First, a history lesson: Labor practices in the newspaper industry nearly ruined that business by the 1980s. Thanks to the unions, there was so much overstaffing at printing presses, a practice known as featherbedding, that pressmen could come and go almost at will (picture eight pressmen operating a four-man press). The New York Daily News nearly had to shut down due to such practices -- until management put their feet down and said "No more."

Next consider today's automobile industry: It has almost been destroyed by the inflexibility of labor. Legacy retirement and healthcare costs are so high that the Big Three can no longer make money in North America.

And, yesterday, Wal-Mart Stores, Inc. (NYSE:WMT) took another public relations hit by telling it's employees that they need to come to work when it snows.

Maybe it's just me, but that doesn't sound like such a tough policy -- especially for a company with virtually flat same-store sales in the U.S, a company that is struggling to get back on its feet in its home market. When people don't come to work, it hurts productivity. And someone else has to do their job. The customer experience may suffer.

Groups like union-backed WakeUpWalMart also object to the fact that employees have to call in to a toll-free number to report an absence. What would they prefer? That Wal-Mart outfit employees with carrier pigeons?

Labor organizers are going down a path that is not good for Wal-Mart's investors or its workers. The answer to less productivity in most industries is cutting the work force.

At least they won't have to call in.

Douglas McIntyre is a partner at 24/7 Wall St.

Since when do the employees run Wal-Mart? originally appeared on BloggingStocks on Thu, 02 Nov 2006 10:15:00 EST. Please see our terms for use of feeds.