While
members of Congress ponder the prospect of a U.S. economy without
a domestic auto industry if there is no bailout, there is an underlying
factor that has not been mentioned by very many of the pundits—American
auto plants are unionized.
Not
only are they unionized, but the union workers are some of the best
paid skilled workers in the country. And their benefits are among
the best and their pensions are second to none among wage-working
women and men.
That’s
notwithstanding the slow erosion of the strength of their union,
the United Auto Workers (UAW), over the past few decades, until
it is now only a fraction of its former self. The UAW, historically,
was in the forefront of the fight for better pay and benefits and
was pretty much responsible for the creation of vibrant local economies
and communities wherever their members lived.
It
was a powerful union that was in the forefront of positive social
change and was in a leadership position during the time of the civil
rights movement of the 1960s. At the time, it was a union that
other unions wanted to emulate.
But
its future was tied to the fortunes of the auto industry. For the
decades after World War II, when the auto industry was riding high
and road-building and suburban housing developments seemed to provide
an endless road to well-being for anyone remotely connected to the
industry. All that has changed.
In
the past few weeks, we’ve seen the parade of people from Corporate
America with their hands out, asking for billions of dollars in
bailout funds that only the Congress and the president can take
from taxpayers and give over to the corporations that are “too big
to fail.”
We
have heard chief executive officers (CEOs) ask for and receive about
$750 billion for banks, insurance companies, and other financial
institutions. We don’t know where all of that money went. There
is some talk among economists that there is a lot more that already
has been given away—and we’re not sure how much or where that
went.
Recently,
we were treated to the appearance of CEOs from the Big Three auto
companies, asking for $25 billion to help them get through the current
hard time. That’s about 3 percent of the $750 billion that has
gone to the people who manipulate money for their living.
The
difference? The money manipulators are friends of those in power
and the auto industry executives (despite their profound public
relations problem of arriving to testify in Washington in corporate
jets) represent those who occupy some 3 million jobs in the domestic
auto industry.
The
auto bigwigs were forced to sit there and take the sharp criticism
from members of Congress. It was reported at the time that it cost
about
$20,000 to fly from Detroit to Washington on a private jet, compared
with about $600 for a round-trip commercial flight. And there were
three of them at the hearing table.
Just
this week, Ford’s CEO, Alan R. Mulally, announced that he will work
for $1 a year, compared with his most recent annual salary of $21
million. The company said it would sell its five corporate jets
and that Mulally will drive a Ford hybrid sport utility vehicle
to the next Congressional hearing.
No
matter what one thinks about how the auto companies have behaved,
no matter how much behind the curve they have been when it came
to auto safety and fuel efficiency, it remains that the $25 billion
they are asking for will go toward saving 3 million well-paying
jobs.
A
number of politicians on various network and cable news shows have
directly blamed the unions for the demise of the auto industry.
They speak, of course, without a hint of understanding of what has
caused the collapse of nearly everything, because they speak from
ideology, not reason.
Some
of these politicians are from southern states, where there are foreign
car companies, busily turning out German, Japanese, or Korean vehicles,
so they don’t see the loss of Ford, General Motors, or Chrysler
as much of a tragedy. Most, if not all of the foreign-owned auto
firms are non-union. It’s why they’re in southern states (except
for the Honda plant in Marysville, Ohio, where the plant seemed
years ago to have sprung whole from the surrounding corn fields).
Their
ideology is to shrink government to a shadow, privatize every function
of government that is possible, and keep all workers from joining
a union. It makes for a very compliant workforce.
While
it’s true that the non-union foreign car manufacturers pay better
than the average wage in the area in which they put their factories,
they are not union wages and benefits. If they become the dominant
auto manufacturers, their downward pressure on wages in general
will continue.
The
UAW was in the forefront of the union movement for nearly a half-century
and unionized workers were the backbone of the rise in living standards—especially
in the two decades after World War II—and that rising standard lifted
millions of families from every part of the country into what has
become known as the middle class.
It
is that class (which is in reality a working class), in states from
Michigan to Texas, that is in trouble. In terms of industries that
actually produce something, the auto industry has been second only
to the housing industry as a driver of the economy. They produced
things that would last more than a year or two.
Congress
and the president can decide not to bail out the three American
auto companies and leave the field to the foreign car companies,
whose profits are sent back to their mother country, no matter how
many jobs are created in the U.S. If that happens and the industry
becomes non-union, the downward pressure on wages and benefits never
will stop. Eventually, the U.S. will bottom out near the world
wage for auto workers.
The
enemies of unionized workers continue their manic efforts to thwart
any movement by Americans to realize their democratic rights in
the workplace by joining unions. It shows very clearly in this
debate over a bailout of the Big Three, as opposed to the giveaway
of at least $750 billion to the financial interests, with virtually
no accountability.
American
workers—the people—are poised to be set down another notch toward
the world wage, not just in auto, but in virtually every field.
That’s the way the global economy works.
BlackCommentator.com Columnist, John Funiciello, is a labor organizer and former union
organizer. His union work started when he became a local president
of The Newspaper Guild in the early 1970s. He was a reporter for
14 years for newspapers in New York State. In addition to labor work, he is organizing family farmers
as they struggle to stay on the land under enormous pressure from
factory food producers and land developers. Click here
to contact Mr. Funiciello. |