1 + 1 = 2 is not enough to be a good business leader. Running a business involves many skills that are ‘counter intuitive’ to arithmetic and linear logic. Counter-intuitive means it is not readily obvious, if you were to use only linear logic. I call the ‘1 + 1 = 2’ business model ‘just pimp business’ because it easily leads to exploitation. This is not a debate about pro- or no- union. This is about good business expertise. Toyota has no union but is not a ‘pimp business’. Toyota has made an intangible, which is ‘quality control’, an acknowledged business advantage. Before that, ‘quality control’ was a luxury because most businesses were ‘pimping’ their workers.
What about the double-ledger used in Accounting? If you use ‘1 + 1 = 2’ to keep books, you will get it wrong. So Accounting is not just ‘1 + 1 = 2’. What about Finance? Finance is about ‘investing’ your profits back into the business to grow it. It is looking into the future, but what is it that you choose? ‘1 + 1 = 2’ does not work in Accounting nor Finance.
Offering workers a ‘health plan’ or a nice office or ‘perks’ or ‘long term job security’ is not ‘1 + 1 =2’. Using workers on a short-term basis, as business moves up and down, makes sense to a ‘pimp business’. It is a cowardly way to run a business because the company can not ‘ensure’ that it can keep ‘volume’ up. Even though Toyota has no union, it keeps ‘volume up’ every year because its business leaders (those Toyota executives) know where to invest and how to keep their books. A ‘pimp business’ has no such executive expertise — its own volume is unpredictable, like a ‘pimp’s business’.
It leads to exploitation of people’s work contributions. Why do American auto have unions? Because they have ‘pimped’ their workers in the past, whereas Toyota has yet to ‘fuck up’ there. Management change and the emblem depends on each generation of executives. And history also stretches into the future.