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Fund Workers’ Needs,

Not Banks & Billionaires!

by Andrew Pollack  / April 2009

 

As part of his plan announced March 30 to "save" GM and Chrysler, President Barack Obama demanded that autoworkers give back even more of the wages and benefits they had won from the corporations in years past.

 

As we go to press, details of what these latest givebacks will consist of are not yet available—except for the continued demand that the United Auto Workers allow GM to bankrupt its already shaky health plan by filling it with $10 billion in worthless stock instead of cash. But the general outline of the plan is clearly in keeping with Obama’s pro-capitalist policies and statements since his inauguration and even more in evidence in March.

 

For instance, after fending off populist outrage against the $135 million in bonuses granted to AIG executives, Obama didn’t blink an eye, when forcing GM CEO Rick Waggoner to retire, in letting him keep $23 million in pension and other benefits.

 

The same day as Obama’s announcement, dissident autoworkers who have been opposing further concessions participated in a rally for green jobs in Detroit, demanding government funds go not to bailing out banks but to conversion of their plants into producing mass transit, light rail, and alternative energy equipment.

 

Obama has made clear time and again that if he has his way the crisis will be solved on the backs of workers. The first step in countering this should be to channel the anger displayed by American workers at the AIG bonuses (see story on page 8) into a defense of autoworkers against Obama’s demands while backing the alternative vision put forward by the most militant autoworkers.

 

Meanwhile, the toll of the crisis on workers continues to deepen. The official rate of unemployment reached 8.5 percent in March—the highest rate in a quarter-century. Over 5 million jobs have been lost since the recession began. The loss of jobs has led to modern-day "Hoovervilles," as tent cities have spread to cities such as Nashville, Olympia, St. Petersburg, Fresno, and many others.

 

Also in March the Federal Reserve reported that in 2008 Americans saw 18 percent of their wealth vanish, representing a loss of $11 trillion. Yet consumers suffering this loss still owe $13 trillion in mortgages and credit-card debt. And assets have taken further hits in the first two months of 2009, a period not covered in the quarterly report.

 

Facing similar conditions, workers outside the United States have begun to respond (though the American press has largely ignored their struggles.) On April 1, trade unionists in Greece carried out a 24-hour strike and mass march to protest the government’s austerity measures in response to the economic crisis. The strike closed down public transportation and services, airlines, shipping, schools, banks, newspapers, and many other businesses.

 

The Greek strike action was timed to coincide with the Group of 20 summit in London. British trade unions joined mass protests in London during the G-20 meeting to demand that the authorities "Put People First," when planning their “bail-outs” to recover from the crisis.

 

Close to 2.5 million people marched in Rome, April 4, to protest austerity measures in Italy. On March 19, three million people struck and rallied in France, a figure a least double that of the general strike held earlier in the year.

 

On April 1, workers at the auto-parts manufacturer Visteon in Northern Ireland occupied their plant. They demanded a better severance package after the company had announced extensive lay-offs. Workers at the Waterford glass-making factory in Ireland recently ended their two-month factory occupation with the announcement that 176 jobs had been saved for at least six months.

 

Workers who took over a recently closed auto-parts supply company in Windsor, Ontario, which makes parts for Chrysler, likewise ended their siege March 18 after reaching a deal that gives laid-off employees severance and back pay. The workers had welded the doors shut from the inside, and said they would not leave until they got what they were owed. Chrysler had been trying to go in and collect parts and tools it said belonged to the company, but workers physically stopped the removal, fearing the loss of negotiating power.

 

Workers at Prisme, a box manufacturer in Dundee, Scotland, have occupied their plant since late February. They are reportedly considering re-opening the business as a worker-run cooperative.

 

Striking workers held their boss hostage at a 3M plant south of Paris after the corporation announced layoffs and job transfers at 13 French sites. Shop owners in the town shut down to support the factory workers. Workers want better severance packages for those being laid off and better conditions for those keeping their jobs. Similar "bossnappings" occurred earlier in March at Sony's French facilities, and the end of the month at a French Caterpillar factory.

 

In Egypt a new wave of strikes has begun, this time at smaller workplaces, not just the huge textile plants that had experienced shutdowns in the last two years. In mid-February, thousands of truck and bus drivers struck in Mexico over rising fuel prices, erecting road blocks, seizing toll booths, and holding large rallies.

 

In Reynosa, across the border from McAllen, Texas, 1000 Nokia workers picketed a labor board office to demand severance pay owed them. Thousands of workers and retirees rallied in front of Mexico’s Congress in late February to demand re-nationalizing the social security funds (which cover both pensions and health care).

 

The militant struggles that have begun to erupt worldwide—and the victories that we have seen to date—show clearly that working people have the power in their hands to counter the attempts of the employers and their governments to make them pay for the crisis.

In order to maximize that power, in the United States, workers need to rebuild the unions into a strong, united, and democratic movement.

 

Furthermore, an effective working-class response to the economic crisis requires a clear program of demands. In regard to the U.S. financial system, for example, such a program should call for the following first steps: Genuine and permanent nationalization of the banks, which would be placed under the control of the workers; a public inquiry to unveil bank and corporate account books and secret dealings; wiping out phony debts and toxic assets; and directing funds to green public works jobs.

 

In order to put such measures into effect, U.S. workers need a party of their own—a labor party based on a fighting trade-union movement.

 

Human Needs, Not Profits!