Sunday, February 23, 2014

The Cruel and Shameless Ideology of Corporatism

From Common Dreams:  http://www.commondreams.org/view/2014/02/22

by Ralph Nader


Like ravenous beasts of prey attacking a weakened antelope, the forces of subsidized capital and their mercenaries sunk their fangs into the United Auto Workers (UAW) and its organizing drive at the Volkswagen factory in Chattanooga, Tennessee. The UAW narrowly lost – 712 to 626 – and the baying pack of plutocrats exalted, as if they had just saved western civilization in the anti-union, lower-wage South.

The days preceding the vote were a corporatist frenzy with corporatist predators bellowing ‘the sky is falling.’ VW, which sensibly stayed neutral, but privately supported the UAW’s efforts and its collateral “works councils” (an arrangement that had stabilized and made their unionized, higher-paid workers in Germany more productive), must have wondered on what planet they had landed.

First out of the growling caves were the supine politicians, who always offer those proposing a factory big taxpayer subsidized bucks to bring crony capitalism to their region. Senator Bob Corker (R-TN) who, without citing his source, warned “I’ve had conversations today and based on those am assured that, should the workers vote against the UAW, Volkswagen will announce in the coming weeks that it will manufacture its new mid-size SUV here in Chattanooga.” VW immediately denied that cause and effect claim.

No matter, Senator Corker then assailed the UAW and its negotiated wages and work rules for bringing down Detroit, along with the Big Three Auto Companies – GM, Ford and Chrysler. That’s strange because for decades the UAW lifted up industrial labor while the auto companies made record profits. Apart from the mistake the UAW made years ago when they sided with the auto bosses in lobbying in Congress against fuel efficiency standards, which would have made domestically produced vehicles more competitive with foreign imports, the responsibility for the auto industry’s collapse lies with management. It was all about “product, product, product,” as the auto writers say, and Detroit’s products fell behind the Japanese and German vehicles. The J.D. Power ratings, year after year, had U.S. cars bringing up the rear. The foreign car companies rated higher on fit and finish, other quality controls and fuel efficiency, while, as one former Chrysler executive told me about his industry, “We were producing junk.”

Add these losses of sales to the speculative binge of the auto companies’ finance subsidiaries, like Ally Financial Inc., previously known as General Motors Acceptance Corporation, which got itself caught in the huge Wall Street downdraft in 2008-2009. The result was that the auto giants rushed to demand a huge taxpayer bailout from Washington, which they were given.

Continue reading at:  http://www.commondreams.org/view/2014/02/22

No comments: