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Reports

Crippling the Auto Union Is Just a Warm-Up

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Posted on Dec 15, 2008

By Marie Cocco

    I must admit that when the danger of a global financial implosion became apparent in March with the taxpayer-backed takeover of Bear Stearns by banking giant JPMorgan Chase, I did not understand how all those worthless Wall Street credit swaps really could be the fault of an overpaid union welder at an auto plant somewhere in Michigan.

    Heck. Despite having once listened as Republican leader Tom DeLay gave a House speech blaming the 1999 Columbine High School shootings on mothers who use birth control and the teaching of evolution in schools, I still underestimate the peculiar genius that conservative Republicans show in exploiting dire, even tragic, situations to wield a partisan cudgel.

    Senate Republicans’ effort to break the United Auto Workers union as the pound of flesh they wanted in exchange for loans to teetering automakers—companies that are on the brink because of a credit crisis they did not cause—was over the top, even drawing objections from the Bush White House. The administration is now rushing to find money for Detroit somewhere in the huge pot of financial-industry bailouts, lest the automakers go down and take what’s left of the economy with them.

    Understand that the conservative assault on the UAW is just a warm-up act.

    The main event for these contemporary Pinkertons will come after Barack Obama is sworn in as president and Democrats seek to pass a measure that would make it easier for workers to organize unions. It is the Employee Free Choice Act, and its intent is to push back—at least a bit—on the multimillion-dollar union-busting business that has become institutionalized since the political assault on labor was juiced up with President Ronald Reagan’s 1981 mass firing of air traffic controllers. When Reagan supplanted the striking controllers with “replacement workers” (previously known as strikebreakers or scabs), business got the message: It was perfectly acceptable, if not advantageous, to bust unions or to keep them from being organized. From there, it was a small step toward the widespread use of unethical, and sometimes illegal, tactics.

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    “When it comes to workers’ right to form unions, loophole-ridden laws, paralyzing delays and feeble enforcement have created a culture of impunity in many areas of U.S. labor law and practice,” according to a 2005 report by Human Rights Watch. In the 1950s, a few hundred workers each year suffered reprisals for union organizing. By the early part of this decade, according to the report, about 20,000 workers a year suffered a reprisal serious enough for the National Labor Relations Board to order back pay or take other steps.

    Academic research has demonstrated that much of the illicit anti-union activity is conducted after employees have signed cards indicating they want a union, but before a formal election is held. This is what the “free choice act” aims to eliminate: a waiting period during which three-quarters of companies hire consultants to thwart the organizing drive and engage in a variety of pressure tactics to keep employees from ultimately voting “yes.” About half of companies threaten to close the plant if the union wins the election, according to research by Kate Bronfenbrenner of Cornell University.

    No wonder then that in a memo from which the author’s name was removed—but which is believed to have been circulated among Republicans last week during the auto industry imbroglio—lawmakers were told, “This is the Democrats’ first opportunity to pay off organized labor after the election. This is a precursor to card check and other items. ... Republicans should stand firm and take their first shot against organized labor, instead of taking their first blow from it.”

    But the blows of this economy have been harshest on average workers. Before the current recession began, paychecks still had not recovered from the 2001 recession. Wages and benefits have been eroding. One way to stanch the trend is to tip the scale—now tilted so heavily in favor of Wall Street and wealth—back the other way. Otherwise, when the economy recovers, the fruits will again trickle up to the executive suite.

    “If workers are going to benefit from this recovery, they are going to have to have the ability to bargain for higher wages and higher benefits. We can’t depend on employers on their own to deliver the benefits of this recovery to workers,” says Bill Samuel, legislative director of the AFL-CIO. “We have to change the equation here.”

    That is the kind of change conservatives just don’t believe in.

    Marie Cocco’s e-mail address is mariecocco(at)washpost.com.

    © 2008, Washington Post Writers Group


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By beeline, July 20 at 11:20 am #

The auto industry isn’t out of the woods yet. Among other things car and van hire companies have got to start increasing their fleets. The UK Scrappage scheme has helped improve the sales figures, but they are still well down on previous years.

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By diamond, December 18, 2008 at 6:55 pm #

If it wasn’t for unions we westerners would all still be working around the clock for starvation wages. Unions humanized the workplace but in America there’s still a hell of a long way to go. As far as in Thailand for example. Perhaps Obama can make a modest start on dragging American employers kicking and screaming into the 20th century. At the moment they’re in the 19th and expect to pay accordingly. That’s why America didn’t even have a minumum wage until quite recently and it’s FIVE DOLLARS AN HOUR. Workers are treated disgracefully in America, thanks to people like Marie Coco who pretend the workers are some kind of demonic force that will DESTROY THE ECONOMY. Big news Marie, your corporate friends already did that.

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By samosamo, December 18, 2008 at 2:25 am #

Dear Marie Cocco,

““I did not understand how all those worthless Wall Street credit swaps really could be the fault of an overpaid union welder at an auto plant somewhere in Michigan.”“

Simple those welders combined probably chopped off about 1/2 percent of the CEO’s salary edge he had over those filthy rich welders and that is the 2nd most abhorrent thing a ceo faces besides paying taxes, encroachment on wages/salaries. Guess the ceo and his family won’t be able to enjoy that $500.00 bottle of wine this xmas.

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By Muscleboy, December 17, 2008 at 9:26 pm #

Actually, the Republicon congressmen, who actually are unregistered foreign lobbyists for foreign auto manufacturers, boldly stated that GM and Ford were over paying their workers.  They acted like the Unions were the problem.

The fact is Toyota pays it’s US workers more than GM or Ford do. And Toyota pays it’s Japanese workers even more still.

These Republicons and their media mouth pieces that look like the press, are not conservative or even pro American, they are traitors. 

What the Republicons from George Bush to the congressmen from Tennessee do is try to deceive Americans so they can rob us blind and they do not care one bit if they destroy our country in the process.  They are just a bunch of criminals. 

Don’t be deceived.

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By GoldenT, December 17, 2008 at 2:07 pm #

Unfortunately, the Tory Right does not need wait until January to gut labor, because the rate at which the securities-based credit system is unraveling has brought the “Ponzi Goes to Washington” show to the point where liquidity cannot be shoveled into the dying system fast enough. Ultimately, this will prove hyperinflationary, and wages—union or not—will be decimated. We are willfully recreating conditions present in Weimar Germany 1923.

Before anything serious can be accomplished on the economic front a bankruptcy reorganization of the entire global financial system will be necessary.

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By lodipete, December 17, 2008 at 1:49 am #

Lets blame the UAW and the car companies for being shortsighted and greedy.

  It wasn’t the UAW that dreamed up the Edsel,Corvair or Pinto. It wasn’t the UAW that said “Americans don’t want small cars” in 1973 as an answer to the first oil embargo. Nor was it the UAW that designed SUVs that rolled over like a cheap whore in a flop house. It was definitely not the UAW’s idea to fund healthcare plans through the company as opposed to a national health plan as is the case in Japan & Germany. And it was definitely not the UAW that bribed the Japanese & Germans to build assembly plants in the southern part of what’s supposed to be the US. That honor goes to the cracker assholes sitting in the senate who are perfectly willing to sell their country down the river just as they always have been since the days of Rutledge & Calhoun.

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By annunaki101, December 16, 2008 at 5:01 pm #
(Unregistered commenter)

If at any time labor is suppressed then all there is left is slavery for everyone. I’m sure the large corporations would love that.

What should be happening is large corporations and especially the Federal Reserve paying their dues and funding everything they have stolen and from everyone they have stolen it from. If not then let the people evict them from all countries they run and all their funds, gold, silver and all resources be left for the people.

There’s a beautiful scenic little island called Alcatraz for Feds and monarchy to make a new home. If that’s not big enough then try Bikini Island.

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By yours truly, December 16, 2008 at 4:55 pm #
(Unregistered commenter)

Fed up with always trying to catch up to where you were before the last recession?  What instead?  Change the damn system.  How?  It’s up to us.

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By sean, December 16, 2008 at 1:34 pm #
(Unregistered commenter)

All I would like to say is that the auto companies issues extend beyond just this financial crisis. The current economic crisis simply made them more susceptible to failing. The car companies were already walking a fine line of failure far before this current economic crisis. Ford has been restructuring for the last 3-4 years. Thats why they seem less in trouble than the rest. Lets not blame the republicans for union busting. Lets blame the UAW and the car companies for being shortsighted and greedy. Gov’t is not the answer the answers come from smart management which did not happen.

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