Friday the 13th and I am Scared

The conversation began with a discussion of Ron Paul's latest affiliation. As is often the case, a sub-topic took over and we began to discuss political perspectives of the "media." A friend countered: "I will admit that from my political perspective here on the left coast, the [New York] Times and [Washington] Post seem pretty reasonable and it’s the FOX and other Murdock-controlled types of media that is scary."

And I added: I know that this may surprise some but I agree. However, for me, the baseless inflammatory rhetoric, the racist underpinnings, the fear mongering lies, the non-compromising political extortions, the preference for oligarchical sustainment, the defense of extreme wealth inequality over liberty, the ideological purity demanded, the narrowing of constitutional rights, the duplicitous propaganda concealing political agendas, and the exaltation of unbridled selfishness of and by the Republican Party, its backers, promoters, and the "tea" swallowing, flag wearing fellow travelers who, at best, know neither history nor reality, scare the hell out of me and, in all honesty, deeply anger me.

The America they represent to me is a mockery of a democracy which was to evolve from our declaration of an endowment of life, liberty and the pursuit of happiness. Capitalism is merely the carriage of economic progress. It must not form the engine of democracy. Most of us teach our children that capital will provide a measure of sustenance and goods but it will not provide character. So should it be with this evolving nation.

A letter to a friend: Unions

I have not been watching the auto industry issues very closely but I am concerned about some of what I read. My mother and father were both union members and often the best Christmas gift I received as a child was from the union. Having been raised in Chicago, I remember well the stories of the violence against union organizing in the early twentieth century. The unions made the difference between a living wage and basically indentured servitude. I remember my mother speaking of the difference in wages after her laundry unionized. I think her wage for hand pressing and folding a shirt went up to about .03 cents a shirt. She was 15. My dad worked for US Steel at its mill in South Chicago and, though wages were a continuing issue, safety concerns were paramount. Most importantly in each situation there was a structure that spoke for the workers. Prior to that, to speak up about conditions would cost a worker a job or a beating. To be sure, if one survived the career in the mill or sweat shops, the companies ultimately provided retirement and health benefits. A situation not unlike the Armed Services though each time a union contract came up for renewal all benefits and wage amounts were up for renegotiation. In my parent's situation, the contract that he was under from US Steel called for all benefits to end upon his death. So my mother lost all health benefits when he died. Other workers under different contracts may not have had their elderly spouses abandoned. Remember, in that generation most women were housewives.

The point, it seems to me, is that contracts for future benefits were always subject to market forces. The retirees now benefiting from contracts entered into years ago are in that situation because of the give and take of market power and negotiation. These were not the result of largess on the part of the companies or extortion of the workers.

The disparity between UAW wages in the North and foreign companies in the Southern states comes from market forces and, I expect, from the lack of unions in Southern states. As an attorney in private practice here in Richmond I saw first hand the substantial and heavily moneyed effort to keep unions out. I represented the companies. It seems to me that there is little difference in the actual wages paid whether North or South. [see the articles below] This lack of disparity is due in part to the existing market situation of higher existing UAW wages. Otherwise, I am confident that Toyota to South Carolina would be paying close to Mexican wage scales. Further, the plants in the South are relatively new and accordingly do not have added weight of existing, negotiated benefits for retirees and current employees.

Our country has come a long way with established safety regulations and so that effort on the part of unions need not be as needed or confrontational. But laborers have value in a capitalist system. The most effective way to insure a correct value for labor is by matching the power of the corporate structure against a unified, labor structure. There is no compassion in capitalism. Our country has dramatically moved away from employer health and retirement benefits. We are now in the transitional period when substitutes for employer programs and even social security are developing daily.

The bottom line for me is that the auto industry, as with American manufacturing, is not failing because of labor costs. The paradigm has changed. The globalization of United States corporations attracted by exceptionally cheap labor overseas is merely the logical extension of capitalism. Corporations are not good citizens. They have no patriotism. American labor can perform as well or better than any other national group. Maybe they just have to accept wages comparable to those in a village outside Ho Chi Minh City or wait for those villagers to organize for appropriate wages and benefits.

http://www.uaw.org/barg/07fact/fact02.php

http://www.heritage.org/research/economy/wm2162.cfm

http://bigthreeauto.procon.org/viewadditionalresource.asp?resourceID=2050