NEWS & LETTERS, April - May 2009
Workers tossed aside in auto bailout
Detroit--While the Obama administration has given GM 60 days to come up with a corporate viability plan, and 30 days for Chrysler including a merger deal with Italian Fiat, it is clear that this is a sham dance to bankruptcy for both. GM is on life support even with a $13.4 billion loan from the government and is requesting $16.6 billion more for starters. While the sums for Chrysler are lower, it is in the same disastrous shape.
GM CEO Rick Wagoner was forced to resign, and was replaced by Fritz Henderson, who worked for GM for 20 years, most recently under Wagoner. The only difference between them is that Wagoner publicly resisted taking GM into bankruptcy, whereas Henderson is quite willing to do so. Otherwise, it is like replacing Tweedledum with Tweedledee. Actually, Henderson had no choice since Washington has decided that bankruptcy is the only way out for both GM and Chrysler.
The question of bankruptcy for GM and Chrysler has been floated for months, mostly by Republicans salivating over the prospect of dealing the UAW a lethal blow through bankruptcy that could terminate the union contract. This blow to the UAW would further cripple an already weakened union movement. Nor is the chorus for bankruptcy limited to the Republicans. A growing number of Democrats are joining in--including top economic advisers to the Obama administration. These are the most qualified prizefighters for capital.
UAW leaders have already negotiated huge concessions, despite growing opposition from rank-and-file workers. At last count, there were some 782,000 autoworkers, compared with 1,286,000 in 2000, a decline of 504,000--with 176,000 jobs lost last year alone. Just like the projections for the unemployed nationally, the layoffs in auto will continue into the next year.
Meanwhile, the crisis is spreading to the auto supplier industry, which is also requesting billions in loans from the government to keep afloat. Several Chrysler plants in Canada closed recently due to parts shortages--these shortages will also continue to escalate.
Many autoworkers are angry at the administration for what they feel is preferential treatment toward the banking industry. Autoworkers in an assembly plant in Warren, a suburb of Detroit, used razor blades to scrape Obama stickers off their cars.
As for the criticism from many in Congress, one autoworker said, "Those people in Congress don't know what they're talking about when they say we're being paid too much. Just have them come here in the auto plant and do my job for just one day. They'd change their tune real quick."
--Andy Phillips
|
