• 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?