Charles Koch,  David Koch,  Georgia Pacific

Union Leader Says a Boycott of Koch Industries Georgia Pacific is a Bad Idea

Greenpeace is flying a blimp over Rancho Mirage, California to protest the Koch Brothers

Well, DUH.

A number of organizations are advocating a boycott of the products that come from companies owned by the Koch family. This is problematic for a number of reasons, not the least of which is that it could potentially hurt the wrong people.

The Koch brothers own Georgia Pacific. It is an American consumer goods company that makes everyday products like facial tissue, napkins, paper towels, paper cups and the like. Their plants are great examples of American advanced manufacturing. Incidentally,

GP makes most of its products here in America. The company’s workforce is highly unionized. In fact, 80 percent of its mills are under contract with one or more labor union.  It is not inaccurate to say that these are among the best-paid manufacturing jobs in America.

This presents a dilemma and a paradox. While the Koch brothers are credited with advocating an agenda and groups that are clearly hostile to labor and labor’s agenda, the brothers’ company in practice and in general has positive and productive collective bargaining relationships with its unions.

While some companies are running from investment in American jobs, The Koch brothers’ Georgia Pacific just reached agreements with its primary union in the paper industry to invest more than a half a billion dollars in capital to essentially create two state-of-the-art machines that conserve fiber and energy at two separate union mills.

While certainly there are disagreements from time to time on what the right pension program is, or right wage increases and incentives, or the right formula for health care cost sharing, ultimately we end up with negotiated solutions.

So the problem for the advocates of a boycott against Koch is that it can only marginally hurt Koch, and the workers who are the epitome of what advanced manufacturing jobs in the United States ought to look like, would be the first casualties of a boycott. Of course, this will eventually drive a wedge between groups that are otherwise in political alignment.

If consumers pick alternate products (because people will still use toilet paper), in many cases, the substitute will be from a company with a track record that is much less friendly to the values of the workers who would, as a result of the boycott, become the collateral damage. The Koch brothers’ lifestyle will not dramatically change; there are no shareholders that will become concerned; the company is privately owned. The stock won’t plummet either — there is none.

The Koch Brothers believe in capitalism and free markets. This also includes collective bargaining and organized labor.

I don’t see why Charles and David Koch are demonized by the LEFT – unless you don’t believe in capitalism. They are businessmen, run very good business enterprises and have ideas in which they will put their money where their mouths are. Oh yeah, and a great deal of charity donations, including cancer research and the fine arts.

Kind of the American way, no?

7 Comments

  • Anonymous

    Tax guy here…..

    Are the Koch’s hypocrits if they complain and campaign against deficits and welfare and etc. while at the same time benefiting from such tax loopholes for the rich & corporations such as:
    – Fed tax payers building roads for his Georgia- Pacific logging operation…these roads are for G-P and no one else
    – The Koch Chartibable Family foundation…a huge tax loophole…in other towards, tax payer subsidizes what the Koch’s donate to the Lincoln Center of Performing Arts, the NY Opera, and etc…
    – Koch’s tax deductible donations to his 501C think tanks…
    – The Agriculture bill that funds the Koch’s and their petro-chemical fertilizer development operation
    – Koch claiming his 22,000 acre vacation ranch in Montana as part of his family charitable trust…tax free baby.
    – Koch’s oil exploration subsidiary taking US government oil drilling subsidies…this is corporate welfare and the Koch’s take it with their hands fully extended.
    – Koch’s $ 200 M donation to MIT…that’s fine. But under his tax table rate, he gets to deduct $ 70 M of that donation…in other words he donates $ 130 M and Joe tax payer covers the $ 70 M. MIT is great….but my kids will never be able to afford to go there.

    Should the Koch’s, who talk such a great game, start to lead by example?

    Go ahead and donate….but why is he taking the tax deduction? I don’t have a prayers chance of being able to afford a ticket to the NY Opera….but as a tax payer, I’m subsidizing his tax deductible “charitable” donation to the opera for the super rich.

    • Gregory Flap Cole

      If your facts are correct, then you have  a problem with somebody complying with the tax code?

      Or maximizing personal gain in compliance with said tax law?

      Or should the Kochs be required to give it all away?

      I believe the Kochs are supporters of capitalism and free markets.

      How about you?

      • Kathleen Stratton

        No, althougu I fervently suppprt closinghtese loopholes and assets hidden in family “trusts” etc. I bet the Koch’s have founf some way of getting farm subsidies too.

        What I object to is stuff like supporting Scott Walker and trying to get sweetheart deals on public assets being sold off at a loss. The Kochs didn’t seem to have any problem with 8 years of massive deficits, Running up the national debt by 27and raising the debt ceiling 7 times.

        Maybe they are hoping Walker and hte Fitzpatricks will outlaw Unions in Wisconsin altogether.

    • Kathleen Stratton

      It is kind of the American way to be able to freely express your opinion, organize — and educate others as well. It is called “the right to assemble”. The Boston Tea Party started as a boycott! Perhaps the Koch Bros.should have read up on their American history before funding the modern day radicals that have purloined the moniker. The Koch brothers are openly putting their face on efforts to change the dynamic of our society to benefit he oligarchs. I don’t consider that charitable.

      • Gregory Flap Cole

        Again, you are mixing up issues.

        Let me ask you: it isn’t OK for the Koch Brothers to voice their opinions within the law by giving campaign contributions and supporting conservative foundations and think tanks?