The unions are the big problem along with a lack if accountability. They can break baggage laws, for example, with impunity leaving the passenger little recourse except to attempt to sue in federal court.
That's not the union, that's the business. I guarantee that they would have no trouble getting rid of anyone, even a union employee, for stealing baggage: simply calling the police and charging them would take care of the problem. It's just that in the absence of government regulation[1] or a market with more competition, it's cheaper to pretend bag theft doesn't happen and let passengers pay for private insurance.
At this point, our best chance is probably convincing people that the bag theft rings are ripe for terrorist exploitation and we need point-to-point video tracking to prevent mass mayhem.
1. e.g. banning the “we reimburse everything at $2/pound & $0 for anything which uses electricity" clauses in every airline's ToS
