Is the GOP Risking the Economy to Win the PR War Against Unions?

Even as the auto industry teeters on collapse, union-bashing continues as the mainstay of a GOP propaganda war against organized labor. With three million jobs at stake, potentially costing taxpayers $150 billion in unemployment insurance, Medicaid, other aid and lost tax revenues, unions remain the primary targets of the GOP blame game for the troubled auto industry and the failed bailout deal. The Bush Administration, while dithering over the scope of any bailout with federal funds, has faced mounting pressure from Republicans to impose the same sort of union-wrecking conditions that scuttled a deal in the Senate last week.

The hostile response to a bailout, even though some form of rescue package is still likely this week, is doubtless fueled by recent polls confirming that a majority of the public is opposed to an auto industry bailout and doesn't believe that its collapse would significantly hurt the economy.

So far, it's right-wing demagoguery 1, progressives zero in the battle over the bailout. Public support was further harmed, of course, by the plutocratic PR blunders of the auto industry executives' initial jet-setting appeal to Congress. In fact, the latest Washington Post-ABC News poll reveals, the conservative propaganda campaign against an auto bailout has even hoodwinked some union members: "Union households are no more apt than those without a union member to favor the plan, 44 percent compared with 42 percent. However, the union householders who support the plan are more likely to be strongly behind the bailout, " the Washington Post reports.

All this should serve as a wake-up call for all unions, the broader progressive movement and allied media outlets: Will they be able to launch a truly effective counterattack against the propaganda blitz, ads and misinformation spread by conservatives, corporate-funded front groups and the mainstream media? Meanwhile, right-wingers are using the bailout mess to lay the groundwork to defeat the Employee Free Choice Act (EFCA) needed to secure organizing rights and allow the American middle class to grow.

As Harley Shaiken and David Madland of the Center for American Progress observe, "Labor's decline squeezes the middle class, raises inequality, and undermines democratic values."

And that's apparently just fine with most Republicans and business leaders, who are gearing up for a large-scale, $120 million lobbying and PR war against union organizing. The centerpiece of their attack is the false claim that the bill would take away the secret ballot for workers, when it just offers them another option as well: majority sign-up through a "card check" procedure.

Indeed, the attacks against the UAW are not only a "dress rehearsal" for the fight against EFCA's organizing rights, as economist Mark Brenner of Labor Notes calls it, but part of a broader, longstanding pattern of weakened unions, three decades of stagnant real wages and corporate "wage theft" of owed money to workers that costs Americans billions each year.

As Kim Bobo, the executive director of Interfaith Worker Justice and author of Wage Theft in America, denounced the Republican attacks on the Web radio show I co-host: "It's despicable that they would use what's indeed a crisis in the industry to bash unions. Unions are both one of the best ways to get a middle-class job and one of the best vehicles for stopping and deterring wage theft," which robs millions of workers of owed salaries and overtime. "We need more unions in the society, not fewer," she declared.

She also pointed out at a recent event unveiling a new Center for American Progress report about failed Labor Department enforcement that there's an overlooked value to cracking down on corporations that allegedly break the law (including Federal Express): beefed-up enforcement and stiff corporate penalties could also help jump-start the economy by putting between $40 and $50 billion in stolen wages back in workers' pockets.

But the right-wing ideologues in the GOP who helped bring us the deregulation-fueled financial meltdown also worked to create a union-busting low-wage society where real wages have remained flat for decades, so too many low-wage workers were lured by predatory subprime loans. In December of last year, the AFL-CIO's Associate General Counel Damon Silvers presciently warned Congress:

The lack of effective regulation of mortgage markets has allowed these markets to be flooded with products that are misleading and exploitative, products marketed to tens of millions of Americans who work at low wage jobs or who have inadequate retirement income, so they are desperate for a financial short cut to either home ownership or adequate income.

That, in turn, led to phony investment vehicles built on these risky loans and a $7 trillion credit meltdown that helped bring low the auto industry. In other words, these anti-union, free-market zealots get us coming and going, and are still seeking to demonize unions, no matter how much such attacks pave the way for a weaker economy.

The Southern Republicans, such as Sen. Bob Corker (R-Tenn.), whose states have spent over $3 billion in incentives to lure non-union foreign firms, and their allies, are still peddling false claims designed to undermine the American auto industry and advance their anti-union agenda. These range from the mythical $70-an-hour autoworker pay to blaming the UAW as the primary culprit during the failed negotiations.

In fact, the UAW and Sen. Corker apparently worked out a tentative agreement that committed the UAW to achieving "competitive" labor costs when the contract expires in 2011 (not counting billions the union already gave up in concessions during the recent negotiations and in 2007 ) -- but the GOP Republican caucus torpedoed the deal.

So, as Ron Gettelfinger of the UAW pointed out in a news conference last week:

"It's just easy to take the union and blame us for everything. And as you can see, some of those in the Senate who were quick to scuttle this plan want to say that it's the fault of the UAW. All they want to do is say, wait a minute, workers shouldn't have a voice in their workplace. ... It's very clear that there are those who would do away with [unions] tonight."

The Republicans aimed, essentially, to set a union-busting precedent by having the government rip up an existing union contract and, apparently for the first time in American history, have the government mandate the specifics of a labor contract between a company and a union.

All this scheming went forward even though non-union Japanese automakers already pay their workers about the same as UAW members. New autoworkers get paid as little as $14 an hour, and even with pension and benefits calculated along with wages for today's workers, the difference between UAW and non-union workers is as little as $10 an hour.

UAW President Ron Gettelefinger proclaimed after the negotiations failed that he was concerned that he was being "set up" by Republicans because other stakeholders weren't asked to make sacrifices, and, he noted, " They thought perhaps they could have a twofer here maybe: Pierce the heart of organized labor while representing the foreign brands."

Indeed, labor costs account for only 10 percent of car manufacturers' expenses -- compared to salaries that make up over 60 percent of costs for leading Wall Street firms. They were given a no-strings-attached $700 billion giveaway of unmonitored bailout funds and federal guarantees.

Robert Kuttner of The American Prospect calls it aptly "the ultimate double standard" : for instance, look at the $45 billion forked over to Citigroup, coupled with $306 billion in guarantees, compared with the Congressional flaying of the UAW and the auto industry asking for a short-term "bridge" loan.

It's small wonder that Detroit Free Press columnist Mitch Albom denounced Republican Senators in harsh, emotional terms:

Do you want to watch us drown? Is that it? Do want to see the last gurgle of economic air spit from our lips? If so, senators, know this: You'll go down with us. America isn't America without an auto industry. You can argue whether $14 billion would have saved it, but you surely tried to kill it.

We have grease on our hands.

You have blood.

Kill the car, kill the country. History will show that when America was on its knees, a handful of lawmakers tried to cut off its feet. And blame the workers. How suddenly did the workers -- a small percentage of a car's cost -- become justification for crushing an industry? ...

And when did Detroit become the symbol of economic dysfunction? Are you kidding? Have you looked in the mirror lately, Washington?

In a world where banks hemorrhaged trillions in a high-priced gamble called credit derivative swaps that YOU failed to regulate, how on earth do WE need to be punished? In a bailout era where you shoveled billions, with no demands, to banks and financial firms, why do WE need to be schooled on how to run a business?...

At least in the auto industry, if folks don't like what you make, they don't have to buy it. In government, even your worst mistakes, we have to live with.

And now Detroit should die with this?...

There ought to be a law -- against the hypocrisy our government has demonstrated. The speed with which wheelbarrows of money were dumped on Wall Street versus the slow noose hung on the auto companies' necks is reprehensible. Some of those same banks we bailed out are now saying they won't extend credit to auto dealers. Wasn't that why we gave them the money? To loosen credit?

Where's your tight grip on those funds, senators? Where's your micromanaging of the wages in banking? Or do you just enjoy having your hands around blue-collared throats?

No matter what the president does, history will not forget this: At our nation's most uncertain hour, you senators stood ready to plunge hundreds of thousands of American families into oblivion. Leave them unemployed, with no health care, on public assistance. And you were willing to put our nation's security at risk -- by squashing the manufacturing base we must have in times of war.

And why? So you could stand on some phony principle? Crush a union? Play to your base? How is our nation better off today now that you kept $14 billion in the treasury? Are you going to balance the budget with that?

Don't make us laugh.

Kill the car, kill the country...

******************************
Art Levine co-hosts the "D'Antoni and Levine Show" with Huffington Post blogger and Portland broadcaster Tom D'Antoni every Thursday at 5:30 p.m., EST.

Comments

[Grit]

I was once contracted to Honeywell as a Engineer. Near the end of one quarter they laid off about 4000 Direct engineers in order to make their projected stock return. Then called all the remaining engineers into meetings and told them they were expected to work 10 % overtime to make up the man power short fall. As all the engineers were salary this would be free to the company. No Union. We did some figuring and and found that at a average income of 50k each, It would of been possible to retain all the engineers and hire a thousand or so more if the company had just laid off the CEO and maybe one or two of the top people under him. But the question is are the Republicans willing to destroy the economy to bust the UAW? Of Course. The Ideal social model as far as the Republicans are concerned is Mexico or China. Unions don't fit.

[ANGEL53545]

PROBLEM SOLVED INSTEAD OF CUTTING EMPLOYEE BENEFITS RAISE TARIFF OF TOYOTA AND HONDA TO MAKE UP THE DIFFERENCE. LOAN THE CAR COMPANIES 70 BILLION TO RETOOL ALL THEIRS PLANTS TO MAKE HYBREDS PART GASOLINE AND ELECTIC MOTORS. WE WOULD INCREASE MILE PER HOURS AND LOW EMISSIONS ALL THE CARS MADE TODAY CAN BE CONVERTED. PASS LAWS TO MANDATE 80% HYBRIDS MANUFACTURING IN USA BY 2013. WIN WIN FOR CAR COMPANIES AND TREE HUGGERS. PROBLEM SOLVED.

[kstuff]

Please, for the love of God, will somebody resolve this problem? Anyone? 3 million jobs are depending on it. Ok, it's got the full backing of Wall Street Hedge Fund Managers. Nuff said.

[windylindy]

It's very interesting all the talk about union worker wages; not a word is being said about the CEO's and their salaries and bonuses. Let's bring them in line with the foreign auto CEO's. The Bush-Cheney administration has been the worst in history...the sooner they are gone, the better and it probably won't be soon enough. They still have time to inflict much more damage to our country.

[cae973]

Americans stood together to vote for change and now it is time for all workers, union and those who wish to be unionized to stand together and march on Washington! The present administration has taken away enough of our rights and also taken away safety measures meant to protect workers...if we don't march now to demand our rights...god help us!

[MarxAlot]

... after the march, then what do we do?

I'm having marching fatigue... Marching doesn't put food on my plate or pay the bills.

Can I unionize against the union bosses?

[Quitcherbichin]

All you will accomplish with a march is wearing out shoe leather...but go ahead...I have stock in shoe companies...

[bobrobthomas]

Hi there from what used to be the industrial heartland. I am old enough to remember the Reagon Administration when International Harvester in my home town brought an avowed union buster Archie McCartal (sic) in to "break" the UAW. After a very nasty 18 month fight he finally "broke" the union contract by A) bankrupting IH and B) failing to fulfill contracts for farm equipment orders which were quickly and efficiently filled by John Deere (as a John Deere employee, I thank him.) Archie's "accomplishment" was no small task. IH, at the time was the second largest farm impliment producer in the world, the fourth largest producer of trucks and was virtually free of debt. In attempt to "tame" the unions a 150 year old member of the Dow 40 litterally committed suicide IN ONLY 18 MONTHS!!
Now, a bunch of galvanized dixiecrats what to do it all over again. I really feel sorry for the ignorant rednecks working for foriegn carmakers who are about two years away from minimum wage once the big three are broken. Kill the American middle class and there won't be a market for Japanese riceburners in America

[gaileeking]

Once again, Republicans are exploiting Americans" fears and ignorance (not stupidity--ignorance"there"s a difference). Of course the banking bailout passed! EVERYONE is impacted by the success of the banking system; if it fails, our very survival jeopardized. But not everyone realizes if our American auto-worker neighbor loses his job, everyone"s survival is threatened. And Republicans--through their truth twisting--masterfully drive wedges between you and your neighbor so you want to see him topple. As Obama said in "The Audacity of Hope"--(paraphrasing) "It's not the survival of unions that concerns me; it's the survival of people who comprise the unions." Not helping the auto industry--whose management has, without question, messed things up"is like punishing a child for his parents' transgressions. Why won"t "patriots" on the right support the auto bailout in order to help their fellow Americans? WWJD? He certainly wouldn't want three million people out of work not knowing where their family's next meal and health care are coming from! P.S. to workers in Southern foreign auto manufacturing plants....You're next! There will be a "domino effect." Don't be duped by your anti-organized-labor, support-foreign-auto-manufacturers-with-taxpayer-dollars-in-our-states-and-no-one-will-be-the-wiser Republican Congressmen! If the Big Three fail, dependent businesses will follow and impact your livelihood. It's like ecology--the interdependence of everything in our environment...oh, I forgot; most Republican elected officials' heads are in the sand on that, too....

[Quitcherbichin]

The unions were as complicient in the big 3 failures as was management. The auto makers problems did not just happen lately. Michigan's economy has been in the tank for several years. Mismanagement on the part of the companies, unions and the ineptitude of state government all contributed. Michigan now has the dubious honor of being the worst state in the union in which to do business.
The unions need to do a self evaluation and realize that they are a major contributing factor. Upwards of $70.00 per hour, including benefits, for putting on lug nuts is excessive. Anyone who doesn't believe that is not being honest. The unions were needed at one time and did a great service to the American worker. Their time is over. They are dinosaurs. Their purpose is nothing more than legalized extortion. Good riddance.

[Jp2]

Michigan's economy has been in the tank because of congress which over the last 25 years has basically sold out the american people with their free trade policies and corruption.Now the rest of the country is getting a taste of what michigan has been going through.WELCOME TO OUR WORLD! Let the auto companies go under and you'll get a lot better idea of what Michigan has endured.

[MarxAlot]

Anyone against free trade is a dinosaur. Protectionism is for neanderthals.

Does Jp2 stand for Jurassic Park 2 ?

[UKOH]

Did you not see the links in this article? The $70.00 per hour is a complete misrepresentation and even if the workers did their work for nothing it would save only about 5% of the cost of a car.

Let me repeat this for you, because you are obviously a very slow learner:

EVEN IF THE AUTO WORKERS WERE PAID NOTHING, $0, IT WOULD ONLY REDUCE THE COST OF A CAR BY 5%

I thought all you conservatives were about "small government" and "let the market decide". Well, in a pure market economy, the only weapon against exploitative management is organized labor. How do you justify government intervention to crush this component of a free market system?

Or should a market only be "free" to those who would exploit it for their own gain against the interests of the majority?

Shame on you!

[indy100]

Interesting name Quitcherbichin, since you seem to be another conservative who as usual is doing the most "bichin".....
Although I am opposed to a bailout for automakes without some serious strings attached, it is not for the "reasons" you state. Do unions need to do some revamping, probably. Are they the main reason behind the problem with the big 3 automakers, hardly. As with many other American corporations, including and especially banks, brokerage firms, insurance companies (who got massive bailouts) the big problem is the top-heavy, hightly overpaid, ineffecient, greedy and corrupt CEOs and others at the top. It's also making vehicles that are out of date by about 30 years. The time of the big bad-ass, gas guzzling, polluting junk that the big 3 produce has passed. They had YEARS to make changes and refused. Those decisions were not made by union workers, they were made by management.
Unions help to guarantee that not only union workers but non-union workers as well, make a LIVING wage, and receive benefits like health insurance. Your own benefits (assuming you work) are affected by the actions of unions and the salaries/benefits they receive. Quit buying into everything you hear on FAUX news.

[MarxAlot]

when was the last time anyone saw conservatives 'marching' on whatever to demand something... they don't do it because it's not very effective. Which is something the whiners out there should learn.

look:

GM sold 9+ million cars last year: 30+ billion in losses
Toyota sold 9+ million cars last year: 17+ billion in profits

Toyota doesn't have unions... I won't blame everything on the unions, but how else can you explain this discrepancy? How can you be competitive when you're paying a large portion of your workforce while they're not working? It's simple math... not ideology.

Even if you took out all of the disgusting salaries the CEOs make, and scrap the entire fleet of corporate jets... that wouldn't amount to a small fraction of what's being lost every year.

Go ahead and do those things for symbolic purposes... but if you don't address the underlying issue... they'll be back in 6 months begging for more money.

[Quitcherbichin]

Companies are in business to make a profit for their shareholders. In order to do that the company must offer a product that the consumer wants and will buy. The Big 3 did exactly what the free market system demanded. They produced a product that the consumer wanted and would buy. The consumers did not want, nor buy, cars the size of motorized roller skates. Therefore; automakers made what was profitable for them, their workers, and the shareholders. Hellloooo....that is the American way.

Let me repeat what I said before...upwards of $70.00 per hour, including benefits, to put on lug nuts is EXCESSIVE. Say what you will, that does not change that fact. That is why the majority of the working population has no sympathy for the UAW.

[jsgaetano]

Nothing in America will improve until conservatives are driven out of the public square.

Let them go back to their hate rallies and extremist churches and sulk.

[MarxAlot]

Yeah! let's put them in gulags.. Their ideas don't belong in the public square!

[moonwatcher]

I look forward to the end of the Bush Administration as well as most of the Republican Congress. They made a mess of the economy and our position in the world. The governor of Michigan said that Bush phoned her and said he would not let the Big Three go bankrupt. Since then he is dragging his feet just like he dragged his feet in helping people of New Orleans during the hurricane. A poll is no reason for Bush not to give aid to Detroit. We elect people to make these decisions. We should not be ruled by a poll.

[tililek]

Are any of these Republicans going to forego their annual salary increase due to the debt of the government? Or will they continue to receive cost-of-living increases that always seem to be more than those elders in social security receive?

Any takes on this bet. I believe they'll take as much as they can and will ask for additional sums as earmarks.

[VikingQuest]

What does that have to do with R or D?

They both spend like drunken sailors.

[DenaL]

Conservatives still aren't being accountable. Blaming unions is ridiculous, and I'm not overly fond of them. The blame is at the top of the US auto industry where decisions are made as to what to produce. No one can really expect the unions to give up more than they already have agreed to, just to get to the wage and benefit rate of the non-union southern auto-makers. GOP, you still don't get it.

[VikingQuest]

Conservatives didn't vote for bailout #1 . . . why should they vote for bailout #2?

[Articulator]

My understanding is that the Ford F-series has been the most purchased vehicle in the US for the last 25 years straight. In 2007, 3 or the 4 top sellers of vehicles in the US included GM, Ford and Chrysler. In 2007 the top 2 selling vehicles were the F-series and the Chevy Silverado. 2007 did see only 4 of the top 10 sellers as big 3 cars but 2006 did have 5 of the top 10 again including the top 2 spots.
Despite all the moaning about American cars it seems the big 3 are selling vehicles that the American public is buying. All manufacturers foreign and domestic have seen a big drop in sales.
Only those that voted Texas oil into the White House could have forseen the price of oil jumping as far as it did in such a short time. I am coming to the conclusion that there is a lot of "kill the unions" ideology in the enthusiasm to burn down the last base of manufacturing in America.

[realpolitic]

Conservatives will not rest until there are a few plutocrats with enormous wealth and legions of poor dregs in menial jobs with menial wages who are too tired after each day to demand any rights or representation in Washington. All their policies are geared toward creating a two-tiered society- one with total influence and access and the other with no expectation of it.

[MarxAlot]

keep believing that, realpolitic... Perhaps you should go learn a bit more about what conservatives want to do with society / government before uttering such nonsense...

ironically, you described Democrat aspirations... Look around the world... when has any left leaning government created the ideal situation for lower and middle classes???

talk about plutocracy... socialists own the very definition of it.

[Articulator]

This is delusional. It's Republican's that firmly believe that big Corporations and money barons will trickle down a few of their excess dollars to the hard working middle class. We've been doing that since Reagon and its not going in the right direction. The hard working middle class is getting crushed The truth is, allowing K-street to run govt has allowed every law to be skewed or manipulated to allow those with power and money maintain their grip on it. Earning it the old fashioned way by working is now nothing but a pipe dream. Just hire the lobbyists to set everything up and let the cash roll in.

[realpolitic]

Whatever the crisis, conservatives have the same enemies. It is either unions or the New York Times or the social safety net. If Republicans spent half the time coming up with solutions as they did blaming and trying to destroy their enemies, they will be a real political party and not just solely a reactionary element of society.

[MarxAlot]

... all the conservatives thank you for your insightful strategic advice.

please.

What have conservatives been trying to do since 1980? ... but come up with solutions to Democrat created problems?

As far as destroying enemies go... Dems win hands down. Ever hear of Robert Bork? Clarence Thomas? No Republican since McCarthy has done anything like what the Dems have done to those guys. And even McCarthy didn't go that far... Get your history straight.