Socialist Action

 

SOCIALIST

ACTION

 

 - home page

 - newspaper
 - subscribe
 - distribute

 

 

 

 

 

 

 

 

Auto Troika Says Goodbye to Many Thousands of Their Worker ‘Partners’

by Bill Onasch  / June 2009

 

On May Day, more than a million French workers marched in 283 demonstrations across the country. They were not in a jovial mood. The British daily Guardian commented, "When the former prime minister Dominique de Villepin warned that there was a risk of revolution in France, it was not just because he wanted to make life difficult for his arch-rival Nicolas Sarkozy. It was also because social unrest is genuinely on the rise."

 

Since then there have been mass marches of tens of thousands of GM’s Opel workers in Germany, and Fiat workers in Italy, in defense of their jobs. Steelworkers physically assaulted the headquarters of ArcelorMittal in Luxembourg, protesting job cuts.

 

In sharp contrast, the International Workers Holiday also found the once mighty United Auto Workers marching—not in the streets—but lock step with the White House, and the new emerging bosses at Fiat-Chrysler, in to bankruptcy court. They asked the same judge that presided over the disasters at Enron and WorldCom to quickly implement a tripartite restructuring plan dictated by Obama’s strategy. A similar plan had been agreed to by the Canadian Auto Workers under an ultimatum from the Tory Federal and Liberal Ontario governments.

 

Articles in the May Socialist Action by Marty Goodman and Barry Weisleder gave good background to this latest stage in the auto crisis. Since then, articles on the Labor Notes website and in the Detroit boss press have revealed and fleshed out new odious details of the Chrysler deal in addition to those earlier reported such as:

 

• A six-year no strike pledge. Bush had made a strike grounds for default on the initial emergency "bridge loans" that kept Chrysler and GM barely alive until his successor could take over. Obama has imposed the six-year condition, which will remain in effect even if the companies pay off their new loans. This not only eliminates the strike option when Big Three contracts would be up for negotiation next fall; it also effectively prohibits strikes over local issues, such as safety and line speed, that have historically protected UAW workers. All disputes must now be submitted to arbitration.

 

• Cuts in retiree health-care benefits. Since dentists don’t accept Fiat-Chrysler equity in payment for services, the cash starved union-run VEBA has had to eliminate dental and vision care, and has reduced prescription benefits for retirees.

 

• Jobs are down to Depression levels—and more are to be slashed. Chrysler’s hourly payroll is at its lowest since 1934, and they are seeking buy-outs of 3500 more. All U.S. and Canadian plants will remain closed for the duration of the bankruptcy process. Eight plants have been targeted for permanent shuttering.

 

Restructuring beyond the shop floor

 

In addition to UAW and CAW production workers, there are thousands of salaried employees; tens of thousands more at outsourced parts suppliers; thousands involved in transportation of parts and vehicles, all adversely affected. Dealerships being closed by Chrysler and GM amount to a lot more than salespersons—160,000 mechanics, helpers, clerical, janitorial, and security workers will get the axe as well.

 

And there are more than 700,000 Big Three retirees and surviving spouses who have good reason to fear for the future of their pensions and health care.

 

I think we could safely say that the tripartite disaster at Chrysler is the single biggest American working class defeat in living memory. But this dubious recognition will be short-lived. Probably by the time you read this article the Chrysler opening act will have already been eclipsed by this season’s main show—General Motors.

 

The “Buy American” poison pill

 

UAW president Ron Gettelfinger is an "OK" guy. Generally, what ever the boss or Obama says is OK by him. After all, he sees the survival of the union depending on the success of his employer "partners" and political "friends." He never ceases to explain that it is "all about jobs."

 

But even mild-mannered Ron got a little testy when it was revealed that a GM restructuring plan, worked out with Obama, projected a 12-fold increase in imports of GM vehicles from Asia by 2014—while shutting down 16 U.S. plants. Ron huffed and puffed. “Buy American” forces, led by Canadian Leo Gerard of the Steelworkers, started organizing petitions and rallies. But this spat among partners quickly cooled down when GM announced they were prepared to scale back imports as part of negotiating a new agreement with the UAW, required by Obama.

 

One area of imports that will be definitely scaled back is Canada—where GM projects cutting half the CAW workforce. It’s all about jobs up there too.

 

Just as the UAW once set the trend for labor advances, it now does the opposite. This summer rubber negotiations will open with the Steelworkers—who also previously swallowed the poison pills of VEBA and two-tier wages/benefits.

 

Gettelfinger is not the only U.S. union bureaucrat to reject European-style resistance in favor of partnership. None of the mainstream mis-leaders of today’s unions seem prepared to go as far as Lane Kirkland—the "Old Guard" AFL-CIO president who once summoned hundreds of thousands of workers into the streets of Washington.

 

Even as the business press revealed Obama’s personal "hard ball" intervention in the auto debacle, the AFL-CIO was proclaiming, "Obama’s First 100 Days Mark Major Wins for Working Families." Change to Win was just as lavish: "As the last 100 days have proven, with a leader like Obama at the helm, workers once again have a shot at achieving the American Dream."

 

The need for a class-struggle labor left wing to fight in the workplace and in the streets has never been more palpable and urgent.

 

 

Human Needs, Not Profits!