Brand Names

First impressions are the most important thing a person can make. Once that first impression is made, typically the other person holds on to the impression, and it is difficult to change. Businesses seek to create impressions too. Obtaining a reputation or "brand" is important for a business. The brand can be established through a company’s actions or clever marketing. When one thinks of G.M. they likely think about possible bankruptcy and pension default; Ford - the Pinto; Exxon - obscene profits and the Valdez. There are people who still refuse to purchase gas at an Exxon station due to the Valdez accident which occurred seventeen years ago (March 24, 1989). In other words, the actions of a company can break a company.

Clever advertising can create a brand, too. Ben and Jerry’s, even though it is now owned by a huge corporation (Unilever), still has the reputation of being a small town company which is concerned with the environment, donates to charity, and is involved in progressive social programs. All of these things may have been true before the company was acquired by Unilever, but it is unlikely that much if any of it is true today considering it has to be more concerned with stockholders’ returns opposed to social welfare.

Clever advertising can also change a brand. BP is an oil company that engages in all of the bad things that oil companies do. In fact, they are currently embroiled in a dispute regard oil leaks in Prudhoe Bay, a pristine environmental sanctuary. Nonetheless, BP has changed its brand from a nasty oil company to a "green" company because it reduced its own emissions by about 20% and claims to be focused on alternative energies. To create this image, BP spent untold sums of money, a lot of time and a lot of energy.

When the average American is asked about labor unions the likely impression is corruption. They know the stories of Jimmy Hoffa and others who where involved with the mob or were skimming money from the till. While the FBI spent a decade or more infiltrating organized labor and the mob, the reputation of the corrupt unions which are out more for their own gain opposed to the interests of the workers they represent remains. This reputation or brand is detrimental to the union movement. If the unions want to increase membership, infiltrate Wal-Mart and other large employers, then they need to rebrand.

Unions as a whole need to create an image which is advantageous to the workers and not adversarial. Low wage workers, who think the fat cats at the top of the union organizational chart are making millions off their union dues, which they see as a hardship to pay in the first place, will not voluntarily give up part of their small salary if they believe that they will not benefit from the membership. If the goal of the AFL-CIO or SEIU is to unionize Wal-Mart, then they need to be in a position to convince the employees that they will benefit more from the membership than the union will benefit. This is a difficult sale to make based upon the animosity toward unions that has established itself and the reputation unions created for themselves. Until this is done, however, the unions will merely spin their wheels and continue to fail in expanding their membership.

Failure to get more members could also result in the final destruction of unions. One of the main reasons people join unions today is for the pension system. If there are more retirees than workers, then the pensions will go bust. Loss of the pensions will result in a loss of membership. The continued loss of members be it for reduction in pension benefits or due to general attrition, will ultimately result in unions folding up shop and organized labor will become a thing of the past.

With union membership at about 13% of the US workforce, the Unions need to find ways to attract new members and become a force within the nation again. While their reputation remains as corrupt organizations, their membership will remain low and continue to decrease. Absent rebranding, the unions will not accomplish their goal and all workers, union and non-union will suffer as a result.