Showing posts with label organized labor. Show all posts
Showing posts with label organized labor. Show all posts

Thursday, May 08, 2014

How Unions Are Unfairly Scapegoated For Detroit's Woes

By MARC McDONALD

There are many reasons for the catastrophic decline of the once-mighty U.S. auto industry over the decades. But it's unfair and inaccurate to point the main finger of blame at unions, the usual scapegoat.

The world's two dominant auto-exporting nations are Germany and Japan. The auto industries in those two nations are heavily unionized. And what's more, unions in Germany and Japan are backed up by strong pro-labor laws that U.S. workers could only dream of.

Although the auto industries of Germany and Japan are heavily unionized, those two nations have absolutely crushed the U.S. auto industry in markets around the world in recent decades. And they've consistently beaten Detroit on its own turf, as well.

In fact, the only reason the U.S. even still has a domestic auto industry at all these days is that Japan Inc. deliberately pulled its punches with "voluntary export restraints" in the 1980s. The latter was a shrewd move by Tokyo to head off moves by the U.S. to raise trade barriers.

Many Conservatives and "free-market" advocates love to scapegoat unions as the cause for Detroit's decline. But as usual, the GOP's simplistic analysis has little to do with the real world.

The fact is, if unions are so bad, then why do the auto industries of Germany and Japan continue to go from strength to strength in conquering world markets? I've done quite a bit of world travel myself and I've seen a number of nations where American cars are a very rare sight on the roads these days. But I have yet to see a country where the roads aren't filled with Volkswagens, BMWs and Toyotas. (It's true that Japan has struggled in China---but that is for political reasons, not competitive reasons).

Although no "free market" U.S. economist would ever admit this, it's clear that unions have actually helped increase the competitiveness of the Japanese and German auto industries.

How? For a start, unions and strong pro-worker labor laws, have essentially forced the auto industries of Germany and Japan to take a very long-term view. By contrast, Detroit (in common with U.S. corporations in general) has always taken a very short-term view.

The likes of General Motors and Ford have simply focused on the next quarter's profits. Meanwhile, the likes of BMW and Toyota have traditionally planned decades ahead.

Unions in Germany offer labor protections that U.S. workers would have a difficult time grasping. The average German worker enjoys an astonishing 6 to 8 weeks of paid vacation. In fact, figures from 2012 show that Germans enjoy among the shortest work hours of any industrialized nation. On average, Germans work around 1,397 hours per year (versus the 1,790 hours that U.S. workers put in). Despite this, Germany vies with China for the title of the world's biggest exporting nation.

Even the supposedly "workaholic" Japanese put in fewer average hours yearly (1,745 hours) than U.S. workers do these days. The fact most Americans feel otherwise is due to stereotypes about the Japanese that are as outdated as the idea that "Made in Japan" is a sign of subpar quality. (In reality, Japanese manufacturers lead the world in the sophistication of their high-tech manufacturing, virtually all of which is done by union labor).

In addition to short working hours, all German auto workers enjoy the protections of two unions: the industry union (the powerful IG Metall), as well as a "works council" union. And unlike U.S. workers, German labor law requires that German workers get representation on companies' board of directors.

And if Germany's labor laws look pretty good for workers, it could be argued that Japanese workers get an even better deal in many ways. After all, in accordance with Japanese law, employees are the top priority for corporations, followed by customers and (in last place) shareholders.

Strong Japanese labor laws make it virtually impossible for large corporations to do mass layoffs. Although the U.S. mainstream media has been declaring the death of so-called "lifetime employment" in Japan, the fact is, the system remains largely intact.

The U.S. mainstream media (particularly the business press) has long criticized the "high wages" of U.S. auto workers as contributing to Detroit's woes.

But this ignores the fact that German and Japanese auto workers get even better pay than U.S. auto workers. However, this reality is often obscured by the U.S. mainstream media, which tends to report the wages of overseas auto workers using the misleading so-called "purchasing power parity" yardstick. According to the latter, Japanese auto workers' wages are often reported as being lower than U.S. auto workers wages, when in fact Japanese workers make among the highest wages in the world when measured by market rates.

Speaking of high wages, the Germans are hardly slouches in that regard, either. In 2011, Forbes magazine reported that the average auto worker in Germany made $67.14 per hour. By contrast, the average U.S. auto worker made $33.77 per hour. Despite this, excluding "transplant" assembly plants, Germany produces more automobiles than the U.S. (5.5 million in 2010, vs. 2.7 million in the U.S.)

How can this be? I believe a good case could be made that unions, as well as smart labor laws, have actually been a big plus for the auto industries of Japan and Germany. As previously mentioned, unions encourage the auto industries of those nations to take a very long-term view.

Take the Toyota Prius hybrid vehicle. Since its introduction in 1997, the Prius, a very high-tech advanced car, has been an enormous home run for Toyota. But it took a very long-range vision and many years of hard work before the first Prius rolled off the assembly line.

In the meantime, Detroit's auto executives scoffed at the idea of hybrids. At first, they claimed that the technology wasn't feasible. Then, they claimed that hybrid cars would never sell. They insisted that consumers were only interested in buying big, gas-guzzling SUVs.

In doing so, Detroit's CEOs were continuing in a long tradition of making the sort of catastrophic decisions that have doomed the U.S. auto industry over the decades.

Detroit's executives have been wrong on just about every major important trend in the global auto industry for decades. They were wrong when they initially rejected air bags, claiming they were impractical and would never sell. They were wrong in the 1960s when they refused to place much emphasis on building the sort of practical, fuel efficient cars that would explode in popularity worldwide during the 1973 oil crisis. (When that crisis hit, Germany and Japan were already well-placed to cash in, thanks to their prowess in building small, fuel-efficient cars).

It's important to note that these disastrous decisions were made by Detroit's CEOs, not by the unions. And what's even more outrageous is that Detroit's CEOs have pulled down pay packages that are vastly larger than German and Japanese auto CEOs.

The latter fact was memorably illustrated during trade talks between Japanese and U.S. automakers back in 1992. The Tokyo negotiators pointed out that U.S. auto executives made vastly larger pay packages than their Japanese counterparts. The U.S. negotiators angrily dismissed this point as a "red herring."

Perhaps it was, but the Japanese had a point that was apparently missed by the U.S. media. That is: why on earth are Detroit's CEOs paid so well in the first place when they've presided over the disastrous decline of the U.S. auto industry over the decades?

Readers with a long memory might recall that the 1992 talks included the infamous incident in which George H. W. Bush collapsed and vomited on the Japanese prime minister, Kiichi Miyazawa. In a way, it was symbolic of the way U.S. workers have been treated since unions were crushed, starting with the Reagan administration.

Today, unions continue to get loads of blame, particularly by the Republicans, for all that is wrong with the U.S. economy.

This "blame the unions" approach dates back to the Reagan years, when "free market" Chicago school economists assured U.S. leaders that if they crushed organized labor and embraced dog-eat-dog capitalism, the U.S. economy would soar. In reality, the only thing that soared was the pay packages of short-sighted CEOs.

Three decades later, unions are vastly weaker. Unions now only represent around 7 percent of the private sector workforce (versus 35 percent back in the 1950s). And yet, America's manufacturing base is at an all-time low. Detroit is in ruins. It's impossible to imagine that the U.S. auto industry will ever again pose a challenge to the mighty auto industries of Germany and Japan.

Side note: much has been written about the successes of the non-unionized auto plants that have sprung up in southern states in recent decades. But the latter hardly represent any sort of real renaissance for the U.S. auto industry.

In fact, these auto plants are doing nothing more than final assembly (which is by far the least sophisticated part of the overall auto manufacturing process). The real heavy lifting, as far as technological know-how, continues to be done in Japan and Germany.

The existence of these assembly plants hardly demonstrates any real strength in U.S. auto industry competitiveness. Rather, they exist because the Germans and Japanese (and increasingly, the Koreans) are happy to farm out low-tech "grunt work" to low wage plants in the U.S. (as well as various other similar facilities in Third World nations across the globe).

Increasingly, it is becoming apparent that the U.S. itself is becoming a Third World nation. And indeed, it is hard to conclude otherwise.

The U.S. auto industry was once the awe and envy of the world. Thanks in large part to the auto industry, the U.S. became the greatest economic national success story in world history (at least, until the recent spectacular rise of China).

There are many reasons for the decline of the U.S. auto industry. Incompetent, short-sighted CEOs. Stupid trade policies. The Reagan administration's embrace of the service economy and the subsequent neglect of America's manufacturing base. A naive embrace by U.S. leaders of the pipe dream called "free trade." A disastrous neglect of America's infrastructure and public schools (even as our nation's bloated military budgets soared into the stratosphere).

But frankly, it's misguided, and wrong, to point the main finger of blame at unions. To be sure, unions aren't entirely blameless. But it's clear that there were many other factors in Detroit's decline. The continued existence of powerful unions and strong pro-worker labor laws in Germany and Japan only confirms this point.

Thursday, March 10, 2011

How Unions Make a Nation Competitive

.
By MARC McDONALD

Note: welcome to readers of CrooksAndLiars.com.

Like Rodney Dangerfield, unions in America have long struggled to gain respect, especially since 1980. I've long been amazed at all the workers I've talked to over the years who are reluctant to support the union movement.

"Maybe unions were needed back in the 19th century era of Robber Barons," union foes argue. "But these days, unions are a dinosaur. They're no longer needed."

I've heard variants of the above argument repeatedly over the years, from both Republicans and even some Democrats. Of course, it makes no sense. It's like saying, "We already have Free Speech in America, so we no longer need the First Amendment."

Indeed, unions tend to get blamed for all kinds of ills facing present-day America. After all, wasn't it "greedy, overpaid" union members that resulted in America losing its manufacturing base?

That seems to be the Conventional Wisdom these days.

But there's only one problem. It's not only bullsh*t---it's the total opposite of the truth.

Unions, in fact, help make a nation more competitive.

Don't believe me?

Take a look at two of the most heavily unionized nations in the world: Germany and Japan. Both nations are thriving and have jobless rates far below the U.S. rate. Both nations still have large manufacturing sectors, which are heavily unionized. And both nations are exporting more than ever---even to low-wage nations like China. (Japan, for example, is one of the few nations on earth that has enjoyed a trade surplus with China much of the time in recent years).

In short, Germany and Japan are the polar opposite of the U.S. these days. While the U.S. continues to rack up record trade deficits, both Japan and Germany enjoy vast trade surpluses.

Not only are Germany and Japan heavily unionized, both nations have strong pro-worker laws that back up their labor movements. In both nations, for example, it's virtually impossible to fire full-time workers. Mass layoffs are very rare in both nations.

Every worker in Germany enjoys a minimum of six weeks' paid vacation per year. In fact the average is two months. And even in Japan these days, employees work fewer hours on average than Americans (who work the longest hours of any developed nation).

According to the International Labor Organization, "Americans work 137 more hours per year than Japanese workers, 260 more hours per year than British workers, and 499 more hours per year than French workers."

Americans, in fact, are the most overworked people in the First World.

We're the only industrialized nation without a national paid parental leave benefit. We're the only nation without a legally mandated annual leave. We're the only First World nation with no required paid sick days.

All of this, of course, is due to the fact that organized labor in the U.S. is much weaker than other industrialized nations. In fact, unions having been going downhill since Ronald Reagan declared war on them in the 1980s.

But getting back to the original point of this article. One might ask: what does all this have to do with America's competitiveness?

A lot, actually.

It's clear that unions haven't been a hindrance to the economies of nations like Japan and Germany. In fact, it's clear that organized labor has been a key part of both those nations' success in growing their high-tech manufacturing export powerhouse economies.

If this sounds counterintuitive, consider the following question. Why has the U.S. consistently had a difficult time competing in high-tech manufacturing in recent decades? It's clear that a good part of the reason is that (unlike their counterparts in Germany and Japan), U.S. corporations have long been short-sighted.

While German and Japanese corporations typically plan decades ahead, U.S. corporations look no further ahead than the next fiscal quarter. In short, U.S. corporations have sacrificed their long-term health in return for short-term profit.

Which raises a question: why, exactly, have German and Japanese corporations consistently always planned way ahead? For example, why are both nations now working hard on industries of the future---industries that may take decades to reap financial rewards (think high-speed trains, advanced wind power, solar power and other green technologies).

The answer to this question is the fact that both nations have strong unions and pro-worker laws.

The fact that it is very difficult to fire workers in both nations seems like a recipe for economic decline. The reality is the total opposite. Japanese and German corporations plan very far ahead because they are forced to.

When it is extremely difficult to lay off staff, corporations find that they must take a very long-term view. It isn't sufficient (as is the case with U.S. corporations) to simply plan ahead for the next fiscal quarter. Instead, Japanese and German corporations must plan ahead at least a decade. And the lack of mass layoffs in both nations---which helps social harmony---is a bonus of the system.

Another advantage that unions bring the Japanese and Germans is the very fact that they work to bring generous benefits and pay to workers in those nations. When workers enjoy 6 weeks paid vacation, as the Germans do, you tend to have a workforce that isn't chronically burned out.

If you've ever driven a top-of-the-line Porsche, an Audi, a BMW, or a Mercedes, you know that the Germans make some of the highest quality products on earth. You don't get high-quality, top-of-the-line manufactured products when your nation's workforce is burned out (as most American workers are these days).

Another advantage: workforce stability, which encourages corporations to spend heavily on worker training. (U.S. corporations spend much less on training workers than Japanese and German corporations do).

True, the Japanese have a reputation for being an overworked people. But this is (at least compared to overworked American employees) an increasingly outdated stereotype. As I mentioned previously, Japanese workers these days actually work less hours than do Americans. And the laws preventing layoffs in Japan are even stronger than those in Germany.

In short, one could say that strong unions have the effect of "disciplining" corporations into taking the long-term view. Since organized labor in the U.S. is very weak, American corporations are under little pressure to look far ahead. Hence the short-sighted U.S. CEOs who only work to ensure that the next fiscal quarter is as profitable as possible.

Such short-sightedness has long been a disaster for U.S. industry. For example, Detroit's short-sighted policies have transformed U.S. automakers from a formerly world-beating industry into one that is currently only a pale shadow of its former self. Detroit's short-sightedness for example, was a disaster in the 1970s when U.S. automakers were cranking out gas-guzzling monsters that rapidly fell out of favor with consumers after the 1973 oil shocks. Detroit never really recovered.

True, there are other factors behind the strong high-tech manufacturing prowess of Germany and Japan. These include strong secondary public education, patient capital, and smart industrial and trade policies. But it's clear that unions and strong pro-labor laws play a key role, as well.

Saturday, February 19, 2011

Sarah Palin Reveals Hypocrisy In Wisconsin Union Debate

By MARC McDONALD

Perhaps it was inevitable, but Sarah Palin has finally waded into the Wisconsin union controversy. But her comments have only revealed her ignorance and hypocrisy on the union debate.

As she has constantly pointed out, Palin's family has long had union connections. Her husband, Todd, was a long-time United Steelworkers union member, enjoying a nice salary and generous union benefits. (For example, Todd Palin earned $102,716 in 2006, working for BP, as a union member).

Clearly, the Palin family has long enjoyed the benefits of union membership. But instead of doing anything to help unions in return, all Palin has done is try to exploit her family's union ties in an effort to boost her political standing with union members.

In short, Palin has cynically used organized labor as nothing more than a prop (just as George W. Bush often used the military as a prop, in publicity photos, to further his own career).

On Friday, Palin waded into the Wisconsin union debate, with a typically ignorant and ill-informed Facebook post. In her post, Palin managed to simultaneously try to polish her labor credentials, even as she blasted the Wisconsin public employee union and urged its members to break away from their leadership.

In other words, while sucking up to the union members (even repeatedly addressing them as "brothers and sisters") Palin secretly pulled out a knife and stuck it in the back of the union workers. She must think these people are really stupid.

Union members must "sacrifice and carry our share of the burden," Palin wrote.

Ho, hum.

Palin is nothing is not predictable in her comments. And she's also dishonest. Her buddies like Rush Limbaugh and Sean Hannity would never address union members as "brothers and sisters." At least Limbaugh and Hannity are being honest in their open contempt for organized labor.

Palin tries to have it both ways. Her husband enjoyed a nice, well-paid union job. She then uses this fact to try to bolster her cred with union members. And then, at the same time, she embraces the extreme far-right policies of today's GOP: a party that has a pathological hatred of unions and seeks to abolish them completely.

In 2008, United Steelworkers President Leo Gerard got so sick of Palin's hypocrisy on unions that he blasted her "worker-savaging positions" in a statement and called upon her to stop using her husband's union membership as a "prop."

Indeed, Palin's 2008 running mate, John McCain, has had a long history of extreme hostility toward unions. In 2007, he voted against the Employee Free Choice Act, for example. In 1994, he also voted against a bill protecting discrimination against workers who go on strike.

But for all her professed love of her union "brothers and sisters," Palin apparently believes they're so stupid that they'd support a fire-breathing, far-right extremist like her.

And it's easy for Palin to ask that the Wisconsin union members accept "sacrifices" and tighten their belts. After all, this is a woman who has made an enormous fortune since she quit as Alaska's governor. In a mere 9 months after she quit, Palin raked in an incredible $12 million.

Yet she insists that the Wisconsin union members need to "sacrifice."

Friday, February 18, 2011

Music To Resist Union Bashing: "Fight the Power"

.

.
By MARC McDONALD

These days, the GOP is finally implementing the agenda that they've planned all along: to completely and totally crush organized labor in the U.S. They won't be satisfied until they've abolished every union in the country once and for all. It's all-out war on the working class.

I'm not sure that Public Enemy's classic, "Fight the Power" has anything to do with unions or organizing. But I do know that it's an extraordinarily angry (but understandably so) anthem from the Golden Age of Hip-Hop, recorded before that genre turned into a apathetic, predictable celebration of all things "bling-bling" and narcissism. It's a call to street action: which is precisely what we need now. Facebook petitions will only get you so far.

Back in the day, Public Enemy's righteous angry raps took on the Powers That Be, which made the band dangerous in a way that corporate sell-outs like Eminem can only dream of.

"Fight the Power," featured here with the brilliant opening credits to Spike Lee's Do the Right Thing, kicked off one of the best films of the 1980s.

With the GOP cracking down on the working class, it's now time to get angry. Unless we all take to the streets and Fight The Power, we will eventually have no rights at all (except the right to starve to death as the economic serfs of fascist corporate America).

Thursday, February 17, 2011

Wisconsin Workers, Remember: "There Is Power In A Union"

.

.
By MARC McDONALD

Welcome to another edition of Progressive Music Classics.

As the workers in Wisconsin stand up for their rights, I thought I'd serve up some classic labor music that has inspired me over the years. Although many of us can't be in Wisconsin at the moment, we're definitely with the workers there (and everywhere) in spirit.

In 1986, Britain's Billy Bragg served up his take on the traditional worker's anthem in this track from his classic album, Talking with the Taxman About Poetry.

I saw Bragg in concert back in 1986 at a small club on Greenville Avenue in Dallas. It was a no-frills show: just one man and his guitar--but Bragg held the audience spellbound. It was a welcome tonic for us workers back during the dark, gloomy days of the Reagan era.

There is power in a factory, power in the land
Power in the hands of a worker
But it all amounts to nothing if together we don't stand
There is power in a union

Now the lessons of the past were all learned with workers' blood
The mistakes of the bosses we must pay for
From the cities and the farmlands to trenches full of mud
War has always been the bosses' way, sir

The union forever, defending our rights
Down with the blackleg, all workers unite
With our brothers and out sisters from many far off lands
There is power in a union

Now I long for the morning that they realise
Brutality and unjust laws can not defeat us
But who'll defend the workers who cannot organise
When the bosses send their lackies out to cheat us?

Money speaks for money, the devil for his own
Who comes to speak for the skin and the bone
What a comfort to the widow, a light to the child
There is power in a union

The union forever defending our rights
Down with the blackleg, all workers unite
With our brothers and out sisters from many far off lands
There is power in a union.

Wednesday, February 16, 2011

Thom Hartmann Smacks Down NeoCon On Wisconsin Union Busting

.

.
By MARC McDONALD

The normally mild-mannered Thom Hartmann finally got enraged when NeoCon Seton Motley spewed one wingnut lie about labor unions too many on his "The Big Picture" TV program yesterday.

The two were discussing Wisconsin governor Scott Walker's war on state workers when Motley started spouting endless, predictable NeoCon bullshit about how public sector unions are basically evil and should be abolished.

Even a cool, rational figure like Hartmann, though, has his limits of tolerance and he finally called out Motley for his lies. When the latter continued to spew his wingnut venom, Hartmann showed a rare (for him) flash of anger. Although he lost his cool, Hartmann didn't lose his head and he proceeded to completely demolish every lie that Motley spewed out.

"I'm not going to let you get away with these lies!" Hartmann said. (I hope the "liberal" corporate MSM was taking notes on how to counter blatant Conservative propaganda).

One thing I've long admired about Hartmann is that he is always well-informed and he always has a ready comeback, with a heavy dose of the facts, to any NeoCon who is simply making up bullshit.

At one point, Motley claimed that unions were forcing themselves on the American people. "People don't want to unionize!" he claimed.

To this sheer nonsense, Hartmann had a ready reply: "More than 60 percent of Americans say they would join a union if they could."

To which Motley could only meekly (and falsely) reply: "That's a lame poll."

Yeah, right, whatever.

I myself have personally been intimidated and threatened by employers for simply talking about unions (even though it was on my own time and it wasn't on company property). I personally know of many other people who were threatened and even fired for simply talking about organizing. Yes, there are supposedly labor laws on the books that prohibit this sort of thing, but since the Reagan era, such laws have been rarely enforced.

The bottom line is: the capitalist bosses will do anything (even kill) to prevent American workers from joining unions.

I applaud the union workers in Wisconsin and I wish them well. However, I think they should be aware that Walker's threat to use the National Guard is no empty threat. Indeed, when I think of previous labor clashes in our nation's history (like the 1914 Ludlow Massacre, in which 19 people were killed by the Colorado National Guard), it makes me worried.

Hartmann's "The Big Picture" TV show airs live Monday through Friday at 9:00 p.m. EST with a repeat broadcast at 2:00 a.m. EST on FSTV DISH Network channel 9415, DIRECTV channel 348.
Additional program info is here.

Friday, May 08, 2009

Marking 75th Anniversary Of 1934 San Francisco General Strike

.



This video takes a look at the 1934 San Francisco general strike. May 9 marks the 75th anniversary of this historic event, which occurred during an era when U.S. workers were willing to stand up to defend their rights.

Sadly, today's working class in America seems to be content with letting CEOs and other robber barons shit all over us, as these crooks loot the U.S. Treasury and dole out hundreds of billions of dollars in corporate welfare to themselves and their rich allies.

If you've had enough of all this, consider joining a union.

"There is power in a factory, power in the land,
Power in the hands of a worker.
But it all amounts to nothing, if together we don't stand
There is power in a union.

Now the lessons of the past were all learned with workers' blood,
The mistakes of the bosses we must pay for.
From the cities and the farmlands to trenches full of mud,
War has always been the bosses' way, sir

The union forever, defending our rights,
Down with the blackleg, all workers unite.
With our brothers and our sisters from many far-off lands,
There is power in a union."


---Billy Bragg, "There is Power in a Union,", 1986.

Monday, December 08, 2008

Chicago Factory Sit-In: The Dawn of a New Era For Unions in America?

By MANIFESTO JOE

This is an example of why a bailout, any bailout, is fundamentally a no-win situation for the taxpayer.

You may have heard news that workers at the Republic Windows and Doors factory in Chicago occupied the building and began a sit-in after the factory shut down Friday on three days' notice. Last time I checked, they're still there.

The workers say the factory was closed in violation of a law that requires a 60-day notice for a shutdown. They say they won't leave without assurances that they'll get severance and vacation pay.

What you may not have heard is the reason for the abrupt shutdown. The company's creditor, Bank of America, canceled Republic's line of credit. Republic's sales have tumbled in the sour economy, and with no line of credit, CEO Rich Gillman said the company had "no choice but to shut our doors," The Associated Press reported.

This is the same Bank of America that got $25 billion of the federal government's $700 billion financial bailout. That's over 3.5% of the total package. And they can't afford to extend a line of credit so that 250 mostly Hispanic wage earners in Chicago can keep their jobs?

SOCIALISM FOR THE RICH, "FREE" MARKET BUGGERY OF THE POOR

The Associated Press also reported that Bank of America, in a statement Saturday, said that it isn't responsible for Republic's financial obligations to its employees.

Exactly for whom, and to whom, is Bank of America, sucking at the federal tit to the tune of $25 billion, responsible and accountable?

It's in the public interest that people can get and hold jobs. These people can't pay taxes when they're in the unemployment line. Since this largess is coming from the taxpayers, we've got a perverse situation of collectivist capitalism for the bankers, and the icy sidewalk for the faceless mass of suckers who put up money for the bailout.

WHITHER THE BAILOUTS?

Along with many other people, I held my nose and voiced support for the bailout as a necessary evil. But this case illustrates why taxpayer-funded bailouts end up being no-win situations. It's a sort of blackmail -- the national economy would fall into a downward spiral of Depression proportions if financial institutions the size of Bank of America were allowed to go under. They seem to know this, and their behavior is commensurately unaccountable.

Chicago will easily survive a loss of 250 jobs at Republic. But multiply that scenario across the country, with many hundreds of struggling companies and overextended creditors, and you get a mental picture of what the U.S. economy is facing.

This is an example of why bailouts need to have many strings attached to them, and very sturdy ones. In exchange for that $25 billion, the federal government ought to have pretty much leverage over what Bank of America uses it for. Republic operates at the level of a few million dollars per month, not in the billions like BOA. This is a microcosm of the kind of abuse that the many have endured, at the hands of the few, for decades.

A UNION SUNRISE?

A bright spot is that this incident may become a rallying point for the revival of a union movement in America. Here's more from the AP report:

"Across cultures, religions, union and nonunion, we all say this bailout was a shame," said Richard Berg, president of Teamsters Local 743. "If this bailout should go to anything, it should go to the workers of this country."

Outside the plant, protesters wore stickers and carried signs that said, "You got bailed out, we got sold out."


Leah Fried, an organizer with United Electrical Workers, obliquely compared the sit-in to the landmark 1936-37 General Motors sit-down strike in Flint, Mich., which helped unionize the auto industry. (Yeah, I know, there's the automakers bailout. That's another post.)

"We're doing something we haven't done since the 1930s, so we're trying to make it work," AP quoted Fried as saying. She pointed out that the occupying workers have been shoveling snow and cleaning the building during the sit-in.

Realistically, the financial bailout is a bitter concoction we're going to have to gulp down. But that doesn't mean we have to like it. And, for a dramatic change from '80s and '90s stupor, a lot of Americans seem to be waking up from virtual date-rape drugs and realizing who's been carrying out the assault on working people for many years.

I hope the 53-46% mandate for Barack Obama was only the beginning. Republic should trigger a reborn union movement in this country. Against the kinds of monolithic entities we now face, like Bank of America, lots of people getting together again is the only chance we have.

Manifesto Joe is an underground writer living in Texas. Check out his blog at Manifesto Joe's Texas Blues.

Sunday, April 06, 2008

Back In the Days When American Workers Were Willing To Stand Up For Their Rights

.



This video takes a look at the 1934 San Francisco general strike. May 9 will mark the 74th anniversary of this historic event, which occurred during an era when U.S. workers were willing to stand up to defend their rights.

Sadly, today's working class in America seems to be content with letting CEOs and other robber barons shit all over us, as these crooks loot the U.S. Treasury and dole out hundreds of billions of dollars in corporate welfare to themselves and their rich allies.

If you've had enough of all this, take action. Also, consider joining a union.