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Auto bailout provides pretext for assault on US workers

by wsws (reposted)
The events of the past few days have made clear that a proposed $25 billion bailout of the US Big Three auto companies is being used to intensify the ruling class offensive against auto workers and the American working class as a whole.
In an entirely cynical manner, the media and politicians of both parties are issuing pseudo-populist denunciations of General Motors, Ford and Chrysler while seizing on the near-collapse of the companies as an opening to rip up union contracts and destroy workers' pensions, health benefits, wages and working conditions. This is to be the centerpiece of a ruthless restructuring of the industry, involving the closure of more factories and the destruction of tens of thousands more jobs. The aim is to provide, in the form of a far smaller and more highly exploitative industry, a source of profitable investment for Wall Street bankers and speculators.

The destruction of auto jobs and gutting of all that remains of the gains won by generations of auto workers since the mass sit-down strikes of the 1930s will be used as a precedent for similar attacks on workers in every sector of the economy and every part of the country. As with the Chrysler bailout of 1979-80, but on a far broader and even more brutal scale, mass unemployment will be used as a weapon to bludgeon the working class.

Whether through the bankruptcy courts or a bailout bill conditioned on unprecedented concessions—which the United Auto Workers (UAW) will accept and help impose—the workers are to be forced to labor for near-poverty wages and be stripped of basic health and retirement benefits.

More
http://wsws.org/articles/2008/nov2008/pers-n21.shtml
§The Jurassic Auto and Idea Park
by CounterPunch (reposted)
It's unfair to call the US auto industry dinosaurs, as some now do. It's certainly unfair to the dinosaurs. The 'Terrible Lizards' did not lay the basis for their own extinction or that of myriad other species. The original dinosaurs (who scientists now tell us were neither all that terrible nor lizards), were great examples of success and adaptation, good enough to rule the planet for 150 million years. The US auto industry is the opposite. It's not just that the Terrible Metal Lizards opposed fuel efficiency standards. Of course, they did. They also promoted gas-guzzling SUVs as a lifestyle must. They cranked out cars many did not want to buy. They wielded heavy clout in Congress, and were able to sponge off public funds in the name of saving jobs as they have yet again. Having received $ 25 billion earlier, their hats are in their outstretched hands again.

But that's the easy part. There's a lot more they did, as a major sector of industry - and as part of the larger corporate world of the United States. Over decades, they destroyed both existing and potential public transport. The 'American Dream' so far as the automobile went, was an imposed nightmare. In Detroit itself, you can see the skeletons of a once-alive transport system. All across the country, for decades from the 1920s, they bought up public transport systems and shut them down.

Trains were shifted from electric to diesel engines. Sometimes, they were simply done away with and replaced by buses and then cars. Together with Big Oil, Big Auto converted electric transit systems to fuel-based bus systems. In one estimate: In 1935, electric train engines outnumbered diesel train engines 7 to 1. "By 1970, diesel train engines outnumbered electric ones 100 to 1. And GM made 60 per cent of the diesel locomotives." The electric rail system in and around Los Angeles was almost erased.

Fostering the cult of the individual-owned automobile was a major goal. By 2001, that goal was achieved, beyond belief. Some 90 per cent of Americans drove to work by that year. The findings of the 2001 National Household Travel Survey are striking. Only 8 per cent households reported not having a vehicle available for regular use. The survey showed that "that daily travel in the United States totalled about 4 trillion miles, an average of 14,500 miles per person." Trips by transit and by school bus each made up just 2 per cent of daily trips taken in 2001.

Not just a cult but a culture grew around the Metal Lizards and fossil fuels. Even an economy that goes to war to deal with perceived threats to Oil. (As Robert Fisk often asks: Would there have been a war in Iraq If Iraq's national product had been asparagus?) Again together with Big Oil, Big Auto for decades crushed all serious moves towards cleaner energy sources.

More
http://counterpunch.org/sainath11202008.html
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Comments (Hide Comments)
by John D. Froelich
Whatever else, the Detroit Three must get their cost structures to a fairly competitive level. Forget the blame, that's the result needed.
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