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by Workers Action
Thursday, Nov. 27, 2008 at 1:27 AM
As Socialists, we are consistently asked to present our ideas in a clearer, easier to understand manner. To achieve this goal, I’ll enlist the help of former Governor of Massachusetts and candidate for the Republican Presidential nomination, Mitt Romney, who appeared in the New York Times Op-Ed section on Nov. 19th.
Romney’s piece, entitled “Let Detroit Go Broke,” laid bare the intent behind the angry rhetoric used by politicians against the proposed bailout for the “Big Three” automakers. Whereas the giant Wall Street banks received over 1 trillion dollars — so far— without barely having to ask, an industry that actually produces something has to beg for a handout. Why the difference?
Romney doesn’t mince words, and makes it known that money can’t simply be thrown at the Big Three: they have to fix the problems that landed them in this mess. It soon becomes clear that the biggest problem needing fixing is the wages and benefits of the autoworkers.
“First, their [the automakers] huge disadvantage in costs relative to foreign brands must be eliminated. That means new labor agreements to align pay and benefits to match those of workers at competitors like BMW, Honda, Nissan and Toyota. Furthermore, retiree benefits must be reduced so that the total burden per auto for domestic makers is not higher than that of foreign producers.”
Conclusions such as these are inescapable within a market economy. Marx gave similar examples long ago to explain how competition between capitalists inevitably forced an attack on the workers, since it is more difficult to cut the costs of raw materials and machines.
To accomplish the destruction of workers’ wages, Romney demands new management, too, and says that “the new management must work with labor leaders to see that the enmity between labor and management comes to an end.” This has always been a dream of the capitalist: eliminating the hostility of workers towards management, especially when management is hell-bent on destroying workers’ standard of living. Unfortunately for shareholders, class conflict is inherent in an economic system that is divided between workers and owners.
The bureaucracy that controls the autoworkers union (UAW) has done its best to dampen this intrinsic conflict. The UAW “leaders” have “cooperated” in drastically lowering workers’ wages and benefits, and as recently as last year, pushed through a devastating contract for workers.
But it wasn’t enough.
Romney — and the corporate establishment as a whole – are demanding that the Big Three declare bankruptcy so that existing labor contracts can be torn up. Then the real “restructuring” will begin.
The lack of compassion that the ruling class shows for the families that would be affected by such polices shouldn’t come as a surprise. An economic system that produces goods for a market — instead of social need — will always produce similar outrages to the conscience.
As the economic crisis deepens, similar attacks on workers will develop. This is foreshadowed by Romney’s comment, “Companies in the 21st century cannot perpetuate the destructive labor relations of the 20th.” In the same paragraph Romney implies that unions in general are to blame for the sad state of the economy. This is not merely the opinion of one man, but of one social class. Again it should be stated: the current crisis is being used as a justification for an unprecedented assault on the living standards of workers, beginning with the auto industry.
A defeat for the autoworkers in this fight will set a devastating precedent for workers all over the country. It is the absolute duty of every working-class person to stand in solidarity with the autoworkers in their coming struggle. It is likewise in the interest of all who work for wages to oppose the continuing bailout of the Big Banks at taxpayer expense. Taxing the Super Rich is the common sense solution to the problem you’ll never hear from a politician’s mouth.
www.workerscompass.org
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by mous
Thursday, Nov. 27, 2008 at 4:47 AM
Romney's father let American Motors go BK. I guess he figured a little economic crisis would encourage AMC to reorganize and bounce back.
Does anyone remember the AMC Gremlin or AMC Pacer? That company is LONG GONE.
Letting the big 3 go BK could lead us down that path too, and Mitt Romney knows it.
The whole thing about capitalism is that it's not possible to build big enterprises without coordinating huge amounts of capital. There's no way to build or rebuild these big companies without putting America into hock. And if they try to rebuild slowly, all those workers will be out of work for a while, until they find lower-paying jobs.
The argument about labor and pensions is also bull. They've been saying that autoworkers make 75 an hour. That's a big lie -- they make 20 to around 40 an hour, which is great, but not anything like 75.
The pensions should have been run by the unions (or government) for decades, but the companies wanted the assets, and wanted to lock in worker loyalty. Now, their mismanagement has them blaming pensions for falling profit margins -- what a cheap shot.
Also, some of those Japanese cars are made by UAW labor. I think my Toyota was built by UAW labor in Fremont, CA. It's a nice vehicle. Reliable. It was more expensive than the comparable Ford. So, it's not union labor, foreign production, or lower prices that make domestic cars uncompetitive. It's the reputation for falling apart after 5 years, and the slightly lower gas mileage.
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