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New Evidence of Need for a Turnaround in the Unions

by Bill Onasch & Andrew Pollack  / February 2010

 

Organized labor started off 2010 not with a bang but with a whimper. In mid-January, top labor officials knuckled under to Obama’s insistence that they accept taxes on workers’ health plans—only to see the prospects of the whole health-care “reform” package for which they’d made this sacrifice of workers’ income go into a tailspin. Soon after, new statistics revealed an unprecedented decline in unionization rates, which starkly captures the need for a drastic turnaround in labor policy and practice.

 

Scott Brown, a state legislator who initially agreed to be the Republican sacrificial lamb in the special election to fill the late Ted Kennedy’s Massachusetts Senate seat, ended up being elected as the forty-first Republican Senator—denying Democrats their already shaky super-majority needed to hold off GOP filibusters against health-care “reform” bills.

 

Giddy Republicans proclaimed this a referendum against “government-run health care.” But the Obama health-care “reform” was no more “government run” than the Massachusetts state reform established on a Republican governor’s watch. Yet there’s no doubt that working-class voters were not pleased with the Obama plan. The last straw was the tax on benefits insisted upon by the president—after swearing during the election campaign he would never agree to such a tax.

 

Despite last-minute campaigning by prominent national Democratic and union leaders, more unionists voted for Brown than his opponent. AFL-CIO President Richard Trumka claimed this was an indicator of an apparently previously undetected “working-class revolt,” and warned the Democrats to get back on the track leading to jobs, jobs, jobs.

 

But for Democrats there is only one track—and it doesn’t lead to jobs. While one party is always shunted off to a siding, both their trains are competing to deliver the rest of us to the same destination—the place described by Canadian labor party (NDP) leader Tommy Douglas as Mouseland, where the Fat Cats rule.

 

And the inevitable consequences of being stuck like Casey Jones on this runaway train were seen once again in labor’s dual capitulation on health care. Not only did labor officials fail to lift a finger for the only immediate solution that would benefit the entire class—single-payer—but in the end it cried “Uncle” when Obama insisted it accept taxes on its members’ “Cadillac” plans. And the bone Obama threw them in return—that their members could pay the taxes later than the rest of the working class—will only leave unorganized workers prey to right-wing rhetoric about labor being a self-centered “special interest.”

 

The so-called “Cadillac” plans are not, in fact, expensive boondoggles full of needed frills. Under our irrational and wasteful health-care financing system, they are the kind of plan a typical working-class family needs to have adequate coverage without ending up bankrupt when a medical emergency strikes.

 

But under the deal with the White House, a 40 percent tax would be imposed starting in 2013 on the amount by which premiums for employer-sponsored health coverage exceeds specified thresholds. This arrangement was counterposed to calls by labor to instead raise revenue for health-care changes through higher income taxes on earnings above $1 million a year for couples.

 

The agreement exempts unionized workers and state and local government employees from such taxes for five years. This supposedly allows unions time to negotiate new contracts to gain wage hikes to make up for the cuts in health benefits that will inevitably follow the new taxes. Needless to say, bosses will resist any such demands for pay hikes. And when labor looks for allies against such resistance, it will find many unorganized workers saying, “Where were you when they imposed the tax on my health-care plan?”

 

Shrinking membership rolls

 

This failure of labor tops to fight for the entire class on health-care issues is symptomatic of unions’ increasing isolation at a time when it should be gathering around it millions of new workers looking to resist the fallout from the deepening economic crisis.

 

Union density in the private sector now stands at 7.2%, down from 7.6% last year, and is the lowest since at least 1900. Unions lost 10% of their members in the private sector last year, the largest decline in more than 25 years. The broader drop in U.S. employment and a small gain by public-sector unions helped keep the total share of union membership flat at 12.3% in 2009. In the early 1980s, unions represented 20% of workers.

 

The U.S. public sector has long had greater union density than the private. Now, for the first time, government unionists actually outnumber those in the market economy. This shocking statistic doesn’t represent growth in public unions. Layoffs and contracting out by state and local governments and quasi-public transit agencies are common and growing. And in coming months they’re going to get far worse, as state budget woes are leading politicians of both parties to demand massive cuts.

 

The larger numbers of unionized workers in public rather than private jobs registers the collapse of remaining union bastions in construction and manufacturing. Last year—continuing the massive job loss of 2008—construction employment fell by another 900,000, while 1.3 million more factory jobs were slashed. As a result, even though aggressive organizing successes have been achieved by a few unions such as National Nurses United, during the first year of the Obama administration overall union membership fell 771,000.

 

Ironically, during the very year in which this shocking decline occurred, union officials had put on the back burner, at the request of the Democratic Party, its fight for the Employee Free Choice Act, a supposed remedy to low unionization rates, until health-care “reform” was won.

 

While some of the construction work will probably come back, most of the good paying manufacturing jobs—such as the tens of thousands eliminated during Obama’s bankruptcy restructuring of GM and Chrysler—are gone for good. And any regained jobs will come with much lower wages, benefits, and stability—and more often than not without union protection.

 

Where will new jobs & union members come from?

 

How does this fit in to the above-cited refrain of Trumka calling for Democrats to focus on “jobs, jobs, jobs”? The efforts of one union located at the intersection of jobs and climate struggles offers some lessons.

 

UAW Local 879 in St Paul recently held a press conference urging Ford to build plug-in electric or hybrid cars at their plant currently producing Ranger pick-ups—and scheduled for closure by the end of next year. They are calling for a government subsidy to Ford to keep this product line.

 

Nearly all government jobs plans revolve around subsidies and tax breaks to private employers as an incentive to hire or keep workers. The track record of such schemes is not good. In this particular case, Ford is building its popular hybrid in Mexico, where labor costs are about 20% of St Paul’s. There’s no way either the workers or government incentives can compete with that.

 

Previously, the local had, in collaboration with environmental and community groups, campaigned for public ownership of the plant and conversion to new products. They nearly landed production of new clean buses ordered by the local transit agency. But the local establishment put the kibosh on those logical plans, leading to the latest last-ditch effort to keep Ford.

 

Local 879’s original strategy was sound. But it’s hard for one isolated group of workers to implement even the best of ideas in the face of hostility from the bosses and their politicians. We need a national jobs policy that replaces trying to bribe employers with nationalizing the key industries needed for a healthy economy. A whole new public sector—including finance, energy, transportation, and auto for starters—could lead the way in putting everyone to work in decent paying jobs and in rebuilding an economy to tackle the threat of climate change and other urgent needs.

 

A labor movement with such a bold and broad strategy would also find itself picking up members in existing industries—as well as the new ones—as newly-inspired workers began fighting to organize.

 

Coming attack on public workers

 

One place to start gathering the forces for the fight for those new public jobs is in defense of existing ones. Conservative think-tank pundits seized on the new data on unionization rates as proof that the time had come to wipe out unions from the public sector as well.

 

Fred Siegel of the conservative Manhattan Institute told The New York Times: “At the same time the country is being squeezed, public-sector unions are a rising political force in the Democratic Party. They depend on extra money for the public sector. In four big states—New York, New Jersey, Illinois and California—the public-sector unions have largely been untouched by the economic downturn. In those states, you have an impeding clash between unions and the public at large.”

 

The attack on public sector workers comes simultaneously with new attacks on the most popular and needed portion of public services. Both parties in Congress are preparing to permanently gut Social Security and Medicare in order to “save” them from their supposedly inevitably looming bankruptcy.

 

For months, the media has been predicting that budget woes from declining revenues at the state and municipal level must lead to massive jobs and services cuts. The beginning of such cuts has already led to massive actions in defense of jobs and services in California and on a smaller scale elsewhere.

 

Yet while unions and students in California prepare for a day of mass action March 4, Governor Arnold Schwarzenegger announced even more cuts. His latest budget plan would privatize and deunionize prisons, curtail seniority protections for teachers, and reduce the number of sick, disabled and elderly cared for by the state’s In-Home Supportive Services program (staffed by union workers) while cutting what their caregivers are paid.

 

The dire need for more public services—and the connection to the jobs crisis—was cruelly highlighted in a recent Washington Postprofile of parents quitting jobs because child-care costs are more than they get in wages!

 

Meanwhile, teachers and health-care workers have been fighting against schemes like No Child Left Behind that penalize them for what the irrational systems in their “industries” do to students and patients respectively. What’s needed instead of victimization of education and health-care workers for alleged performance problems are many more education and healthcare workers (with more control over their working conditions)—as well as more child-care, home-care, and library workers, etc. And a fight for such jobs would lead to a discussion in labor about a class-wide approach to real education and health-care reform.

 

The productivity of the U.S. economy long ago passed the point where we could churn out the same amount of goods with a far shorter workweek. The hours saved could easily go toward immediately creating tens of millions of new jobs like the ones described above.

And doing so is now also a matter of life or death for the planet and all its inhabitants. Shifting work from emission-spewing industries that make goods toward life-preserving and enhancing services is now essential for our livelihoods, our health, our sanity, our very survival.

 

Need for a political reversal

 

These new jobs programs, and the necessary associated restructuring of the economy, haven’t a snow-ball’s chance in an overheated Earth if the labor movement remains tied to the Democrats.

 

While the working class is not yet in full revolt, anger is building. There were high expectations that this administration, now celebrating its first anniversary in power, would move quickly to address job loss, stagnant wages, foreclosures and evictions, and, yes, the health-care crisis. Instead, the situation has gotten worse and the “middle class” that every politician hails is an endangered species. A common expression has spread to many diverse victims of the Great Recession: “If we were a bank we’d be fixed by now.”

 

The American political system is designed to accommodate Massachusetts-style revolts by directing voter discontent with those in power to the column of the only recognized opposition. If you don’t like the party that pretends to be labor’s friend, you can instead vote for the traditional party identified with Big Business.

 

As the multiple crises we face deepen, growing numbers will become dissatisfied with this shell game. Our nation’s real rulers try to prepare for this by offering extra-electoral far-right backup–the Tea Party, Minutemen, Operation Rescue, and the like. This is a danger we cannot take lightly.

 

Our only mass organizations, our unions, should be embracing a workers’ revolt. It is up to the labor movement to provide a credible working-class alternative to the twin parties of capital and their subcontracted right-wing thugs. That means a party of our own to lead this revolt in the workplace, the streets, and on the ballot.

 

 

Human Needs, Not Profits!