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The United Auto Workers

 in the Era of ‘Big Labor’

by Bill Onasch / January 2008 issue of Socialist Action newspaper

 

 

In Part I of this series, in last month’s issue of Socialist Action newspaper, the author outlined the early rise of the United Auto Workers Union. In those years, autoworkers made many gains in wages, benefits, and working conditions. The UAW leadership, however, became ever more bureaucratized, and held the union back from the drive for an independent Labor Party.  An expanded version of these articles can be found at the www.kclabor.org website.

 

Few unions concerned themselves with organizing during the prosperous post-World War II years. The UAW did little except for raiding other unions in the farm equipment and aerospace industries. The bureaucratized CIO came to resemble more and more the AFL they had bolted from, and the two federations reunited in 1955.  It became common to speak of “Big Labor” in the same breath as Big Business. The boss-controlled media did a good job in presenting the bureaucratized unions as some kind of alien third party muscling in for a piece of the action.

 

While the Administration Caucus established by Walter Reuther in the UAW was as controlling as any union bureaucracy, it nevertheless was based on an appeal to the union’s proud heritage. They endorsed many progressive social demands. This led to tensions within “Big Labor.”

 

While the building-trades unions were being sued by the NAACP for maintaining white, family job trusts, Reuther stood literally by Martin Luther King’s side at the March on Washington and in Selma.

 

As the civil rights and Black nationalist movements started penetrating the sizeable African American UAW membership, sometimes leading to struggles outside the union’s control (such as DRUM, the Dodge Revolutionary Union Movement, founded in May 1968), Reuther quickly responded by bringing Blacks, and women, on board as part of the leadership “team.”

 

Reuther also sharply disagreed with the jingoistic support to the Vietnam War given by the federation leadership—which included organizing on-the-clock hard-hat workers to beat up antiwar protesters. In 1968 the UAW left the AFL-CIO to pursue a more independent course, not returning to the “house of labor” until 1981.

 

Many have speculated how far Reuther might have diverged from the path of the Meany wing of the bureaucracy had he not died in a 1970 plane crash.  Some, including his brother Victor, suspected foul play. In any case, the bosses and mainstream union bureaucrats shed only crocodile tears for his demise.  The Administration Caucus that Reuther founded in the UAW continues to tick over to this day—though they are now a couple of more generations removed from their class-struggle heritage.

 

From prosperity to “partnership”

 

By the 1970s the great postwar advantages for American industry had largely come to an end. The economies of Europe and Japan had been rebuilt—with the latest technology, often better than capital-neglected American industry—and were now in fact formidable competitors with the U.S.

 

The same period produced other problems for the American auto industry. Oil prices skyrocketed and sometimes supplies were short, leading to restrictions on gasoline purchases and long lines at pumps in the mid-1970s. A 55-mph national speed limit was imposed.  The gas-guzzlers that dominated Detroit’s product line became less attractive, but early attempts to build small cars, such as the Vega and Pinto, proved disastrous. Japanese and German automakers, offering quality, more fuel-efficient cars at a competitive price, began to take a big chunk of the domestic car market.

 

The Big Three bosses now came to the UAW with a “we’re all in this together, partner” appeal to help make them competitive with the foreign interlopers. We must begin, they argued, by incorporating elements of the successful Japanese methods known as “lean

manufacturing.”

 

Actually, this doctrine was not all that new. Lean manufacturing represented some updated synthesizing and tweaking of principles expounded a century ago by Frederick Winslow Taylor and Henry Ford, with a little BF Skinner psychology thrown in as well.

 

They began with some joint ventures with the competition. GM teamed up with Toyota to convert their Fremont, Calif., plant to NUMMI. Soon the plant was building as many cars—both Chevrolets and Toyotas—with 2500 workers as GM had done with 5000. Ford entered a similar partnership with Mazda in Flat Rock, Mich.

 

About the same time GM announced the creation of a new car company, independent of the rest of GM’s operations, and with a unique contract with the UAW—Saturn, based in Spring Hill, Tenn. Saturn would be the Big Three’s first solo attempt to apply the Team Concept approach without Japanese helpers.

 

In 1987 the UAW Big Three contracts established the Team Concept phase of lean manufacturing as the new norm for all plants, with a goal of extending the kind of quality and productivity breakthroughs made at NUMMI throughout the domestic industry. UAW President Owen Bieber crowed that the GM settlement would “make stable employment a part of the way this corporation does business.” At that time, GM employed 335,000 UAW members. After the latest round of layoffs, that number stands today at a little over 70,000.

 

This astounding refutation of Bieber’s prediction was not due just to loss in market share or increased efficiency through Team Concept—though both have certainly been factors. The single biggest component in the decimation of Big Three jobs has been outsourcing. Much of this was done through spinning off parts-making divisions as separate companies, such as Delphi for GM, Visteon for Ford. Many other jobs not part of final assembly have, in the spirit of lean manufacturing, been contracted to vassal companies,

big and small, scattered around the country and the globe.

 

As early as 1978, GM started nurturing maquiladora suppliers along the Mexican border. Within 10 years this grew to 32 plants producing such components as instrument panels, air and heating controls, antennas, front lights, molds, and ceramic magnets.

 

Then labor’s “friend,” Bill Clinton, drove through NAFTA—taking effect in 1994—and the trickle of work to Mexico took on proportions of a dam-bursting flood.  Delphi is today the second biggest private employer in Mexico, with as many workers as GM’s entire UAW workforce in the U.S. In addition to parts supplies, the Big Three have extensive assembly operations in Mexico as well, largely geared to the U.S. market.

 

While Big Three employment has plummeted, the “foreign competitors” can rightly claim they are creating jobs in the USA. Toyota has 13 plants in this country employing over 30,000. Honda has three assembly plants; 5200 work at Nissan’s Smyrna, Tenn.,  assembly plant and another 1000 at a nearby engine plant; 3000 toil at Hyundai’s new state-of-the-art assembly plant in Alabama. Daimler and BMW also have small operations. The UAW has failed to organize a single one of these “transplants.”

 

Part III will continue in next month’s issue of Socialist Action newspaper.

 

 

Human Needs, Not Profits!