Stop Blaming the Auto Workers
Stop Blaming the Auto Workers by Jim Ramelis
As the Big 3 American Auto Manufacturers come on bended knee to Washington to beg for bailout money, it seems quite the fashion to bash the auto worker for the car manufacturer’s problems. Right wingers from Mitt Romney to Rush Limbaugh and the talking heads on Fox and CNBC can be counted on to spew venom toward the American worker. They try to spin it as if the workers caused all this mess that the auto makers are in. Michigan voters need to remember just where Mitt Romney stood when we needed him and who he attacked when he comes to Michigan looking for votes in 2012.
We are told again and again that to be competitive the Auto companies must do something about the pensions, wages, and benefits of the workers. The Auto companies are scolded for trying to honor the promises that were made to their workers over the years. What are these wise pundits proposing? Are they encouraging the car companies to kick millions of retired auto workers off their health insurance? What about their pensions, are they to go to the pension fund backup that the government runs, where the pension holder gets a percentage of their pension, and of course we tax payers pay for it?
Was it the Auto workers decision to continue to make gas guzzling pigs as gasoline prices soared? No it was management’s decisions. America’s losing globalization strategy, including NAFTA, wasn’t the decision of the worker, either. It was the decision of overpaid executives and politicians.
The auto workers wages aren’t as fantastic as they are made out to be either. The non-skilled labor force makes about $28 an hour, has health insurance, vacation time, sick time, and a retirement plan that includes a pension. That is not party time wages. It is a good solid middle class living. Is that so bad? They have worked in what has traditionally been a high profit intensive industry and they have been rewarded with good contracts. As of late, the U.A.W. has given huge concessions up to help their mismanaged companies. A new worker is only going to start at about $14 an hour. When Fox News, for instance, gives the wages of the auto worker, they add the hourly wage, benefit package, Social Security, unemployment compensation deduction, health insurance, retiree costs etc., pad it some and then give a fantastic sum of $75 an hour or so and make it sound as if that is what the worker is actually getting an hour. How many of us have our companies retiree health costs added to our wage and benefit package when numbers are being crunched? What an unfair distortion of reality.
Meantime the critics just skim over the incredible executive salaries and bonuses of those at the top. It is their stupidity and mismanagement that got the car companies to the point they are at. The workers do as they are told. They just make the cars. Some media folks seemed to notice as the executives pulled into Washington in their private jets, with as Nancy Pelosi said “their tin cups in hand”, ready for bailout money from the tax payers. Notice the first thing the Republican leadership went after was the working man and woman. The UAW not agreeing to immediate concession was the deal buster preventing aid to the auto companies. Nothing was said about executives going to parity with foreign car companies or giving American workers large bonuses that companies like Toyota give their workers. The Senators from Alabama, representatives of foreign car makers in their state, are leading the charge to destroy the American worker and plunge the United States into a depression. It is this sort of short sighted leadership that has got us into the economic position we are in today. If the Big 3 American auto makers go under, millions and millions more Americans are going to lose their jobs as the economic ripple effect goes through the land. We won’t be buying Toyotas and Mercedes either, Senator Shelby. Everything for these guys is top down and the lesson that as goes the American worker so goes America as been lost on them. For Senators like Shelby of Alabama and Corker of Tennessee, who are leading the charge against the American worker, it is all about beating the working class down and pumping up corporate powers. How far down does America have to go before these lames realize that if the American worker doesn’t have any money, he can’t buy things and the economy dies.
This country has steadily gone downhill in the last several years as politics and a failed ideology trumped good sense and patriotism. Turning down the auto companies for help based on failed union busting efforts is just another example of that. And that is all the latest turn down of the auto companies is, an attempt at union busting. Disaster capitalism has taught those planning turning the land of the free and the home of the brave into corporate headquarters for the international corporation, that the time to strike is when there is disaster and confusion. When New Orleans was drowning, that was a great time to privatize as much as possible and trash public education with charter schools. Now it is to heck with America, this is a great time to do some union busting. The downfall of most demagogues, extremist religious fundamentalist movements, and tyrannical political regimes such as the Nazis and the Communists is that ideological purity comes before pragmatism and reality. Pushing the ideology first is always paramount for the devotee and when the ideology no longer works, or as in this case, never worked to begin with, disaster and collapse, as we see now happens.
The Democrats are intelligently demanding some accountability from the auto companies. I am glad they want to know exactly how taxpayer’s money is going to be spent. We have a culture of unchecked greed that permeates the corporate world and we saw evidence of it when the news of bailout money for the financial sector hit Wall Street. Immediately the slippery executives started to party, and take care of old number one. Our political leaders would be foolish to give these selfish greed driven bunglers, who have caused this financial mess, tax payers money to squander also. Accountability must be paramount. This culture of greed and selfishness is what drives the reasoning of those who want to turn their backs on the auto companies and let America drown once again.
The auto industry does need to be helped, though and I am not saying that just because I am from Michigan. The economic spin off effect of two or all three of the Big 3 auto makers going down the tubes would be too much for the fragile economy to bear. It would be the proverbial straw that breaks the camel’s back. We would no longer be talking recession, we would be talking depression. Yes, help the auto companies, but demand accountability, and get off the worker’s backs.
Jim Ramelis is co-chair of the Mackinac County Democratic party, a Fellow of the Michigan Progressive Leadership Fellowship, a Featured Blogger on Crossleft.org, a website for Progressive Christians, and was a grass roots organizer for the Obama campaign this fall.
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Distributive Justice Capitalism
Byron,
The Institute for Progressive Christianity, our 501 c 3 think tank sister organization, under the authorship of Frank Cocozelli, associate director, has been diligently preparing a white paper on Christian economics, entitled Reclaiming Capitalism Through Principles of Distributive Justice. It will be ready shortly for vetting by the IPC Board and a select group of CrossLeft folks. Once it is vetted and ready for publication you may find some of the answers to your questions.
Suffice is to say that Franklin Delano Roosevelt's New Deal programs have strong Christian theological roots. Interestingly, President-elect Obama's reply to "Joe, the Plumber" re: "spreading the wealth" around, sounds, to me at least, that he has a working knowledge of distributive justice economics.
Stay tuned.
Rich
Accountability
The magic word is accountability, as Bill mentioned. The taxpayers and our elected representatives have to demand accountability. We can't lend any industry money with no accountability. The executives running the show come from a culture of greed and selfishness, with "me"always coming first. These guys will give themselves bonuses and have a party and buy a new coroporate jet for themselves unless someone is watching the books.
We tax payers need to let everyone know that we are through being lectured about how capitalism works and how we have nothing coming in the big game and we better get used to the idea of the market trumps all. Large corporations use our roads, our infrastucture, our universities for research,and our Armed Service to defend their interests overseas, yet they have acted as if they owe nothing to America as they have moved jobs overseas to cheaper labor and less restrictive environmental laws. Now their god, the market has failed them and we need to come to their rescue.We aren't chumps, we want something for our money.
the same standards for the bankers?
Thanks Jim for the post. I heard your Senator, Debbie Stabenow, make a great point. She said how come when it comes to middle class middle class workers we debate that the automakers shouldn't get a bailout, but when it comes to irresponsible bankers we have no problems spending hundred of billions of dollars. Don't blame the autoworkers who have already made significant concensions in their labor agreement blame management who relied on SUVs and had their heads in their arses in seeing where the market was moving: smaller, fuel efficient vehicles.
Blaming the unions + saving the financial system
Blaming the unions for managers' incompetence is the newest dodge. You can be sure that it's related to the continuing attack on the Employee Free Choice Act, which the Republicans blocked in the Senate last year. The emails that I get from the Republicans and from other right-wing groups make much of Obama's support of EFCA as part of their scare tactics about a 'radical leftist takeover'. I hope people here will write Obama at www.change.gov to encourage him to follow through on EFCA quickly.
Otherwise, despite my intense and dedicated anti-corporatism, I have to come to the defense of the bankers' bailout, at least in concept if not in execution. It really is a question of one standard: preventing an immediate collapse of the credit system. It looks as if Citigroup will be the next bailout candidate, even though they claim to have sufficient capital to cover losses and still maintain their required levels. Citi's stock meltdown, along with other banking stocks, plus all the other bad economic news, made the credit system misbehave again last week. The markets haven't got over the fear caused by the Feds letting Lehman Brothers fail. That was a blow that to the international credit system. It looks as if it's going to be a long drawn-out crisis before the system is adequately restructured. Credit still isn't flowing. Even countries like Mongolia have had to prop up their banks because foreign money is being pulled out to prop up balance sheets at home.
What with worries about banks' solvency, the continued deterioration of housing prices which continues to undercut that solvency, the continued deleveraging of the system, and the general economic deterioration which makes lending seem even riskier, we're seeing institutions rush to safety. This week 1-month and 3-month treasury bills were yielding as low as 1/100th of 1 percent interest. Even 6 month bills were at less than 1/2 of 1 percent. They'd rather lose money to inflation over the short-term (and wait for deflation to kick in) than risk their capital ratios by lending.
The car-makers pose a different question: will the knock-on effect of their failure be so damaging to the economic system as a whole that it can't be allowed to happen? My opinion is that, in the current state of dysfunction, it would be disastrous. But they need to make the case that it won't be "a bridge loan to nowhere". They need some reorganization and real accountability of the sort that bankruptcy would force. I just hope that the companies and the Congress don't wait too long and that they can set some strict terms.
Bill
Partisan Politics is to Blame
Bill,
What we need in America is someone like Joseph who had the character and wisdom from God to help Egypt through 7 years of drought. He would be like a city manager, an expert (jury is still out on Henry Paulson) who would have the trust of the president, the confidence of the people, business and Wall Street.
According to Wikipedia:
Originating in Staunton, Virginia in 1908 during the Progressive Era, the city manager form of government was created to remove city government from the power of the political parties, and place management of the city into the hands of an outside expert who was usually a business manager or engineer, with the hope that the city manager would remain neutral to city politics.
The question is, who is wise enough to figure out this mess we are in and who could be trusted with this kind of power.
Of the three ideas so far, bailouts, bridge loans (to maybe nowhere) and creeping socialism, (government taking an interest in company''s)and bankruptcy the second one seems closest to Americanism in my opinion. If the company's had a workable business plan with new leadership and vision, maybe we could hope for a positive outcome. We should expect a reorganization along the lines of Honda and others who come over here and beat us at our own game. This may be hard for GM, Ford and Chrysler to stomach, but ideas that facilitate success should be considered and utilized.
As Christians, we can continue to pray for our leaders that they will have the vision, wisdom and leadership to adopt solutions and plans that will be of long term benefit and fairness to all.
Byron