Jeffrey
Immelt, CEO of General Electric, has been in the news recently
because he suggested that “outsourcing” most of American
manufacturing to other countries in the past several decades
was done without much thought to the long-term consequences.
We could have told him that.
It
was about 30 years ago that rank-and-file union members
were discussing the outcomes of the downsizing, merging,
and “outsourcing” of industry that was gaining speed in
America, and the picture that was emerging was not a hopeful
one.
Those
particular conversations were going on in Albany,
New York, but it is certain that they
were going on in many other parts of the country, notably
in what was rapidly becoming the great American “rust belt.”
There
was economic devastation in communities throughout the Upper
Midwest, the Northeast, the Mid-Atlantic states, and, of course, many of the southern states where
American industry had fled in the half-century before that
to escape the higher wages and benefits of the unionized
states.
No
one was exempt from the rush to export industries and jobs
from the U.S. to other countries where the pay was low,
benefits non-existent, and environmental laws - if there
were any - not enforced.
One
union representative of the Union of Electrical, Radio and
Machine Workers of America (UE) was at the bargaining table
in 1980 with General Electric management in Hudson Falls,
an industrial village on the upper Hudson River, where several
hundred local workers were trying to negotiate decent wages
and, at the same time, not give GE an excuse to pull all
of the work at the plant, which produces capacitors.
During
a break in negotiations, most of the participants sat around
the table talking about the budding “globalization” of the
U.S.
and other economies. One of the GE bargainers half jokingly
said, “You know, ideally, GE would just put all of its factories
on ships and move them around the world where labor costs
were the lowest.”
In
a sense, that’s just what they did. At that time, though,
GE already was manufacturing in several other countries,
probably as many as 20, but the indication was that the
speed of what became known as “outsourcing” was to accelerate.
Other corporations were doing the same and the ones that
lagged a little would be running to catch up with the move
of their own manufacturing to low-wage countries.
It
was easy to see what might happen to the nation as a result
of emptying the landscape of most manufacturing by Corporate
America. All anyone had to do was look at the effects on
small town America
when the one or two major employers in town decided to move
out. It wasn’t a great leap to see a nation in the same
distress.
That’s
what occurred in auto, steel, rubber, textiles, clothing,
shoes, appliances, factory equipment, tools, heavy machinery,
railroads, agriculture, and other parts of the economy.
All of those losses over the years affected the housing
industry, which we now know could be manipulated like any
other part, until it collapsed from its very complicated
and corrupt finance structures.
Out
of that have come the dire straits in which the U.S.
economy finds itself.
Americans
just don’t make the things they need for living their daily
lives. And, they don’t make the things they have been cultivated
to want - which has translated into “need” - through advertising
and public relations.
There
is virtually no place today where the complaint cannot be
heard: “I can’t find a thing made in the U.S.A. Don’t we
make anything anymore?” The answer is, not much.
The
things that are made in America
that bring some of the money back into the country are things
that do not directly benefit Americans, in general. We export
weapons systems, military equipment and armaments, and we
export some of our culture - movies and television programming.
Most of the cultural exports give a very inaccurate impression
of the U.S.,
to the extent that many people in other countries, especially
where their level of education is similar to ours, think
that Americans are rich and all live in big houses.
The
election last week was said to be a referendum on the economy
and the Democrats lost because a large percentage of the
electorate believe that it is their fault - they’re the
party in power, after all. Anyone who believes that needs
to go back to school to study logic.
An
industrial economy that took at least 30 years to destroy
is not going to be fixed in two years, especially for President
Barack Obama, who repeatedly said that he wanted to be a
leader who brought the two opposing camps together. Bipartisanship
was not in the cards for him or the American people, because,
even if his ideas were the best (and they weren’t) the Republicans
were not going to allow him to take the first small step
toward solving the nation’s problems.
For
two years now, they’ve acted like the troll under the bridge,
and they promised out loud on election night that they would
continue to obstruct and roll back anything that might benefit
the people. And,
they want to destroy Obama’s presidency. They make no bones
about that.
Immelt
has said in various forums over the past few years that,
perhaps, it was not such a good idea for Corporate America
to have shipped manufacturing to other countries, to the
point that even mass production of computers - which the
U.S. had pioneered and produced in great numbers
- has been transferred to other countries. So it goes with
most of our manufacturing.
He
said in an interview recently in India,
where he and President Obama were in the country at the
same time (during Obama’s Asia trip), that although it is not going to be possible to put the
globalization genie back into the bottle, it is important
to put technological development and manufacturing close
together.
By
that, it is safe to assume that he meant, since America
is the place of innovation and creativity, manufacturing
should be located close to those centers of innovation.
He and we can’t have it both ways. There cannot be a massive
return of manufacturing and the tens of millions of jobs
that it would bring and have globalization, too. The GE
chief seems to be torn, but don’t think that he will make
any decisions that will affect his own personal income and
wealth or those of GE stockholders. It’s a safe bet that
corporations will choose globalization over bringing back
30 million jobs.
The
question is, if a bunch of union members and representatives
could sit around a table - or at a bar - in 1980 and roughly
sketch out what is going to happen in a decade or two if
all the jobs are going to be removed from the U.S., why
couldn’t a bunch of politicians and corporate heads look
ahead and see the same thing?
The
people on the ground - the workers - saw clearly what had
happened to their own communities and they knew the same
thing was in store for the nation. However, Corporate America
and many politicians were either hell-bent on destroying
unions or were paying lip service to support of workers
while doing nothing to help those workers survive. Workers
saw the collapse of their local economies in state after
state and instinctively knew where America
was headed.
In
America, however, workers don’t have any credentials
in dealing with big issues, while workers in other countries
- some in Europe, for example - have
their say, both on the job, through their unions, and in
the political life of the country. Their experience, skills,
knowledge, and leadership mean something. Not surprisingly,
those are the countries that are much better off than the
U.S. And now, Immelt is beginning
to be just a little concerned that the jobs are gone and
may not come back for a long time.
As
Immelt and the rest of Corporate America fret over the possible
impending fully collapsed economy - mostly because of the
lack of jobs for the American people - they can look for
solutions to the people who know manufacturing, the workers.
In the backs of their minds is the knowledge that the only
way their wealth and power are protected is if America remains a stable country and their position
at the top of the heap is secure.
Maybe,
CEO Jeffrey should look around for a conversation about
America’s future where there are a few skilled
workers still on the job. Maybe, he could buy a round of
beer…and learn something.
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.
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