, in referencing something possibly illegal in a document he is making it a matter of record, whether it happened or not. Fred Anderson was chucked out of Apple for dirty tricks and tried to blame Steve, it cost him a couple of million and a chunk in lawyers fees too. I get the idea that he would quite like some revenge. Steve was probably just pulling Colligan's chain, diverting his attention, making him think Palm was more important than it was. . |
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#28 | |
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Registered User
Join Date: Sep 2008
Posts: 7
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Ed Colligan's a former Apple employee himself. Not sure how he and Steve Jobs got along on the first go round, but there was something about the tone in his short reply that didn't feel especially warm. |
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#29 | |
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Registered User
Join Date: Jan 2007
Posts: 849
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I have personal experience with family members who were forced to join a union and pay union dues to work at a company which was well respected in our town and never had any labor issues. She didn't want to join the union because she felt there was no need for it in this situation. And yet they took money out of her paycheck every week for union dues. Again, not saying unions are bad, just saying unions have done bad things. Just like not all companies are bad, but some companies have done bad things (in which case unions are necessary). |
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#30 | |
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Registered User
Join Date: Oct 2007
Location: Los Angeles, Kahleefornyah
Posts: 226
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The only people who take what they're offered are the stupid, the lazy, and those who don't have the courage to negotiate a better position for themselves. "take what they're offered?" REALLY? What was the last Silicon Valley tech firm you worked for? Its called COLLUSION, and it is illegal, and no goddamned union can do jack squat about it, except bump up your dues and donate the proceeds to whatever Democrat a-hole is running your district on the city council, who, in return, promises to strong-arm the company until such time as the company gets fed up with the corruption and leaves. If the Government actually did its job and investigated these scenarios, then the playing field would be returned to a level state. |
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#31 | |
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Registered User
Join Date: Aug 2006
Posts: 2,066
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Until a player is designated as a free agent, he/she is tied to the team and nobody else is allowed to even make a phone call to him/her to see if they are interested. Look at the pro drafts. Once the player is chosen, nobody else is allowed to go near, let alone hire, him/her. What is the difference that prevents kids from transferring from one public school to another just to play for a better team? |
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#32 | |
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Registered User
Join Date: Jul 2009
Posts: 156
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#33 | ||
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Registered User
Join Date: Jun 2009
Posts: 773
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It doesn't really seem fair to the union members that she not pay for what they negotiate on her behalf. And, this sort of thing isn't restricted to unions. Trade organizations force companies in their industry to pay dues that are spent on advertising and other promotional activities, and the courts have upheld these "anti-freeloading" policies. If you're an employer, "right to work" and being able to hire non-union workers are basically code words for union busting and driving wages and working conditions to the ground. It's possible that the company you refer to had no labor problems because they were kind-hearted, gentle capitalists, but it's just as likely they had no labor problems because they knew that it wasn't worth trying to pull one over on the union. Quote:
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#34 |
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Registered User
Join Date: Jul 2009
Posts: 156
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Maybe she recognised that she was far better at her job, and far more conscientious than her colleagues, she’d like to sit down and agree this with her boss and rightly receive better numeration than the union member at the next desk... unfortunately she has to enjoy the union agreed wage for that pay scale level.
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#35 | |
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Registered User
Join Date: Jun 2009
Posts: 773
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And, it's quite obvious that nearly all employers would rather not have to negotiate with unions. Employers to this day will engage in campaigns of misinformation and intimidation to keep unions out. I think it's equally obvious that if they were able to undermine unions by temporarily (until they get rid of the union) paying slightly higher wages to non-union employees, many of them would do so. Of course, your argument also implies that union workers are somehow less competent than someone who is new to the job. An implication that is both without foundation and insulting to anyone who belongs to a union. The truth is that unions have undeniably been a major force in advancing the standard of living of the average American, in promoting workplace safety, and in making the U.S. the economic and political force that it is in the world. And, as I stated previously, without unions, working conditions in this country would never have advanced significantly beyond what they were at the beginning of the 20th century. Union bashing and other anti-union rhetoric ignores that reality, either out of ignorance (or at least a lack of honest reflection) or for self-serving ends. |
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#36 | |
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Registered User
Join Date: Aug 2006
Posts: 2,066
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Many of the top restaurants also have the same deals with their chefs. |
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#37 | |
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Registered User
Join Date: Jan 2007
Posts: 849
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You assume that she was asking for union "benefits" without paying union dues. You are assuming that the union ever negotiated any benefits of significance for the employees at this particular company. I'd have to go back and get the exact details, but as I recall, the union convinced the employees how good it would be for them to be unionized (there was no labor dispute at the time), and one of the first things the union did was threaten the employer with strike if they didn't agree to be an all-union shop. And as a matter of fact, the employess of this grocery store in a small Midwestern town kicked the union out a few years later because they were tired of paying union dues when they realized that they didn't in fact need the union to protect them from the "big bad company." Any organization when it becomes too powerful can get a little full of itself and do bad things. That applies to companies, governments, unions, etc. That whole "power corrupts and absolute power corrupts absolutely" thing. |
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#38 | ||
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Registered User
Join Date: Jan 2007
Posts: 849
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#39 | |
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Registered User
Join Date: Jul 2009
Posts: 156
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Unions do some good, in some instances; they also cause problems in other instances. I should be free to join or not join; the benefits afforded to me by my employer are afforded by my employer to me by mutual agreement, and I don't ask the union for anything. If an employer wants to employ me, and I want to be employed by him, then no union should be able to interfer with our agreement. |
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#40 | |
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Registered User
Join Date: Jun 2009
Posts: 773
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In fact, I think most unions (and most union workers) are good, despite the fact that there are some few that are corrupt and exploitative. But the larger point is that anyone who truly believes our standard or living, working conditions and wages would not revert to levels far below what they are now if unions were eliminated is naively ignoring the harsh realities of capitalism, human nature and history. Last edited by anonymouse; 08-20-2009 at 04:24 PM.. |
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