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November 30, 2008 at 15:59:31
Promoted to Headline (H2) on 11/30/08: by Brasch Page 1 of 2 page(s) |
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My local newspaper editor, as he does regularly, once again attacked unions as the problem in America. This is the same editor who once said "all the laziest goof-offs and goldbricks in the newsroom" where he began his career were union officials—and that the unionized New York Times editorial writers are nothing more than "limousine liberals." For this most recent attack, two days after Thanksgiving, he combined the economy with what he believes are greedy unions. "[L]abor unions and their leaders are . . . distorting the truth about the American workplace," wrote the editor. First he set up Andy Stern, president of the Service Employees International Union, who said that "Tens of millions of Americans are working harder than ever just to stay afloat. The latest Census Bureau report shows that wages are dropping and more people lack health insurance . . . a greater percentage of the economy is going to profits than to wages." 
Then, he cut apart Stern's statement by gleefully citing data from the pro-business pro-management U.S. Chamber of Commerce. The Chamber said that wages, adjusted for inflation, for workers rose 30 percent from 1967 to 2007. Now, 30 percent seems good—unless you do the math. That's about three-quarters of one percent per year, far less than any executive compensation. The editor then added in about 30 percent for benefits. Of course, these benefits also include federally-mandated deductions, like social security, Medicare, and unemployment taxes.
As an afterthought, the editor claimed the "poverty rate dropped from 22.4 percent in 1959 to 12.5 percent in 2007," mysteriously trying to connect a reduced poverty level with reduced union influence. What he didn't point out was that 1959 was a recession year, and that between 2000 and 2007, according to the Census Bureau, the poverty rate actually increased from 11.3 percent to 12.5 percent. About 37.3 million Americans are living below the federal poverty level; about 40 percent of all Americans fell beneath the poverty line at least once in the past decade.
Sounding the alarm, the editor tied together Democrats and unions. "[T]he plight of the American worker will grow more dire in the new year, as Democrats push to pass their legislation. . . . The danger is that their union-friendly legislation will hurt rather than help the American economy." To wrap everything up, the editor of a newspaper with the median circulation of all dailies in America concluded by asking his readers to "consider the current state of the once mighty American auto industry, and ask yourself: What role did the powerful United Auto Workers play in its downfall?"
It's the workers—and those pesky liberal Democrats—who the editor blames for America's economic crises. Unfortunately, this editor isn't alone in his contempt for the workers.
Dozens of columnists and TV pundits spread the myth that the average auto worker at General Motors, Ford, and Chrysler earns $70 an hour—about $146,000 a year. That figure, supplied by executives at the Big Three, reflects every cost associated with labor, including "legacy costs," which are are costs of pensions and health benefits for retired workers. Thus, the automakers added up every conceivable cost and divided it by hours worked (pensioners, of course, don't work) to get the inflated numbers. The reality is that the average UAW member earns about $28 an hour, about $58,000 a year, according to the impartial Center for Automotive Research. What the news media fail to report is that the UAW made significant concessions over the years, including wage cut-backs at Chrysler and a 2007 contract for all three auto makers that created a "second tier" wage level of $14.50–$16.23 per hour ($30,160–$33,758 per year, still below U.S. average wage of $40.405, according to the Census Bureau), reduced benefits, and a retirement plan now administered by the UAW not the Big Three.
Others who attack organized labor claim that UAW worker earn far more an hour than their counterparts at non-American non-unionized auto manufacturers in the U.S., and that's a reason why the Big Three are failing. However, the reality is that the average wage at the international automakers is estimated at $24–$25 an hour, less than a $3 differential an hour for UAW first tier workers, according to Jonathan Cohn in The New Republic. Even the most casual observer understands that it costs more to live in the Detroit area than the rural areas where foreign auto makers established their plants.
In contrast to the concessions given up by the workers, Big Three executives still earn multi-million dollar incomes. Alan Mulally at Ford earned $2 million last year, plus additional compensation totaling about $21.7 million, according to the Securities and Exchange Commission. Ford lost $2.72 billion last year. At GM, Rick Wagoner earned $15.7 million last year, according to the Wall Street Journal, while his company lost $38.7 billion. Chrysler's Robert Nardelli earned $1 in salary last year, but has significant compensation package that is not publicly disclosed. Chrysler lost about $2.9 billion last year.
But, much of the media and the American public still blame workers and liberal Democrats who are favorable to the union movement for the economic crisis that led the Big Three to rev up their corporate jets and descend upon Congress to beg for a $25 billion taxpayer-funded bailout.
Are the workers and those liberal Democrats to blame for car sales being down 45 percent in October for GM, 35 percent for Chrysler, and 30 percent for Ford from a year ago?
Are they to blame for the auto industry going for the quick profit by pushing gas-guzzling minivans, SUVs, and trucks, while foreign automakers began looking at more energy-efficient cars?
Are they to blame that demand for autos has fallen off because Americans were unable to get financing in an economic crisis caused by greed of investment companies, banks, and almost every corporation that issues public stock?
Are they to blame for the auto industry executives opposing public transportation and alternative energy cars?
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| 16 comments |
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The Media Car Know Better
Shouldn't it read The Media Aught To Know Better? I don't even want to read the rest. by Darren Wolfe (15 articles, 400 quicklinks, 141 diaries, 1031 comments [84 recommended, 0 rejected]) on Sunday, Nov 30, 2008 at 4:38:34 PM  (0+)
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Reply: do you know humor? irony?
sorry you don't want to read the rest of the article. Since the story is about the auto industry and unions, the title (with "AUTO") seems a bit appropriate. by Brasch (87 articles, 0 quicklinks, 0 diaries, 70 comments) on Sunday, Nov 30, 2008 at 5:19:10 PM (0+)
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Reply: I see what you're getting at.
I mean no offense but it just seems silly not funny. by Darren Wolfe (15 articles, 400 quicklinks, 141 diaries, 1031 comments [84 recommended, 0 rejected]) on Sunday, Nov 30, 2008 at 6:21:58 PM (0+)
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Media, Management and Money
Corporate run media that spins every story in favor of big business and against the common good, Management by spreadsheet that focuses on the bottom line and does it without any visibility from the public and the Greed factor fueled by the money the ownership class and the corrupt CEO's rake in and stuff in their pockets are to blame for killing the auto industry and the manufacturing sector. Many of these "anti-union" "anti-human" singular corporate focused "greed is good" types are blind to the fact that running a country by the singular focus on the bottom line numbers means that millions ultimately suffer. They are the ones that have told us for a decade that the new jobs in the "service" sector have offset the losses in the manufacturing sector. These new "service" sector jobs are largely made up of financial services and wait staff in low end restaurant jobs. The United States is rapidly becoming a third world country and the middle class is becoming poorer by the day. Henry Ford understood that if were going to be able to sell his cars to more people, they would have to be able to afford to buy them and so he paid his workers more. Many credit him with creating the American Middle class. American business should take a lesson from him. Globalization as defined by corporate America is horrible for the average person and will send all of us to the poor house. by August Adams (11 articles, 0 quicklinks, 1 diaries, 584 comments [11 recommended, 0 rejected]) on Sunday, Nov 30, 2008 at 4:46:48 PM (0+)
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typical dimwitted left-wing claptrap
Unions are nothing but cartels that stifle innovation, competition and growth. There's no argument that management of the Detroit Three has long been incompetent. Among its biggest failings is kow-towing to the UAW and failing to break its back once and for all. by Mr Stq (0 articles, 0 quicklinks, 0 diaries, 37 comments [1 recommended, 0 rejected]) on Sunday, Nov 30, 2008 at 6:24:04 PM (0+)
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Reply: response
And you got your information from - - where? Research? Personal interviews with workers and management? Analysis of critical and inm-depth articles? Talk show pundits?? It is obvious you are anti-union, which also makes you anti-worker. Do you realize that without a strong work force, with workers getting good pay and benefits, product output is less. And since these workers do heavy work, often very skilled labor, it seems that a decent pay and benefits is important -- especially when you realize tghe amount of money mid- and upper-level management make. by Brasch (87 articles, 0 quicklinks, 0 diaries, 70 comments) on Monday, Dec 1, 2008 at 4:55:52 AM (0+)
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Re: Unions
The whole economy is falling into destruction and yet union membership has declined drastically. Could there actually be a connection between good paying jobs and a healthy economy?Of course, and that is the trickle up that we need right now. But since the path is toward fascist globalization the true source of the problem will not be discussed. Since the American economic engine has fueled the world, the destruction of that engine means a catastrophe for the world. Strong Unions with all American workers as members would go a long way toward alleviating our present problems. There would be a real counterforce to corporatism and there would be a movement toward humane working conditions and a living wage. The people would be much happier, have extra money, and be in the mood to spend and promote the world's economy. The banksters would have to face politicians and people with power to counteract the grand theft we see today. A win/win for almost everyone except the tiny fraction that runs the country and much of the world. by Grant Lawrence (97 articles, 100 quicklinks, 45 diaries, 296 comments [12 recommended, 0 rejected]) on Sunday, Nov 30, 2008 at 6:29:08 PM (0+)
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Re: Unions
The whole economy is falling into destruction and yet union membership has declined drastically. Could there actually be a connection between good paying jobs and a healthy economy?Of course, and that is the trickle up that we need right now. But since the path is toward fascist globalization the true source of the problem will not be discussed. Since the American economic engine has fueled the world, the destruction of that engine means a catastrophe for the world. Strong Unions with all American workers as members would go a long way toward alleviating our present problems. There would be a real counterforce to corporatism and there would be a movement toward humane working conditions and a living wage. The people would be much happier, have extra money, and be in the mood to spend and promote the world's economy. The banksters would have to face politicians and people with power to counteract the grand theft we see today. A win/win for almost everyone except the tiny fraction that runs the country and much of the world. by Grant Lawrence (97 articles, 100 quicklinks, 45 diaries, 296 comments [12 recommended, 0 rejected]) on Sunday, Nov 30, 2008 at 6:29:25 PM (0+)
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Nice Article
I liked the title. Yes the media serves it's corporate overlords well. Based on MSM content, we should all be aspiring to work for third world wages and pay first world prices. Don't piss on my neck and tell me it is raining. by kato krause (2 articles, 0 quicklinks, 3 diaries, 216 comments [1 recommended, 0 rejected]) on Sunday, Nov 30, 2008 at 6:31:35 PM (0+)
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Additional crimes of our government.
The government artificially keeps the "official " cost of living below its real costs. Therefore, the amount of money the auto companies need to fund their contracted pension funds are billions of dollars greater. This money could have gone for R & D to streamline production, or build new model cars with fuel efficiencient features. We get stiffed by them being forced to put the money in non-investment of plant and training. The result is they faced competition from companies without this defined benefit plan. America, meaning our workers, our contractors, our suppliers now have suffered irreparable harm . But, our government was able to borrow cheap money to put into the war machines and boondoggle local bridges to nowhere. Oliver J. Dragon by oliver j dragon (0 articles, 0 quicklinks, 0 diaries, 19 comments) on Monday, Dec 1, 2008 at 9:28:10 AM (0+)
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Yea but is this comparison valid?
I understand the labor cost argument that makes the $73.20 per hour statement misleading. But are you disputing that Toyota's average labor cost of $48 per hour is also misleading somehow? If the average labor cost of your competitor is two thirds of what your company is paying, you are not going to be around very long. Just ask Eastern Airlines. I would be interested in an analysis of why the chart shown here is misleading. If it is not, then it seems to me criticism that the US automaker's labor costs are out of whack stands. by John F Howes CPA (1 articles, 0 quicklinks, 1 diaries, 28 comments [1 recommended, 0 rejected]) on Monday, Dec 1, 2008 at 10:33:35 AM (0+)
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Great article - loved the title
It is so funny how we often get critiques on our flashes of brilliance. Sometime it is jealousy, sometimes it is people who just don't get our brilliance.I got the "auto" joke right away, and it drew me to this article. ;) I think we need more and stronger unions. But, also, I think that there should be parallel movements (as there are) to keep unions democratic. Anything that gets big can get out of control. Would love to have positive comments on unions over at our recent blog post on the Wal Mart situation. We have gotten a lot of the negative stuff, and we are not skilled enough on the topic to defend it point by point. -Kimberly Wilder www dot onthewilderside dot net by 2kiwipress (6 articles, 0 quicklinks, 0 diaries, 23 comments) on Monday, Dec 1, 2008 at 10:56:50 AM (0+)
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Good insight
Thanks Mr. Brasch for clarifying the $75/hr stuff that you read every day. I have been a small business owner for over 45 years and have had nothing to do with unions. My son-in-law however, is a pipe fitter that works the Alaska Pipe Line and I have never known anyone that is more particular about his work----any work than he is. He has worked over the last 30 years, Nuke plants, Defense plants, sky scrapers, and yes the pipe line. Nothing unusual about his 7/12's and 80 below, whiteouts, and if I had to pick a craftsman---he would be it. I also built houses for 15 years and the type of labor many times was very poor and not the people i would want to see working a nuke plant. It is the management that brought the big 3 to where they are and it should be management that pays the piper. by virginius "gin" arnold (18 articles, 7 quicklinks, 47 diaries, 516 comments [22 recommended, 0 rejected]) on Monday, Dec 1, 2008 at 12:52:59 PM (0+)
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Reply: Good article Mr. Brasch
I'm listening to your interview on the Thom Hartmann show right now on Air American Radio. Kudos to you getting national attention for a well written article. by E. Nelson (40 articles, 8 quicklinks, 26 diaries, 511 comments [57 recommended, 2 rejected]) on Monday, Dec 1, 2008 at 3:15:44 PM (0+)
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How
Good Article. Its been clear to me for years that the breaking of Unions while speaking of smaller gvts is insane. Its the Unions that have gotten us pensions, along with health care for their memembers... which in itself should show how it helps workers in an Honest 21st Century wage. If you like the metality of the robber barron who said, "I treat my workers like they are machines. And when they are old and sick I throw them out in the street." That is what the smaller govt talk from the right still care's for. by Michael Dewey (5 articles, 1 quicklinks, 4 diaries, 245 comments [12 recommended, 0 rejected]) on Monday, Dec 1, 2008 at 10:15:13 PM (0+)
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The "News" Media and Most of our Educational System are
controlled by the same people who have purposefully caused the economic crisis. The benefits provided by unions giving employees some competitive bargaining power resulted in a dramatic improvement in the American standard of living, and as unions have declined, mainly due to our rulers’ policies favoring "free" trade, the American standard of living has fallen. Of course, that is our rulers’ plan. For more about "free" trade, see The Yes Men. It’s available at Blockbuster. To learn how effective our education monopoly has been at eliminating knowledge about how our Nation was intended to function, see Rady Ananda’s article 74 Percent of Elected Officials Fail Civic Literacy Test To learn more about how our rights to control our government have been undermined, see Senate Bailout a.k.a. Bank Robbery Bill and make sure that you read the first comment to it. For more on our rulers' plans, see If I were a Terrorist If you think that we still have the power to control our government through elections, ask yourself whether you would trust anyone to count our votes in secret, and then see what has happened now that our votes are counted in secret by reading Have American Elections Really Been Stolen? Part 1 in the "Democracy" in America Series – The Proof It was a Top Scoop on Scoop for several days. See it at http://www.scoop.co.nz/stories/HL0810/S00428.htm If anyone thinks that our government still follows the rule of law or that it wouldn’t cover up election fraud, see Would Congressional Democrats Cover Up Neo-Con Election Fraud? Part 2 in the "Democracy" in America Series – No Way, Right?!?! This article was also a Top Scoop on Scoop for several days. See it at http://www.scoop.co.nz/stories/HL0811/S00030.htm Finally, yes, Virginia, secret vote counting is not only inherently dangerous, it's unconstitutional, too! See, Virginia’s Elections Are UNCONSTITUTIONAL?!?! If you want to help stop election fraud, get involved and support Election Defense Alliance and Project Vote Count. If you want to help stop injustice, see POPULAR and help it tear down the wall of poverty by signing its petition at http://www.ipetitions.com/petition/popular4people?e by Mark Adams (20 articles, 0 quicklinks, 0 diaries, 312 comments [39 recommended, 0 rejected]) on Wednesday, Dec 3, 2008 at 9:51:33 AM (0+)
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