It’s easy to blame pampered workers if you’ve never actually worked in an auto factory. Publicity pictures of auto factories are always gleamingly clean. Right. Walter Reuther, the legendary UAW head once called them “gold plaited sweatshops.” Not many are talking about the Big Three blunders in buying up the Saab, Fiat, Suzuki, Daewoo, Jaguar, Volvo, and Land Rover brands and or their adventures in the happy world of High Finance or their SUV mania.
Working people would have to be mad to sit by while auto workers are reduced to menial wages. This would force down every worker’s pay just at a time when the country needs increased spending to counteract the hoarding going on by the banks. This country is immensely rich with (apparently) unending credit from other countries. The money is there for another way.
That way wasn’t in view at the Congressional bail-out hearing. The hearings were a PR disaster for auto. People saw through the claims that prosperity for the car companies was just around the corner. They saw a bailout as only delaying the inevitable.
As far as I can see there are two paths. One is to be “realistic” and support the auto execs as they come up with a new plan, one with even more devastating cuts in worker pay and benefits. The other is to reorganize the industry from top to bottom as public enterprise. I’ve never worked in auto, but I offer these suggestions as a way to get auto workers and other interested people thinking about how a successful “Uncle Sam Motors” might be run.
1. GM., Ford and Chrysler would be merged into one company to be run as a car/bus/transportation business
2. Its cars would come with bumper to bumper warranties of 10 years (up from three years now) and become instantly competitive.
3. The government would provide high quality health care for all auto workers and auto worker retirees. It would be a model program, the prototype for single payer for everyone.
4. For at least a year there would be no layoffs of auto workers. Spread the work around. Let workers who are not producing cars use work time to figure out how to how to make better cars and vehicles. Send some of them full time to schools specializing in research and development.
5. Dump the current Boards of Directors and create a new one, 40% elected by production and white collar workers, another 20% chosen by environmental and consumer organizations, the rest chosen by the government. The company books would be open to the public.
6. Product lines would be reduced especially the macho gas guzzlers. The Hummer would be allowed to sink into the mud. The wasteful practice of making a new model each year would be ended. High mpg and pollution standards would be mandated.
7. The company would figure out ways to make buses that people would be enjoy taking, comfortable and secure with plenty of space for packages. The buses would be networked with smaller public vehicles, Segways, and any number of other transport options to bring people to and from their homes to bus routes.
8. Convert the excess plants in the auto parts sector to useful green jobs. As Diane Feely has pointed out axle plants can be converted to produce wind turbines, a product not currently made in the United States
9. Put a $200,000 cap on executive salaries. There are plenty of people who would work for that piddling salary if the current honchos can’t live on that amount.
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