Categorized | General Interest

Patriotism, Unions and The Middle Class

   It is one of the great hypocritical aspects of the public debate in America–on the one hand, the politicians and talking heads who strut around bragging about how great our country is and, on the other hand, the complete thirst and glee so many of them seem to have for the weakening of unions. I mean, who exactly do these folks think created the American Dream–the mythical "self-made man" (or woman), or the hundreds of thousands of people who go to work each day, punch their time clocks and put in a hard day’s work and make a decent wage thanks to the labor movement.

   I thought of this today–and, actually, probably think about this every day–because of the a twin barrage of stories today in the mainstream press on the auto industry and the UAW. First up was a story in The New York Times:

It is mostly vacant land now, more than 200 acres surrounded by a barbed-wire fence that once was the site of the biggest General Motors manufacturing complex in the country.

In the 1980s, more than 27,000 workers passed through the gates every day into Buick City. But only one of its many factories is still standing, a run-down engine plant known as Flint North.

Just 450 workers are left there, witnesses to the dismantling of Buick City and survivors, so far, of G.M.’s financial collapse. And even as the company gets nearer to bankruptcy, they do not want to leave.

Since 2006, G.M. has persuaded 60,000 of its hourly employees — half of its union work force in the United States — to take cash buyouts and give up their jobs.

But the workers at Flint North have passed on every offer, no matter how rich.

They are part of the last generation of auto workers who were hired when G.M. dominated the United States market decades ago. And even with all the offers to leave, they stay, showing up for a job that is, in many cases, the only one they have ever known.

“I just get up in the morning, wash up, and drive here every day,” said O. C. Cooper, a 64-year-old machine operator at Flint North. “It’s just been a way of life.”

   It’s astonishing to me that, in the entire story, the reporters don’t make the obvious connection between the health of unions and the health of the American Dream.

   And, then, there is this in The Wall Street Journal:

The United Auto Workers could emerge from the government-led restructurings of General Motors Corp. and Chrysler LLC in a relatively solid financial position: The trust funds for retired union members’ health care will own big stakes in both car makers, and veteran workers will continue to make an average of $28 an hour.

But from a political standpoint, the union will be left with dramatically reduced clout, and a limited ability to resist future job and benefits cuts.

   And…

Louis McSwain, a 58-year-old pipe fitter who has worked at a Chrysler Jeep plant in Detroit for 15 years, said the union no longer seems to be able to make the car makers stick to promises on bonuses, overtime and employment for life. "We had a whole bunch of guarantees," he said. "Look what the guarantees got us."

So far this year, Mr. McSwain has earned about $32,000. At this point in 2008, he’d taken home about $70,000, thanks to overtime, and for the year made $129,000. This year he’ll be lucky to make half that, he said.

Over time, average union wages are likely to trend downward. New hires to Detroit union jobs will earn about $14 an hour, and will get reduced benefits. The Big Three agreed to limit their workers paid this "tier 2" wage to no more than about 20% of their total work force. [emphasis added]

   Those few emphasized words pack a lot of punch meaning: that downward trend, which is really a thirty-year phenomena if you measure productivity versus wages, is the way we are headed.

   Where is the rage and the outcry? And what will the politicians and talking heads say now about the greatness of America? That we excel in driving down living standards, not to mention blowing up other countries?

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