The Strike Question

The number of high profile labor strikes taking place this summer is historic. There are national, regional and local strikes along with potential ones, where the unions are actively trying to advance the pay of their members. In a previous article, we outlined the question of why  are these contract negotiations taking place at the last hour. (Article) Now having a five-month landscape on the 2023 strikes involving these large business conglomerates, the question that needs to be asked is: are company alliances good for every business.

From the Los Angeles hotel strikes that started early in the summer, the Bonaventure Hotel quickly broke ranks with the Hotel Coalition and signed a deal with Union 11. The Bonaventure is the largest hotel in LA, but they are also in fierce competition with other hotels to book rooms.

As the lasting writer (WGA) and actor (SGA) strikes shut down Hollywood, there is a perplexity over why studios like Amazon are aligned with Paramount. Doesn’t Netflix have a different business model than Apple? In the end, are they not all competing against each other to produce the best content and earn the customer dollar to increase shareholder value. In response to the September 8th Variety article, some of the studios were said to be okay with the WGA demands. The AMTPT has denied these rifts, but as they are different corporations, one can see that their values are not, in fact, the same.

The United Auto Workers Union, UAW, has threatened to strike against the big three auto makers: Ford, GM and Stellantis. The race for these car manufactures will be to see who can avoid a strike along with plant shutdowns and a loss of production. But even as these manufactures compete, they have not valiantly offered the best contracts to the UAW.

Not to reverse history on how these industry coalitions were formed in the past, we note the good they must have served. Looking at the present situation, our thoughts must focus on how they are working now. Apparently, the Bonaventure Hotel didn’t agree with the coalition and formed their own deal with the union. Can we assume that all studios in the AMPTP wish to be shut down as the fall schedule approaches.

Since Labor Day weekend, Kaiser Hospital has been threatened with a strike by their own union. What if all healthcare workers were to be united and all hospitals had a group? Could we then see the shutdown of the entire hospital system in certain cities?

Higher Wages Higher Prices

The two main questions I wanted to answer before writing this article are: when are the strikes going to stop and why do these contracts have to expire before executives can make an agreement? As the strikes continue, I have learned that these strikes have national repercussions, so there is no easy solution. Plus, strikes are not just about increases in wages; they are about technology, workload, and on the job and HR benefits.

 I chose to focus on three recent strikes taking place in Los Angeles. The Writers Guild of America strike may lead to higher prices in streaming. The LA Unified worker strike may lead to school consolidations. The LA Hotel strike may lead to higher room rate rates. With every action in the market, there is a reaction governed by supply and demand. How much is just too much?

On January 1st 2023, the  minimum wage increased in California to $15.50 . Many politicians and labor union representatives pushed for the minimum wage to be increased to a “livable income” now that we are experiencing the effects of  hyperinflation. As prices have skyrocketed, progressive politicians are voicing concerns about the rise in costs. In fact, recently Senator Bernie Sanders said he wants to push for a $17 hour minimum wage.

The fight for higher wages is not just against corporations or Wall Street; it is also against ourselves. Higher wages equal higher prices that we are forced to pay. There are other factors that have led to the rise in inflation: active cash in the economy and the war in Ukraine, along with high fuel prices – all against a backdrop of a shutdown economy just a few years ago because of the global pandemic.

The Federal Chairman, Jerome Powell, has increased interest rates to decrease the amount of cash in the market to avoid a recession while bringing down the effects of rising costs.  The macro solution to hyperinflation is to take some of the cash out of circulation. If you watch videos of Elizabeth Warren, her claims were that Powell’s actions were dangerous to the economy. If you look at the results of what the Fed is doing it is working.

Then there is the other side of the coin. Journalists are taking the claim that there have been pressures from Wall Street on corporations to return higher dividends, since returns were weakened during the pandemic. One sure way to have higher margins is to raise prices. For everyone who has a 401k or invests in the market, there is a positive stake in these companies bringing in more cash, resulting in a higher investment evaluation. It’s not just the people sitting on Wall Street who like the ticker symbols moving higher.

This is the typical cycle: our politicians fuel the debate while our pocketbooks leverage their new buying power. For a long time, economists have said that the cost of living in America is below the norm for the rest of the world. But the US is still a much younger nation as compared to other industrialized countries. Meet the politician who says no to higher wages, the labor union organizer who doesn’t want better benefits, or the CEO who won’t fight for more profitability, and that won’t be in America.

By Dane Flanigan

ultraHealth Agency

Posted by Dane Flanigan on July 12, 2023 – Comments Off on Higher Wages Higher Prices
Posted in Wisdom

Yeah It’s Union Busting

There is a long history of large corporations resisting the fight to unionize their employees. Unions allow an organized group of employees to negotiate and push for higher wages and resist old policies collectively. The 1935 Wagner Actis a labor law that guarantees employees the right to organizes and take action. It was created in the face of worker rights violations and the courts siding against labor unions and their right to strike.

In our modern era, some of largest companies in the United States have been accused of union busting. Some of these companies have appeared in front of congress and the legal system to explain their actions. If illegal, why do these companies think they can get away with it? The tactics used today are not the same as in 1870’s with billy clubs and #batons.

The softer approach now entails conversations, suggestions, overtures, posters in lunchrooms, layoffs, and plant / store closings. It has had a positive effect yet has caused a lot of red flags about the new wave of employees looking to increase wages and improve working conditions.

Let’s not to point fingers and #misjudge every business caught in the crossfire. Today’s companies are not monsters. They are places where we shop, buy phones, and drink coffee. We have grown up with these businesses and have used them our entire lives. They are profit- driven machines with accountability and reasoning as the bottom line. Of course, unions cost these companies money because they drive up the price of labor.

As an employee and working person, I say that companies should pay people fairly and treat them with dignity. #Labor is the most expensive part of every company’s balance sheet. As a consumer, I feel the effects of higher prices. Imagine if other countries were allowed to unionize, or if they had Franklin Delano Roosevelt as President? The reason why goods and products from other countries are less expensive is because they do not have organized labor.

By,


Dane Flanigan

ultraHealth Agency

Overlooked Workforce

Some employees are getting overlooked on compensation increases. With the rise of inflation and the escalating cost of healthcare, it is hard to budget for everyone. We use the excuse that these people do not have a client-facing position; rather, they are the support staff or non-revenue generators.  We may say some people are essential to the business and bring in revenue so every year an increase in pay can be justified. But what about those who been loyal to the organization with diligence and hard work. Shouldn’t they see an increase in pay as well?

Recently LAUSD’s support staff took to a massive strike, shutting down the nation’s second largest school system to protest better pay and improved working conditions. Included were food workers, bus drivers, and cafeteria workers – and many more departments banded together. After the three-day strike, with mediation by Mayor Karen Bass, a resolution was signed along with new contracts. During the pandemic, these workers were deemed #essential, and the backlash was that they were mistreated. They had to go three years without a new contract or raise.

Three years without a raise…some of us would argue the question: why didn’t these people just find a better paying job elsewhere?  Why go through the hassle of a strike if you are not valued where you work?  The Bureau of Labor Statistics listed the United States’ unemployment rate at 3.6% in February of 2023.  In America, versus other parts of the world, there is movement in our domestic labor force. People like me and other recruiters in the industry can push and pull employees into other roles for different companies, thereby creating a better paying job market. So why didn’t these #LAUSD employees just work somewhere else?

It is hard to leave one’s current company even if the pay is not ideal. To give an example in the legal field, I was recruiting an attorney who had a hard time leaving their firm. Even though they knew they were underpaid, they didn’t want to leave. A lot of people like – and even love – their work. They like their day-to-day jobs, their co-workers, their offices, and their clients.

Maybe the Los Angeles school system has employees who enjoy working with youth. From the pictures and videos shown on the news, these people seem to express the communal joy of working together. The reason why we work at all is to find happiness in what we do with the people we are working with. 

On the corporate side, much of what has been said about the LAUSD pushback is that the higher cost of wages and #healthcare is not in the budget. As a business – even a non-profit – paying people more will never be in the budget.  What about the attorney who is procuring thousands in fees, but their salary does not increase. Is it likewise not in the budget?

It is up to company leaders to take employees reviews seriously and allow for compensation adjustment. It also up to employees to look at their current situations and compare their work to others in the same field. In this way, they can make sure they are being compensated for what they are doing for their organizations.

By,


Dane Flanigan

ultraHealth Agency

Truth in Transparency

In January 2023, California enacted the Transparency Pay Law according to which, “employers include the pay scale directly in the job posting.” People looking for work can see exactly what is being paid for the position they are applying for. Is this a game changer or something that should be clear for any position?  An attorney once told me that the reason employment laws like this are put in place is due to a major issue. Most likely, the problem is that employees come in with one understating of the pay and are sold another. 

Companies want to save money on labor – people – and some are notorious for the old bait and switch routine. We call it the “car dealer mentality.” You wait until the end of the negotiation only to find that they are selling something that you were not expecting. Now not all companies are like this, and it is not right to generalize, but new laws have been enacted to stop such practices.

Pay validates the way people feel about their jobs. There is power in #negotiation , but when the tactics become anti-productive, we have an unmotivated #workforce . People start to work more for themselves than for the good of the company.

As employers, it is best know the numbers; also making projections for inflation, bonuses and employee appreciation as well as retention.  Relating these numbers to management and letting our team know that this is the defined budget for the new person being hired; being honest and upfront about expectations and compensation.

For their part, job seekers should feel comfortable asking questions regarding the compensation package both now and three years ahead. In the end, everyone should be prepared to walk away. There is no use working for an organization, where the business does not see the value in its people.

There is truth in transparency.

By Dane Flanigan

ultraHealth Agency