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Blue-Collar Challenge for DemocratsPosted on Sep 28, 2007By E.J. Dionne WASHINGTON—The General Motors contract with the United Auto Workers shows how companies and workers can come together when both understand the economic threat facing American manufacturing, and when workers have a place at the table to protect their most important interests. But few American workers have the negotiating power that the UAW has won over the years. Indeed, many employees—including white-collar workers and professionals—are losing leverage in a global labor market where wages can be bargained down easily, and in an American private sector in which unions hold less and less sway. This is the great challenge facing Democrats, and progressives in all countries. The left has partial answers that are, on the whole, better than the pure laissez faire offered by the right, which mostly wants to wish the problem away. But to govern successfully, progressive parties—and especially the Democrats—need more clarity than they have now on how to save middle-class living standards, how to grapple with the impact of global trade, and how to marry economic dynamism with social justice. Democrats might complain that more is being asked of them than of Republicans. Well, yes. It is harder to swim against the economic tides, but that’s the job Democratic candidates are signing up for when they claim to speak for the forgotten and the struggling. Bellyaching is pointless. The media could help, too. How often do we need to parse every tiny nuance of each candidate’s already well-known position on Iraq? Why can’t news organizations host debates focused solely on how to build a just and growing economy in a world very different from the one our grandparents inherited? Maybe GM and the UAW could co-sponsor it. Advertisement But workers and their leaders are not fools. They understand how much trouble the American auto industry is in—for reasons that cannot be explained entirely by labor costs. Still, GM’s biggest cost problem is healthcare, particularly for retired workers. The UAW and its president, Ron Gettelfinger, came up with a genuinely innovative way to help GM, proposing the creation of a heathcare trust—it’s called a voluntary employees’ beneficiary association, or VEBA, destined to be the new hot acronym. GM would deposit at least $30 billion in the trust to cover the long-term healthcare liabilities for retirees. In return, GM would get rid of roughly $50 billion from its books for those obligations. Assuming a decent economy and decent investments, the VEBA would be expected to grow in value and eventually cover the larger costs. The UAW got back guarantees of medical benefits and a pledge that GM would invest in its American plants. This, Gettelfinger says, would maintain the union’s current work force. The UAW is taking a risk, since healthcare costs could rise faster than the trust fund grows, and since the contract includes fewer protections for non-production workers. But the bigger risk was GM going under or moving yet more jobs overseas. The lesson of The New Treaty of Detroit is that in the face of globalization’s challenges, risks and rewards can be shared if there’s a will to negotiate them. Now it’s the turn of Democratic candidates to explain how they will be as creative as GM and the UAW. A few hours before the Democratic candidates joined in debate in New Hampshire on Wednesday, I sat down with a senator who has a lot of sympathy for what his colleagues are going through. John Kerry resolutely declined to criticize or advise any of them and was quite candid about what he thinks he did wrong in his 2004 campaign. His core mistake, he thinks, was not giving voters enough reassurance on security issues related to terrorism. But he did have a warning for advocates of free trade, of which he has been one. The country, he said, could “squander” its trade consensus if the promises of shared prosperity keep getting broken. “You can never eliminate, in a dynamic economy, dislocation and transition,” he said. “You can guarantee that the impact is limited, and not devastating.” That’s the right promise. Who can keep it? Elsewhere: . CommentsAre you a Truthdig member yet? Login now, or register with Truthdig. Add Your Comment
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By purplewolf, October 1, 2007 at 3:29 pm #
After finding out more info from some of my “shop rat” friends, the insurance for the people is a messed up deal.The money will run out well before the bills are paid,the way it is to be handled now favors GM and screws the workers and retirees.
LODIPETE:
Report thisUnfortunately the lapel flag pin is to small that he probably wouldn’t notice it,try the real thing instead-A LIFE SIZE FLAG POLE COMPLETE WITH FLAG AND ALL THE RIGGINGS-IN FACT HOW ABOUT ONE OF THOSE EXTRA LARGE FLAGS SOME BUSINESS FLY THAT ARE TRUELY OVESIZED.WITH A GIANT EAGLE ON IT WITH THE WINGS WIDE OPEN.IT’LL WORK MUCH BETTER!
By lodipete, October 1, 2007 at 1:30 pm #
OOps. Forgot the lines.
The United Auto Workers’ strike against General Motors last week turned out to be brief. The company and union negotiators reached agreement not much more than 48 hours after union members started picketing. It barely made the front pages of most newspapers and seems to have made few ripples in the stock market. It didn’t last long enough for any Democratic presidential candidate to walk the picket line.
Report thisBy lodipete, October 1, 2007 at 1:29 pm #
Gloating from the Wall Street Journal. This first few lines from a hack named Barone for the WSJ is indicative of what the plutocrats think of working people. This peice of excrement along with his fellow “writers” at the Journal are also pro “open borders”. It seems that the plutos not only want to send good jobs out of the country, but to want to import cheap labor to take even minimum wage jobs in the hope of lowering that too as well as dumping social security.Well, so much for “compassion” as well as homeland security. I’d love to stick his flag lapel pin right up his ass.
Report thisBy mary, October 1, 2007 at 12:18 pm #
Verla Mae #103304, your post hit home, hard. Thanks for sharing. Every day I fax a note to Sen Jim Webb. Today I will fax this article and all the comments. Who knows, maybe someday these guys will “get it”......
Report thisBy Conservative Yankee, September 30, 2007 at 11:37 am #
(Unregistered commenter)
103587 by John Borowski on 9/30 at 4:31 am
Hate to say this Mr.Borowski, but you have posted a rather simplistic, very partisan view of the “trouble.” There are those who bemoan the “feminism” which allowed women the “freedom” to go out and pursue careers. I’m not one of those. Are you?
There are those who bemoan the fact that the upper standard for building a new house in 1950 was to have a Two Car garage, it is now a four car garage. I’m not one of those. Are you?
There are those who bemoan the fact that most (more than 50%) of the US families of the 1950’s had one car. More than 75$ of US families today have more than two cars. Is this a good thing? Personally, I’ll allow the people with more than one car decide this. I have 2, but one is a 1963 Buick which I drive only for pleasure in the summer. It has a bay in my two car barn.
The average floor area of a new home in 1950 was 2000 sq feet. The average home today is twice that. The average family in 1950 was 5 people, the average family today is 3.5 people. The Beav shared a room with his brother, and Rickey shared a room with David. Today TV children all have their “own space” but we still tell them “learn to share.”
Sorry, but the Republicans didn’t do this. The right-wing xtians Think a woman should stay home barefoot and pregnant. Many conservatives believe “a woman’s place is in the home. I’m not one of those. Are you?
You know, come to think about it, you’re pretty prejudiced for a “liberal” But then again I never heard you say you are a liberal, so maybe you are not. Maybe you are just a self-hating conservative doing penance.
Report thisBy John Borowski, September 30, 2007 at 8:31 am #
(Unregistered commenter)
A while back there was a comment by a participant lamenting the fact that milk wasnt delivered to our homes anymore. The milk companies discovered that if they left the milk on your doorstep it would spoil because no one was home to put it in the refrigerator. They sent it to stores so that it would be refrigerated properly. No one home, who is caring for the children, (The juvenile delinquents on your block are helping out). Where are the parents? Both of them are working because they are up to their bippies in debt and sentenced to life in the debt prison. Because the Republicans (Aka Conservative right-wingers) cut their overtime pay, they are suckered into part-time jobs. How can this be, the Republicans (Aka Conservative right-wingers) are cutting the working mans taxes? Depending on the working mans salary the Republicans (Aka Conservatives right-wingers) gave him 3 to seventeen cents a day and for the rich two hundred and forty seven thousand dollars. If the families are so rich why are they both working? They are desperately trying to have the same standard of living their mothers and fathers had when the Do-Good Liberals were in office and taxing and taxing. In them days the father worked in one job with good pay, benefits, and job security. The mother stay at home to rear the children properly. Where are the Republicans (Aka Conservative right-wingers) getting the greed baited money to cut their taxes? From the only cash cow that exist in Washington at the present, which is Social Security. If they milk the cow dry what happens to Social Security in the years 2010 thru 2020? The Republicans (Aka Conservative right-wingers) will tell them sorry folks the Social Security is broke. They do have one option to restore Social Security and that is to borrow from the Federal Reserve (A cabal of wealthy Europeans and British that own our printing presses and all the money that comes off of it). There are trillions and trillions of dollars stolen from Social Security since the thirties on up to the present plus the concomitant interest. Will the cabal lend the US government this amount of money? Yes, they will instruct their ink-stained wretches the US Treasury to start the presses rolling. What will the US government use for collateral? What the US government has done in the past, give the cabal (The Federal Reserve) the right to receive all of the tax money to satisfy the collateral.
Report thisBy Conservative Yankee, September 29, 2007 at 4:58 pm #
(Unregistered commenter)
103409 by John Borowski on 9/29 at 6:00
“These Republican (Aka Conservatives right-wing fascist) regard the working man as something less than an animal.”
Hummm this “Republican Conservatives right-wing fascist, is a working man. AND many many people who worked with me over the years at Amoskeag, Essex, and Arlington were also Republicans….
Working folks usually hate taxes.
Report thisBy Conservative Yankee, September 29, 2007 at 12:18 pm #
(Unregistered commenter)
103257 by purplewolf on 9/28 at 9:38 am
“I have lived in Flint, Michigan”
If you had said NOTHING other than this, every Union worker, and every former union worker would know what you were talking about!!
Many of my family members and friends worked in Textiles. If you are old enough to remember those cool 100% cotton sheets which lasted forever, and were used to escape from prison, then You are remembering Essex Mill sheets from Lawrence and Lowell Massachusetts.
If a person attempted to put his weight on a poly-cotton narrow-loom, 180-per-inch (incorrectly called Percale) sheet, they would fall to their death. This is good for prison guards, but bad for consumers.
Essex no longer makes sheets. Their buildings sit crumbling on the banks of the Merrimac and their workers are scattered. Most of old Lawrence has burned, and what’s left is impoverished.
This in the State represented completely by Democrats. Don’t bet on them for help. The old Democratic party has gone the way of the true Percale sheet!
Report thisBy John Borowski, September 29, 2007 at 10:00 am #
(Unregistered commenter)
Many years ago in Linden, NJ my brother worked in the assembly plant for GM. They had swinging over-head tools to do the work. One day a swinging tool hit him in the head and he was bleeding like a stuck pig. He asked the foreman to go to the infirmary for medical attention since so much blood was pouring down he could hardly see what he was doing. The foreman sarcastically told him to keep working until a replacement will come. He decked the foreman and walked out of the plant. He told me that the line was going so fast that if a bolt had a burr on, it you had to let it go down the line without the vital bolt. These Republican (Aka Conservatives right-wing fascist) regard the working man as something less than an animal.
Report thisBy Dr. Knowitall, PhD, PhD, September 29, 2007 at 9:13 am #
I doubt E.J. will see these comments but I think they’re great. You people are, as I’ve seen so many times before on TD, “spot on.” America is growing increasingly anti-worker and small business and pro-big corp. Even the biggest idiot s*** for brains rep. in DC can see that. Don’t expect it to change, except for the worse, for workers anytime soon.
Report thisBy John Borowski, September 29, 2007 at 7:24 am #
(Unregistered commenter)
I was surprised one day to find a quiz in a magazine that wanted you to choose which cars are made in the US. Is the correct answer GM, Ford, Chrysler, European, or Japanese products? The answer is Japanese cars. Many people believe that Japanese car makers are smarter in making cars and their workers are more dedicated. This not true, they simply put more quality in their cars for the money. The reason they can do this is because they dont pay their executives the kind of salaries, bonuses, and golden parachutes (Aka pensions) that American companies pay. When I buy a Japanese car I know it is probably made in the US by American workers. Does the money I pay go to Japan? No it doesnt, it goes to a US bank and then to US bonds. The reason the Japanese do this is because if they sent the money to Japan and exchanged it for Yen it would make the Yen stronger. By-passing the dismal science of economics, this would be the worst thing they could do for their exporting country. Countries that lose a World War are forced into doing it this way because they had to sell their soul to the victors, the British and their colony the US.
Report thisBy Verla Mae, September 28, 2007 at 6:13 pm #
(Unregistered commenter)
These folks got some explaining to do. First, Reagan broke all the unions. Then, Clinton sent our jobs off in these free trade agreements. Now, these boobs want to privitize the very next leak we take. They want us to have to buy everything. Only corporations can get welfare these days.
The problem is nothing is made in America anymore. We don’t even grow food here. Everything is shut down to be made overseas. Ford closed a plant in our area and sent most of those jobs to Mexico. My son trained the kid from India who would be doing his job there. The poor kid lived on my playroom sofa for seven months before he found another job. He had to take a second gig in a call center at night before he could afford to pay rent anywhere else.
I hear all this talk of these Congressmen and Senators keeping company with Wall Street. It scares me. I worry because I don’t have a golden parachute, and Unemployment Compensation is not enough to cover my house note. There is just no such thing as saving any money. We’re blessed to live from check to check without falling through the cracks every 14 days. My elected representatives in DC all have 6-figure incomes with great benefits and no worries. I don’t think they quite appreciate my last new dress being purchased at the Good Will. Everybody in my house has a job, just so we can pay keep the utilities on and the water running, here and in DC.
A person can’t get much more blue collared than this. Not much more broke either. I need to know that these promising-me-the-world Democrats are going to make some changes for me for the better. I want my government to work as hard for my interests as it does for business and industry.
Report thisBy purplewolf, September 28, 2007 at 1:38 pm #
To Outrage and the others who posted:
I have lived in Flint, Michigan,you know former Buick,a GM town and all that crap my whole life. Most of my family worked for GM at one time or another. These jobs have been leaving the area since the early 1970’s during Reagans presidency.Remember that trickle down theory crap,it’s crap. The big corporations held hostage the cities of Flint, Detroit, Saginaw and Lansing, more-less blackmailed these cities for property tax relief or they would have to close down the factories and take jobs to Mexico.That went on since before the 1970’s. Job outsourcing is not a new thing because of NAFTA for the job relocation to foreign countries started long before anyone heard of Nafta and all the others after that.So these cities made agreements to give these companies property tax breaks in the tens of millions of dollars to keep the jobs here,the corporations promised and then lied and closed down the very factories or cut workers until they could finally close them down the very factories they have tax breaks on. GM claimed it could pay a Mexican worker $17 dollars a day compared to $17 an hour per American worker, well a new car in the 70’s cost about $3,500, now they are often $30,000 and higher, so if they pay the workers less why did car prices increase 10 fold?
We built the best and safest cars in the world, recognized worldwide,in Flint,only to have that factory, the last one open in Flint to close a few years back. Grand Blanc, Michigan, where the tanks for world war II were made, often refered to as the tank plant by locals, is now a giant Walmart-Sams Club and other giant superstores mega-shopping center. What is left at the old tank plant is a few workers who have no work to really do. This once was an area in the late 1970’s that the goverment claimed had the second highest income in the country, Alasaka was #1 with the pipeline,at that time about 26 thousand dollars a year per worker. Now Flint and a lot of the surrounding areas are in worse shape than some of the worse areas in Iraq.
A lot of people want to complain about unions, but without them we will go back to a time when you did not earn a living wage,medical coverage,even partial was unheard of, work conditions will go back to that of a third world country,OSHA will be unheard of. For all those who complain about union workers,if it wasn’t for them, you would not have what you now have as far as employee rights,however in the past few years we have seen that those gains have been sharpely reduced and will continue a downward spiral.If you think that big corporations will do the right thing and pay a decent,let alone a living wage with out being made to,forget it.You are expendable, big corporations show no loyality for their workers only exploitation.
Only when there is no one left to buy these cars that cost to much will these corporations realize they have no customers as no one earns enough to buy such luxuries, many not even the necessities.
As for the small gains the UAW has just seen this week, I am not holding my breath, the big corps will find another way to cheat the workers and their families out of this also.All in the name of greed.
Report thisBy Outraged, September 28, 2007 at 10:27 am #
RE:#103191 by lodipete on 9/28
“Perhaps its time the US government declared these outfits that move elsewhere to be foreign firms and put in tariffs and taxes that penalize them while dedicating some of that money to helping real entrepreneurs set up plants to take their place.”
——-
lodipete:
This would be an excellent check on the imbalance created by these large corporations. The question is why haven’t they done this already. America has been drained of it’s life blood since NAFTA was passed. This would also have a tremendous effect of the stronghold that the multi-national corporations have in the marketplace.
I found this “pledge” of GM’s to be full of crap also. Maybe they ought to take this pledge first: “I pledge allegiance to the flag and to the United States of America,......etc…”
American multi-national corporations are as traitorous as Bush and Cheney. Not only are they selling the American worker down the river, they’re taking the whole country with them.
Report thisBy KISS, September 28, 2007 at 10:16 am #
When did you sell out, E.J.or were you smoking something ? This farce is as tainted as undercooked hamburgers.GM took a step to destroy the UAW within 5-10 years, and the UAW and you fell for it. Maybe that 30 billion had an accompanying million or so for the union leaders.
Report thisWhen Clinton opened the door to NAFTA it was obvious that the big car manufactures were all for it. Did you hear them cry in anguish? When the union feels the pinch of health care and sees the money going south, the retirees will being getting quite a shock, but by that time the union will be toothless.
Time for you E. J. to reread ” Roger and Me” by Michael Moore.
By Conservative Yankee, September 28, 2007 at 9:39 am #
(Unregistered commenter)
My family has been 100% UNION since the Bread& Roses strike. I believe that HONEST union representation is the best protection a worker has.
BUT
Honest Unions, and representative union membership have gone the way of the Dodo. A poster above mentions Otis Elevator and this is a good reference, I recommend anyone not familiar with this screw-job check it out. BUT Otis is not alone. US Steel promised a retirement benefit. The Union had it in writing. Ask any former US Steel worker about their retirement benefits….I recommend you do it by phone.Enron, Holland America, Studebaker, Bethlehem, Chrysler, World Com, Global Crossings all had great agreements with their workers. Agreements worth nothing.
ALSO equating the Democratic party with justice for the American Worker is laughable at best. The two front runners have strong connections with low-pay no-health-benefits Walmart. Hill was a board member, and Obama’s wife was a board member. What did they do for workers there? Pretty much the same thing they will do for workers when they are in the White House.
Report thisBy lodipete, September 28, 2007 at 9:16 am #
“The UAW got back guarantees of medical benefits and a pledge that GM would invest in its American plants.”
As to the worth of pledges made by corporate America, I suggest that Mr.Dionne needs to look up the history of Otis Elevator and the city of Yonkers,NY. It is not untypical of corporations to receive tax breaks for a multitude of reasons and then move their plants to Mexico,China or other cheaper locales. As for autos, if it’s so much cheaper to build a car in Japan, why do they cost the same as an american built car? Could the value added tax and other book keeping tricks have anything to do with it? Perhaps it’s time the US government declared these outfits that move elsewhere to be foreign firms and put in tariffs and taxes that penalize them while dedicating some of that money to helping real entrepeneurs set up plants to take their place. Just as communism was never monolithic, neither is capitalism. Bush & his inherited money pals are a far cry from the individual who risks all to build a business only to see it go under because politicians have been bought off into signing crap like NAFTA and endorsing phony “free trade”.
Report thisBy thomas billis, September 28, 2007 at 7:57 am #
(Unregistered commenter)
You are right what a good idea you get the corporations off the list of people who will demand national healthcare and shift the burdens to the unions.If the idea that the fund could take care of itself was so widespread why did Wall Street upgrade GM stock when it learned of the shift in health care responsibilities.If GM wants to compete on the world market the guys who are getting the big bucks should try something novel like making cars that people want to buy.The American worker is the most productive in the world and deserves a better break than having middle class jobs wiped out too have companies abuse free trade agreements to bolster the bottom line.Here is where it gets tricky it is up to the Government to make it so that companies earn less and pay American workers decent wages because it is good for the country as a whole.If an American Company makes 10 billion and all of its workers are overseas is that better than that company making 5 billion and paying Americans a decent wage.They are American companies protected by United States armed forces and getting all the help they need from American politicians is it asking too much to pay the American middle class decent wages.
Report thisBy Verne Arnold, September 28, 2007 at 7:35 am #
Mr. Dionne, with all due respect youre full of crap!!!
American companies were given Carte Blanc by the Clinton administration when GAT, NAFTA, and FTAS were implemented. The U.S. government sold the American worker down the proverbial river decades ago.
I am not a union advocate (they abused their power) as they are partly responsible for the sorry state of American manufacturing. Youre faint praise is like saying, oh your vegetable garden looks very nice; when your produce farm was destroyed by NAFTA.
I submit to you that our corporations have, multi-handedly (with government complicity) destroyed our countries infrastructure for profit and power. I have watched over a period of 40 years as the average American’s benefits, both health and retirement have been reduced to nothing all in the name of corporatism. How dare you laud this contract with the devil. Shared prosperity, oh please; the GM employees will get screwed in the near future. They have only given GM some time to out-source their jobs in the best possible way for GM.
Every country affected by GAT, NAFTA, and the FTAs has seen a decline in overall worker health and welfare (America, Canada, Mexico). Any FTA deigned by America to be good, gives it obscene advantages over the signatory government. These trade agreements have been the second greatest myth ever perpetrated by any government on any people. We the people are forever screwed by these contracts with the devil.
Report thisI could go on and on, but I wont because this is a complex subject, not for the shallow discourse for shallow websites like this.