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Do ‘Buy American’ Schemes

Work to Protect U.S. Jobs?

by David Bernt  / June 2009

 

The United Steel Workers (USW) organized an 11-state, 32-city bus tour May 11-14 under the name, "Keep it Made in America." The bus tour was aimed at saving the over 7 million jobs tied to the auto industry from assembly, auto parts, steel, rubber, dealers, services, transport, and other related industries.

 

The tour was co-sponsored by the Alliance for American Manufacturing, which is composed of the USW, the United States Steel Corporation, and Allegheny Technologies.

 

A press release stated that organizers were inspired by "President Obama’s comments at his April 30 press conference on his first 100 days as saying: ‘If you are considering buying a car, I hope it will be an American car.’ The ‘Keep it Made in America’ tour supports the president’s call that recognizes the millions of jobs tied to the fate of the U.S. auto industry."

 

This tour is just one in a series of recent "Buy American" campaigns organized by unions in response to the 1.5 million job losses in manufacturing during the economic crisis. The recent federal stimulus package includes "Buy American" provisions for materials used in funded projects.

 

Does "Buy American" mean "Buy Union," as many of the labor tops say? It should be obvious at the outset that the two slogans are quite contradictory, particularly in a country where a mere 7 percent of the private sector is unionized.

 

Should an American worker buy a non-union Japanese-owned Toyota made in Mississippi, or a U.S.-owned General Motors product made by unorganized workers in Mexico, or a Volkswagen made in Germany by unionized workers? The question itself is flawed.

 

The nationalism of the "Buy American" campaign distorts who American workers’ friends and foes are. The USW, for example, is part of the Alliance for American Manufacturing, along with two large corporations—U.S. Steel and Allegheny Technologies. This organization in April organized 2000 laid-off steel workers from the shuttered U.S. Steel plant in Granite City, Ill., to "Rally to Restore American Manufacturing." The workers were protesting the use of pipe made in India for a massive oil pipeline from Alberta to Illinois.

 

Yet, as an article in the April issue of Labor Notes pointed out, these same so-called patriotic companies own facilities that "produce metals in England, Canada, China, Mexico, Slovakia, Serbia, and Brazil." The USW is protesting the use of foreign-made metals alongside the bosses who are importing that very same metal!

 

And considering that this is a pipeline extending through both the United States and Canada, what position are Canadian steel workers expected to have in the scheme? (We must note the irony that the most vocal union for protectionism is the USW, whose president, Leo Gerard, is Canadian.) And what if the workers in India who make that metal lose their jobs? Should we not be concerned with their fate? The destructive course of protectionism on class solidarity is immense.

 

When steel tariffs were raised in 2002 on the insistence of steel bosses and the USW, steel workers and steel bosses in other countries protested. Charles Walker, in the April 2002 issue of Socialist Action, noted, "On March 15, The New York Times reported that Brazilian steelworkers were protesting at the U.S. consulate in Sao Paulo, the commercial and industrial center of Brazil, while calling on Brazilian legislators to impose tariffs on U.S. goods. Brazilian union officials say that up to 5000 steelworkers will be negatively affected by a recent U.S. regulation that imposes tariffs of up to 30 percent on some types of imported steel. An earlier Times report quoted British unionists as saying that the new U.S. steel tariffs could cost them 5000 jobs."

 

The "Buy American" campaign puts workers in alliance with the same powers that are responsible for job losses, while pitting them against their natural allies. So why do the labor leaders promote such an ineffective and destructive policy?  The answer is that the labor bureaucrats have sought to fan the flames of protectionism and nationalism to hide the fact that they are unwilling to fight against the real causes of mass layoffs.

 

The most relevant example is the UAW leadership’s roll-over approach to concessionary bargaining at the big three domestic automakers. In the May edition of Socialist Action, Marty Goodman noted, "Five years ago the UAW claimed to have 305,000 members at GM, Chrysler, and Ford; now it’s down to 139,000. At the end of 1991, GM had 304,000 hourly workers in the U.S.; by the end the end of 2010, it would have 40,000."

 

The UAW, through various buyout agreements, the elimination of the job banks, and acceptance of plant closures has allowed the big three to eliminate hundreds of thousands of jobs. Instead of leading workers to fight against the mass layoffs, two-tiered wage systems, and all the other concessions, the labor bureaucrats have blamed imports for the decline of the auto industry.

 

This is despite the fact that most of the foreign car brands sold in the United States are manufactured in the U.S., in non-union plants.  The inability of the UAW to organize the transplants has much more to do with the decline of the U.S. auto industry then imports.

The only solution to save jobs for workers requires a militant fightback against a system that constantly erodes workers’ wages, benefits, and working conditions—in the United States and abroad.

 

Such a fight back could call for the reductions of the workweek without loss of pay. Companies have increasingly reduced workforces down to the bare minimum to continue production by speeding up the pace of work and forcing workers to work overtime. If the workweek were reduced to 30 hours without loss of pay, laid-off workers could be recalled.

 

A mass public-works program to build mass transit, schools, and other basic infrastructure would create work for industrial and construction workers alike. Organizing the organized workers in entire industries, thereby raising the living standards of all would negate the "competitive advantage" of non-union companies such as the transplant auto factories.

 

Fighting for the improvement of workers’ wages and conditions throughout the world is a necessity. The U.S. labor movement, for its own survival alone, must do its utmost to aid the unionization and militant fightback efforts of workers in Mexico and overseas. A return to the principal of “an injury to one is an injury to all,” regardless of race or nationality, is not some nice sounding slogan; it is the only way workers can protect their jobs.

 

All of these solutions have one thing in common: they require a break from the partnership approach of the labor tops. Workers can only improve their situation by uniting as a class, across industries and borders. "Buy American," on the other hand, only serves to foster divisions among workers and to divert them from the true enemy—the boss class and their system of private profit.

 

Human Needs, Not Profits!